The Top 2022 IT Outsourcing Trends You Need to Know

IT outsourcing has gone through a massive transformation since the beginning of the pandemic. Businesses have experienced massive interruptions and even lost out on operational efficiency.

As a result, IT outsourcing trends have also gone through massive changes. The future looks bright, and we are expecting pretty exciting things for 2020.

Moreover, businesses have also increased their IT outsourcing budgets. From 12.7% in 2019 to 13.6% in 2020, the increase in outsourcing budgets is quite significant- just like the trends for 2020.

Here is what you can look forward to in the coming days.

Small Businesses Join the Outsourcing League

IT outsourcing was thought to be the secret to success only for big businesses and enterprises. Small businesses seldom gave a thought to outsourcing due to several barriers.

However, things have changed drastically in 2022. A survey shows 80% of small businesses thought of outsourcing in 2021 and are thinking on the same lines.

So, we can expect more small-time entrepreneurs to outsource their operations or development. It can open a new horizon for the outsourcing industry and give rise to endless possibilities.

For example, small businesses will now be able to compete with top names in the industry. The growth of demand for outsourcing can also create a more competitive market and affordable prices.

Outsourcing of Specific Roles

Many organizations don’t like to outsource as they fear losing control. Additionally, many businesses weren’t ready to trust a third party in fear of idea theft.

However, the mindset has changed to some degree. People are now more open to outsourcing as COVID-19 has put them in a difficult position. They are no longer able to hire entire teams on full-time contracts due to rising costs and demand for professionals.

Moreover, a large chunk of employees now prefers to work from home. They are not ready to come to the office or stay restricted to a specific location.

As a result, businesses are outsourcing specific responsibilities to save costs and stay within budget. For example, they are hiring a remote JavaScript developer and outsourcing front-end development.

We can expect the trend to continue in the coming days.

The Rise of New Outsourcing Destinations

The USA was thought to be the leading destination for anything to do with IT. In recent years, countries like India and China have come up as affordable IT outsourcing destinations.

However, the trend is undergoing a change with the introduction of newer outsourcing locations. For example, many businesses are choosing to outsource to agencies located in Eastern Europe.

Why?

Regions such as Western Europe and places like Kyiv are home to expert developers and IT talents. The countries here produce batches of software engineers and professionals every year.

On top of that, the cost of living in Western Europe is pretty affordable. Therefore, businesses can access leading IT talents and enjoy more affordable rates.

As a result, newer regions will come up as the best outsourcing destinations in 2022.

Final Thoughts

IT outsourcing trends are changing fast and will lead to a new horizon in 2022. We are experiencing an increased interest in remote work and the outsourcing of specific roles. 

In addition, smaller companies are opting to outsource their operations or projects to reduce costs and enjoy more operational efficiency.