IT outsourcing is more than just cost reduction which explains why it is in high demand. With the increase in options for cloud developments, outsourcing is more common than you think. In addition, this type of service expands to various markets. From the health area to banking, there are many sectors that are committed to outsourcing.

Faced with this scenario, many changes have been generated in the behavior of the demand for IT outsourcing. If you want to know about the fields that are seeking the most for this service and the reasons, just keep reading the following Tecnova article.

IT Outsourcing Demand: What the Figures Say

The value of outsourcing grows every year. This is shown by the figures. The report “Global IT outsourcing market 2020-2025: Research and Market growth, trends and infrastructure, sheds light on this. In fact, they indicate that “the global IT outsourcing market was valued at USD 333.7 billion in 2019. Furthermore, it is expected to reach USD 397.6 billion by 2025.”

According to the same report, digital transformation has caused organizations to require more computer systems. This implies that having a good development in IT, “becomes a key competitive advantage for most of the organization”.

The COVID-19 pandemic generates “the need to work from home. There IT service providers must deliver all the tools and technologies necessary for the job. In this way, its clients with critical responsibilities will carry out their tasks with the speed, safety, quality and efficiency that the services must provide”, the report indicates. In those cases, it is where a good IT outsourcing service is in high demand.

Areas or items that most demand IT outsourcing

According to the “IT Outsourcing Statistics 2019/2020” report by Computer Economics, the following sectors are the most outsourcing software development tasks:

• The financial sector. This is the main client with 73% of recruitment.
• Manufacturers are the second to delegate application development work to outside contractors (71%).
• With a 50% rate, retail and wholesale distribution companies.
• The health sector – with 33% – closes the list of the main sectors that outsource activities.

IT service providers help companies achieve a number of goals. For example, optimizing enterprise resource planning with an ERP system, automating sales activities using CRM, ensuring data security with blockchain, or migrating from a company’s outdated technology to reduce infrastructure costs and increase scalability.

What drives demand for IT Outsourcing?: What companies are looking for

According to Geek Culture, the following are the reasons driving the demand for IT outsourcing. Let’s review some of them.

Profitability and quality

While cost savings are still the main reason companies demand IT outsourcing, quality and technical competence are equally important. Companies have used outsourcing to reduce their overall labor costs. This includes salaries, insurance, tools and technology.

However, a new trend in IT outsourcing is now emerging, emphasizing quality results. As competition among IT outsourcing companies increases, the quality of services provided increases as well. Companies are increasingly hiring expensive IT consultants. They also opt for trained IT professionals from abroad.

Globalization

With pure telecommuting, COVID -19 eliminated borders. It accelerated the trend of globalization and cultural diversification that began several years ago. Even in the post-crisis world, companies will continue to recruit the best people from around the world.

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