Critical Trends in IT Outsourcing Going Into 2020

Mar 2


Olivia Cuthbert

Olivia Cuthbert

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Outsourcing started a few years ago, but now it is much stronger and more diverse. No matter what variety of businesses you run, modern outsourcing solutions can help make your work more productive, efficient, and profitable. These IT outsourcing trend predictions for 2021 will help businesses better understand outsourcing. Digital transformation will be a trend, and the market will continue to grow. Businesses are looking for reliable outsourcing partners to provide them with a broader range of services. They will prove to be the right partner for digital transformation in 2020.


1) Strategic Partnerships

Finding a reliable outsourcing development company can be a daunting task.

However,Critical Trends in IT Outsourcing Going Into 2020 Articles companies are now focusing on outsourcing to a single contractor as it is difficult to manage different outsourcers.

It is, therefore, up to them to identify and mitigate the risks associated with outsourcing. Contractors will be looking to establish partnership relationships in the future. They will also consider how offshore companies can contribute to innovation in future projects.

The relationship between companies and IT outsourcing companies will become more reliable.

Besides, owners will no longer distinguish between essential and non-essential tasks and will outsource all time-consuming work.

They will cover all types of tasks that lead to results and success.

2) More flexible outsourcing companies

Both the nature and the expectations of developers and offshore companies will change. They want companies to become more flexible in various respects. 

First of all, they expect the company to go up and down as required.

Offshore companies will now restructure their teams to become more agile and get results faster. 

Secondly, owners of start-ups or established companies will be willing to work with companies that accept and adapt quickly to their business ethics.

They will appreciate that offshore companies fit into their business and feel part of the existing internal team. 

Third and finally, modern companies are looking for innovation. They expect IT, specialists, in another geographical location to use the latest technology as required.

Similarly, those companies are prepared to invest in retraining the workforce when necessary. 


3) Contract changes 

Clients and subcontractors agree that it is easier to measure the subcontracting relationship's success by using a desirable outcome. The focus is on quality results following the requirements of the contract and the expected levels of performance.

Both parties agree on a mutual understanding of risk-sharing, as they simultaneously bear the burden of incidents or the myriad of benefits.

Outsourcing is becoming a more collaborative practice. Also, procurement will play a vital role in the contract.

So, if you want to work with a large company, you need to know about procurement services. This ultimately leads to a win-win situation.


4) Give priority to process over price. 

By 2020, companies and outsourcing companies will focus on results. 89% of companies believe this.

In the past, outsourcing relationships were driven solely by price. This trend is now changing over time. The focus is on the development process.

It brings together different companies from all over the world. Today, outsourcing companies focus on attitude and way of working. They focus on the process and the developers involved. 


5) Adoption of Agile development.

71% of companies have already adopted the Agile method for business management and daily operations.

Companies have understood the value of agile project management and are now striving to adopt the same software development practices.

As a result, companies are looking for experienced offshoring companies that use established Agile practices and are willing to share their knowledge with their customers. 

This is one of the most common trends in business process outsourcing in 2020; why? Remote organizations will be small and flexible, and the focus will be on subject matter experts rather than functional requirements.

Agile management practices will discuss with customers to ensure ownership. 

Business owners will seek to partner withdevelopment teams experienced in creating agile processes from start to finish with the management system. 


6) Mobile development first.

 Between 2017 and 2022, the number of mobile phone users is expected to increase 17-fold. Today, mobile phone users account for more than half of online traffic, while desktop traffic may soon be a minority.

Companies should abandon the "desktop first" approach and start digitizing by creating a mobile application and a web version.

Applications such as Uber and Snapchat have already adopted mobile solutions and have been in vogue since they started using mobile solutions.

Companies cannot compete without an active mobile version. Users find no distinction between the desktop and mobile experience.

If you performed to have a reactive mobile application, it's time to turn to the outsourcing partner who can help you follow the outsourcing industry trends faster. 


7) Wide range of outsourcing services

Outsourcing mainly concerns small operational tasks. In 2020, this trend will change further as companies start to outsource their high-end critical processes.

Companies that outsource their solutions are working hard to offer more stability and security. Companies that outsource become more reliable by providing critical functions that give them a competitive advantage.


8) Change is needed

 Companies looking for IT outsourcing companies are in constant evolution as they undergo many changes. They expect quality solutions and performance. 

Many companies feel that they cannot partner with flexible companies and do not benefit from cutting-edge solutions.

Offshore IT companies should embrace this trend and try to be customer-centric. This enables them to remain competitive, win contracts and attract potential partners. 

Outsourcing is a sure way to improve productivity and efficiency if done correctly.

Invest time to find the right outsourcing company. That way, your decision will produce real and measurable results. 


9) Trends in technical skills

According to Udemy, 2020 will see strong demand for skills in artificial intelligence and data sciences.

There will also be a demand for webdevelopment and cloud computing frameworks, including AWS, CompTIA, and Docker.

The report also suggests that their company will improve employee skills in robotic automation tools, cybersecurity, and AWS cloud computing. 

Emotional intelligence and design thinking are also at the top of the list of non-technical skills that will see the most robust growth between now and 2020.

Therefore, outsourcing service providers need to know how to integrate these technology trends to ensure quality for customers.


10) Separation

Thanks to robotic processes and artificial intelligence automation, offshore companies will provide a unique solution that may not be present elsewhere.

This creates not only new opportunities but also motivates other players to do a better job. These trends will continue to evolve and change the IT outsourcing industry for good.


11) Emergence of new outsourcing sites

 These locations account for the largest share of global outsourcing revenues. Currently, India and China are the two countries that dominate the major outsourcing destinations. Outsourcing of the IT industry in India will reach about $135 to 137 billion in 2019. 

However, shortly, continents such as Europe will face healthy competition from China and India. According to a Deloitte study, 59% of companies already outsource services from India. Below is the full picture.

India will continue to be the first target for IT outsourcing, handling many projects globally. The main reasons for this are as follows:

Indian government support: The Indian government offers tax benefits to IT companies. Also, information technology has been recognized as the best performing service sector. 

Indian companies have international standards: International Organization for Standardization (ISO 90000), Six Sigma, and Total Quality Management certifications. 

Many developers: India is the second-largest country in terms of mobile application developers. 

Most employees are hard-working people: According to a survey, 69% of employees are happy to work six days a week. Investing in Indian developers in 2020 is the right decision. India will become one of the fastest-growing IT outsourcing destinations for companies worldwide.