IT Offshoring: Top Trends For 2021 And Beyond

How can IT outsourcing be 'done well' in 2021? What can we expect after the widespread pandemic? Will businesses expand their working relationships with offshore software developers? What IT outsourcing trends will influence vendor-client relationships in the coming years? 

So, here is all you have to know about IT outsourcing to thrive in the 'new normal.

The year 2020 showed that we all live in a very volatile environment where anything can happen at any time. However, the previous year has taught us a valuable lesson: it has prepared us to deal with such crises as the widespread global pandemic, and it has taught us to be more adaptive, resilient, and proactive.

The year 2020 was challenging for businesses is an understatement. First, offices throughout the globe were forced to close their doors with little warning near the end of March, thereby compelling them to rush through a complete digital transformation strategy in a matter of days. Most firms had previously made arrangements for remote working, but it was a slow process that took months or years to complete, with new tools, training, and rules being cultivated over months or years. Then, suddenly, it was sinking or swim, and firms had to adjust to the new normal, which was uncharted territory in many ways.

So, when we talk about 2021, it's essential to consider that approaching outsourcing with a "quick fix" mentality could be a risky solution to the epidemic. It should concentrate not only on the current solution but also on the solution's long-term purpose. Recently, there was much debate in the media over whether outsourcing is dangerous. On the other hand, evidence of enterprises genuinely outsourcing regulatory functions shows that this is not the case. One of the vital benefits of outsourcing is that the fees are flexible, allowing managers to achieve proficiency and improved performance.

So, how do firms adapt to this rapid change and grow more? To help you thrive in 2021, we've compiled the top 5 IT outsourcing trends and statistics from credible sources such as Technavio, ISG, Flexera, Gartner, KPMG, Atomico, and others. So, let's take a deeper look at what this year has in store for us.

- Cloud Services Based on Data

According to independent research, 77% of outsourcing organisations host at least one cloud app. Data is required for the deployment of innovations like machine learning and artificial intelligence. This knowledge allows companies to give better service to their customers.

- Promoting a Remote Working Culture

With the development of Covid-19, a change to remote labour became necessary. Outsourcing companies used innovative technologies to ensure that their clients' employees could efficiently coordinate work from faraway locations. Cloud storage is becoming an integral aspect of the outsourcing equation for all firms.

- Shift in Offshore Location

Outsourcing activities are concentrated mainly in India. As a result, India has established itself as the world's preferred outsourcing location. Making India the most desirable offshore destination, Indian outsourcing enterprises seek to provide smoother operation of client services, lowering risks and boosting the effectiveness of their services.

We believe that taking advantage of offshore development has become the norm. As a result, output quality has improved to the point where it is a practical choice for any company trying to maximise cost efficiency and agility anywhere globally.