Best IT Outsourcing Trends in 2023: Apply Them or Be Backward

IT Outsourcing Trends You Will Witness in 2023

Outsource Business Processes in Southeast Asia

If you have researched the outsourcing industry, you must have once heard of names like India, China, Ukraine, etc., when they are among the top countries for outsourcing software development. However, recently when outsourcing models have become a trend, businesses have more choices when other potential regions like Southeast Asia appear on such top lists with increasingly dense frequency. There are many reasons why companies outsource their business operations.

• Cost savings: The labor costs in Southeast Asian countries, especially Vietnam, are much lower than in other regions, prompting outsourcing market growth with minimal costs for customers.
• Government support: Many governments in Southeast Asian countries have introduced policies to attract foreign investment, such as tax incentives, economic zone development, etc., facilitating the development of such outsourcing services.
• Favorable time zone: Due to time zone differences, your break time can be IT service providers’ working hours and vice versa. This leads to faster turnaround times and a smoother workflow.
• Skilled workforce: Southeast Asia has a strong force of experienced software developers and is fluent in English in areas such as UI/UX design, web development, QA and software testing, etc.
• Cultural compatibility: A culture of hospitality and friendliness helps customers maintain a sustainable partnership.

Work Remotely

The great influence of the Covid-19 pandemic has made remote work emerge as a dominant trend in the current context. Unsurprisingly, 98% of workers expressed their expectation to work remotely, at least some of the time. This partly shows the needs of employees before flexibility, work-life balance, and autonomy.

Meanwhile, human resources specializing in information technology is considered one of the particularly difficult professions to recruit because it requires a high level of expertise from the employer and the provision of good benefits for the business; remote working is one of the few benefits they want. The above data also proves that enterprises must pivot faster than ever before to attract talent and maintain a competitive edge in the market.

One of the other reasons why remote work has become an outsourcing trend is the financial benefits it brings to many businesses. Undeniably in-house teams bring many benefits to businesses, such as better communication when there is daily direct interaction; they bring troubles to businesses with fees such as working spaces, utilities, and extra benefits. Meanwhile, research shows that employers can save up to $11,000 per employee when switching to remote work because such human resources eliminate the above costs.

Remote software developers from nearshore outsourcing and offshore outsourcing services are also a good way to reduce operating costs while ensuring quality.

Adopt Latest Technologies

Cloud Computing Services

In simple terms, cloud computing is the provision of computing services entirely over the Internet, including servers, storage, software, etc. Taking advantage of people’s dependence on the Internet in recent years, the global cloud computing market is increasingly open as businesses compete to integrate and apply it to their custom software development solutions. According to predictions from Statista, the global public cloud services market will grow about 21.7 percent, or $597 billion, by the end of 2023.

Instead of investing in expensive software development infrastructure with complex development processes, cloud computing is like an answer to the cost problem of businesses by allowing users easy access to computing resources as needed anywhere with just one click and an Internet connection. Especially for customers who plan to use outsourcing services or have remote workers, cloud computing enhances information security and flexibility when connecting all data and relationships on a single cloud.

Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS), etc. are some of the few examples of popular cloud computing products and services.

Artificial Intelligence: Machine Learning Automation & Robotic Process Automation

AI (Artificial Intelligence) stands for artificial intelligence. This technology simulates human thinking and cognitive processes for machines, especially computer systems. The development of this new technology has partly changed the way people deal with daily tasks or even business operation tasks. Everything that used to be done manually is now automated by applying AI. Among them, two prominent technologies in this space that drive significant industry transformation are machine learning and robotic process automation.

Applications that use machine learning automation to streamline workflow are one of the prime examples of this technology. The increasing appearance of a series of AI-integrated smart applications for Android devices and the IOS platform proves its vast coverage in the modern context. You must have heard at least once about ChatGPT by its rapid growth among users recently. On the other hand, robotic process automation helps businesses reduce the load of human workers and speed up the processing of jobs that require high repetition and accuracy.

In order not to be left behind and create a competitive advantage among a large number of companies in the same industry, businesses seek to leverage technology and optimize the efficiency of their operations by using outsourcing organizations that have artificial intelligence services.

The Internet of Things

The development of the Internet facilitates the development of IoT (Internet of Things) and turns it into one of the indispensable IT outsourcing trends in the business world. Compared to 2019, the number of IoT-connected devices worldwide in 2030 is estimated to triple. The most likely explanation for this data probably depends on the growing number of devices connected to the Internet. This means that businesses need to develop software products that can interact with these devices to serve the modern needs of people.

More than just a technology to attract customers, IoT also helps businesses operate more efficiently, innovate, and be more productive in many ways. By applying IoT, businesses can now connect all the devices and sensors to the network to collect real-time data. This data is a valuable resource to help organizations gain insights into operations, identify areas for improvement, and optimize processes.

Blockchain Services

In a word, blockchain is a peer-to-peer distributed ledger that is secured and used to record transactions across multiple computers. The contents of the ledger can only be updated by adding another block associated with the previous block. Computers automate all operations on the blockchain and do not involve the hands or control of any individual. Therefore, blockchain technology stands out most for its security, transparency, and decentralization.

Responding to people’s growing demand for information security, many businesses have taken their first steps in adopting this technology into various use cases such as supply chain management, asset management, data management, copyright, IP protection, etc.

Network Security Services

Based on a Forbes article, it’s unfortunate that 82% of companies face cyberattacks in 2022. This explains why security is always a top concern among businesses. However, managing an in-house security team can be difficult since this segment requires a high level of expertise and experience. With this in mind, many businesses choose a more effective and safer solution: outsourcing managed security services.

Focus on business cybersecurity is now not simply an IT outsourcing trend but also a crucial requirement of every organization in the ever-evolving threat landscape. By partnering with third-party providers who offer a range of different security services, businesses can focus on core competencies, enhance the security posture, and gain peace of mind knowing that their critical systems and data are protected.