Top 6 IT Outsourcing Trends and Market Overview for Business

Top 6 IT Outsourcing Trends and Market Overview for Business

According to the Statista report, spending on IT services is anticipated to reach a record $1.1 trillion in 2020. With a view of reducing development costs, assembling a professional team, and improving time-to-market, companies are delegating software-related tasks to third-party contractors. Since this approach offers many advantages, it is gaining high popularity.

Statista forecasts that the worldwide IT-application outsourcing market will grow to $96.7 billion in 2021 from $89 billion in 2018. Technavio's analysts revealed that business process optimization is one of the main reasons for such rapid market growth. 

How Supply Chain Management Solutions are Shaping Supply Chain Industry

Valuations for supply chain systems integrators outperformed those of traditional supply chain service firms. 

As the saying goes, “When America sneezes, the rest of the world catches a cold.” This quote used to be true of global economies. But, all it took was a Coronavirus disease (COVID-19) outbreak in China to prove that supply chains have become so dependent and intertwined, that when a region suddenly shuts down, it affects many industries, sectors, and ultimately, consumers.

Companies along the chain face various challenges, and it’s all fair game—better prepared, better-equipped firms come out better off, while others may not survive a supply chain chock. 

The market for supply chain management (SCM) solutions has picked up significantly. Enterprise adoption of SCM platforms has undergone significant disruption over the past decade, as core systems shift to the cloud. In fact, a Research and Markets analysis estimates the total addressable market for all SCM solutions to reach $22.7 billion by 2022. 

Top Countries for Business Process Outsourcing (and How to Start)

Make sure you're outsourcing for the most efficiency and least-cost by considering looking for a partner in one of these countries.

Running a business is like a growing child. As they age, they experience growing pains, body changes, and additional responsibilities and learnings. When running a business, you should be prepared with product improvements, additional features, increasing deals, and new responsibilities. And with this, you need to hire resources for the additional workload. However, as an SME, this impacts your cash flow. 

Luckily, there is a more cost-effective way of hiring new people. You can hire freelancers that can help you with one-off tasks, like web layout and graphic design. But how about if you want to build a team to help you with regular administrative tasks? That’s where outsourcing enters.

Before, only big enterprises and manufacturing engage in outsourcing. Nowadays, outsourcing companies open their doors to small and medium businesses. And not only manufacturing can be outsourced, but also processes, such as customer service and accounting. In return, BPO teams give high-quality service at a low amount that’s perfect for the budget of an SME.

Is Robotic Process Automation Really A Driver For Digital Transformation?

One of the areas of greatest interest in the technology industry in 2019 is robotic process automation (RPA). This is an industry that is growing at lightning speed. Leading industry analysts believe the market will be worth at least $4.3 billion by 2022. Already in 2018, it was worth $1.7 billion. 

Companies offering RPA software, such as Blue Prism and UiPath, now have valuations in the billions of dollars. 

Meanwhile, major software vendors such as SAP have recently announced they will be building their own RPA capabilities and embedding them into their traditional software suites of products.