Friday, June 27, 2025

The IT Outsourcing Trends for 2023 You Need to be Aware of

Introduction

It is the new year and while everyone is starting their New Year resolutions strong, IT professionals and those looking to buff up their product offerings are looking into IT trends for the coming year. These may well, if used right, make 2023 a good year for organizations looking to take advantage of them.

Expansion of Cloud Service Offerings

Many publications will look at the tech that will invade our lives in the coming year but little into the tech that will drive this “invasion” and the trends around it. Over the last several years cloud computing has been the technology to promote growth and competitiveness in several economic sectors, this trend will not slow but will evolve somewhat.

Cloud computing will further bolster companies offering Software-as-a-Service (SaaS) and Infrastructure-as-a-Service (IaaS) products allowing for ready access to data and unrivaled support. Further, while the security of an organization’s cloud does provide some challenges, the overall security of organizational data has improved and will continue to improve. Cloud computing has helped democratize these services so that even small to medium enterprises can benefit from the technology.


READ: Business Process Outsourcing: Everything to know about


Improved Data Security

One study found that IT outsourcing, and in particular software development outsourcing, will grow by a further 70% by the end of 2023. To meet the demand these numbers suggest data security will need to be improved between the stakeholder and the outsourced developer. In the coming year, it is expected that data security, not only within cloud infrastructure and instances as mentioned above but across the IT space, will become a hot-button topic. Many investors are starting to demand that data security is the first requirement met before any other development takes place and that the security of a product is tested throughout development and deployment.

Automation and Improved AI Products

More and more companies are looking to automate the repetitive tasks employees can’t stand and take time away from important tasks they can do to generate more income. This also means that IT projects that are outsourced are required to fill some automation task or the other. Automation and artificial intelligence are not new concepts but the latter is maturing to the point that it is enabling the automation of tasks requiring very little external input from a human operator. 

One area that this can easily be seen is the steady rise of improved AI chatbots. Companies are now using these to handle customer queries that can be easily and routinely solved. This leaves employees to handle the more complex queries and complaints. The data from the complex complaints can then be collected to assist machine learning algorithms to better improve the AI chatbot.

Conclusion

There are many more other trends that will likely impact the IT outsourcing sector, like the use of Eastern European professionals that possibly enable cheaper software development, while providing those professionals with meaningful work. This scenario is driven by geopolitical factors that are difficult to predict, rather the technologies discussed today have proven year on year to be advancing and maturing so that their inclusion impacts people’s daily lives.


READ MORE: How contact centre and business process outsourcing to the Philippines can help companies better deal with economically challenging times 


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