Articles | December 31, 2020

The future of IT outsourcing in 2021 and beyond

What to expect in 2021? Keep your ear to the ground and get to know what the future of IT outsourcing will look like in 2021 and in the upcoming years. Based on our experience in the outsourcing industry as a technology partner just as we did last year, we have tried to predict the main outsourcing trends in the software development sector and outline the key areas of interest for companies willing to craft a great value IT product.

Trends in IT outsourcing in 2021

Hybrid work and safety first

Compared to 2010, the number of remote workers has increased by 400% in 2020. According to studies, nowadays 72% of employees prefer the hybrid model over full-time office work. The importance of the remote workforce has a significant impact on IT project implementation in two areas.

  1. Firstly, we can predict that the majority of the projects will still be carried out by distributed or dispersed development teams. The year 2020 proved that this strategy helps companies to remain operational and at the same time adapt to new digital, business and pandemic circumstances.
  2. Secondly, for safety reasons, more than just the IT provider’s teams will “stay home” and solutions and technologies based on the assumptions of the Distance Economy will gain momentum. Therefore, we believe that companies will search for IT partners to implement solutions that foster digital innovation.
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Technology outsourcing over ad hoc outsourcing

Nowadays companies struggle to get access to in-demand technical skills and recruiting the right talent has become a real challenge. The role of outsourcing companies has changed significantly over the years; nowadays we think of it as technology outsourcing rather than “last minute body leasing”. 2020 brought a shift towards digital transformation-oriented outsourcing, especially in areas enabling digital change allowing companies to obtain digital advantage on the market, such as:

  • Cloud services
  • Cybersecurity services
  • DevOps and DevSecOps
  • Data Analytics
  • RPA and automation services
  • Machine Learning and Deep Learning
  • Artificial Intelligence

Trusted vendors over random providers

How about the trends in vendor management? In its “Top Priorities for IT leadership in 2021” report, Gartner predicts that IT leaders will have to focus on developing talent rather than hiring it and that risk management will be of high importance (especially in terms of data security and cybersecurity). We predict that in times of uncertainty, reducing third-party risk in IT outsourcing will be front and center. It is worth considering cooperation with trusted vendors and being open to collaboration with proven and trustworthy IT providers. We believe that focus on effective vendor management will become one of the most important outsourcing trends also once the COVID-19 pandemic is over.

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Agile outsourcing over strict planning

In 2020 many businesses learned that observing and reacting flexibly is a better strategy than planning and scheduling. We have been using this approach in the IT sector – our software developers successfully use Agile project management improving time to market. According to a Deloitte report, the future of outsourcing will be built on 3 pillars in the post-pandemic reality:

1) flexibility

2) responsiveness

3) digital adoption

Summary: main outsourcing trends in software development

One of the lessons learned in 2020 is that planning and predicting aren’t always possible. Many global companies were forced to reimagine their model of cooperation with external providers. We believe that the remote implementation of IT projects and Agile Software Development will be highly important in 2021 and beyond and the understanding of IT providers will further evolve in favor of Digital Transformation partners.

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Agata has years of experience in a software development environment, which helps her to understand how to manage internal and external IT product development. It is her role to help clients to maintain control in outsourced software development projects, reach deadlines and maximize business goals. In her private life, she is an enthusiast of antique jewelry and escape rooms.

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