The Top 5 IT Outsourcing Industry Trends for 2023

Nov 28, 2022


2022 brought yet another fast-paced year of digital transformation, cloud growth, and a competitive tech job market, all amidst record-high inflation, recession fears, and economic concern. As the pace of innovation rapidly advances, organizations are looking for every advantage when it comes to increased efficiency, cost optimization, and more. One tool at their disposal is IT outsourcing, which historically offers organizations benefits like reduced headcount and overhead, lowered costs, more strategic service, and increased productivity.

With IT outsourcing, businesses gain the competitive edge they desperately need to stay on top. Heading into 2023, the pace of innovation isn’t slowing down, and IT budgets are actually increasing despite economic uncertainty. Businesses will need to explore outsourcing their IT, so here are a few industry trends we predict for 2023.

2023 IT Outsourcing Trends

1. The pace of innovation will increase the demand for outsourced IT.

Nothing is slowing down; software development outsourcing is actually expected to grow 70% by 2023. Talent shortages, skills gaps, increased remote work, and high employee turnover due to The Great Resignation have snowballed to create a perfect storm in the technology world. Internal employees are expensive, recruiting high-quality tech talent takes months, and retaining those team members is harder and harder. Businesses will have no choice but to look for outside expert help to deliver more with fewer resources.

2. Security, security, security.

Cybercrime is on the rise, and new research shows that attackers could penetrate 93% of companies. Ransomware attacks are on the rise and are estimated to cost the world $10.5 trillion by 2025, and the overall cybersecurity market is expected to reach $376.32 billion by 2029. Security and protection have often been a blocker to a digital transformation, but as companies are forced to adapt quickly, expert IT teams can be ready to step in and support highly secured ecosystems. Your partner could implement email and data security, cybersecurity testing and prevention, device protection and management, and remote monitoring to create a holistic cybersecurity plan.

3. A tumultuous political climate in Eastern Europe creates shifts in IT providers.

Conflicts between Russia and Ukraine affected industries around the world, and IT was no exception. Organizations that utilized Russian IT partners began to look for new vendors due to overall security and stability concerns. However, other eastern European vendors in Ukraine, Poland, and Bulgaria actually stepped up to the plate to meet demand. Ukrainian IT work was not disrupted, despite all the turmoil, effectively cementing its position as a valuable solution for years to come. Years before had already shown a promising trajectory in the Ukrainian IT sector, with a growth rate of 20.4% in 2020.

4. Automation will be a major driver of outsourced IT adoption.

Artificial intelligence, machine learning, robotics, the Metaverse, and more are encouraging businesses to pass the fast-forward button on adopting automation. IT automation increases productivity, creates better customer experience, allows organizations to deploy at scale, and speeds up time-to-value for new products. Businesses will need to hire developers and programmers with AI or machine learning knowledge and quickly integrate those solutions into their company.

5. Cost will remain a top concern for IT.

With a bleak economic market expected for 2023, companies everywhere are tightening their belt loops and battering down the hatches for potentially a few years of rockiness. Nonessential spending will get hit first, but investments in IT and technology are actually expected to stand strong. CIO Dive writes that companies are “doubling down on technology as a hedge against economic instability,” but maintaining robust in-house IT talent isn’t realistic. Organizations will look outward for expert teams that come with reduced costs and no need for additional employee overhead. Businesses can also pay on a per-project basis, meaning they can easily scale up and down throughout the year as demand requires.

Outsource IT in 2023 with Robust Networks

A leading IT services and consulting firm headquartered in the San Francisco Bay Area, Robust Networks offers expert consulting, IT regulatory compliance, IT application support, and more. If you’re hoping to speed up digital transformation while increasing security and reducing costs, Robust Networks can make IT your competitive edge. Explore outsourcing your IT, and contact us today.