After two “roller-coaster” like years, many tech companies have decided to move their working force, or at least part of it, to an outsourcing model, with the intention of lowering costs and lowering the risk of taking new commitments, and full-time hires.

Here are the new outsourcing trends we saw in the past two years:

  1. Artificial Intelligence (AI) and Machine Learning (ML): AI and ML are expected to become more prevalent in a wide range of applications, such as chatbots, predictive analytics, and process automation.
  2. Cloud Computing: Cloud computing is expected to continue growing as more companies move their data and applications to the cloud to take advantage of its scalability, security, and cost-effectiveness.
  3. Internet of Things (IoT): IoT is expected to continue growing, as more devices and machines become connected, allowing companies to collect and analyze data to improve efficiency and productivity.
  4. Cybersecurity: Cybersecurity will continue to be a top concern for companies as cyber-attacks become more sophisticated and frequent, companies will invest in advanced security solutions to protect their networks and data.
  5. Edge Computing: Edge computing is expected to grow as it allows data processing to be done closer to the source, reducing latency and providing faster response times.
  6. Blockchain: Blockchain technology is expected to be used for a wide range of applications such as digital currency, supply chain management, and digital identity verification.
  7. Quantum Computing: Quantum computing is expected to become more prevalent, as it allows for solving complex problems that are beyond the capabilities of classical computers.
  8. Automation: Automation is expected to continue growing as companies look for ways to improve efficiency and reduce costs, this can be done by using Robotic Process Automation (RPA) and other automation tools.
  9. 5G and 6G: As 5G networks become more prevalent and 6G is being developed, it will allow for faster data transfer and low-latency communication, this will have a big impact on IoT, Edge Computing, and other technology that requires a fast and reliable network.

These trends are expected to drive innovation and change in the IT industry, allowing companies to improve efficiency, reduce costs, and stay competitive in their industries.

The most popular outsourcing model in 2023 are:

  • Remote outsourcing: With the advent of technology, companies can now outsource work to remote teams located in different parts of the world. This allows them to access a wider pool of talent and reduce costs by eliminating the need for an on-site team.
  • Digital outsourcing: Companies are increasingly outsourcing digital tasks such as software development, data analytics, and digital marketing to specialized vendors. This allows them to take advantage of the latest technology and stay competitive in their industry.
  • Micro-outsourcing: Companies are breaking down large projects into smaller, more manageable tasks and outsourcing them to multiple vendors. This allows them to access a wider pool of expertise and get the job done faster and more efficiently.
  • Nearshoring: Companies are outsourcing to geographically closer countries, allowing them to reduce costs and improve communication and collaboration with their outsourcing partners.
  • Artificial Intelligence and Robotics Process Automation: Companies are leveraging these technologies to automate repetitive tasks and improve efficiency, which can be done by outsourcing companies specialized in these areas.
  • Outcome-based outsourcing: Companies are shifting from traditional outsourcing models to outcome-based models, where vendors are paid based on the results they deliver, rather than the hours they work.

Overall, companies are looking for ways to access specialized expertise, reduce costs, and improve efficiency through outsourcing. The trend is towards more strategic and outcome-based outsourcing models that provide greater flexibility and scalability.