Organizations outsource IT services for many reasons, ranging from operational flexibility and the need for new, particular skills to cost saving.

But market trends are changing. Some outsourcing trends will be less significant than they have been in recent times, according to the GSA UK report.

The outsourcing industry is set to grow.

2020 is going to be the year when the change will be noticeable. Companies that want to remain up-to-date need to be ready for the fresh outsourcing wave. Generally speaking, the coming years will indicate that partnerships between outsourced developers or teams and businesses will matter as much as IT outsourcing businesses that are innovation-friendly.

If you’ve been outsourcing in the past, or you’re planning to get started quickly, and you’re concerned if you can survive the time test, you can put your concerns to rest. It is certain that outsourcing will survive in the future.

The most influential trends in IT outsourcing for 2020+

New focus

According to GSA UK report, both outsourcing customers and outsourcing suppliers were questioned which is the main reason why they choose to outsource. 35% replied that the most significant thing was cost savings, while 23% said it was improved customer experience.

While the reasons behind outsourcing businesses may vary, the vast majority agrees that customer-centered strategy and fresh capacities are more appealing than cost-cutting.

Contracting in 2020

Both buyers and providers will focus more on results in 2020, with 89% of all participants believing this.

Of those surveyed, 69 % consider that service providers will be contracted as systems integrators sharing more risk with their clients, while only 31% believe that outsourcing providers will take all the risks on themselves.

More collaboration and competitive behaviors

The agreements will become more outcome-based in 2020. More companies will seek partnerships based on mutual investment to further reduce costs, create sustainable value by aligning IT outcomes with business goals, and bring industry best practices, thought leadership and improved quality to the organization.

The best thing that can be done by both sides is to work together and look for opinions. It’s clear that no one likes to risk a lot. So be open to dialogue, but at the same moment try to determine the danger on your own. Perhaps there’s nothing to worry about.

Such circumstances can mobilize competitive IT businesses to hunt for the biggest deals and start promising competitive alternatives.  This can erase the greatest possible projects from the providers.

A needed change

Clients on the contemporary market in search of IT outsourcing businesses are in constant flux, undergoing many changes – they expect high-quality solutions (including performance time). Also, providers should meet their future stakeholders’ need to stay at stake and prevent something that’s prevalent nowadays – disappointing results.

The buyer side’s disappointment with outsourcing agreements is growing. Many providers are believed not to be sufficiently flexible, scared of innovations, and out of touch with the cutting-edge technologies. Outsourcing businesses should accept this trend and begin concentrating on becoming more customer-centric. This will help to stay competitive, win greater deals, and obtain influential partners.

IT outsourcing is a surefire way to boost productivity and efficiency, if done correctly. Invest time up front learning how to choose the right outsourcing partner. This way you can be sure that the decision will produce real, measurable results.

Another major trend:

Latin America and Europe (Romania, Bulgaria, Poland, Germany, Ukraine) might provide solid competition to India as the favored outsourcing destination

Conclusion

Will IT outsourcing survive the coming years? The response is a clear YES.

In the future, it will continue to survive as it provides businesses the access to specialized talents and saves time and effort, which can be channeled into the other core business ventures.

Modern IT outsourcing providers need to remain up-to-date with the trends on the changing market, in order to understand what modern customers expect.  A customer-centric approach and transparency is desirable by the leading partners.

In addition, being in touch with the latest technologies and securing data on the client’s behalf will matter more. Being strong and brave enough to share risk may be the portal to great success and fruitful partnerships.

Adopting certain strategies and following these top IT outsourcing trends may imply a head start in the next century for many business leaders.