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IT Outsourcing Trends in 2024

24 March 2024
Check out the latest trends in IT outsourcing in 2024 and learn how to leverage them for success.


IT outsourcing has been a standard business strategy for decades, allowing companies to reduce costs by hiring third-party providers for technology services. However, in 2024, this concept will take on heightened significance, driven by rapid advancements in various technology areas.

Major tech trends like cloud computing, cybersecurity demands, automation and artificial intelligence, data privacy regulations, and advanced collaboration tools are revolutionizing how IT outsourcing operates. These innovations are forcing radical changes to traditional outsourcing approaches.

For businesses that proactively adapt, IT outsourcing in 2024 presents new opportunities for growth, cost optimization, and competitive advantages. However, companies stuck using outdated outsourcing models face substantial business risks and potential obsolescence.

This article will examine the most important IT outsourcing trends projected for 2024.

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Outsourcing Statistics for 2024

IT outsourcing is becoming extremely widespread across businesses and industries. Just look at these statistics that show how important and common outsourcing IT functions has become:
  • The global market for IT outsourcing services is huge and still rapidly growing. Analysts predict it will reach $397 billion by 2025, increasing over 7% each year (Gartner Report).
  • Today, almost two-thirds (64%) of companies outsource at least some of their IT work and activities. For businesses in the technology industry itself, it's an even higher 72% (Deloitte Global Outsourcing Survey).
  • While reducing costs is still the top reason companies choose to outsource (59% say this is why they do it), getting access to skilled technology experts is a very close second most popular reason at 57% (Radixweb.com).
  • Over one-third (37%) of businesses are now focused on consolidating and streamlining their outsourced IT activities with just a few key partner companies, rather than using many different vendors (Business.com Report).
These numbers make it clear - IT outsourcing is absolutely critical for how organizations operate in today's economy and tech landscape. Companies are relying increasingly on partnerships with global technology talent and outsourced teams to drive innovation and operate efficiently.
IT Outsourcing Trends in 2024

What's Hot in IT Outsourcing Trends for 2024?

If you think outsourcing is just about saving money, think again! The outsourcing industry is evolving rapidly, and there are some buzzworthy IT outsourcing trends on the horizon for 2024 that smart companies need to know about. Let's dive into the cutting-edge shifts happening.

1.  Changes in the main players in the market

For years, Asian giants like India and China dominated as the go-to outsourcing destinations. But that tide is turning as Central and Eastern European (CEE) countries rise as the new IT outsourcing hotspots. Poland, Romania, Ukraine and others boast highly skilled, cost-effective tech talent pools ripe for the outsourcing boom.

2. Innovative solutions

In today's competitive landscape, simply offering lower labor costs isn't enough. The latest IT outsourcing trends are all about innovative solutions and value-added services. Providers will be expected to implement creative technologies like automation, AI, blockchain and more to truly move the needle for clients.

3. Specialization nation

Generic, one-size-fits-all outsourcing services are becoming a thing of the past. IT outsourcing trends in 2024 will be all about specialization as clients demand niche expertise tailored to their industry and specific needs. From cybersecurity to data analytics to DevOps, companies want specialists, not generalists.

4. Collaborative contracts

Old-school outsourcing contracts were very rigid and one-sided, putting all the risk on the provider. New IT outsourcing trends call for collaborative contracts where both the client and outsourcer share accountability. The name of the game is crafting true risk-sharing partnerships.

5. Cybersecurity prioritized

With more businesses going remote and cyber threats exploding, outsourcers can't afford to skimp on security anymore. Building secure networks with robust cybersecurity controls baked in is critical for modern IT outsourcing services - no exceptions. Clients expect air-tight protection as standard practice.
IT Outsourcing Trends in 2024


There you have it - the hottest IT outsourcing trends redefining the industry in 2024 and beyond. The game has evolved way past cheap labor. To thrive, outsourcers must innovate, specialize, prioritize security and deliver an amazing experience while forming collaborative partnerships. Adapt now or get left behind!

Frequently Asked Questions

  • Question:
    What kind of innovative solutions are IT outsourcing providers expected to offer in 2024?
    Simply providing cheaper labor won't cut it anymore. Clients want providers that leverage cutting-edge technologies like robotic process automation (RPA), artificial intelligence (AI), blockchain and more to drive true innovation and create new value.
  • Question:
    How is specialization becoming important for IT outsourcing?
    Generic, jack-of-all-trades services are being replaced by a need for deep specialization. Companies want outsourced teams with very specific niche expertise tailored to their industry, whether it's cybersecurity, data analytics, DevOps or other areas.
  • Question:
    With more remote work, why is cybersecurity a top priority for outsourcers in 2024?
    As cyber threats proliferate, clients absolutely demand robust security from their outsourced IT providers. Building air-tight cybersecurity into services with advanced controls is table stakes, not an optional luxury.
  • Question:
    How can companies prepare for and take advantage of these IT outsourcing trends?
    Stay informed on emerging technologies and get ready to leverage them through partners. Focus on finding niche specialists over generalists. Seek out collaborative vendors interested in sharing risk and rewards. And prioritize outsourcers with proven cybersecurity capabilities.
Sergio Art is the entrepreneurial mind behind the Offshore Development Center (ODC), which he launched in 2010 to support U.S. businesses in their digital transformation efforts through access to skilled software engineers.

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