This post was most recently updated on April 27th, 2023
This may be the time when you begin planning your IT budget for next year. In this process, you can pick the leading strategic initiatives, determine the financial resources needed to grow, and determine which IT projects should get streamlined or get implemented. The changes that have taken place in recent years will have a significant impact on planning for the upcoming year, according to factors and IT services outsourcing trends that happened during the previous 18 months. In this regard, the following trends should be taken into account.
For starters, 0% to 1% inflation rates are no longer the norm. Inflation has become more prevalent. Companies have been caught off guard by this shift. Several employees have quit their jobs in exchange for raises of 30-50%. India’s wages have risen rapidly over the last few years in particular. SIA projects a 22% turnover rate for IT/BPM (business process management) by the end of 2022.
Five percent to eight percent of full-time employees who were onboarded between January and March left within the first 90 days. This prediction has come true, and it is affecting this year’s IT outsourcing trends in a big way. Consider these five IT outsourcing trends as you plan your IT budget and achieve your next year’s planning goals for a more resilient plan.
1. Industry Specialization is now in the Spotlight
Adaptation to new partnerships, distribution strategies, and business models has become more important in recent years. Fast decisions are also needed. Some businesses respond differently to threats, but only one of them succeeds. The company that accepted change the fastest consistently won.
Unintended consequences have resulted from this realization: increasing focus on industry, product, and IT services outsourcing providers’ specialization. Knowing the inner workings of an industry provides much better insight into how sudden changes will affect your business in the long run. It is this knowledge that can often make or break your plans.
2. Cloud-based Software Application Development Services
Consider the cloud when developing new software applications or integrating systems, to the point of avoiding building any new on-premises applications. In 2023, Gartner expects the market for public cloud-based software development services to reach $397 billion. The forecast indicates a 21% growth rate for 2022. The growth of this industry will have implications on other adjacent industries, as well as the ability to outsource IT while obtaining the resources that are needed for such projects.
3. An Emphasis on Project and Staff Flexibility
Over the last 24 months, the labor market has undergone considerable change. Although it has always been difficult to afford and hire an expert developer, programming, networking, and systems integration talent, today, there is an acute shortage beyond those at the top. Outsourcing IT strategies is more difficult to achieve. Traditional outsourcing regions like China and India have seen significant increases in wages.
It is now ranked third in its overall economy, with over 60% of all businesses outsourcing to Belarus. Combine this challenge with the need to keep staff or an outsourced IT team and custom web development services if new business needs often change, and keeping staff has never been more challenging.
4. IT Governance and Cybersecurity
The topic of security has always been considered important, but CEOs today are well aware of how expensive a bad security system can be. A recent Wall Street Journal article noted that President Biden added cybersecurity to the top of the list of the “core national security challenges” at the CEO Summit he held. As reported by another Wall Street Journal article, cyberattacks on organizations globally have increased 40% this year. This concern has been elevated to a national level following the recent rise in ransomware attacks. Expect new initiatives requiring greater oversight of cybersecurity programs, better controls over access to system resources, and expanded staffing requirements tied to security levels to be passed by the current administration. Preparation can mitigate disruptions caused by unexpected projects in the future.
Read Also: How to Hire a Dedicated Development Team?
5. Robotic Process Automation (RPA) is a Growing Segment of the IT Industry
Use this technology to automate processes by configuring scripts that run when keystrokes are pressed. According to Statista, the RPA market is estimated to be worth about $8 billion in five years after its current size of $2 billion. Improved resilience to change is one of the factors driving RPA adoption. Automation makes it easier in uncertain times to maintain performance. Automated data extraction programs, such as those in the future, should be top of your list of strategic imperatives for 2023.
The Bottom Line
As you prioritize your strategic plan for 2023, other trends and factors will likely play a role; however, the above factors will likely have a strong influence. Plan with the help of this framework so that we start the next year with a more effective IT plan. The deep staffing shortage that is currently occurring can be alleviated with the help of outsourcing services to a known provider. Even though change is constant, the pace should slow down in the coming months. Is this an unreasonable expectation, or is it just wishful thinking? It remains to be seen.