There could be a number of reasons that have led you to the option of outsourcing, you require more flexibility within your business processes or the need for a certain skill that you don’t have in-house, or like many, you are looking for a way to reduce your costs.

We have seen several changes in the outsourcing industry but 2020 is going to witness many more significant changes. It is necessary for companies to be prepared for the upcoming adjustments in the outsourcing industry. Outsourcing is set to remain strong and even gain strength. Here are some of the most influential trends that are going to appear in 2020:

A Shift in Focus

Reducing a company’s outgoings is a major reason for outsourcing. In fact, the GSA UK report states that 35% of outsourcing clients and providers believe that lowering costs was the most important reason for outsourcing. This was followed by the opportunity to improve the customer experience by 23%.

As times change, the reasons for IT outsourcing will focus more on providing enhanced customer experience rather than just finding ways to reduce outgoings.

Alterations in Contracts

In 2020, we are likely to see the client and the provider placing more emphasis on the results. 89% of the people who took part in the GSA UK report agreed on this. Not only this, but 69% of people felt that clients and providers will begin to share more of the risks associated with projects. Just 31% were under the impression that outsourcing providers would take on all of the risks.

An Increase in Cooperation and Competition

As contracts become ore focused on results, outsourcing companies will look at creating partnerships with other outsourcers. By doing so, they will be able to reduce their costs while offering more IT solutions and therefore increasing the standards of the industry. As companies join forces, more competition will become apparent.

A Change in Mentality

2020 should see outsourcing companies change their minds so as the client’s needs are met. Improving client satisfaction will give companies a competitive edge, gaining more significant contracts.

When choosing an outsourcing company, it crucial to carry out full research before signing any agreements to ensure that the company is able to fulfill your project requirements.

Alternative Outsourcing Locations

Up until recently, Asia, and in particular India, has been the favored destination for IT outsourcing. Latin America is rising in popularity and so is Europe, more specifically, Romania, Bulgaria, Poland, Germany, and Ukraine.

Final Thoughts

 Are there any doubts as to whether IT outsourcing will survive in the near future? The answer is Yes

Just because saving money won’t be the main focus, it doesn’t mean that clients won’t continue to seek the services of IT outsourcers. The industry will keep growing but at the same time, it will adapt to the demand of the clients, most importantly, by keeping up with all of the modern IT technologies.