In 2019 more and more businesses embraced smaller and more targeted IT outsourcing solutions and expected to see a growth of 6% per year by 2022. 

It the past, IT outsourcing was considered equivalent to big changes in operations and redistribution of resources. But as today mostly everything can be done with a simple swipe or a tap on the smartphone, a new mindset is changing the IT outsourcing. 

Many businesses search for smaller, agile solutions to boost their innovation capacity and more and more companies are outsourcing just one IT role or initiative rather than whole tech teams and projects. 

What are the reasons behind the small size of IT outsourcing projects?

There are several reasons for the significant shift in the size of IT outsourcing.

Lack of talent in new technologies 

The first reason is the lack of talent in new and emerging technologies such as AI, automation, robotics, machine learning, and data analytics. IT outsourcing providers with an agile mindstate can offer small expert teams and provide a way for businesses to keep the projects in-house without the need for shifting resources and operations. 

A new way of working 

Smaller IT outsourcing providers work and collaborate differently, and today it is more common to crowdsource ideas. It is becoming typical for an organization to outsource to a highly skilled professional rather than hire an internal resource. 

Chatbot and automation factor

Bots and automation provide an opportunity for businesses to manage a lot of the service and quality assurance that used to be outsourced in the past. This allows them to leave the more complicated business need to be left to in-house development team. 

What is the future of outsourcing?

While IT outsourcing was focused more on support roles and not critical tasks in the past, today it needs to focus more on business growth and innovation, as well as revenue generation. IT service providers should: 

Go beyond just completing tasks and solve strategic business problems. By offering technology and business insights, IT outsourcing providers can help clients to improve their services and products and be more competitive and increase their revenue. 

Build new, advanced technologies. IT outsourcing providers can build systems, apps, and products that use new and emerging technologies such as machine learning, artificial intelligence, and robotic process automation. 

Analyze and visualize data to drive action. It is expected that more businesses will be looking for IT outsourcing solutions to help them support their expanding and more complex data. Providers should be able to analyze the data and help businesses get important insights on how to improve and grow based on the analysis. 

IT Outsourcing needs to advance

Just like any other sector, IT outsourcing providers need to advance their potential in the following years. By shifting the focus to smaller and more strategic roles and being closer to the business needs, their main mission should be more than ever to provide more value and innovative impact.