In-person jobs were forced to transition to fully remote systems. This affected every industry as a result of the COVID-19 pandemic and the following restrictions and lockdowns. The option to outsource tasks and complete development projects became a central part of many companies’ production processes.

From 2020 to 2021, how exactly did outsourcing evolve?

Outsourcing in 2020

Whether a company utilized outsourcing prior to or assimilated it during the pandemic, no business, no matter the industry, was spared once the pandemic spread across the entire world. In fact, the permanent closing of companies led to similar closures of outsourcing contracts. They were often abrupt or with little warning.

Going Into 2021

Businesses slowly began to rebuild while going into 2021. As industries started to repair the damage caused by the pandemic, the stabilization of the economy helped outsourcing settle too. The new year also brought about new priorities. Technology, in particular, is the industry that changed the most. Advancements have led to a higher demand for cybersecurity, data protection, and consistently fast internet speeds. Many believe we’ve entered the Fourth Industrial Revolution due to such a focus on technology.

Recent Evolution of Outsourcing

Heavy dependence on outsourcing in 2020 is likely to be met in 2021. One of the most significant benefits of outsourcing is how cost-efficient it is. Transitioning to remote jobs, companies reduced costs by not needing many physical locations and paying the previously necessary number of employees. Additionally, a lot of the areas where outsourcing is cheap and of good quality have lower living standards. This primarily aided in the stabilizing of the economy.

Some of the most in-demand tasks for outsourced developers and teams include web and mobile app development projects, cybersecurity, data privacy updating, and cloud services. The enhanced internet-reliant society has adapted outsourcing into daily life for most tech companies. Such a reliance that has been cultivated over the past year, specifically alongside technological advancements, continues to influence how those companies function. The arrival of the Fourth Industrial Revolution also means outsourcing is here to stay.


Along with outsourcing, nearshoring has been instrumental in keeping up with technology-based businesses. Nearshoring is a type of outsourcing where the outsourcing occurs in a different country but on the same continent. An example of this is a company in Germany outsourcing tasks to a developer in Romania.


Outsourcing has played a part in several industries for many years. However, the pandemic in 2020 completely changed how important outsourcing became. By relying on outsourcing and preferring it over other business alternatives, it’s become a significant element in global business interactions. It’s more cost-effective, convenient, and allows companies to employ people with varying skill sets or levels of experience. Most importantly, it opened communication and global collaboration that continues to stabilize the economy and business relations as a whole. The influence of outsourcing is likely permanent and in a good way.