• Home
  • Services
    • OUR SERVICES

      We solve challenging market challenges and build all varieties of custom and platform-based frameworks and provide comprehensive end-to-end software development and IT services.


      Ask Us
    • Overview

      Professional Services

      Software Dedicated Team, GEO, EOR

      Team Augmentation & Full team Outsourcing

      1. Python
      2. Node
      3. .NET
      4. React, Angular, Vue

      Enterprise Digital Transformation

      Application Support & Maintenance

      Devops Services

      Software Consultancy

    • Custom Software Development

      Android & iOS Mobile App Development

      React Native Mobile App Development

      Custom Application Development

      Web Application Development

      Product Development for Startups & Established Business

      Internet of Things (IoT)

      Industry Expertise

      Data Analytics & Intelligence

      BigCommerce

      Shopify

  • Process
    • OUR PROCESS

      We solve market challenges and build all varieties of custom and platform-based frameworks and provide comprehensive end-to-end software development and IT services.

    • Overview

      Fully Outsourced

      Dedicated Teams

    • Team Augmentation

      Fixed Scope Projects

      Time & Material (T&M)

  • Company
    • OUR COMPANY

      Since 2016, we have been the first and last stop for companies worldwide that need support to develop digital products and custom software solutions. Our integrated resource model paves the way for your technology projects to be completed sooner, with less effort.


      contact us
    • About us

      What we do

      Our story

      Our core values

      Customer’s feedback

      What makes us different?

      Creative, Quality & Speed

      Project timeline

      Long term success

      FAQ

    • Portfolio/Case studies

      E-commerce

      Education

      Finance

      Hospitality

      HR

      Legal

      Logistic

      Marketing

      Operation

      Real Estate

      Retail

      Sport

  • Blog
    • BLOG

      Since 2016, we have been the first and last stop for companies worldwide that need support to develop digital products and custom software solutions. Our integrated resource model paves the way for your technology projects to be completed sooner, with less effort.

      View all blogs
    • Statistics for 2023 on Mobile App Growth and Usage

      RECENT BLOGS

      Statistics for 2023 on Mobile App Growth and Usage

      Finally, the year 2022 has come to a close. Furthermore, in this post-pandemic context, companies are still trying...

      Read the blog >>
      The Best Hybrid Mobile App Development Frameworks in 2022

      RECENT BLOGS

      The Best Hybrid Mobile App Development Frameworks in 2022

      Having a mobile presence has become essential for businesses to survive and reach a broader audience in today's...

      Read the blog >>
      Top 8 Helpful Web Usability Tips For Web Designers

      RECENT BLOGS

      Top 8 Helpful Web Usability Tips For Web Designers

      Making it simple for users of your website to locate the information they require when they require it is the...

      Read the blog >>
  • Careers
  • Contact Us
    • Link copied

    • Link copied

Contact Us
  • Home
  • Services

    Our Services

    • Professional Services
    • Overview Software Consultancy Team Augmentation & Full Team Outsourcing Enterprise Digital Transformation Application Support & Maintenance, Hosting Devops Services Hosting
    • Custom Software Development Services
    • Overview Android & iOS Mobile App Development React Native Mobile App Development Custom Application Development Web Application Development Product Development for Startups & Established Business Internet of Things (IoT)
    • Industry Expertise
    • Overview Education Technology Data Analytics & Intelligence BigCommerce Shopify
  • Process

    Our Process

    • Fully Outsourced
    • Dedicated Teams
    • Team Augmentation
    • Fixed Scope Projects
    • Time & Material (T&M)
  • Blog
  • Careers
  • More

    More

    • About Us
    • What Makes Us Different?
    • Contact Us
    • Case Studies
Home Blog 7 Major IT Outsourcing Trends for 2022
Blog Post
Matt Long CEO
February 09, 2022

7 Major IT Outsourcing Trends for 2022

8 min read
Voiced by Amazon Polly
Table of contents show
1. What is IT outsourcing?
2. The impact of COVID on the IT outsourcing market in 2021 and beyond.
3. What will be the IT outsourcing trends in 2022?
3.1. Global IT spending is expected to grow.
3.2. The scope of remote work increases
3.3. Cloud services will grow
3.4. The popularity of Artificial Intelligence (AI) will increase.
3.5. Demand for blockchain services will increase.
3.6. Cybersecurity specialists are in increasing demand.
3.7. Eastern European vendors’ subsequent increase
4. Why should you choose Groove Technology to be your IT outsourcing provider?
5. Summary

Outsourcing was heavily attacked in its early days, as with many revolutionary techniques. Those who oppose it claim that outsourcing is responsible for various adverse effects, from encouraging companies to outsource tasks that they can no longer perform internally to generating a significant decline in the domestic labor market. When it comes down to it, outsourcing has become a full-fledged business strategy because of its two primary advantages: cost-effectiveness and access to global talent. IT outsourcing is no exception, though, and it is constantly evolving and proposing new techniques as it does so. This article will walk you through 7 main IT outsourcing trends expected to emerge in 2022, along with their implications for your organization.

This article will walk you through 7 main trends expected to emerge in 2022, along with their implications for your organization.

What is IT outsourcing?

Groove Technology - 7 Major IT Outsourcing Trends for 2022 - Intro

There are various reasons why businesses outsource their information technology services

IT outsourcing is a term that refers to a procedure in which a business or company employs a third-party firm to undertake IT services on their behalf. This is a common practice, as many businesses lack the resources or skills necessary to handle specific IT requirements in-house. This might range from straightforward duties such as planning or designing mockups to more involved tasks like programming and web development.

There are various reasons why businesses outsource their information technology services, but the primary ones are as follows:

  • Boost efficiency and effectiveness by bringing in specialized talents, expertise, or technology that are not available on an internal basis;
  • Reduce costs through scalability and flexibility — Hiring an outside company enables you to scale up (or down) in response to changing demand.

Of course, there are more reasons why businesses outsource, but the ones listed above are the primary drivers of this practice.

The impact of COVID on the IT outsourcing market in 2021 and beyond.

The global pandemic caught humanity off guard, creating worldwide chaos and halting nearly all activity—from work and school to entertainment and communication. Some industries (such as tourism or air transportation) were brought to a halt, while others survived by drastically reducing the number of employees and their pay – but no domain was spared. The apocalyptic fear of infection, declining consumer demand, supply chain disruption, and many waves of lockdowns all harmed the IT industry, as most organizations cut back on spending and put new product development on hold.

One of the most important lessons COVID has taught us is that we should enhance digitization in all aspects of society to be prepared for remote engagement in future contingencies. Companies recognize the critical role of IT specialists in fueling this quick digitization drive, resulting in high demand for their services.

What will be the IT outsourcing trends in 2022?

Now it’s time to address the big question: What will be the IT outsourcing trends in 2022? Let’s get into some of our predictions without further ado.

Global IT spending is expected to grow.

The amount of money spent on information technology will rise worldwide. Many experts predict that global information technology spending will increase by 4% in 2021 and even more in 2022. The increase in IT spending will be accompanied by an increase in the use of outsourcing services.

Groove Technology - 7 Major IT Outsourcing Trends for 2022 - Currency

According to IDC, IT spending is expected to increase by 4.2 percent by 2021, resulting in total revenues of $5 trillion.

The COVID-19 pandemic accelerated this divergence. All growth in traditional technology spending (hardware, software, services, and telecommunications) over the next five years will be driven by just four platforms: cloud, mobile, social, and big data/analytics. Meanwhile, cost savings from cloud and automation will result in increased spending on emerging technologies such as AI, cloud-based, IoT, and blockchain. Additionally, next-generation security in conjunction with new technologies will continue to drive significant growth.

The scope of remote work increases

Since the outbreak of the pandemic, there has been a significant increase in the use of remote work. Even though there is a lot of good news about the end of the pandemic, the practice of remote working does not appear to be going away anytime soon. According to Gartner, by the end of 2021, 51% of global talent will be working remotely.

The rise of remote work will have a significant impact on the growth of outsourcing. Companies that were previously opposed to hiring a remote team abroad are now more likely to be interested in and less hesitant to outsource certain functions to a third party at a lower cost.

With remote working becoming the new normal, businesses are looking to outsource a broader range of projects and use remote working collaborations to hire talent while significantly reducing costs. Because of a behavioral and mental shift in the way we work, companies that were previously opposed to hiring teams abroad now have their own team members who work remotely. This means they’ll be more willing to outsource functions to third-party vendors at a lower cost. This means that there are numerous new opportunities for growth and expansion for offshore businesses.

Cloud services will grow

This category has grown at a rapid pace since the introduction of cloud computing in 2006. Companies worldwide invested approximately $ 175.8 billion in cloud computing infrastructure and services in 2018. This trend is expected to continue in the coming years. According to Statista, the global cloud computing market will be worth $482 billion by 2022.

Cloud computing services will continue to grow in popularity. Cloud computing services are a great solution for many businesses because of their low monthly costs and low overhead. They will not have to worry about making an upfront investment in expensive hardware and will be able to use their resources to make other investments. Cloud computing services provide other benefits, such as enabling teams to work from anywhere.

As the world moves toward cloud computing, more and more businesses will look for providers who provide on-demand cloud computing services. In line with this trend, we anticipate increased demand from businesses across industries for cloud engineers and developers who are familiar with cloud infrastructure and management.

The popularity of Artificial Intelligence (AI) will increase.

When it comes to the IT outsourcing trends that will dominate in 2022, AI is a hot topic. With so much emphasis on customer service and experience, AI can significantly simplify business processes by handling massive amounts of data and mining it to provide better user experiences. They can also reduce the average handling time for customer complaints and queries, allowing customer service executives to focus on more complex and difficult problems, as well as personalized services.

AI also enables businesses to gain greater control over their data and processes, intelligently integrating all areas of business. As demand for AI grows, companies are looking to outsource AI-driven projects or want outsourcing service providers to incorporate strands of AI into their existing processes.

Because not all businesses can develop and implement machine learning and AI into their software on their own, they will outsource these functions to providers with subject-matter expertise to implement these functions. Outsourcing service providers are increasingly incorporating AI components into their applications and processes to make them smarter.

Demand for blockchain services will increase.

Groove Technology - 7 Major IT Outsourcing Trends for 2022 - Block Chain

Blockchain services are expected to grow in 2022

The blockchain is a decentralized ledger that records all transactions. Although this technology has existed for years, it was Bitcoin that brought the concept to the mainstream when it became the first cryptocurrency to use the blockchain as its underlying platform. Since then, numerous other businesses have begun utilizing similar platforms to market their services and products. Experts predict that this trend will continue to accelerate over the next few years, as more businesses learn how to integrate blockchain technology into their operations.

In terms of outsourcing providers, we anticipate an increase in demand for services such as decentralized application development (dApps), software engineering for crypto projects, and exchanges.

Cybersecurity specialists are in increasing demand.

The popularity of cloud computing, mobile devices, and the Internet of Things has created a slew of new opportunities. However, it has exposed businesses to previously unimaginable security threats.

In today’s digital world, hacking, cyberattacks, and data breaches are all too common. Indeed, the number of connected IoT devices has increased by 9% to 12.3 billion globally. This massive number complicates the task of protecting these devices from hackers, resulting in an ever-growing demand for cybersecurity professionals capable of keeping up with this fast-paced industry.

In the coming year, we expect IT outsourcing providers to offer a broader range of cybersecurity-related services. A growing number of businesses will be looking for software engineers, distributed application developers, and information technology security experts who can assist them in remaining one step ahead in this area.

Eastern European vendors’ subsequent increase

Eastern Europe is already a popular destination for IT outsourcing due to its lower costs, high-quality technical education, and abundance of talent. However, the region is gaining increasing attention from multinational corporations. Eastern Europe is home to vibrant IT communities. The region’s talent is employed by world-leading companies such as Google, Microsoft, and Amazon.

Additionally, with the exponential growth of the startup ecosystem, Eastern Europe not only solidifies its position as a top IT outsourcing destination but is also poised to claim a larger market share in the coming years.

Why should you choose Groove Technology to be your IT outsourcing provider?

As one of the IT Outsourcing Providers recognized by Designrush, serving customers globally for projects of all sizes and scopes, Groove Technology is fully committed to delivering best-in-class outsourcing services for all types of customer needs. Our goal is to provide the best and highest value to our customers through our flexible process of outsourcing services.

When partnering with Groove Technology, we will provide the right talent for your project to expand your team capacity in the long run. Your in-house team will work with experienced developers in various fields such as Java Developers, IoT, eCommerce, etc. Moreover, we can ensure a seamless transition of your new offshore team members to your main team for successful solutions.

Summary

As you can see, the year 2022 will be an exciting one for businesses and IT outsourcing providers alike. Several software development trends will impact the IT industry as well as our lives. More companies will seek out AI, cloud computing, blockchain development, or cybersecurity outsourcing providers in the future. So, it’s reasonable to plan on implementing at least one of these in your business. The best way to accomplish this is to form an offshore development team.

Contact us now to discover how it works!

CEO - Matt Long - Groove Techonology - We Build Amazing Software For Your Business CEO - Matt Long - Groove Techonology - We Build Amazing Software For Your Business
Matt Long CEO AT GROOVE TECHNOLOGY
Matt Long is the founder and CEO of Groove Technology. Groove Technology recruit at the top of their market, providing cutting-edge software development services to partners located across the world through a unique, integrated resource model. You can get in touch with him here, or find out more about Groove Technology Services.
Recent Blogs
  • Statistics for 2023 on Mobile App Growth and Usage
    December 15, 2022

    Statistics for 2023 on Mobile App Growth and Usage

  • The Best Hybrid Mobile App Development Frameworks in 2022
    December 1, 2022

    The Best Hybrid Mobile App Development Frameworks in 2022

  • Top 8 Helpful Web Usability Tips For Web Designers
    November 16, 2022

    Top 8 Helpful Web Usability Tips For Web Designers

  • Design-First or API-First: What’s the Best Approach?
    November 12, 2022

    Design-First or API-First: What’s the Best Approach?

  • How to build a cross-platform mobile app?
    November 8, 2022

    How to build a cross-platform mobile app?

What it’s like working at Groove Technology?

View
START YOUR JOURNEY
TO AMAZING SOFTWARE

If you have any questions, our team is happy to support!



START YOUR NEW
CAREER AT GROOVE

If you have any questions, our team is happy to support!

Your Resume

App demo request

If you want to experience this app on iOS, please contact us to be added to the test environment.

Contact us
Refresh Page

Please rotate your screen horizontally for the best experience.

Career Contact
Business Request
X
  • Home
  • Services
  • Process
  • Company
  • Blog
  • Careers
  • Contact Us
Groove Technology - Software Company in Australia - Viet Nam - Singapore - VN Flag
VIETNAM

Floor 18, Havana Tower, 132 Ham Nghi, Ben Thanh Ward, District 1, Ho Chi Minh City, Vietnam.

Groove Technology - Software Company in Australia - Viet Nam - Singapore - AU Flag
AUSTRALIA

Suite 115, 358 Clarendon Street, South Melbourne, Victoria, Australia, 3205.

Groove Technology - Software Company in Australia - Viet Nam - Singapore - HK Flag
HONG KONG

5/F, Yat Chau Building, 262 Des Voeux Road Central, Hong Kong.


Copyright ©2022 Groove Technology. All Rights Reserved.
Security Statement. Modern Slavery Statement.

BACK TO TOP