Overall about IT outsourcing market
As the world becomes more and more digital, many businesses invest in technology with the ambition to grow fast and sustainable. However, not all businesses have the strength in technology to deploy and apply it into their businesses in the most effective and optimal way. That is also the reason that the software outsourcing model existed and became popular in the digital era.
The statistic from Statista demonstrates this growth. Revenue in the IT services market is projected to reach 1,204 billion USD in 2023. With an annual growth rate of 6,86%, the volume can reach 1,570 billion USD by 2027. The market’s largest segment is IT Outsourcing with a projected market volume of 430 billion USD in 2023 and 587,3 billion USD by 2027.
Some things about the outsourcing industry will always be the same. For example, the core principles of outsourcing – reducing costs, maximizing efficiency, and gaining access to a wide range of resources – remain rock solid. See more about 2 models: outsourcing and in housing.
6 IT Outsourcing trends in 2023
Besides the core value and its process, IT outsourcing trends also are essential updates to key members to make accurate and appropriate decisions for business due to technology not only growing fast but constantly changing. Let dive into 6 significant trends to play out in 2023 for IT outsourcing.
Artificial Intelligence
AI is not a new term to anyone who is interested in technology and its application in real life always makes people curious and would like to follow. The global artificial intelligence market, currently valued at 327.5 billion USD and continues to grow driven by the influx of investments it receives.
AI will be widely used in all industries to analyze and interpret data, create personalized solutions, and automate complex tasks. This will allow businesses to operate more efficiently and effectively, while also reducing costs. AI-driven automation will also lead to faster, more accurate decisions and insights, allowing businesses to stay ahead of the competition.
AI has many practical applications, which can be mentioned as identifying and redacting the face, transforming audio, video, text, and other data sources or forecasting in real time.
Internet of Things
The Internet of Things (IoT) will be a major force in 2023, and can hit the global revenue of 23,01 billion USD as more and more devices become connected and integrated with each other. We’re already seeing the beginnings of this trend with smart homes, wearable tech, and connected cars, but in the next five years, we can expect to see the IoT expand exponentially.
Technology for smart homes attracts the most attention and has great potential development in the near future.
Starting from now, virtually every new device in our homes and workplaces will be able to connect to the internet, from fridges to thermostats to security systems and more. This will create a huge opportunity for businesses to harness the power of data, leveraging it to develop better services and products. Businesses will also need to be prepared to deal with the changes that the IoT brings, such as the rise of outsourcing and the need for advanced security measures.
Cloud computing
Cloud computing describes the use of networks of remote servers – usually accessed over the Internet – to store, manage, and process data. Cloud computing generates almost 400 billion U.S. dollars in revenue in 2021 and is showing very few signs of slowing down.
With the developments in outsourcing trends, cloud computing offers a range of benefits, such as cost savings, scalability, and accessibility. And with the ever-evolving technology, these benefits are only going to get better.
For example, cloud computing will enable businesses to have faster access to data and applications, reducing their latency and improving performance. It will also make it easier for businesses to become more agile and responsive to changes in the market.
Applications are a huge part of this movement in the form of software as a service (SaaS). This part of the industry has seen an explosion in development, and new SaaS options appear seemingly every day. The subscription format of most SaaS companies ensures they provide ample customer support and you’re not left hanging if something goes wrong.
Cybersecurity
The world of cybersecurity is rapidly changing, and it’s only going to become more dynamic as we move into 2023. Revenue in the Cybersecurity market is projected to reach 173.50 billion USD in 2023, and can reach 262,4 billion USD by 2027. As more organizations outsource their security needs, we’re likely to see an increase in cybersecurity outsourcing trends. According to Statista, the largest segment of Cybersecurity is Security Services, which can mark 91,21 billion USD this year. We can expect to see a larger emphasis on using cloud-based security solutions, as well as more sophisticated AI and machine learning technologies such as identity and access management systems, biometric authentication, fingerprint or facial recognition. All these changes will ensure that our data is as safe and secure as possible.
Fintech
Fintech is one of the most rapidly growing industries of the 21st century, and it’s projected to reach new heights in the next few years. According to experts’ forecasts, in 2030, the size of the worldwide fintech market is anticipated to reach $699.50 billion, growing at a CAGR of 20.5%.
Modern technology has taken the place of outdated banking management techniques. Today’s financial industry embraces digital transformation by creating a wide range of mobile applications and offering top-notch financial services. Implementing cutting-edge technology by multinational corporations enables enterprises to fulfill the rising demand for fintech products, increase productivity, simplify financial transactions, and guarantee transaction security. Fintech apps will therefore continue to be popular in the long term.
By 2023, we can expect to see a major shift in the way financial services are outsourced, with greater digitisation and automation leading the way. Fintech will continue to revolutionize the finance industry, providing customers with more convenient, user-friendly services and more secure financial transactions.
Some of the most common fintech development trends are Chatbots to promptly answer the frequent inquiries, Voice based solutions to improve customer service, productivity, communication and accessibility of digital goods, applications of RPA or Blockchain.
Metaverse
In 2021, the global metaverse market size stood at 38.85 billion USD, surging to 678.8 billion U.S. dollars by 2030. Regarded as the next iteration of the internet, the metaverse is where the physical and digital worlds come together.
As an evolution of social technologies, the metaverse allows digital representations of people, avatars, to interact with each other in a variety of settings. Whether it be at work, in an office, going to concerts or sports events, or even trying on clothes, the metaverse provides a space for endless, interconnected virtual communities using virtual reality (VR) headsets, augmented reality (AR) glasses, smartphone apps, or other devices. The technology has wide potential in practice, when it can apply in any industry such as healthcare, education, manufacturing, military or real estate.
The future of IT outsourcing will likely see a greater focus on security, demand for cloud-based technology, the growth of Artificial Intelligence and Internet of Things besides the Metaverse and Fintech. Companies that want to take advantage of highly useful and necessary outsourced IT resources should start now to find an innovative and trustworthy partner they can rely on to realize their ideas with high quality and competitive costs as well. Let’s contact SETA International’s experts for free consultation via contact@setacinq.vn.
SETA International has 14 years of experience in AI, IoT, mobile, web and Cloud and is one of the leading software solution providers in Vietnam providing one-stop software development services with high quality, efficiency and competitive cost.
