9 IT Outsourcing Trends in 2023

28 Sep ยท 5 min read

9 IT Outsourcing Trends in 2023

Companies are anticipated to outsource their software development by a startling 70% between 2022 and 2023. The IT outsourcing market will expand even though most countries have recovered from the pandemic and firms have resumed functioning from offices. To better understand things, let's look at some facts and figures about outsourcing that you should be aware of.

Promising IT Outsourcing Trends in 2023

Here are some of the trends to be expected in the year 2023. Let's dive in.

Rise of IT Outsourcing

Companies experience a shortage of resources and personnel to handle a constantly expanding workload due to the competition for leadership positions. Businesses frequently request third-party assistance in this manner to prevent employee fatigue and backlog.

According to the most current Commit research, entrepreneurs may expect an incredible 70% growth in software development outsourcing between 2022 and 2023. Mid-sized companies and larger organizations need software development assistance to increase ROI and improve customer experience on a tight timetable. 

Better Data Protection

Government demand to provide adequate data protection is increasing yearly. Despite all state efforts to simplify compliance procedures for firms, this problem continues to stand in the way of the digital transformation process.

Companies carefully handle information and install technologies like 5G or IoT to avoid data leaks because of the diversity of restrictions and the possibility of severe penalties. Technologies will always be a driving force behind the growth of the overall firm. As a result, companies should consider bringing in IT outsourcing teams in 2023 to monitor data security and develop reliable ways to ensure it.

Increasing Market Share

Forecasts predict that IT outsourcing will grow at a 7.7% CAGR over the next three years, reaching a total market value of $806.63 billion. A different technique of data collecting and analysis used by Statista results in a more conservative estimate of about $505 billion by 2025 but forecasts a higher CAGR of 8.26%.


Every year, more software is incorporating this notable trend in IT outsourcing. By 2024, the current $6.6 billion spending on blockchain solution development is expected to increase to $19 billion. Although blockchain is utilized most frequently in FinTech, it is also employed in solutions for logistics, healthcare, real estate, and other industries.

Blockchain improves the traceability, security, trustworthiness, and transparency of data shared across a business network while generating new efficiencies that save costs. Blockchain for business employs an open, unchangeable ledger only authorized members can view.

Artificial Intelligence (AI)

The market for AI will experience tremendous growth between 2022 and 2030, according to researchers. By 2024, the market, according to IDC, will increase to $500 billion. The popularity of AI integrations in different software is still rising, and in 2023, it's predicted that this will be a trend in outsourcing IT services. The benefits of incorporating artificial intelligence into applications are apparent, and the potential for doing so is vast.

With continued advancement, AI technology has the potential to become even more sophisticated. Although it is impossible to anticipate the exact course of AI, it will undoubtedly continue to be advantageous for both enterprises and end users.

Robotic Process Automation (RPA) Solutions

RPA is a type of software development that makes it easier to create, use, and manage robots for performing easy jobs. Companies realize that using robots to complete routine tasks is more cost-effective, driving up demand for robotic process automation.

The size of the worldwide industrial automation market was estimated at $196.6 billion in 2021 and is expected to reach $412.8 billion by 2030, growing at a CAGR of 8.59% from 2022 to 2030.

Cloud Computing

Access to cutting-edge technologies like AI, RPA, and machine learning requires cloud outsourcing. Additionally, it allows a business to utilize cloud services and gather and store resources on the cloud.

The cloud platform and cloud services of companies like Amazon Web Services (AWS), Google, and Microsoft are receiving increased financial support. According to a 2022 Cloudwards survey, the market for cloud platforms and cloud computing will be worth $832.1 billion by 2025.

Potent Cybersecurity

Intruders may have several access points to internal data due to digital transformation. The market for managed security services can be divided into deployment models, including on-premises and cloud, managed security service providers, and end-user verticals. To manage their clients' information technology (IT) infrastructure, managed security service providers (MSSPs) typically offer managed security services (MSS).

As MSPs are increasingly likely to have cybersecurity professionals and cutting-edge solutions, businesses are turning over their cybersecurity to them. According to Statista, the market for MSPs is in such great demand that it was valued at $152.02 billion in 2020 and would reach $274 billion by 2026.

Machine Learning (ML)

ML is an area of study based on comprehending and developing "learning" processes that use data to enhance task performance. It is considered to be a component of artificial intelligence.

According to a study, the worldwide machine-learning market will reach $117 billion by 2027 with a CAGR of 39% due to the rising demand for these technologies. These rates move pretty quickly. Consequently, ML implementation is anticipated to be one of the trends in IT outsourcing.

Final Thoughts

Thanks to the previously described trends in software outsourcing, IT outsourcing will significantly advance in 2023. As more businesses launch digital initiatives and transformation programs, these trends will become increasingly important.

However, having a dependable partner can help you navigate challenging technology demands and hasten your digital transformation. If you're looking for a software partner and want to collaborate with a successful team that meets your needs, get in touch with Amplifyre.

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