IT Outsourcing Trends for Growing Companies in 2021

February 15, 2023
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2020 happened to be a catastrophic year. Amid the COVID-19 Pandemic, counties worldwide started implementing containment measures by announcing strict lockdowns and curfews that pushed their economies towards economic strangulation. IT Outsourcing trends have been altered and upgraded since strict lockdowns in difficult economic conditions are implemented. That has badly influenced the performance of businesses of all sizes.Adaptation is the key to survival. In these times of crisis, every company had to adapt or die. It led to the evolution of technology trends to meet the rapidly shifting needs of consumers, operations, and existing systems.[lwptoc title="Technology Outsourcing Trends for Growing Companies in 2021" skipHeadingLevel="h1,h4,h5,h6"]These unexpected and sudden shifts are also affecting software and IT outsourcing trends and demands. Companies are bound to revise their existing operational methods and teams to counter the economic hit man still knocking at the door as COVID-19 is yet to be controlled. It’s still uncertain to predict what might happen in 2021 if the world comes back to normal or not.

IT Outsourcing Trends for Growing Companies

This blog post will let you explore the key trends crucial for growth in 2021, as these trends have already shown some proven statistics in recent times.

Remote Work Teams

Despite the lockdown, the total IT budget rose from 12.7% in 2019 to 13.6% in 2020. Let’s discover how. The pandemic has pushed more and more businesses to hire remote staff and work teams.The World Economic Forum claims that the number of remote workers is set to double in 2021. This significant shift towards remote work impacts the tech industry more than other sectors, as a report by Avasant reveals that middle-sized tech companies have been the largest contributors to the growth of the IT outsourcing industry in 2020.The topmost benefits of hiring remote teams include cost-cutting and flexible work times. Both the factors are crucial for the growth in this pandemic-rich environment.Amid the economic crisis, cost reduction is the topmost priority for every business to remain fiscal positive. Allowing your team to work remotely or hire external remote teams for a project promises a notable cost reduction.Despite lockdown measures, the businesses need to keep working to make timely deliveries which can only be made possible by allowing workers to work remotely in flexible hours. Secondly, recruiting offshore employees enhances productivity. Hiring foreign talent can bring diversity and efficiency to a team.

Edge Computing

Edge computing is happened to be a game-changer in the tech industry. In 2021 it will experience not only continued growth but its integration in even more sectors of business. Let's discuss what Edge computing is meant. Edge Computing allows data processing on mobile or IoT accessories. Instead of transferring the raw data to centralized databases for processing, it will enable remote locations to read data in real-time.

Also Read: When to Hire an Agency for your Software Development?

For instance, suppose your business is collaborating with a software company that has developed the system to check if someone is not wearing a surgical mask. In a mainstream routine, cameras would be placed in all corners of the building to transmit video recordings to a centralized database for machine learning mechanisms. With Edge Computing, these video images are processed at the camera, and the results are then transferred to the centralized database as a readily available result. The cost, time, and memory saving are significant.Edge Computing will be dominating every field and area in the near future, and your IT team will require learning the skills to implement it. If your employees are not capable enough to do so, there are several companies from where you can outsource to make it work for you.

Artificial Intelligence

Artificial Intelligence (AI) and Machine Learning (ML) are some of the topmost emerging areas of IT. AI helps your businesses in several different ways, such as:

  • You can make accurate predictions about what customers will buy by extracting useful insights from their buying patterns.
  • Implement Robotic Assistance in the form of Voice, Speech, and Facial Recognition algorithms
  • Organize unstructured data without human assistance
  • Automate your eCommerce platform
  • Add additional capabilities to your product by introducing intelligent devices and systems.
  • If technology is the race, then AI is the fastest car you can ever have to win against all the rivals. Don’t hesitate to adopt this emerging trend of AI. The longer you wait, the further you’ll be left behind. 2021is here, and we will be able to experience exponential growth in the field of AI.

Mobile Apps

The majority of consumers in the world choose mobile-based platforms when it comes to internet surfing. More and more people are making transitions from traditional platforms like desktops and laptops to mobile devices only, and the trend will continue in 2021 and onwards. According to Stat Counter, mobile device usage currently occupies 50.88% of the total market share, while PCs stand 46.39%.How can your company utilize this trend? Make your website or eCommerce platform mobile-friendly. Move one step ahead and introduce the android or IOS application of your platform. It will attract the attention of more and more users.As more and more people desert traditional desktop systems, the best route to success is a mobile-friendly website and a mobile app. If your tech department fails to deliver, you need to outsource the development facility.

5G Network

Only a year after being available to consumer markets, the global 5G network’s value is around $41 billion. This overwhelming success and continuously expanding 5G technology have brought futurists to conclude that the 5G industry will continue to rise with an annual growth rate of 43.9% from 2021 to 2027.What makes 5G Network one of the largest tech support around the globe? Two major reasons for such overwhelming growth are:

  • The number of devices connected to 5G
  • The speed of data exchange

According to Statista’s prediction model on the number of 5G users worldwide (by region) in 2021–2025, the 5G network will be notably functional in China and the North American region in 2021.Due to the promising speed of superfast 5G technology, businesses can develop robust IoT systems that bring manufacturing, transportation, and other systems to the shared platform and improve the efficiency and productivity of their business.

Cloud Services & Distributing Networks

While the current market value of cloud computing systems has achieved a notable mark of $180 billion globally, the SaaS alone is expected to generate $113.1 billion in revenue in 2021. The PaaS, SaaS, and IaaS markets show annual growth of 24%. In the next two years, the global cloud computing market is expected to reach $623.3 billion.These statistics are enough to convince anyone to replace their existing systems with cloud-based technology. While migration to cloud storage is challenging and costly, more and more companies are planning to transition from centralized to distributed data storage facilities.Cloud computing promises more data protection, faster operations, and the opportunity to improve business processes by allowing easy and trouble-free implementation of various business apps.


Zion Market Research predicts the cybersecurity market to attain a net worth of $181.77 billion in 2021. By the year 2022, cyber insurance is expected to mark a $20 billion market share.As businesses are now forced to work remotely, especially after the rise of the COVID-19 pandemic, they become vulnerable to cyber threats without proper cybersecurity protocols and measures. The 2020 HLB Cyber Security Report shows that 65% of British tech companies had their systems been breached or exposed during the lockdowns.According to a report by HLB, the other side of the coin reveals that 55% of (polled) companies are gearing up for spending more on cybersecurity in 2021.No doubt cybercrime is causing immense damage to businesses in the same way a need for the implantation of cybersecurity is also increasing.


The trends above are much obvious, especially to those observing closely what’s evolving and shifting in the contemporary market and within the domain of IT. If you want improvement in your conventional business process, it’s time for you to station these technological trends. COVID-19 has left us no choice but to trust and adopt modern technologies. If you don’t consider these IT outsourcing trends for your business, you could be left behind.

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