After several years of sluggish growth, the IT outsourcing industry has received another push by the Covid-19 pandemic. As the coronavirus changed the lives of people around the world, it also drove home the need for digitization to industry leaders far and wide. Working from home, remote access, delivery services - all of the trends of the pandemic need a strong IT backbone, which in many case means turning to the outsourcing industry for help.
According to the Statista Technology Market Outlook, the global IT outsourcing industry grew by almost 13 percent between 2020 and 2021 after several years of single-digit growth and even a small dip in 2020 itself as the initial Covid shock caused many companies to pump the brakes on expenses and new projects. The industry is expected to surpass revenues of $500 billion in 2025.
Growth is expected to occur across regions and industry subcategories. According to India Today, the pandemic has intensified a trend of digitization that before was mainly concentrated on industries like health care, finance or human resources. One more problem that IT outsourcing is able to patch is the lack of IT talent that is omnipresent in many industrialized countries but also not unknown in outsourcing hotspots like India as workers become increasingly specialized and sought after.