IT Outsourcing Picks up Pace

After several years of sluggish growth, the IT outsourcing industry has received a push started 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 cases means turning to the outsourcing industry for help. As pandemic workplace habits stuck around, IT outsourcing is continuing its fast growth today.

According to the Statista Technology Market Outlook, the global IT outsourcing industry grew by between 13 and 18 percent per year in 2021, 2022 and 2023 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 reach revenues of $588 billion in 2025, an 8 percent increase from the previous year.

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.