It’s hard to believe, but 2022 is wrapping up. That thing people say about time accelerating as you get older has yet to find a counterargument. And in a similar way, the world of technology and outsourcing accelerates at ever-increasing speeds as well. Keeping up with just what’s going on in one particular sector can easily be a full-time job — blink and you’ll miss it. So, to get ahead of the curve, we’re here today to describe what we envision will be the top outsourcing trends in 2023.
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.
We see a few significant trends set to play out in the coming year. First, we’ll look at outsourcing trends in general. Then we’ll check out tech trends we expect to be important in IT outsourcing.
Outsourcing trend 2023 #1: Outsourcing itself
Let’s start with something simple: The trend towards an increase in outsourcing itself is one of the most notable features of our current economy. It’s simpler and more common than ever to hire outside of a company for a wide range of tasks, and there are more ways than ever to make it work.
Outsourcing and remote work were already on the upswing before the pandemic, but Covid-19 forced swifter change that would have likely happened on its own. It’s forced industries of all varieties to change, of course, but few were better prepared for that change than the software outsourcing industry. Fortune favors the prepared, so outsourcing was ready for the challenge. And now that it’s in place, it’s likely to remain the rule rather than the exception.
As the industry grows and matures, outsourcing teams become more flexible, more resilient, and more skilled. Similarly, companies around the world are more accustomed to and comfortable with the idea of outsourcing. This creates a positive feedback loop that will further accelerate change and innovation in the industry.
Outsourcing trend 2023 #2: Increasing agility and specialisation
There’s a good reason outsourcing has been a growing trend. Outsourcing can help businesses become more agile and responsive to changing market conditions. By outsourcing certain tasks, businesses can take advantage of new technologies and opportunities faster. Additionally, outsourcing can help businesses free up their internal resources, allowing them to focus on more important tasks. The practice can also help businesses stay ahead of the competition by utilizing the latest technologies and trends.
That last part is one of the most salient arguments for outsourcing. It’s expensive and complicated to hire and maintain a dedicated software development team that’s on the cutting edge. Hiring alone can be a massive time sink with no guaranteed positive outcome. Furthermore, simply understanding the latest tech trends and knowing what to use when requires specialized knowledge many companies don’t possess.
So, outsourcing can help keep a company up to date with the latest software — and with talented developers — without having to go through the hassle of building their own team. This can be a massive help in reducing capital costs, since high-end engineers are always in demand and training staff takes both time and money. Allowing a software outsourcing specialist to handle the legwork in hiring and training is a win-win scenario.
Outsourcing trend 2023 #3: Increasing access to resources
Not too long ago, access to top talent and resources was limited to companies with huge amounts of capital. The growth of the outsourcing industry opens up a wide range of possibilities to small and medium companies who otherwise wouldn’t have the resources to develop custom products, for example.
An offshore team can help a small company be competitive and look sharp even when the competition is huge. Outsourcing software development helps level the playing field and gives small businesses advantages that were previously unimaginable. A custom app, for example, can make a small outfit look as professional as the corporate giants.
At the same time, large companies can trim down budgets and make a sleeker financial profile while getting a team that knows how to work within large structures. Managers can rest easy knowing their tasks are being handled by experts. Again, everybody wins.
Outsourcing trend 2023 #4: Cloud computing
We are entering an exciting new era of cloud computing in 2023. With the developments in outsourcing trends, businesses are now looking to the cloud to store, access, and process data in a more efficient way. 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.
Cloud computing extends to processing as well. More companies are turning to serverless computing, which allows them to pay only for the actual processing time they use. In addition, organisations are moving their applications and data to the cloud, taking advantage of improved security and larger storage capabilities. And, of course, cloud computing will help businesses save money by reducing their need for physical storage space — no more bulky server rooms.
Outsourcing trend 2023 #5: Cybersecurity
The world of cybersecurity is rapidly changing, and it’s only going to become more dynamic as we move into 2023. As more organisations outsource their security needs, we’re likely to see an increase in cybersecurity outsourcing trends. We can expect to see a larger emphasis on using cloud-based security solutions, as well as more sophisticated AI and machine learning technologies.
This means that the security of data will be more secure and protected against malicious actors. We can also expect to see an increased focus on identity and access management, as well as an increase in the adoption of zero-trust architecture. Blockchain systems will be implemented to help maintain and track the custody of data to ensure that the data remains intact and untampered with.
Finally, we can expect to see an increase in the use of biometric authentication, such as fingerprint and facial recognition. All these changes will ensure that our data is as safe and secure as possible.
Outsourcing trend 2023 #6: Internet of things
The Internet of Things (IoT) will be a major force in 2023, 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.
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.
Outsourcing trend 2023 #7: 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. 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.
Companies are already turning to fintech for solutions to everything from managing customer data to automating payments. You can expect to see ever more fintech products and services available, along with even more sophisticated technologies. This will lead to more efficiency and cost savings, as companies can outsource more of their financial services and processes to fintech providers.
If you want to learn more about what to expect in fintech, check out our article on embedded finance in 2023 to know what to expect.
Outsourcing trend 2023 #8: Artificial intelligence
No list describing future tech trends would be complete without discussing AI. It’s one of the most-talked-about topics pretty much anywhere today, and for good reason.
That’s because the year 2023 is shaping up to be a game-changer for AI. By then, AI technology will be widely used in all industries, from healthcare to transportation. We will see a major shift in the way businesses operate, with AI-driven automation and outsourcing trends taking over many of the tasks currently done by humans.
AI will be used 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.
We’ll also see AI being used to create more accurate predictions and forecasts, allowing businesses to make decisions based on a better understanding of the future. Take a look at how BlackRock uses its Aladdin AI system to get an idea of just how powerful this tech can be. AI will be an integral part of the business landscape in 2023, and it’s an exciting time for anyone interested in the power of technology.
Looking to get started?
We’re as excited as ever to be a part of this fast-growing industry, and we’re just getting warmed up. SmartDev’s goal is to be the best software outsourcing company in Vietnam, and we’d love to show you just how we work.
If you’re looking for help with a development project, reach out to us — we’d love to talk with you about it. Who knows — if things fall into place, your company could be one of the biggest trends in 2023.