In 2017, there have been lots of shifts in outsourcing trends in the IT Market. These trends have been adopted by outsourcing businesses help them to to grow and develop. Outsourcing has been a major pathway to promote and innovate any company or an organization. Outsourcing integration challenges multiply, production workloads and enterprise systems hit the cloud and cyber-security hit the top of the agenda.

Here is our list of top 10 Outsourcing Trends to watch out for in 2017


1. Machine Learning

Machine learning is a type of artificial intelligence (AI) that provides computers with the ability to learn without being specifically programmed. Machine learning is a method of data analysis that automates analytical model building. Using algorithms that learn from data, machine learning allows computers to find insights without being explicitly programmed where to look. They learn from previous computations to produce reliable results. Because of new computing technologies, machine learning today is not like machine learning of the past. While many machine learning algorithms have been around for a while, the ability to automatically apply complex calculations to big data has become a recent trend.


2. More Technological Improvement

Outsourcing is a great option for many companies to develop and increase their competitive advantages by minimizing operational costs. That is why most of the companies that look for an outsourcing partner put much of their focus on how updated they are in latest technologies, languages, frameworks, etc. Besides that, this year the main focus will be the centralization of the IT solutions. Instead of having several IT providers, companies will ask more solutions (in one place) and a bigger offer from their software development partners. Standardization, lowering cost and increasing of quality and productivity will put near shore and offshore companies to the test. That is why more Technological Improvement is good for any companies.


3. Intelligent Apps

Intelligent Apps are essential for any kind of businesses and people it makes your work easier and enables you to do multi tasking. Intelligent apps, which include technologies like virtual personal assistants (VPAs), have the potential to transform the workplace by making everyday tasks easier and its users more effective. However, intelligent apps are not limited to new digital assistants – every existing software category from security tooling to enterprise applications such as marketing or ERP will be infused with AI enabled capabilities.  Using AI, technology providers will focus on three areas — advanced analytics, AI-powered and increasingly autonomous business processes and AI-powered immersive, conversational and continuous interfaces.


4. Virtual Work

Virtual work, whereby individuals work remotely from home, outside of traditional office environment, is an important and growing trend. Many companies use virtual teams of geographically dispersed people to work on short- and long-term projects. A virtual team is one that conducts its work almost entirely through electronic technology. Telecommuting is a trend that looks like it will stay, working remotely with outsourcing providers takes advantage of this by recognizing that any service-oriented company has come to experience and accept this new model.


5. Customers demand more from cloud

Cloud adoption is becoming popular among businesses as they look to move their IT to a more efficient process. This is often the case for newer IT with complex distributed applications. However, security, which depends on the operating system as much as the network the cloud is built on, is becoming more and more important. The novelty of cloud computing adoption has worn off, and the grace period for providers is over. Customers will be looking to leverage cloud as their platform for new internal and external objectives. Companies will continue to look for more value from cloud service providers to transform their business.


6. Security is very important

Business leaders their company could be more secure. With the high number of hackers out there today, Insider Threats and other threats to cyber security, there have been many new security practices to enact. Data security continues to be a major concern for companies and is expected to increase in importance. The trends are set in advanced security automation, threat intelligence and security analytics solutions. As cyber-security has become one of the most important strategic objectives for companies, concerns about how third-party IT services providers are protecting corporate data have also grown. As a result, negotiation of cyber-security and data privacy issues has become one of the most challenging areas in IT outsourcing contract negotiations.

7. Monitor Applications with Access to Data

Applications are great. They give businesses the tools they need to function and be productive; but they can also put data at risk. When IT security attempts to protect critical information, it usually involves putting up firewalls and building infrastructure around the data that needs protection. When hackers want to steal data, they won’t try to penetrate firewalls, they’ll look for the least secure system with access to the data they need.  With online privacy shield, people can scan the apps on their devices, and discover which information they’re using and control what each service can see.

8. Innovative Services

Over the years, innovation has become a stronger and stronger requirement in outsourcing relationships. These days, competition among brands is tough and businesses are being forced to think out of the box when it comes to providing the best customer experience. Outsourcing services has been an important component of the organizational strategy for many companies. However, studies mainly focus on analyzing the determining factors of outsourcing at the expense of its structural effects. Businesses are constantly searching for an organization which provides high services at a lower cost. Therefore, diminishing costs represent the main factor urging firms to outsource.


9. Agreement According to customer requirements

One of the most important outsourcing trends is the agreement that’s made according to the client’s needs. Choosing the ideal contract agreement with your tech partner is essential when it comes to software development.  A specific hourly rate is billed monthly so that a team of professionals perform development, including all the necessary hardware or extra staff. It is a set amount charged for a service/product that has been defined in its entirety in advance, generally associated with a specific delivery time product. Therefore, in order to establish a best agreement with the client, where both of the parties win, you need to take into account the type of development, time and budget, among other variables.


10. Intelligent automation drives down costs

Intelligent automation helps business to reduce their costs. New research analyzes automation’s impact on the IT outsourcing market, revealing double-digit productivity improvements and specific cost reductions between 14 percent and 28 percent. Automation is having the biggest impact on areas in which employees manage physical devices. Intelligent automation will enable enterprises to innovate and evolve by increasing their agility, reducing the complexity of systems and operations, accelerating their time to market, and creating the ability to experiment continually with new products and services. Intelligent automation thrives when it’s paired with people to drive better outcomes.


The Techniques of outsourcing are changing with the change of time. Only those organization and business who understand and react to such changes and keep working according to the change in trend will survive.

We hope that you like our list. If you have any new Outsourcing Trends in your mind let us know.

Cheers !