IT Outsourcing Trends 2024 – What to look for?

The IT outsourcing sector made significant strides in 2023, with a remarkable expenditure of over $4.4 trillion, as reported by its outsourcing trends Gartner. Key trends in this industry included cloud computing, blockchain, artificial intelligence, and other advanced technologies.

Looking ahead to the IT Outsourcing Trends for 2024, it’s interesting to speculate which trends will persist and what new developments might emerge in the coming year.

I. IT Outsourcing Trends 2023-2024

1. Artificial Intelligence (AI)

The AI industry has seen substantial growth, making it a top trend in IT Outsourcing for 2024. AI tools help improve customer experiences, optimize operations, and reduce costs. They also provide businesses with greater control over their data and processes.

Many companies use AI to process and analyze large data sets to enhance user experience. Many outsource this function to specialized vendors instead of developing AI tools in-house.

2. Internet of Things (IoT)

The Internet of Things (IoT) is set to become a significant player in 2024, with its influence expanding rapidly. The world is moving towards a future where almost every new device, from home appliances to office equipment, will connect to the internet, including smart homes and wearable technology to connected cars, etc.

Businesses will likely outsource complex products to IoT-focused companies for efficiency and cost savings.

3. Cloud Computing

Cloud computing tops the list of IT Outsourcing Trends for 2024. Essential for accessing other cutting-edge technologies like AI, RPA, and machine learning, cloud outsourcing is increasingly crucial. It enables businesses to collect, store, and utilize cloud-based resources and services. 2023 Statista reported that over 60% of enterprise data was stored in the cloud, a trend likely to grow in 2024.

Consequently, many industries are expected to seek IT service providers with skilled cloud engineers and developers well-versed in cloud infrastructure and management. These experts are vital in helping businesses manage cloud expenses and secure their data.

4. Big Data Analysis

Big Data Analysis is becoming increasingly important for large corporations storing vast amounts of customer data. This data enables them to tailor individual customer experiences. Extensive data analysis also aids organizations in making well-informed operational decisions based on insights from various sources. The Big Data Analytics market is expected to hit $103 billion in 2024, according to Techjury.

Businesses increasingly use this capability to understand customer behavior better and refine pricing, marketing, and customer service processes.

5. Cybersecurity

With cybercrime cases surging by over 600% during COVID-19, as reported by Purplesec, cybersecurity has become a focal point for organizations. Deloitte found that 64% of respondents identified security capabilities as a critical driver for adopting emerging technologies in the next three years.

Firms increasingly rely on external providers for sophisticated cybersecurity solutions, ranging from managed security services to cloud-based security platforms, to protect against cyber threats.

6. Automation

Automation is another significant trend in the IT outsourcing industry trends for 2024. It encompasses a range of technologies and equipment that enable systems to operate autonomously. This includes machines and devices that handle routine IT tasks such as software updates, system maintenance, and security patching.

As reliance on automated tools grows, companies seek more IT Outsourcing Providers to automate their processes.

IT Outsourcing insights at TECHVIFY:

IT Outsourcing Models: An Ultimate Guide

Top 10 IT Software Outsourcing Companies In Vietnam

II. The Impact of IT Outsourcing Trends 2024 on Businesses

With the continuous emergence of new technologies and trends, it’s challenging for companies to keep pace and adapt. Learning, investing, and hiring to stay abreast of these trends can be time-consuming. However, external service providers can help enhance their business operations.

Outsourcing offers several benefits, such as reduced costs, improved efficiency and scalability, and access to specialized expertise. This can significantly enhance customer support, marketing, and sales operations. Moreover, companies can shift their in-house resources from routine tasks to more critical projects. This shift mainly benefits smaller businesses lacking the necessary skills or staff for specific jobs. By outsourcing, they can stay competitive without the hefty investment in hiring full-time staff.

In 2024, IT outsourcing is anticipated to become a vital aspect of business strategies. Companies identifying and acting on this trend now will be well-placed for future success. They can keep their competitive edge and continually refine their processes by leveraging the expertise of external providers instead of dedicating excessive time to learning and applying new technologies.

III. Why choose IT Outsourcing in Vietnam?

Thanks to its dynamic and skilled IT workforce, technological innovation, and supportive government initiatives, Vietnam stands out as a prime destination for IT outsourcing.

Vast IT Talent Pool

Vietnam is in a demographic “golden age,” with a large, youthful workforce adept in new technologies, making it ideal for cutting-edge IT solutions. The country is home to skilled IT professionals, including software developers, data scientists, and AI engineers, with international exposure, enhancing communication and global understanding.

Technological Expertise

Vietnam’s top 10 global developers position, as highlighted in a Pentalog report analyzing data from 500,000 developers and 40,000 IT freelancers, underscores the nation’s expertise across various IT specializations. Vietnamese developers consistently rank among the top 10 countries in modern and traditional programming languages, such as JavaScript, C/C++, and Python, according to test results from the SkillValue platform.

The report highlights Vietnam’s strengths across various IT domains, including software development, AI, cybersecurity, and innovative realms like Generative AI, IoT, and NFT technologies.

Thriving Tech Ecosystem

The country’s vibrant startup scene and success stories like VNG Corporation and VNPAY reflect its capacity for tech innovation and entrepreneurship. Government-driven tech advancements, including the National Digital Transformation Programme, further bolster Vietnam’s position as a technology leader.

Economic Stability and Market Opportunities: Vietnam’s consistent GDP growth and expanding IT market, supported by investment-friendly government policies, make it an attractive destination for IT partnerships.

Positive Working Culture

Vietnamese IT professionals stand out for their honesty, hard work, and dedication, ensuring transparent communication and timely, quality project delivery. They are known for their innovative approach, embracing new technologies and progressive ideas. The work culture in Vietnam values hierarchy, aiding in effective decision-making and project management.

Additionally, these professionals prioritize a customer-centric approach, focusing on tailored solutions to meet client needs, making them valuable partners in the global market.

Cost-Effectiveness

Outsourcing to Vietnam offers significant financial advantages. Software development costs in Vietnam are substantially lower than in Europe, the U.S., and India, making it a highly cost-effective choice for offshore IT solutions.

Conclusion

In conclusion, the IT outsourcing landscape in 2023 has been a testament to the rapid evolution and adoption of technologies such as AI, IoT, cloud computing, and cybersecurity. These trends reflect the industry’s current state and set the stage for what we can expect in 2024. As businesses continue to navigate this ever-changing digital terrain, the importance of choosing the right outsourcing partner becomes increasingly evident.

Vietnam is an excellent choice for IT outsourcing, and TECHVIFY Software exemplifies this with its expertise in AI, custom software development, cloud services, and more. TECHVIFY’s team of skilled professionals excels in diverse IT fields, offering robust, scalable, and cost-effective solutions. They stand out for their commitment to security, cost optimization, and reliability, making them a trusted IT partner.

For those looking to harness the full potential of IT outsourcing, TECHVIFY Software presents an opportunity to collaborate with a team of experts dedicated to delivering tailored, efficient, and innovative IT solutions. Contact TECHVIFY Software to discuss how our services can align with your business objectives and propel your company toward future success.