IT Outsourcing 2024: Trends and Impacts to watch out


IT Outsourcing has seen a remarkable jump in the year 2023, with a huge expenditure of USD 4.4 Trillion, according to a recent study by Gartner. The most important trends in the industry included Cloud computing, blockchain, artificial intelligence, and some other advanced technologies.

But as we are heading towards 2024, it would be interesting to see which trends will persist and what are the new developments that will emerge during the coming year.

Let’s first check out the IT Outsourcing trends of 2023-24

Artificial Intelligence:-

The first on the list is AI. The AI industry has achieved remarkable growth, making it a spearhead trend in 2024.

The AI tools are helping to improve customer experience, optimize operations, and reduce costs. They are also providing control of data and processes.

Various AI companies do the task of processing and analyzing large data sets to enhance the user experience but some other companies take the route of outsourcing these tasks.

Internet of Things:-

The second trend in IT Outsourcing is IoT which stands for Internet of Things and there’s no doubt that it will gain a lot of significance in the year 2024, due to its influence expanding rapidly.

The world has been rapidly moving towards a time where everything from home appliances to office equipment etc. will connect to the internet.

The growth that IoT products have been witnessing, shows that the companies will outsource all the complex IoT developments to specialized IoT companies for efficiency and cost-cutting.

Cloud Computing:-

The third in the list is Cloud Computing, Cloud computing is very necessary to access other cutting-edge technologies like AI, RPA, and ML, and due to a huge demand in accessing these technologies, Cloud outsourcing has been seeing a huge trend.

Cloud computing makes it easy for companies to collect, store, and use cloud-based resources and services even in the forthcoming years.

According to one report of 2023 by Statistica, 60 % of enterprise data was stored in the cloud, which will see a huge growth in 2024.

Not only this, many industries will be seen seeking IT service providers like skilled cloud engineers as well as developers who are well-versed with cloud infrastructure as well as management.

These experts are important in helping businesses manage cloud expenses and also secure their data.

Big Data Analysis:-

It is becoming increasingly important for large corporations that are storing vast amounts of customer data.

This data is enabling us to meet individual customer needs. Extensive data analysis aids organizations in making well-informed operational decisions based on the insights received from various sources.

This market is expected to hit USD 103 million in the year 2024.

Businesses will increasingly use the capability extracted using data analysis to understand customer behavior by refining pricing, marketing, and customer service processes.


The increased number of cybercrime cases has seen a huge number which was increase by 600% during COVID-19, this increased number of cases has become a center of focus for many organizations.

Deloitte's recent study highlights that a significant 64% of survey participants view security capabilities as a pivotal factor influencing their adoption of emerging technologies in the coming three years.

Notably, businesses are progressively turning to external providers to secure advanced cybersecurity solutions.

This includes services like managed security services to cloud-based security platforms, as a proactive measure to safeguard against evolving cyber threats.

After identifying the top 5 industries and trends to watch out for in 2024, let’s understand the Impact of IT Outsourcing trends of 2024 on businesses.

Impact of IT Outsourcing 2024

  • With the growing emergence of new technologies and trends, it becomes a difficult task for companies to cope with the changes and adapt.
  • Staying up-to-date with learning, investing, and hiring can be a difficult task.
  • That’s when the service providers come into the picture to enhance the business operations.
  • Outsourcing presents a bunch of advantages, including cost reduction, heightened efficiency, scalability, and access to specialized expertise.
  • These benefits extend to various business functions, like improving customer support, marketing, and sales operations.
  • Beyond operational enhancements, outsourcing enables companies to redirect their in-house resources from routine tasks toward more strategic and critical projects.
  • This strategic reallocation is particularly advantageous for smaller businesses that may lack the required skills or staff for certain specialized tasks.
  • Through outsourcing, these businesses can maintain competitiveness without the substantial investment associated with hiring full-time staff.
  • As we are heading towards 2024, IT outsourcing is considered to become an important aspect of any business strategy. Companies that are identifying these trends.
  • Now, let’s understand what are the Top 10 Outsourced IT functions.
  • IT outsourcing software development is the practice of working with an external software outsourcing company to meet your custom software development needs.
  • Let’s understand which are the top 10 IT functions that can be outsourced.

10 IT functions that can be Outsourced

Application Development:

A service provider is fully responsible for developing new or existing applications to help the clients meet their needs and wants.

Application maintenance & support:

It is the duty and responsibility of the service provider to look after the maintenance & support of existing applications.

Datacenter operations:

A service provider can help you to operate the data center with their full expertise.

Database Administration:

The external service provider must monitor and finetune the databases.

Desktop support:

It is the sole responsibility of the IT staff augmentation service providers to help organizations hire remote developers who can help organizations outsource maintenance, support, and installation of PCs and systems.

Disaster recovery:

When companies are hire remote developers they are responsible for off-site data storage, data recovery, or any activity related to disaster recovery.

Help desk outsourcing:

In this function, a remote developer is responsible for lending support to any type of mobile phone or electronic activity.

IT security:

The external service provider must provide all security-related support and maintenance.

Network operations:

Here, the service provider is responsible for the operations of data and monitoring.

Web hosting and operations:

Any service provider hosts, and maintains any kind of websites or e-commerce-based platforms.

Now, let’s understand why India is the best country for IT Outsourcing.

Why choose IT Outsourcing from India

The support that the IT companies of India get from its Government initiatives, the technological innovations and the amount of skilled professionals makes India a prime country to outsource software development.

4 points that make India the best country for IT Outsourcing

Huge-IT Talent Pool:-

India is attracting eyeballs for having a huge pool of seasoned IT Professionals who are adept in new technologies, making it ideal for getting cutting-edge IT solutions.

The country has been home to highly skilled IT professionals, including a group of software developers, data scientists and AI engineers with the required international exposure and enhanced communication skills.

Growing Tech Ecosystem:-

India’s growing startup ecosystem and success stories reflect its capacity for tech innovation and entrepreneurship.

A positive work culture:-

Indian IT professionals stand out for their honesty, hard work, and sheer dedication and ensure transparent communication with a timely project delivery.

The country is becoming known for its innovative approach and progressive ideas.

Furthermore, these experts place a high emphasis on adopting a customer-centric strategy, concentrating on personalized solutions that align with the unique requirements of clients, positioning them as indispensable collaborators in the international marketplace.

Being Cost effective:-

India is a land of cheap talented pool of labor and thus it makes room for financial advantage. Software Development costs in India are quite lesser as compared to those in other countries like the United Kingdom, United States, etc., hence making it the prime choice for outsourcing offshore IT solutions.


In conclusion, we can say that the IT Outsourcing landscape in 2023 has been the talk of the town as it has brought a rapid revolution in the adoption and evolution of technologies such as AI, IoT, cloud computing, etc. The development of these trends has set the stage for what we can expect in the year 2024. As businesses continue using this technique choosing the right IT Outsourcing partner becomes very important.