Global IT Outsourcing Market Report 2021 and beyond – A future to uphold

by Thao Pham

If COVID-19 didn’t break out, our world would look much different than it is today. normally, each industry will have several long-term prediction, in which …

it outsourcing 2021

If COVID-19 didn’t break out, our world would look much different than it is today. normally, each industry will have several long-term prediction, in which experts pictures their expectation about the trend, market overview and other categories that businesses care the most. However, COVID-19 has disrupted almost all existing prediction with its unprecedented damages. The world we live today can never be the same as it used to be, and what we can do, is getting to know it better, understand the implying trend of each figure to foresee the dominating features. Do you want to get yourself updated about all IT outsourcing trends in 2021 and how these can affect the global market in the years to come?

CMC Global has crawled the web, scraping analytics and charts from famous sites to have the most important IT outsourcing statistics organized. Our data-based research can give you a clear view of a post-pandemic world on several topics, from the global tech talent shortage, IT outsourcing volume, 5G, or AI. These are world’s major IT outsourcing 2021 trends for the upcoming year.

According to Statista, the total value of IT services companies might exceed $413.72 billion by the end of 2021 – so check CMC Global‘s article out to see what’s good and bad coming with this ever-growing industry.

IT spending in Q3/2020 starts to rebound, but the trend is now shifting

The IT spending of each country all decreased in 2020, except for China. However, in 2021, most countries are set to increase again.

IT spending growth in each country

ITO’s main players are:

China

India

APAC (excl JP)

Australia

The US

Canada

EU

Japan

Even though China is the only country with positive growth in 2020, its ICT spending in 2020 declined by 7.6% because of the COVID-19 pandemic, according to Global Data and figure from Statista.

Check out our FREE report on Top countries for IT outsourcing and their opportunities in the POST-COVID era

business and government purchases of technology goods and services in China, under the impact of coronavirus (COVID-19) in 2020

With the severe outbreak in Wuhan, business and government purchases for technology goods and services in China in general dropped between 2 and 6% in the first quarter of 2020. However, thanks to the governments’ quick and strict policy of social distancing and lockdown, tech spending in China resumes the growth by the second quarter, ultimately growing by 2.3 to 4.5% in the full year of 2020.

Globally, most predicts in 2019 about a noticeable growth are all wrong.

business and government purchases of technology goods and services in China, under the impact of coronavirus (COVID-19) in 2020

Worldwide IT spending is projected to totally change in 2021, with an increase of 4% from 2020, according to the latest forecast by Gartner, Inc. IT spending in 2020 is expected to total $3.6 trillion, down 5.4% from 2019.

Check out Our list of Top Custom Software Development Companies in Vietnam

Technology Trends We Should Expect in IT Outsourcing 2021

SaaS is now dominating

The increase in spending on software as a service (SaaS) will be driven by the need for telecommuting solutions and online conference.

In addition, the overall “as-a-Service” Market is expanding. The two segments “Infrastructure-as-a-Service” and “Software-as-a-Service” account for more than 40% of the global IT outsourcing market.

“as-a-Service” Market is expanding

Also, the increase in spending on software as a service (SaaS) will be driven by telecommuting solutions and conference/ collaboration services.

software as a service (SaaS) will be driven by telecommuting solutions and conference / collaboration services.

As digitization grows and businesses adapt to digital transformation, ways of outsourcing are also expected to change

As digitization grows and businesses adapt to digital transformation, ways of outsourcing are also expected to change

CIOs can plan out their outsourcing plan based on this chart

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Traditional outsourcing is now outgrown by RPA

For IT outsourcing 2021, this trend was accelerated under the impact of COVID’s lockdown and social distancing.

Traditional outsourcing is now outgrown by RPA

But COVID is not the main core, as RPA has been all the rage for years. According to Gartner, approximately 90% of large organizations globally will have adopted RPA in some forms by 2022. This is because corporation look for ways to digitally empower critical business processes by inputting resilience and scalability, at the same time recalibrating human labor and manual effort.

For a further future, RPA, especially services such as RPA consulting and RPA implementation will ensure business owners that their business is protected and can process smoothly in case of any similar global pandemic to COVID-19.

The emergence of a digital outsourcing model

The context:

Under the impact of Covid-19, customers have become accustomed to going online to search for services on demand, requiring businesses to keep up with the change of consumers and digital technology usages.

Thus, Robotic process automation, software bots, automation, machine learning and other disruptive technologies are becoming ubiquitous and taking over the world. The outsourcing industry will also be affected by this and a new digital approach will emerge

The solution:

  • As digitization grows and businesses adapt to digital transformation, ways of outsourcing are also expected to change.
  • IT Development companies will help businesses to access the technology stack that is unavailable to the in-house team. No matter what type of business you have, modern outsourcing advancements can make your work more productive, efficient and lucrative.

This will encourage outsourcing companies to create new digital execution strategies, maintain digital systems, and integrate these strategies across various digital platforms.

Many of the emerging techs, like virtualization and grid computing, also enable the innovators in the outsourcing industry to utilize the cloud, the standardized IT infrastructure.

As the lockdowns slowly ease and business returns to a point where big deals can be done, 2021 can be the year for the brave, the smart and the lucky take control.

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