Trends in IT Outsourcing: 2017 and Beyond

Last year introduced a wide range of technological growth as well as changes in the way we use technology. Why would 2017 be any different? Below we’ve outlined just a few of the new IT outsourcing trends that have started to emerge this year.

Heightened Security

Cyber security was a hot-button issue throughout 2016. It seemed as though each week there was a new security or data breach. This year, tech companies will be on high alert for anything potentially threatening to their security. This could also compel them to invest more. More time and money will go into technology such as RPA, or other advanced measures to increase security. This may also lead to an increase in companies whose sole focus is on helping tech companies secure their private information.

Artificial Intelligence

The growth of artificial intelligence (AI) and robotic process automation (RPA) has reached new heights in recent years. While AI and RPA are still being developed, tech companies are already beginning to take advantage. Automation will allow for outsourcing to be even more affordable. It will also help to standardize and streamline processes. However, the technology may be advancing faster than most companies, or customers can handle. It could become complicated to work AI and RPA into already established contracts. In an article published in January of 2017, CIO writer Stephanie Overby explained the issues that could arise from using AI and RPA. “A move to an AI- or RPA- centric solution could make it more difficult for the customer to switch providers down the line. The service levels put in place at the time of contract signing may no longer be appropriate in a more highly automated environment,” she wrote. “On the flip side, customers whose deals do not address these capabilities may fall behind if competitors begin to deploy them and their IT service providers do not adopt these newer approaches.”

Increased Cloud Usage

Cloud technology has become much more commonplace in the past few years. In 2017, tech experts predict that the Cloud will become even more integrated in business processes. This widespread usage will also require the Cloud to grow and adapt to the advancement of the surrounding technology.

Political Involvement

The election of Donald Trump in 2016, along with the recent “Brexit” decision have both caused some political upheaval. There have been some major changes to cross-national policies, including President Trump’s insistence on bringing jobs back into America. This may have a negative effect on outsourcing trends, but there haven’t been any definitive rulings yet on how the Trump administration views the usage of outsourced IT teams, however we can assume that it isn’t a positive outlook. Tech companies who outsource work will have to start planning and renegotiating contracts to stay ahead of any policy changes that could limit their connections with outsourced teams. Growth, change, and adaptability are all at the core of technology. Each year brings new challenges and failure in the tech world. But each of those challenges and failures have the potential to lead to something new. If you're interested in learning more about the technological advancements and outsourcing trends we are embracing here at Number8, give us a call at 502-212-0978 or read more about Staff Augmentation.