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February 1, 2017

Top IT Outsourcing trends for 2017 – What’s on the anvil?


The multi-billion IT Outsourcing industry is unpredictable, yet the trends it follows can be calculated to an extent. The biggest factor governing IT is the innovation in technology, which is so fast and frequent; it renders most of the trends outdated by the time they travel across the globe. Some of the trends were expected to kick in by 2016 but they never did, instead, the industry went towards a whole new direction in 2016.

Here is a quick snippet of what SearchNative has geared up, for the coming year – 2017.

1. Hybrid Cloud is the way to go

Commodity cloud platforms increased their reach significantly in 2016; public clouds offered by Amazon, Microsoft & Google are the most sought after platforms for non-core processes. But fearing a breach in security, the organizations would still prefer private cloud. Enterprises might employ Hybrid Cloud, a private cloud for core processes and the public cloud for other tasks at the same time, and hire people to integrate them.

2. Rise of the Managed Services Provider

Rather than having multiple vendors for different assignments, standardization of the system and centralized solution of IT issues is on the rise. Also, with the advance of cloud-based solutions, the MSP might need to act as a cloud broker, for managing cloud-based applications on behalf of the client along with application deployment, designing applications, software products and maintenance.

3. Innovation. Innovation. Innovation.

From the earlier concept of providing IT Solutions with Accuracy & Security, the demands are shifting towards the innovative solutions with Speed & Agility. It is a clear shift to a bi-modal approach, combining supporting the business to bring the business, creating new products, services, and business models. Enterprises understand that digital technologies change really fast, hence they look for not just execution, but the anticipation and innovation, the value matters not the cost.

4. Security matters, now more than ever

Not only Software-as-a-Service (SaaS), with the rise of the Internet of things Security-as-a-Service (SECaaS) is the need of the hour. Not just the smartphone, any device that is connected to the internet, can be responsible for data leak. The everyday new threat comes alive and organizations might think of hiring a specialized security vendor. Service providers are sometimes seen as the mole in the security, rather they should facilitate security to break the notion.

5. Nothing can stop Internet of things

The world is moving towards a highly automated lifestyle; almost every device is connected via internet. The demand for creating an enhanced user experience can only be met by the powerful IT system integration. Organizations are bound to look for perfect synchronization along with security for ancillary devices. This requires vertical integration of all platforms, data and system.

6. Robotic Process Automation (RPA) into IT services

Automation options are increasingly sought from the vendor; this is to further reduce human resource expenses. As there is a huge inflow of data from millions of smart devices, tasks like big data analytics can only be executed through the automation. The cloud systems are more and more run by the Artificial Intelligence. Automation can be the last resort when the system gets too big to handle.

7. Containers are in!

As it so happens that the computing environment where software is created would be entirely different from where it would be tested and finally implemented, this results in an unexpected response from the software. When moved from one computing environment to another, a container provides an identical software environment. Containers hold entire runtime environment for a software; including the application, libraries, binaries and configuration files. This way the software can perform reliably on different OS and configurations and it becomes lighter and faster compared to the virtual machines.

8. IT Outsourcing’s changed competitive scenario

Not just confined to India and China, the outsourcing has established its deep roots in Latin America, Eastern Europe, Africa and Southeast Asia. The pricing practices are bound to change and ‘outcome based pricing’ can be expected as a future trend. Self-employed IT developers stand a better chance from the emerging countries. The industry might move to Insourcing, a concept of lesser offshoring with the increased options like multi-shore or near-shore.

9. Business Analytics is getting more and more complex

To foresee and invent a new approach by analyzing the existing data, the massive collection of information, is essential to compete. It is required to understand patterns of interactions and human behavior before any organization takes financial and infrastructural risks. The huge data can only be assessed by automated systems or experts of Business Analytics.

10. First and foremost – Quality

While selecting the appropriate vendor for outsourcing, the practice earlier was totally dependent on low cost, but after so many years, the demand for a full package with utmost quality is increased from big enterprises. As competitions and IT Startups grow, the one who can compete with quality are going to be preferred despite increased costs. More adaptability and proactive approach would be a chief parameter in the selection of IT Service providers.

In 2017, IT Outsourcing is going to increase its growth rate and presence across the world. With a new set of trends and techniques, only those will taste success that has innovated by their side.


  1. Russ William says:

    This year, we saw outsourcing integration challenges multiply, production workloads and enterprise systems hit the cloud, and security hit the top of the agenda. New advances in technology have made it easier and more possible for outsourcing providers to work remotely. With the availability of many real-time monitoring and project management software, we can expect 2017 to have an increase in virtual agents. The future is even brighter for the offshore outsourcing industry.

  2. Cherry says:

    Great points. My friend and I recently outsourced an application that is soon to be completed. There is definitely a lot anyone should know/expect before outsourcing on elance, applications especially. I’m working in a software development company in Vietnam and this post is useful

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