Trends in IT Outsourcing to Follow in 2022

In this blog post, we will discuss some of the major trends that are shaping up in 2022 and how they might affect your business.

The important thing about outsourcing or global sourcing is that it becomes a very powerful tool to leverage talent, improve productivity and reduce work cycles.” -Azim Premji 

In spite of the pandemic, technology has helped industries such as insurance stand strong in the face of unprecedented global change. In the case of IT and software outsourcing, the pandemic accelerated many of its plans for digital transformation. According to this report, the Business Process Outsourcing market, which was valued at $232.32 billion in 2020, is expected to witness a Compound Annual Growth Rate of 8.5% from 2021 to 2028.  

Today’s competitive challenges in the marketplace and the ever-increasing progress in technology have, and are, continuously changing the way corporations work. Staying competitive means leveraging the available resources and technology globally in an effective manner. Outsourcing is helping companies do just that!

In this blog post, we will discuss some of the major trends that are shaping up in 2022 and how they might affect your business.

What Is IT outsourcing?

trends in it outsourcing

As defined in the Gartner Glossary, “IT outsourcing is the use of external service providers to effectively deliver IT-enabled business processes, application services, and infrastructure solutions for business outcomes.

Outsourcing, which also includes utility services, software as a service, and cloud-enabled outsourcing, helps clients to develop the right sourcing strategies and vision, select the right IT service providers, structure the best possible contracts, and govern deals for sustainable win-win relationships with external providers.

Outsourcing can enable enterprises to reduce costs, accelerate time to market, and take advantage of external expertise, assets, and/or intellectual property.

Of course, there are other reasons why companies turn to outsource, however, the ones mentioned above are the main drivers of this approach.

New IT outsourcing trends would contribute to the improvement of your company’s procedures. They play an essential role when it comes to your business’s long-term goals. We narrowed down the list of trends to six for you to easily understand.

Without further ado, let’s dig into the most talked-about trends in IT outsourcing for 2022.

  1. Growth of Artificial Intelligence (AI)

    Artificial Intelligence (AI) is a hot topic when it comes to the IT outsourcing trends that will dominate 2022. With so much emphasis on customer service and experience, AI can streamline business processes significantly by managing huge volumes of data and mining them to provide better user experiences.

    They can also decrease the average handling time of customer complaints and queries, leading to customer service executives focusing on more complex and difficult problems and personalized services.

    With companies spending more and more money to stay ahead of their competitors, it is no surprise that they have started investing heavily in AI technology. As a result, global AI market revenue is expected to reach $ 309.6 billion by 2026 in the US market.

    The increased focus on artificial intelligence and automation technology is a great opportunity for outsourcing providers.

  2. Expansion of Remote Working

    trends in it outsourcing

    The future we envision for work allows for infinite virtual workspaces that will unlock social and economic opportunities for people regardless of barriers like physical location…” – Andrew Bosworth, VP of Facebook Reality Labs.

    The popularity of remote work is increasing as more and more people discover its benefits. These include increased flexibility, enhanced productivity, and better work-life balance.

    Undoubtedly, the number of people seeking remote work opportunities will continue to rise and more employers will offer these roles. As a result, outsourcing providers will need to increase their staff levels to meet this growing demand. This is great news for offshore companies, as it means more opportunities for growth and expansion.

  3. Demand for Cloud-based Technology

    Cloud services would continue to expand and grow. Cloud-based technology allows users to utilize information and programs that are on the internet.

    It is a great solution for saving costs since there would be no need to invest in traditional hardware. Moreover, since collaboration is important in IT outsourcing, cloud-based technology could make it a straightforward process. Employees could share information easily and securely across a cloud-based platform.

    Also, since data is a key component in the outsourcing industry, cloud-based technology could help quickly recover files in case of an accident. This would require little to no downtime, avoiding work delays.

    As the world moves towards cloud computing, more and more companies will look for providers that offer on-demand services in this area. In line with this trend, we should expect to see increased demand from businesses across industries who are looking for cloud engineers and developers who are familiar with cloud infrastructure and its management.

  4. Growing Need for Cybersecurity Specialists

    Cyberthreats are on the rise and will continue to evolve at a faster pace than security solutions designed to protect against them.

    Hacking, cyberattacks, and data breaches are now commonplace in today’s digital world. In fact, the number of connected Internet of Things devices has grown by 9%, reaching a total of 12.3 billion worldwide.

    This means having a sense of urgency when it comes to security and is equipped with resources to address the expanding needs in cybersecurity. IT outsourcing companies will also need to craft new security policies to monitor and regulate employee access to networks and infrastructure.

  5. Mexico Will Claim More of the Outsourcing Market

    trends in it outsourcing

    Due to cheaper prices, high-quality tech education, and a wealth of talent, Mexico is already a popular destination when it comes to IT outsourcing. However, the country is gaining more and more attention from companies around the world.

    Mexico enjoys highly dynamic IT communities. The talents of this country are employed in world-leading companies such as Google, Microsoft, Amazon, etc. In addition to this, with the huge increase in the success of the startup ecosystem, Mexico not only secures its place in the top IT outsourcing destinations but is likely to contend a larger market share in the coming years.
  1. Blockchain Services Will Be More in Demand

    Blockchain technology is already disrupting the financial services industry. But in the coming years, it will have a similar effect on other sectors, including software development outsourcing. Blockchain allows developers to create applications that securely store data across decentralized computers.

    This security is attractive for companies seeking to outsource IT functions or cloud storage. And due to its decentralized nature, blockchain makes it easier to derive value from data in the form of business intelligence. As more businesses realize this potential, we should expect that demand for blockchain outsourcing will grow.


So, these are the six future IT outsourcing trends that you can expect in 2022. While some of them are already being adopted by businesses, others will slowly gain traction in the next few years.

For companies based in the United States, outsourcing to Mexico is a unique way because it includes more benefits than any other option available. So choosing the right IT outsourcing and agile partner is key. Technology and expertise are essential to successful projects.

We here at Ascend would love to help your insurance company with your digital transformation through Nearshore Outsourcing and Agile Development teams to achieve your business objectives.

Our competitive advantages are the 20+ years of experience in the insurance industry, a reliable talent pool of skilled IT professionals and agile delivery teams, cost-effective solutions according to your needs, and multiple facets of services like Legacy Systems Modernization and Maintenance, Quality Assurance and Software Testing, etc.

If you are looking for a professional outsourcing partner that can assist you with any of the above services, feel free to contact us

We are a specialized IT outsourcing provider who has been working for several insurance companies for years and we would be happy to answer all your questions about how our developers and engineers can help you transform your business!

About Ascend

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We help insurance companies strengthen their software projects with smart, hybrid onshore-nearshore delivery teams.

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Are you struggling with software development delays and quality? We help insurance companies strengthen their software projects with smart, hybrid onshore-nearshore delivery teams.



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