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The Pandemic Breathes New Life Into the IT Outsourcing Industry After Years of Stagnation

The outsourcing of IT related roles was a common aspect of business strategies in the previous decades because of the fact that this is the sort of thing that could potentially end up reducing expenses for corporations. However, the industry saw revenue growth stagnate towards the end of the 2010s, with 2020 marking the first decrease in industry revenues which suggested that it might be heading towards inevitable obsolescence.

With all of that having been said and now out of the way, it is important to note that the recent and ongoing pandemic might have changed things for the better. IT outsourcing has seen its revenue increase over the past two years, with revenues in 2021 exceeding the previous peak witnessed in 2019 with all things having been considered and taken into account. Statista recently put out a report that highlighted the reversal of the trend, and it predicts that this industry might continue to grow and potentially exceed half a trillion dollars in revenue by 2025.

A shortage of labor for IT companies has forced them to turn to outsourcing to bridge the gap, and the pandemic’s normalization of working from home helped level the playing field with all things having been considered and taken into account. Industry revenues grew by 13% last year, and the statistics published in this report revealed that 2022’s growth outlook seems pretty consistent as well which makes it likely that the half trillion dollar revenue market would get surpassed in two to three years.

Major hubs for outsourcing like India have also managed to increase the skill level of their workers, thereby making them more on par with their counterparts in more industrialized and service sector oriented nations. In spite of the fact that this is the case, this growth is by no means guaranteed, and with many companies hoping to move away from remote working options the industry might see another contraction especially if local labor forces see a short term boost. Still, this growth is a good example of how the pandemic is impacting numerous industries.

The Pandemic Breathes New Life Into the IT Outsourcing Industry After Years of Stagnation

H/T: Statista.

Read next: How Enterprise Software Became a Billion Dollar Industry

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