Before the outbreak, sectors like finance, healthcare, and HR continuously deployed digital technology. The spread of the pandemic has also compelled the entire industry to shift to digital technologies to ensure continuity of business.

Since the outbreak of the Covid-19 pandemic, the need for IT outsourcing has increased. With an ever-increasing digitalization rate, a constant tech shortage of talent, and the emergence of advanced technologies such as Robotic Process Automation (RPA) and Artificial Intelligence (AI), large numbers of companies are opting to outsource IT services to ensure that they remain relevant.

According to research, the world IT outsourcing market will be worth $318.5 billion in 2020. It is predicted to increase to $425.19 billion in 2026, increasing by 4.5 percent. It’s no secret that this pandemic increased the global adoption of digital technologies. Many companies have met their digital transformation goals over months.

On the other hand, the world’s capital markets rely on IT outsourcing and a growing dependence on technology to construct robust business models that can withstand disruptive pandemics and provide better customer services. According to studies, tech outsourcing is expected to increase by 20 % per year over the next decade as more businesses upgrade their existing technologies, upgrade IT initiatives, and speed up digital transformation projects. This means that numerous reasons are causing the rise in IT outsourcing across the globe.


Before the outbreak, industries such as finance, healthcare, and human resources have continuously used digital technologies. To accelerate digital innovation and advance in the digital age, they are moving into action to streamline the business process and enhance customer service.

The pandemic outbreak has also compelled every industry to adopt digital solutions to ensure continuity. With the absence of in-house IT experts and top-quality software, more businesses have outsourced their transformation tasks. Because complete digital transformation cannot be achieved in a single day, these projects will take time, and the need for IT outsourcing is expected to continue to rise.


The increasing requirements for agility in work and a better customer experience have driven the development of automation of business processes and AI integration. Pandemic has created a variety of new customer demands prompting businesses to provide fast, efficient, contemporary, and innovative solutions.

As more businesses realize the need to automate repetitive tasks and streamline human efforts through AI chatbots and RPA, The demand for highly skilled IT experts will continue to grow. Therefore, companies are utilizing the assistance of IT outsourcing firms to access tech expertise at competitive rates across the globe.


When companies worldwide switched to remote working models in a matter of hours in the wake of the epidemic, the demand for cloud-based management tools grew quickly. After gaining the numerous advantages of cloud computing, companies are converting completely to cloud-based services. This means that the growth trend is expected to continue and will increase the dependence on IT outsourcing companies.

According to research that reports on the global cloud computing industry is expected to generate a profit of $362 billion by 2022. The demand for secure and top-quality cloud outsourcing services will continue to increase.


As the digital revolution continues to accelerate at a rapid growth rate worldwide, the necessity for cybersecurity has never been more urgent. According to a United Nations report, a 600 percent rise in cybercrime occurred during the outbreak. Despite the growing cybercrimes, businesses aren’t equipped to withstand these cyber-attacks.

In the end, IT outsourcing firms worldwide witnessed an increase in the need for cybersecurity services to strengthen security systems for companies and safeguard valuable data. A study found that 83 percent of IT managers planned to outsource cybersecurity by 2021. This need will only grow in the future because cybersecurity is a major concern for CEOs across the globe.

TECH Talent

Technology has advanced rapidly. As technology advanced, the demand for tech-savvy professionals grew dramatically. As the battle for talent is being waged across the globe, top companies are battling to attract the top tech talent. But, there’s a huge gap between the demand and supply of qualified experts.

Due to the absence of internal technical expertise and the need to increase the efficiency of digital processes, companies are outsourcing IT experts to fill in organizational gaps. Through IT outsourcing, it is possible to reduce the costs of HR, increase expertise, and collaborate with a team of dedicated professionals. Strategic alliances with outsourcing companies can help companies meet the increasing demands for technological changes.

Wrapping up

Ten years ago, the outsourcing industry was a decade old and found itself at the brink of demise. Ten years later, the global outsourcing industry is on an exponential growth track. With the doubt and hesitation about remote work dissipating, companies realize the advantages of outsourcing.

Amid the worldwide outsourcing boom and the global outsourcing boom, the IT outsourcing industry is experiencing increased demand due to technological solutions and digital transformation getting more attention.

The continuous shortage of IT professionals has led enterprises to outsource their IT projects to boost technological innovation, satisfy the expectations of their customers and keep ahead of competitors. To withstand the ravages caused by the pandemic, a majority of companies are likely to opt for IT outsourcing worldwide.

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