The Best IT Outsourcing Trends in 2024

As technology advances rapidly, businesses of all sizes are looking for ways to stay competitive and cut costs. One strategy that has become increasingly popular in recent years is outsourcing IT services. Outsourcing and hiring dedicated remote teams can help companies access specialized expertise and resources they might not have in-house while saving money on labor costs. But what trends can we expect in IT outsourcing in 2024? In this article, we will take a closer look at some of the most important trends to watch for and why you should be interested in them in the first place.

Why Should You Care about Software Development Outsourcing Trends?

There are many reasons why it is crucial to stay informed about the latest trends in IT outsourcing. Outsourcing IT services can help companies remain competitive in an increasingly digital world. Outsourcing software development or data analysis allows companies to access the latest technologies and expertise without investing in building those capabilities in-house. It can help them stay ahead of the curve and better serve their customers. As the technological domain rapidly re-invents itself over the last years, it’s crucial to follow the outsourcing trends to stay competitive. By freeing up the investment resources for other business areas, you’ll get a chance to benefit from this cooperation model. That said, let’s take a closer look at the trends themselves.

Main Technological Trends in IT Outsourcing in 2024

In 2024, a few noticeable tech trends should be emphasized as the industry takes advantage of new technological advancements. Let’s take a closer look at these trends to understand how you can benefit from them in the long run. The team focused only on the tech trends the leading software development companies have been following lately. These include

  • Increased utilization of AI and ML. As technology continues to evolve, companies are leveraging AI and ML to automate mundane and repetitive tasks, improve the accuracy and efficiency of their operations, and gain insights from large data sets. For example, a credible IT outsourcing provider may utilize AI to analyze an organization’s data, identify patterns and trends, and predict future business outcomes. It not only improves the organization’s performance but also helps cut costs. What’s more exciting is that AI and ML can be leveraged in various projects and industries, making it a top-notch development area for both in-house and outsourcing teams.
  • Greater emphasis on security and privacy. One of the most noticeable trends in IT outsourcing is the higher emphasis on protection from cyber threats and data breaches. As a result, one can expect an uptick in outsourcing providers specializing in cybersecurity and data privacy. These providers will offer a wide range of services, such as vulnerability assessments, security monitoring, and incident response. Additionally, with the growing number of regulations governing data privacy, such as GDPR and CCPA, organizations are looking to outsource providers that can help them comply with these regulations and avoid hefty fines.
  • Popularization of Agile. Agile methodology is an iterative and adaptive approach to software development that emphasizes collaboration, flexibility, and rapid delivery. As more organizations look to outsource software development, anyone should expect increased adoption of Agile methodology. This approach allows for better communication between the client and the provider, faster delivery of software, and more frequent feedback. According to research by ai, 69% of organizations have seen a pronounced increase in collaboration after adopting the Agile methodology. It will result in a more efficient and effective development process.
  • Renewed focus on sustainability. As clients become more aware of the environmental impact of their operations, an increased focus on sustainability will undoubtedly be observed. It includes outsourcing custom services and solutions that promote energy efficiency, reduce carbon emissions, and promote recycling. One typical example is that an IT outsourcing in 2024 may deliver data center services that use renewable energy sources or implement recycling programs for electronic waste. It not only helps organizations to reduce their environmental impact but also helps to improve their reputation and brand image.
  • Greater adoption of IoT technology. IoT technology is becoming more and more popular, allowing devices to communicate with one another and share data. With the number of IoT devices reaching 17 billion by 2030, one can expect to see more organizations outsourcing IT services that are based on IoT technology. It includes IoT-enabled device management, data analytics, and remote monitoring services. As organizations look to take advantage of the insights and automation that IoT technology can provide, they will turn to providers that have expertise in this area.

While it’s true that the mentioned trends work well when talking about the technology outsourcing trends, let’s also briefly review the trends of outsourcing related to the organizational and geographic patterns:

  • Outsourcing as a strategic decision. Companies are increasingly recognizing the benefits of outsourcing as a strategic decision rather than just a cost-saving measure. It includes outsourcing IT services and non-core business functions such as HR and finance. Outsourcing allows organizations to focus on their core competencies while outsourcing providers handle the rest. Additionally, outsourcing can help organizations access specialized expertise and resources that they might not have in-house.
  • Greater demand for nearshore outsourcing. As companies look to outsource their IT services, an increased demand for nearshore outsourcing is apparent. If you’re operating in North America, nearshoring includes outsourcing to countries geographically close to the client, such as Canada, Mexico, and Central and South America. It is one of the nearshoring trends, allowing for better communication and collaboration between clients and providers and more flexibility in responding to changing business needs. It also helps mitigate some risks associated with long-distance outsourcing, such as time zone differences and language barriers.
  • Outsourcing in emerging markets. As the outsourcing industry grows, one can expect to see more companies outsourcing to emerging markets. The list is not limited to India and the Philippines, with Eastern Europe and LATAM becoming more prevalent. These regions offer a large pool of highly skilled labor at relatively lower costs compared to more developed countries. Additionally, the growing number of outsourcing providers in these countries are investing in the latest technologies and infrastructure to provide more advanced services to clients.


As the technology industry evolves, companies must stay informed about the latest IT outsourcing trends to take advantage of new opportunities and stay competitive. From increased utilization of AI and ML to the changing geographic trends, outsourcing is no longer seen as a cost-saving measure but as a strategic decision that can help organizations access specialized expertise and resources. If you still need clarification regarding nearshore or offshore development, booking a consultation with the leading player on the market is wise. This way, you get a better idea of how to start cooperating with a virtual team and get the most out of this cooperation.

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