6 Trends that Will Shape the IT Outsourcing Industry in 2025

Companies consider IT outsourcing an effective defense against cyber-attacks and an opportunity to boost productivity. However, emerging trends in the tech industry will require freelancers to adapt to remain competitive.

Roman Kaplun, co-founder of Zoolatech, noted that no one could predict how the unprecedented circumstances of the pandemic would impact the technology ecosystem in the long run. However, he observed that the flexible IT outsourcing industry has demonstrated remarkable resilience. He believes that this sector now has another opportunity to solidify its position in the market during the current boom in artificial intelligence (AI).

Data indicates that the global IT outsourcing market is poised for rapid growth in the coming years. By 2028, it is projected to exceed $777 billion. Additionally, there is expected to be over 90 million freelancers in the US by that time. Researcher Ahmed Sherif from Statista predicts that the rising interest from companies in digital transformation and automation will be a key contributor to this growth.

Brands are encouraged to align their outsourcing strategies with the key technology trends influencing the industry. This alignment will help them optimise operations and achieve outstanding results.

At TITANS, we have outlined the trends that companies can follow to stay ahead of the competition.

1. Automation of IT Outsourcing

‘As AI disrupts the traditional employment system, the freelancing industry will continue to grow, although it will experience significant changes,’ says Michael Solomon, Co-CEO of 10x Management. ‘Tasks that are currently outsourced to humans will increasingly be assigned to AI agents. This will reduce the number of less-skilled jobs, but it will also create opportunities for individuals who can provide meaningful and unique value.’

The digital workforce is becoming prominent, combining human talent with automated processes through technologies like RPA, machine learning, AI, and generative AI. Research from McKinsey highlights that the impact of generative AI on productivity could potentially add trillions of dollars to the global economy.

Many companies lack in-house expertise in AI, leading them to consider outsourcing specialists. According to Deloitte, nearly 60% of organisations are utilising AI-based outsourcing, and 83% of surveyed executives expect that third-party vendors will bring AI capabilities as part of their service delivery. The speed and cost efficiencies achieved with automated testing and intelligent coding assistants will benefit the IT talent providers, too.

2. Improving Cybersecurity

Approximately two-thirds of companies worldwide have experienced at least one cyber-attack during their operations. Criminals are now executing increasingly sophisticated fraud schemes that overwhelm most companies’ security measures.

European companies are facing significant challenges in recruiting subject matter experts. In 2024, the shortage of qualified talent became the primary obstacle to hiring new individuals.

Last year, the shortage of IT security professionals in Europe exceeded 392,000. This issue is further complicated by the fact that 74% of European companies did not offer any cybersecurity training or awareness programs to their teams in 2024.

As a result, more organisations will increasingly seek to outsource IT talent in cybersecurity. They will leverage specialised expertise to tackle rapidly evolving risks, which reflects a strategic shift.

3. Sustainability in IT Outsourcing

A new generation of companies is constantly looking for partners who embrace environmentally friendly practices such as energy-efficient data centres and carbon-neutral operations. Consequently, it is important for outsourcing providers to adopt circular economy models and recycle outdated IT equipment.

If companies opt for sustainability, they will not only reduce their carbon footprint but also gain a competitive advantage. By raising their CSR profile, they will appeal to an increasing number of environmentally conscious clients.

4. Rising Demand for Helpdesk

Companies increasingly prefer flexible and cost-effective models of IT support, which they can scale according to their needs. As a result, this trend will lead to a significant demand for helpdesk outsourcing.

The focus will be on streamlining internal processes, such as optimising workforce management and training teams on the latest support tools and technologies. On-demand support solutions tailored to different industries will also become more important.

5. Long-term Value of IT Outsourcing

‘I expect that more and more companies will prioritise quality and long-term value when selecting IT outsourcing providers. Although saving on operational costs seems appealing, many companies have realised that investing in better quality IT services can ensure a long-term effect,’ predicts To Quang Duy, CEO of successful Vietnamese outsourcing company Newwave Solutions.

This is confirmed by Deloitte‘s ‘Global Outsourcing Survey 2024’ report. According to the report, CEOs tend to prioritise experienced talent and agility when making outsourcing decisions. However, cost savings will remain the main motivation for hiring IT specialists, especially for companies outsourcing for the first time.

6. Expanding the Workforce

None of the CEOs who participated in the Deloitte survey relies solely on their employees. Increased use of multiple talent pools has resulted in the continuous growth of the extended workforce ecosystem.

This trend requires organisations to develop a robust strategy that keeps a balance between outsourcing, insourcing, Global In-house Centres and the digital workforce. The solution could be to increase the scope of the Vendor Management Office to create an Extended Workforce Management Office.