Technology Outsourcing Services – Statistics & Trends

The aftermath of the COVID-19 has ideally taught us the perks in gearing up the wheels on the roads of digital transformation. For sure, in spite of emergencies, natural calamities, or other unprecedented times, technology might help your business circumvent the situation. 

As days and years roll out, trends in every sector keep changing, for which ‘outsourcing’ is not an exception. Infact, the BPO market which was valued at $232.32 billion in 2020 is expected to witness a CAGR of 8.5% from 2021 to 2028.  

In this blog, we suggest you watch out for these IT outsourcing trends and statistics that are going to create a massive transformation in businesses belonging to various industries. 

Without any further ado, let’s get into the blog post. 

1. What is IT Outsourcing?

We don’t want you to directly dive into the trends, let’s begin from the first square. 

Did you know?

The outsourcing concept was introduced as a cost-effective solution and workload share. However, over a few decades, it has undergone immense growth, generating billions of dollars in revenue.


According to BusinessWire, the global IT outsourcing market rate which was valued at $333.7B in 2019 is expected to reach $397.6B by 2025, registering a CAGR of 4.5%, during the forecast period (2020 – 2025)

As outsourcing gives access to work with experts in different fields, reputable brands like Google, Apple, Facebook outsource to vendors for their work.

IT outsourcing is the process of collaborating with external workforces and handing over the IT-related operations of your organization. The IT outsourcing vendor will take care of the entire process from ideation, design, development, to testing, deployment, up-gradation, and maintenance.

IT Services that can be Outsourced

  • Software development
  • Web development
  • Database management
  • Infrastructure development
  • Security maintenance
  • Disaster recovery
  • Software-as-a-service (SaaS)
  • Utility services

And many more…

Types of Technology Outsourcing Based on Geographical Locations


Hiring outsourcing vendors within the city or neighboring cities


Outsourcing to vendors from neighboring countries that are sharing similar time zones


Outsourcing professionals from another country irrespective of the proximity

IT Outsourcing Models    

These outsourcing models, unlike the types of outsourcing, solely represent the nature of collaboration with the vendor.

Project-based Model
  • You can outsource a vendor to work on a specific project which is already planned and designed. A project coordinator and 2-5 team members will work collaboratively
  • Not recommended for startup and complicated long-term  projects
Dedicated Team Model
  • You hire a full-fledged outsourcing team to work on projects with full commitment. They become your project advisor and technical consultant as well
  • Not suitable for small projects with less complexity
Outstaff Model
  • Outstaffing professionals when there is a need for two or more additional members in your in-house team
  • Not an option for long-term projects

For example, you may be a startup looking to develop your business, the project-based model might not be a right option for you, therefore, based on your budget and requirement, opt for the right outsourcing type and engagement model. Many businesses fail as they outsource vendors without considering their requirements.

2. Too Many Advantages of Tech Outsourcing to Your Business

Handing over the digital transformation of your business to any third party agency is not something easy. You may be alarmed by security issues, delivery risks, delayed deliveries, hidden costs, quality issues, and others.  

No need to panic. All these challenges can be minimized with the below advantages. Infact, more than 78% of businesses in the world are satisfied with their outsourcing partners! 

  • Opportunity to collaborate with a pool of experts in the field
  • Focus on other business activities leaving all the IT-related operations to the outsourcing team
  • Costs less than in-house team development
  • High performance – You outsource professionals from single/multiple regions. Each country has a different time zone, even while you’re sleeping, your partners will be awake in their daytime and it’ll look like your IT operations are carried out round-the-clock
  • Minimum Viable Product (MVP) is properly tested and verified by outsourcing professionals 
  • Better access to high performing software and IT products 
  • You don’t have to worry about security issues, your vendor will provide disaster recovery and security solutions as well 

Forbes Technology Council has written a blog post on when you can opt for outsourcing your IT operations, to learn more on this, click the link.  

Reported from Statista


It’s projected that the ​revenue in IT outsourcing has shown a yearly growth rate (CAGR 2021-2026) of 8.93% from 2021. This will result in a market volume of $55M by 2026.

After exploring the advantages, now you might have made a decision to outsource to an IT vendor, in that case, it’s your obligation to stay updated on the current trends in the outsourcing industry. 

Without any delays, let’s get into the nucleus of this post. 

Robotic Process Automation (RPA)

Generally, machines perform operations according to what they are commanded of, mostly, repetitive tasks. Gone are the days, when staff spent hours-together on certain mundane operations that were piled up on the desks. 

What is Robotic Process Automation (RPA)?

Robotic Process Automation, in short RPA, is a technology implemented in software, physical robots, drones, etc. with artificial intelligence (AI) and machine learning tech solutions to carry out some repetitive, time-consuming, and complex tasks.    

You might have a question, so, will this tech-enabled software leave humans jobless? No, it’s not like that, RPAs will just minimize the manual workload and assist in the workstation. For example, the average time spent on responding to a customers’ simple query by humans and RPA-powered virtual chatbots – For a programmed bot, it’s just a matter of minutes.       

This time-saving concept will enable your outsourcing team to work on other core-related challenging tasks like strategy development, relationship building, and decision making.  

RPA in Outsourcing Statistics

  • According to a report from Grand View Research, the RPA market size was worth $1.57 billion in 2020 and is expected to grow at a CAGR of 32.8% between 2021-2028
  • Reports say that 5% of MSPs currently provide RPA as a Service to their clients

Considering the efficiency, less time consumption, streamlined operations, and accuracy rate, both businesses, and outsourcing providers are likely to embrace RPA. Implementing this tech on your own will be overwhelming and break your pocket. This is when you can outsource to an agency that provides RPA as a Service. 

Blockchain Technology

Did you know?

Blockchain technology was valued at $3.67 billion in 2020 based on the study of Grandview research predicted that the global blockchain technology market size is expected to grow at a CAGR of 82.4% from 2021 to 2028.

Blockchain tech is a decentralized ledger that can store information in blocks forming a chain enabling every user to access the data without any centralized controls. 

Technology Outsourcing Services – Statistics & Trends (Blockchain-Technology) - ColorWhistle
Source: Medium

In simple words, Google Docs is a perfect example of the technology used in blockchain. You create a doc, share the doc with your peers – It’s not copy-paste content, the doc is just distributed among those who have access and all the changes would be saved globally.         

Owing to the myriad security measures, transparency of data, accessibility, blockchain is not only a vivid technology for cryptocurrency businesses, but businesses of almost all the industries including IT, finance, trade, e-commerce, real estate, healthcare are likely to implement it for their digital transformation.

Technology Outsourcing Services – Statistics & Trends (Block-chain-Revenue) - ColorWhistle
Image Source: Researchgate

Infact, governments are introducing new laws to show their support in blockchain promotion, Arizona government has legislated that signatures secured through blockchain technology are approved under state law.

Machine Learning(ML)

Oh wow! How fantastic is the tech? Now machines analyze your activities, understand your likes & dislikes, and provide you with the best-satisfying results! Yes, you’d read it right, a machine does all these… 

Machine Learning(ML) is a branch of Artificial Intelligence (AI) that enables machines & gadgets to learn from the data and provide results based on the learning or data analysis.

For example, imagine you’re watching an insightful video from ColorWhistle’s YouTube channel – How Pricing is Determined in Outsourcing Digital Services? 

At the end/below the video, you would get recommendations from the same/different channel something relating to outsourcing. This is the same case while watching a series on Netflix, which helped them to save more than $1 billion

If you want more clarity on this, then look at what high-profile brands like Google, Amazon, Microsoft, and Facebook say about ML tech.  

Technology Outsourcing Services – Statistics & Trends (Machine-LearningML) - ColorWhistle

What all ML can do for Your Business? 

  • Recognition of Images: Allows to analyze objects & features of images pixel by pixel. Every piece is validated forming a network of insights obtained based on cohesive analysis
  • Social Media Analysis: Helps to understand not only the words but the context behind customer feedback, track their brand health, and improve reputation on Facebook, Twitter, Instagram, etc. 
  • Smart Assistant: Recognizes, collects, and analyses users’ voice inputs, looks for logic in between the phrases, and processes the request to provide the best outcome. Have you used a virtual assistant chatbot for clarifying your doubts? How was the response? Do share your experience in the comments below.    
Technology Outsourcing Services – Statistics & Trends (Inner-workings-of-visual-assistance) - ColorWhistle
  • News Feed Recognition: Reads through various news articles and provides the relevant results according to user interests, recognizes fake news by comparing the information with legitimate articles 
  • Video Surveillance: Using complex algorithms, under human supervision, the system will learn to spot human figures, cars, and other suspicious objects, then later without human supervision
  • Search Engine Optimization: Analyzes the search statistics and understands user interests  
  • Email Optimization: Helps to detect spam and fraudulent activities by comparing legitimate emails with spammed ones 
  • Speech Recognition: The system learns to recognize different new words, idioms, slangs, and phrases of users   

“Computers are able to see, hear and learn. Welcome to the future”

Dave Waters

Internet of Things (IoT) 

You might have heard about use cases of Internet of Things (IoT) devices in home appliances, manufacturing businesses, automobile industries, healthcare industry, and in many sectors – Turning Everything Smart! 

But, you might have a question like – how is it going to work for the digital transformation of my business? This section can answer you in this regard.

Did you know?

  • The number of Internet of Things (IoT) devices worldwide is forecast to almost triple from 8.74 billion in 2020 to more than 25.4 billion IoT devices in 2030
  • According to IDC, the global expenditure for IoT is forecasted to reach up to $1 trillion in 2022
Technology Outsourcing Services – Statistics & Trends (IOT-Scope) - ColorWhistle
Image Source:

The Internet of things (IoT) is nothing, but a system of interconnected computing devices, mechanical and digital machines holding unique identification codes (UIDs) that can exchange data with other systems connected over the internet. 

How IoT can Transform Your Business Digitally?

  • Inventories and assets tracking & management – Amazon uses WiFi robots to scan the QR code on the products for tracking purposes
  • Prediction of customers’ needs on data analysis Big Ass Fans introduced smart fans with light, speed, and temperature sensors. Depending on the users’ mood, the fan speed will be tailored 
  • Acquiring real-time insights – In livestock, the ranchers use IoT devices and collect the data about the well-being of the cattle in real-time
  • Omnichannel optimization – AWM’s Smart Shelf is built with high-definition optical sensors and edge displays to showcase the price details and other information of the products 
  • Boost productivity rate – IoT powered SmartDesks offer an optimal workstation for employees to work productively as well as from their comfort-levels    
  • Customer experience – In Mercedes Benz’s Mercedes Me Connect cars, customers are allowed to connect with the world via modern sensors and technologies. Have you ever traveled in a self-driving car? Share your experience in the comments section.    
  • Meet customers’ new demands – Panasonic IoT-enabled futuristic refrigerators which notifies you of the fridge conditions, grocery item stocks, etc. 

Outsource to an IoT service provider and experience all these perks in your business as well!

Artificial Intelligence (AI)

  • AI-powered cameras can spot shoplifters and alerts staff even before they steal”
  • “AI can predict the next time when does a COVID-19 patient may need a ventilator by analyzing their symptoms and traits”  
  • “Big cities in the USA, Canada, and the UK have introduced a self-driving taxi service exclusively for physically-challenged people”

AI-powered systems can do all these, also more than these with great results in the real-world. This might astonish you, AI is not a technology introduced today or yesterday, it’s been there since 1956

Artificial Intelligence (AI) tech is the process of developing physical machines or software apps with the capability of doing tasks that are usually done by humans/human intervention such as reasoning, problem-solving, planning, decision-making, sensory perception, and many more.

It’s not like AI is going to pluck job opportunities from your hands, instead, AI-powered robots, software, and systems will just gear up the process, enhance efficiency, and help you go on errors-free. Many B2B and B2C companies are already experiencing it. Then, how will we ignore AI tech in our outsourcing trends curation?   

  • 80% of business and tech leaders say AI helps them boost productivity
  • 61% of marketers say artificial intelligence is the most important aspect of their data strategies
  • 83% of AI consumers have already achieved substantial (30%) or moderate (53%) economic benefits
  • 98% of organizations that are using AI tech for their digital transformation are generating an extra 15% in their revenue

Applications of AI Tech in Businesses 

Recruitment Process

To assist the HR team in the hiring process, companies use AI and Natural Language Processing (NLP) which is capable of scanning through the candidates’ resumes to analyze the location, academic qualification, gender, and various skills, then shortlist the eligible ones. It doesn’t stop here, the app/software recommends other job positions for the candidates if they are eligible

Invoice and Billing

AI has made accounting and finance to deliver accurate outcomes. There are various tools available for billing both from manual and e-records. Use invoicing software to simplify and automate your administrative tasks

Proposal Verification

AI proposal management software provides efficient proposals review by scanning throughout the proposal. This saves time and predicts accurate reports which can be used as a checklist

Security Threats Management

Using AI, cyber experts are able to analyze and remove unwanted data. It helps them to be aware of malicious activities or threats or malware and be prepared to withstand cyber attacks 

Customers’ Behavior Analysis

AI enables to perform surveys among customers. Data accuracy is excellent and helps to incorporate for providing a better customer experience

Customer Support

Through AI, businesses are designing virtual assistants in their websites and apps with the ability to answer any query that the users have about the company, services, products, pricing, location, etc.

Targeted Marketing

Based on users’ previous shopping history, likes, and dislikes, with AI and NLP, businesses publish ads to specific audience  

Social Media Promotion

With the help of AI, based on various data and insights, social media strategies can be formulated

Increase in Sales

Using AI, sales managers are able to formulate effective strategies that enhance sales

Looking for Designing & Branding Services / Solutions?

Seize and experience the transformative impact of Design and Branding Services & Solutions with ColorWhistle.

Countries that are the Best for IT Outsourcing

After thoroughly researching the regions to outsource IT solutions, we’ve curated these countries below. 

  • Europe & Eastern Europe – Ukraine, Poland, Bulgaria, Belarus    
  • South America – Mexico, Colombia, Peru, Argentina    
  • Asia – India, China, Indonesia, Malaysia 
Technology Outsourcing Services – Statistics & Trends (Best-IT-sourcing-events) - ColorWhistle
Source: Uptech 

Before partnering with an IT outsourcing service provider, make sure they’re either aware of these trends or apply these in various businesses. We’ve written a detailed blog on – How to work with website outsourcing agencies? Do give it a read! 

No matter what, at the end of the day, it’s all about customer satisfaction. If you’re not meeting the expectations of your customers, then you’ll be lost! One best options to satisfy your customers is through implementing trending technologies in your business. 

With the help of outsourcing vendors, you can also kickstart your game. We’ve been in this digital transformation field for over 15+ years, and as far as we’ve noticed, we feel – India, to be the budget-friendly destination to outsource your digital services.       

ColorWhistle Technology Services, an Indian-based outsourcing consultant can be the backbone of your business. We offer website design, development, digital marketing, and specialized social media design services, available both as white-label and outsourcing services. If you like to take this call further, do give us a call at +91 (944).278.9110 (or) send us a message

Would you like to know what all the digital services we offer? 

Technology Outsourcing Services – Statistics & Trends(ColorWhistle)

To elaborate on these services and our consultative approaches, you can check out the homepage of our website. 

Did you find this blog post useful? Would you want us to add any more outsourcing tech trends to this list? Do tell us in the comments. 

Pavithra Samuel
About the Author - Pavithra Samuel

I'm a word-aholic copywriter who always loves to share a close bond with digital marketing. Google, being my father of research, accompanies me shoulder-to-shoulder in every step of writing. I always look up to copywriters who generate educative, persuasive content impeccably seasoned with creativity & innovation. I can deliver content for web service pages, blogs, social media, emails, and so on. I can engage myself in content-related works for B2B, B2C, SMEs, niche-specific businesses. Other than reading & writing, my other two escapes are sweets & songs. My dream desk would be more of creative writing projects, desserts, music, & minions.

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