Outsourcing providers hold the key to a company’s digital future, whether businesses require cloud computing for added security and recovery, custom software development for a competitive edge, or the implementation of advanced technologies to drive scalable growth and personalised experiences.
Outsourcing partners can also ensure cost savings with lower labor costs while reducing the likelihood of costly data breaches using cutting-edge technologies, but which trends are driving the greatest growth? Discover the trends businesses should follow or implement to become industry leaders in 2025.
The Current State of the IT Outsourcing Industry
Various reasons drive market trends in outsourced IT services, including cost reduction, access to skilled developers, technological innovation, sustainability, and data privacy or security. The current state of outsourcing in various regions shows promise for exceptional growth and scalability.
A recent global comparison shows that the United States, the United Kingdom, Japan, Germany, and China hold the greatest outsourcing development market share in 2025, spending more money on outsourcing than all other countries, with the nearshore outsourcing model showing steady growth.
Additionally, the outsourcing market size is projected to experience substantial growth in the coming years, estimated to reach a market value of £476.81 billion by the end of 2025 with a continued compound annual growth rate (CAGR) of 8.28% leading up to 2029.
The Momentum Geography Report also reveals that 92% of the world’s 2000 largest companies use outsourcing services like managed services to achieve innovative goals. Another recent IT report shows that 63% of companies face challenges when recruiting traditional or in-house IT services.
Top IT Outsourcing Trends to Watch or Follow in 2025 and Beyond
Discover the outsourcing trends driving the exponential growth of the market, including artificial intelligence automating business functions, data security to reduce breaches, software development outsourcing trends allowing many businesses to innovate, and remote work for cost efficiency.
1. Remote Work Has Become the New Norm
Employee remote work share statistics revealed that 28% of global employees worked remotely or in hybrid settings by the end of 2023. Remote work is one of the key outsourcing trends driving the global market for numerous reasons, including lower labor costs and broader access to specialised skills.
Knowing how to manage a software development team was one of the primary objectives business leaders had to discover when sending employees off to work at home. However, companies experience significant cost savings when they no longer have to pay transportation benefits.
Meanwhile, the cost-reduction benefits skilled employees, allowing them to put more hours into work without the long commute to the office. Cost efficiency mainly drives the remote work era, but companies further benefit from being able to access a global talent pool from anywhere, anytime.
2. Virtual Customer Experiences in Online Shopping Matter
Online shopping exceeded £3.31 trillion at the end of 2024, showing how consumers prefer buying products online compared to traditional shopping. Enterprise software development is experiencing strong IT outsourcing trends related to e-commerce and online shopping for digital products.
However, the customer experience drives the market growth in e-commerce development. The importance of customer service for e-commerce statistics shows that 86% of customers will desert a brand after only two poor experiences and bad reviews are shared twice as much as good ones.
Catering online shopping experiences to customer expectations, demands, and needs will ensure successful partnerships with outsourcing companies. Outsource to a bespoke UX/UI design service provider to ensure products lead to the ultimate customer satisfaction for successful market entry.
3. Businesses Use Strategic Initiatives to Outsource Specialised Services
More companies worldwide are using outsourcing partners to manage specialised services ranging from software development to digital marketing, sales strategy formulation, and project management for complex business functions, enabling businesses to access skilled engineers with niche expertise.
IT outsourcing trends reveal that business leaders gain access to a global talent pool to source specialised expertise, with some examples including IoT development, blockchain and crypto projects, machine learning app development, and even human resources (HR) outsourcing.
The United States and the United Kingdom lead the outsourcing market in a 2025 global comparison, with the two countries showing the largest market share among IT outsourcing providers. More companies turn to trusted and reliable outsourcing destinations to find highly specialised services.
4. Sustainability Spikes the IT Outsourcing Market
A recent European Investment Bank press release revealed that 66% of Europeans want governments to impose stricter environmental sanctions on businesses while another 62% would pay more for climate-friendly products. Companies are using advanced technologies to achieve customer trust.
Businesses increasingly recognise the need to outsource services to external service providers in the hopes of improving a higher environmental, social, and governance or ESG score. Search for a service provider that cares about the ratings to help your business automate ESG compliance reporting.
Improved sustainability benefits even outweigh the cost of outsourcing app development because companies that reduce their carbon footprint, replace paper-heavy processes, lower energy consumption, and implement strict waste management protocols can increase profits and revenue.
5. Business Process Outsourcing and Emerging Business Models
Deloitte’s global outsourcing survey shows that 80% of business executives plan to maintain or increase their investments in outsourcing to third-party providers, with 50% of executives outsourcing in-house IT functions like sales, marketing, and research and development (R&D).
Significant cost savings are pivotal to this shift in outsourcing business processes. Business process outsourcing lowers operational costs when partnering with trusted outsourcing providers. However, more organisations are using new business models to prioritise value over cost savings.
Outsourcing companies that provide quality assurance software testing appeal to leaders seeking quality over cost efficiency to lower operational costs. Often, companies want to combine business process outsourcing with high-quality software development and automation to deliver excellence.
6. Innovative Data Security Remains Pivotal
Statista reveals a shocking truth: the average cost of data breaches has reached £3.95 million in 2024. A higher demand for enhanced data protection, privacy, and security is another trend driving growth in the outsourcing market size. Still, outsourcing providers can increase the risk of data breaches.
The double-edged sword is resolved by outsourcing software development services to an ISO-27001-certified service provider that prioritises data privacy and data security, ensuring compliance with the General Data Protection Regulations (GDPR) standards.
At Pulsion, our outsourcing services as a trusted and certified development company ensure impenetrable cybersecurity, protecting business and customer data, whether clients wish to implement software development outsourcing trends or make use of our cloud services.
7. A Growing Demand for Low-Code Software Development
Another key trend when leaders outsource software development for startups is to use low or no-code development models, allowing businesses to use the outsourcing market for cost reduction in early market entry. Businesses increasingly rely on proof of concept and early user testing modules.
For example, startups seek outsourcing providers to use their minimum viable product (MVP) development company services to spend as little as possible while launching new products. The software has functional features and user-friendly designs without adding all the bells and whistles.
That way, startups can determine whether the product is received as expected before developing more complex applications. Other low and no-code platforms commonly used by outsourcing partners to save money include Appsmith, Bubble, Glide, and Mendix, which also results in rapid development.
8. Cloud Computing Paves New Pathways
Cloud computing statistics reveal that 45.2% of European enterprises purchased and implemented cloud computing solutions in 2023, with 75.3% of those enterprises implementing sophisticated security software applications to protect customer and business data in a centralised location.
Meanwhile, world infrastructure as a service revenue experienced explosive market growth from £12.9 billion in 2015 to £187.41 billion in 2025. The public cloud infrastructure as a service (IaaS) market experienced more than a tenfold increase over ten years and continues to grow.
Cloud computing is the future of digitalisation efforts, enabling software development and outsourcing providers to empower businesses through cloud services. Cloud migration services saw staggering growth and revealed a promising trend. A comprehensive cloud readiness checklist can ensure success.
9. Custom Cutting-Edge Software Development Outsourcing Trends
The custom software development market report shows that the market size was estimated at £28.53 billion in 2023, with a projected compound annual growth rate (CAGR) of 22.5% leading up to 2030. Bespoke software development outsourcing trends tailor products to business needs and goals.
These custom software development company services also enable businesses to target improved customer satisfaction with cutting-edge technologies like artificial intelligence, machine learning, data science, computer vision, virtual reality, augmented reality, and mixed reality.
Outsourcing software development with an IT outsourcing company that understands the latest technologies and outsourcing industry trends will guarantee competitive advantage over others in the industry. Outsourcing development to custom providers can monetise data or personalise experiences.
10. Data Drives the Future of Profits and Services
More businesses turn customer data into profits with predictive analytics from outsourcing vendors that provide outsourcing development services using machine learning algorithms and artificial intelligence, whether outsourcing to Latin America, Asia, Western, or Eastern Europe.
Predictive analytics uses AI and ML technologies with statistical models and data analysis to forecast future outcomes based on real-time data. Predictive data analytics can predict future customer behaviours, identify patterns to monetise data, or help leaders recognise changes that require attention.
Financial institutions can forecast future cash flows while hospitality can predict staffing needs and marketing teams can target customers based on behavioural analytics. Manufacturing facilities can prevent disasters and malfunctions or healthcare providers can detect early medication reactions.
11. AI and ML Invite a New Era of Technological Advancements
Artificial intelligence (AI) and machine learning (ML) lead the revolution of innovative solutions and IT outsourcing trends. AI and ML have disrupted the outsourcing industry, with companies outsourcing AI and machine learning app development for automation, predictive analytics, and enhanced security.
Artificial intelligence consultants are a growing demand as AI and ML technologies automate customer services to enhance customer satisfaction outside of business hours. Companies have removed human intervention, allowing businesses to integrate chatbots and assistants using AI and ML after hours.
AI and ML algorithms also enhance strategic initiatives in businesses by implementing predictive analytics to help companies anticipate market trends, potential roadblocks, and customer behaviours, allowing businesses to personalise services, offer new products, and make informed decisions.
12. Focus on Core Activities With Managed Services
Next-generation managed services enable businesses to outsource critical functions to fully managed teams so that the company can focus on core business activities instead, with these outsourcing agencies being a pivotal solution to the greatest challenges in mission-critical functions.
Operate services, a specialised area can also help multiple organisations share the cost of managed models in mission-critical functions across the board. Unfortunately, not everyone knows how to manage a software development team, and managed services can refine the process.
A group of companies or a single business can outsource the maintenance, management, and upgrades related to IT infrastructure, data centers, servers, networks, and databases to trusted outsourcing companies, ensuring that all systems, networks, and operations remain operational, even after hours.
13. Robotic Process Automation Streamlines Operational Efficiency
Deloitte’s global outsourcing survey reveals that 20% of business leaders plan to implement a digital workforce using artificial intelligence, automating many business tasks to streamline operations. Meanwhile, 83% of these leaders believe they’ll use outsourcing agencies to achieve this goal.
Robotic process automation (RPA) is also a notable demand among business leaders. The worldwide RPA software market size is projected to reach a value of £65.89 by 2032 with a compound annual growth rate (CAGR) of 36.6%, showing a growing trend in the automation of business activities.
A simple example of robotic process automation is payroll processing, which is a vital part of business operations. A service provider will use artificial intelligence to automate payment calculations, deductions, withholding, and net pay while allowing HR to automatically generate payments.
Common IT Outsourcing Trends-Related Challenges
Quality, security, and collaboration are the core challenges when adopting outsourcing provider trends. Here are expert tips to overcome the common challenges of outsourcing development:
Quality
Only partner with outsourcing companies that provide a comprehensive outsourcing contract and project scope defining the deliverables, constraints, budget, timeline, and collaboration expectations. Ensure the company uses various software testing methodologies and remains transparent throughout.
Security
Use an IT outsourcing company with ISO-27001 accreditation, ensuring the provider follows globally-recognised information security and privacy protection regulations. The service provider should also conduct themselves and develop products that align with the European Union’s GDPR standards.
Strategic Partnerships
Finally, seek strategic partnerships with the right outsourcing partner that places value over cost, security over rapid deployment, and business alignment over shortcuts. Cost reduction must always be a goal, but choose outsourcing partners that align with strategic business goals and consumer demands.
Partner With the Right Outsourcing Company
Discover the right outsourcing partners at Pulsion, a company with 30 years of industry experience, a vast portfolio of clients and case studies, and flexible outsourcing software development services to suit any business need. Partner with third-party providers that understand cutting-edge technologies.
Outsourcing AI and ML services is a breeze with our artificial intelligence consultants and machine learning app development remote work opportunities, allowing businesses to gain access to technological advancements that make outsourcing software development worthwhile.
We also provide IT staff augmentation company services or dedicated software development teams with a range of services to ensure all your outsourcing needs and demands are met, whether clients need the latest software development outsourcing trends, cloud computing, or app development services.
Many businesses make use of our business process outsourcing, cloud services, and security optimisaton services to reduce data breaches and implement cost-reduction business models without sacrificing quality. Learn more about us, or contact us today for outsourcing development and services.
IT Outsourcing Trends Conclusion
Cost savings, cloud computing, business process outsourcing, remote work, and custom app development are some emerging and existing trends for outsourcing software development. Companies outsource development to reduce data breaches and innovate business process outsourcing.
Reliable outsourcing partners should provide all the services and products necessary to ensure businesses excel in their market. Outsourcing software development to the right partner also minimises all the risks and overcomes the challenges. Contact us today to discuss your outsourcing needs.
IT Outsourcing Trends FAQs
What are the main outsourcing types for large-scale companies?
Business leaders can outsource the following types of services to an external service provider:
- Business Process Outsourcing: Outsource specific front or back-end services within your company, such as payroll processing, sales, digital marketing, or customer services.
- Cloud-Based Outsourcing: Outsource infrastructure, databases, and applications to cloud computing services to secure the data and provide easy access to multiple remote users.
- General IT Outsourcing: Outsource general IT support and technical services with a contract to ensure seamless maintenance and upgrades when companies don’t have internal resources.
- Human Resources (HR) Outsourcing: Outsource the complicated tasks involved with human resources, including employee contract management and payroll processing.
- Software Development Outsourcing: Outsource software or mobile app projects to a trusted custom software development company to handle everything from start to finish.
What are the key benefits of following the IT outsourcing trends?
The key benefits of outsourcing software development include:
- Cost savings throughout the project
- Access to a larger talent pool with specialised skills
- Rapid development and a faster time to market
- Easy team scalability and flexibility
- Leverage domain and niche expertise
- Businesses can focus on core business activities
Where can I find reliable IT outsourcing partners?
Another one of the leading software development outsourcing trends is the use of nearshore and onshore outsourcing to overcome cultural differences, language barriers, and time zone differences. Nearshore outsourcing describes choosing IT outsourcing partners in Eastern Europe as one example.
Outsourcing agencies in Germany, France, and Ukraine can better meet cultural and business hour needs. However, onshore models allow businesses to partner with outsourcing agencies in London, Scotland, and Ireland, closely matching time zones and cultural or language nuances.
Nearshore and onshore outsourcing are becoming more popular than offshore outsourcing, even though the offshore outsourcing market provides an affordable alternative for software developers. Nearshore models still holds the benefit of quality that meets industry standards within a specific location.
Use our “how to outsource software development guide” to successfully achieve the goals intended when following the IT outsourcing trends. Additionally, discover the outsourcing IT services pros and cons to make an informed decision about the nearshore and onshore outsourcing models.
What should I consider before following IT outsourcing trends?
Companies can consider a few factors before choosing outsourcing partners.
- Does the software development company have a vast portfolio with clients, case studies, and client testimonials?
- Which services can your business outsource, and which cutting-edge technologies does the company use?
- Does the service provider have flexible models like staff augmentation services and dedicated software development teams?
- Does the provider fit the company’s cultural and language preferences or work within the same time zone?
- Will the company provide a secure outsourcing contract with a non-disclosure agreement (NDA) to protect sensitive information?
- Does the outsourcing software development services provide access to advanced technologies, niche expertise, and domain knowledge?
- Does the company align with the strategic business goals, provide subject matter expertise, or proactive communication and collaboration?
How can I maintain quality when outsourcing software development?
The right outsourcing partner will provide quality assurance on all outsourcing needs. For example, our custom software development company uses quality assurance software testing using multiple software testing methodologies to provide high-quality software products and technologies.
