IT outsourcing trends in 2023: What are the statistics collected over the past year?

The new wave of coronavirus breaks down to the ground the old schemes for finding specialists of employers, and the specialists themselves are becoming more and more difficult to find. Various areas of business suffer from restrictions, and companies that do not have time to react in time are left with nothing. According to experts, the demand for a remote work format has grown significantly as a result of the consequences of the IT outsourcing in 2021 post COVID-19.

Home office mode allows employees to get more free time and employers to optimize production costs. Against this background, the popularity of remote, as well as hybrid forms of employment will grow in the future, analysts say. There are many benefits of migrating to remote or hybrid operations over the long term, but it is also a major lifestyle change. For such a transition to be successful, you need to approach the changes in a comprehensive manner.

5 trends in remote work of the last year (2022)

As a result of no negative changes associated with the movement of workers to work remotely, the following IT outsourcing trends were collected:

1. Every second employee is ready to quit if they cannot work remotely. Now that workers are accustomed to remote work, they don’t want to give it up. According to statistics, it is believed that every second person will not return to their current job if they cannot work remotely in the future. A Bloomberg poll confirmed this. In a survey of 1,000 employees, they found that 39% of respondents are willing to change jobs if their superiors will not allow them to continue working from home.
2. If possible, 52% would prefer to work from home. More than half of the respondents admitted that they want to work from home and 35% are ready to work for less for this. Even after being vaccinated and achieving herd immunity, 66% would like to work from home.
3. Labor productivity has increased and turnover has decreased by 50%. A two-year study from Stanford confirmed that working from home does not negatively impact productivity. In fact, the opposite is true – employees work remotely much more productively. In addition, researchers noticed that switching to remote work cuts staff turnover in half. The companies they studied even managed to save $2,000 on every employee who switched to remote work.
4. About 92% of employees chose the hybrid model of working from the office. Provided that completely remote work is not possible, 92% of those surveyed said they would like to combine work from home with work in the office. Moreover, 63% of fast-growing companies are already successfully using a hybrid operating model.
5. Working from home makes 77% of employees happier. Productivity is not the only metric that skyrockets when working remotely. A whopping 77% of respondents said being able to work from home after the pandemic ends makes them happier.

Today, some companies are returning employees to the office, while others are extending telecommuting. If it is impossible to work from home 100% of the time, the majority of those surveyed prefer a hybrid work model. Prior to the COVID-19 pandemic, employers were reluctant to switch to remote management methods due to fear of problems with organizing workflow and monitoring employee productivity.

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What are the statistics and situations around the world?

For example, 88 percent of Japanese companies have already switched to telecommuting and are ready to continue working this way after the pandemic. They are now actively working on creating a remote corporate culture. In Western Europe, for example, in the Balkan countries, the main role is assigned to the personal achievements of employees and the introduction of innovations, so employers have willingly adopted the distance format. Scientists consider these changes in consciousness to be the IT outsourcing trends of the future.

The development of a remote work format has opened up opportunities for both employees and companies. There was an opportunity to form efficiently working teams of employees located geographically in different cities and even countries. Sometimes relocation becomes a smart choice for companies, allowing them to optimize budgets and strengthen teams in different regions of presence. Hays, an international recruiting company, conducted the Employee Relocation survey of 1,100 respondents, 572 hiring managers, and 528 professionals.

It seemed that companies redefined their approach to HR back in 2020, when it was necessary to urgently reconfigure communication and maintain team spirit at a distance. Many regarded these changes as temporary inconveniences, but now they are already thinking: does everyone need to return to the office for five days?

Companies have become more likely to pay one-time bonuses when one is applying for a job. The so-called sign-in bonuses existed before, but were not so popular. Now, this practice is used more and more often to attract maximum attention to the vacancy. Previously, one-time job bonuses were paid mainly to senior candidates. Now, they are spreading to other levels, especially if the specialist has significant potential, and the company is interested in the individual.

What are the main problems of Covid and how do trends arise?

Covid cut off the main thing – the ability to socialize, communicate. The structure of the business has turned upside down: consumer behavior, the model of the organization of the work process, the interaction of companies with each other, etc. Changes in consumer behavior that have formed since the pandemic are not spontaneous outbreaks.

Most of the new behaviors will probably stay with us forever. Some were born long ago and became systematic, while others accelerated during a pandemic. The pandemic has forced even avid conservatives to pull out their PCs, cell phones, and tablets. The older generation had to urgently download Zoom, the adults had to learn to order groceries with home delivery, and the children had to adapt to distance learning. The business had to digitize on all fronts in order not to lose its customers.

The pandemic has changed the labor market around the world. Last year, for instance, US job losses due to COVID-19 were the highest since the Great Depression. In many industries, companies cut workers, but somewhere (for example, in IT) more vacancies have appeared. On this wave, many wanted to master a new profession – one that would allow them to work remotely and save income during the crisis.

According to a survey by BCG and The Network, more than half of people want to learn other skills. The struggle between fear and the desire to work remotely, the rational combination of the simultaneous fulfillment of official and household duties, adaptation to a new way of life – all this leads to a kind of escape from reality. Communication skills are also worth noting. This is an important skill for any specialist in any field in conditions not only of a remote work format. It remains undeniably important at all times.

In terms of general trends, the study highlights the growing demand for people employed in healthcare, pharmaceuticals, psychological support and counseling services. In addition, trends remain unchanged for IT professionals – developers, analysts, project managers, recruiters. The coronavirus pandemic has forced people to reconsider their personal and professional lives – 93% said they thought a lot about the future in 2020, and 83% plan to change careers within the next year. The heyday of e-commerce and delivery services will continue, so couriers, order pickers and employees who improve such services will definitely not be left out of work. At the same time, companies will compete for employees who are ready to adapt to the online format. IT outsourcing trends for remote or hybrid work, as we can see, are not going anywhere even after Covid gains traction.

Trends to look forward to in 2023

Artificial intelligence is often mentioned when it comes to the top IT outsourcing trends. In 2023, AI will take over a lot of aspects of life. There are countless commercial applications for it. According to experts, the future of AI will undoubtedly provide businesses with a significant edge. According to research, it can help companies to cut costs by up to 60% and increase sales by 50%. As more businesses look to utilize artificial intelligence, information technology outsourcers are enhancing their services to include AI use cases.

Remote work is another IT outsourcing trend that is equally popular. According to Gartner research, 48% of employees will still do the job remotely in the post-pandemic era. Having the freedom to work from any location at any time is a significant benefit for the fintech or software development industry. It is accomplished by utilizing cloud apps, including well-known platforms like Slack. Cloud applications are widely used. In 2023, it is anticipated that investments in public cloud computing will amount to $10 billion.

The focus of IT outsourcing trends will shift to machine learning. Artificial intelligence may be used to automate tasks like network surveillance, data loss prevention, and user behavior analysis. These programs then alert your IT provider to any suspicious behavior so that they may take any necessary manual action.

Meanwhile, robotics is growing in popularity among IT outsourcing trends. Robots are becoming more common, but operating and setting them up requires skill to meet the outsourcing requirements. Accordingly, an increasing number of IT service providers are investing in robotics to assist their clients in utilizing the potential of robotics.

The importance of cybersecurity will also rise in 2023. It is more crucial than ever because BPO is becoming more digital and more susceptible to potential cyberattacks. Outsourcing service providers are stepping up their cybersecurity efforts to safeguard themselves and their clients.

A few words as a conclusion

As it turns out, fears of a loss of control and a weakening of control over work processes were not confirmed. In highly organized teams, morning and evening video selectors are introduced, constant communication between all members of the team is ensured, blurring the boundaries that have arisen with the appearance of a distance.

Moreover, remote work has led to a clear division of roles, thereby increasing the productivity of the team. It turned out that most employees can be trusted with individual work that requires discipline and responsibility. This state of affairs on the market also has its advantages: companies will begin to abandon stereotypes, including age ones. For example, it will open up opportunities for senior employees if they have sufficient qualifications and flexibility in training. More emphasis will be placed on “well-being programs” by testing different elements of them.

Author

Ivan Kolesnikov

Total Articles: 211