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IT Consulting | Outsourcing | Vietnam

The past few years have shaken the way we all do business, regardless of where we are in the world. One of the most notable changes has been the rapid growth of working-from-home setups, as well as the expanding market for international top-tech talent. These two factors show how big the COVID impact on IT outsourcing is, especially in a post-COVID era.

But what exactly is there to watch out for? Read on to learn more about how the COVID-19 pandemic has changed the game's name in the offshore outsourcing world.
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## COVID Impact on IT Outsourcing

 ![](https://res.cloudinary.com/innomizetech/image/upload/v1709175774/production/blogpost_covidimpactit_75c5407e2a.png) 

There is a nationwide talent shortage for the top IT talents, and companies are scrambling to fill those roles to serve clients. With remote work being a popular setup, especially in the tech field, companies' solution is to work with an offshore IT outsourcing team.

Not only does outsourcing provide access to top talent from all over the world, but it’s also a cost-cutting solution. In fact, according to Deloitte, 70% of businesses partnered with an outsourcing partner in 2020, with IT being the largest field companies looking to outsource.

And outsourcing is here to stay!  At the height of the pandemic in 2020, the global IT outsourcing market was valued at $318.5 billion. By 2026, it is projected to grow a whopping $452.19 billion. As one might think, the pandemic has greatly accelerated digital transformation and adoption worldwide. Let’s take a closer look at the factors contributing to the increase in IT outsourcing and the overall COVID impact on IT outsourcing industries.

### **Industry-Wide Digitalization** 

Even before the COVID-19 impact on IT outsourcing, companies have been deploying digital technologies. To encourage digital innovation and rise above competition in today’s digital-first era, sectors like IT, healthcare, finance, and HR are stepping up to streamline their business processes and projects.

The COVID-19 pandemic has further motivated companies to switch to digital solutions for business continuity. Due to the shortage of in-house IT talents and quality software solutions, companies are now looking into hiring offshore teams, and availing of their software development services.

### **Rise of Automation**

With the rising demand for work agility, companies are now spurring the growth of AI integration and business process automation. This is because the pandemic triggered new customer demands, which businesses are scrambling to meet. As such, they look for fast, modern, and innovative solutions that can save time, money, and manpower.

Companies are now realizing that they need to automate redundant tasks and condense human efforts with the help of AI. This is where the help of IT professionals comes in, with companies outsourcing their services to create software and products that work for their business’ specific needs.

### **Cloud Computing**

Companies around the world have pivoted towards remote working models overnight due to the pandemic. As such, there was a massive demand for cloud-based management platforms. 

After experiencing the many benefits of cloud computing, businesses are now completely shifting to cloud services. This demand will likely continue, which has companies rely on IT outsourcing firms more. The global public computing market is projected to earn more than $362 billion. 

### **Cybersecurity Demand**

With digital transformation moving forward worldwide, there is a growing demand for cybersecurity. During the pandemic, there has been a whopping 600% increase in cybercrime, making it crucial to take action before your company falls victim to such malicious activities.

Unfortunately, not many companies have adequate resources to fight cyber-attacks. Because of this, IT outsourcing firms are now experiencing a huge demand for cybersecurity IT services to protect confidential data. Cybersecurity is now seen as one of the top priorities among CEOs and companies worldwide, and we don’t see this trend dying down anytime soon. 

### **Need for Tech Talents**

Thanks to technology advancing at a rapid pace, there is a fast-growing demand for tech professionals. Because of this, companies are now fighting to find the top IT services provider, especially amid the wide gap between the demand and supply of IT professionals.

Since companies need to scale digital operations right now but still lack in-house tech talents, they are now looking into outsourcing IT professionals, either from the same country or opting to hire remote teams. Thanks to IT outsourcing, companies can reap multiple benefits such as reduced HR costs and the ability to collaborate with an efficient team. That way, you can meet your demands for digital transformations while saving money in the long run.

### **The Work From Home Setup**

As mentioned, the workplace is now completely different due to the COVID-19 pandemic. Almost everyone was sent home, adopting the remote work setup to reduce the risk of spreading the virus.

While there was some skepticism toward completely remote teams, many companies realized the benefits behind the work-from-home setup, with employees experiencing good productivity levels and the same quality outputs compared to working in the office.

Because of this, companies started to consider outsourcing external IT teams, seeing it as an excellent opportunity. Doing so allows companies to have access to more resources and benefits, including innovative tech solutions and standards compliance, without the high price. 

### **Accelerated Digital Adoption**

We are now in a digital world where we are all connected, no matter where we are in the world. Because of this, businesses need to quicken the adoption of new technologies to provide the service that customers demand, which keeps them one step ahead of the competition.

Besides this, companies also needed to adopt digital tools to allow them to face crises like the pandemic effectively. Doing so will allow them to bounce back quickly in case something similar to COVID-19 happens again.

However, without enough IT talent and resources, it would be difficult to achieve your business goals. That is where IT outsourcing models come along. Today’s technology has allowed companies to gain access to IT talents, software, resources, and technology to implement, ensuring hassle-free solutions for them to grow even during the pandemic.

### **Fast-Tracked Digital Transformation**

COVID-19 has caused organizations to prioritize digital transformation for their processes. This needed to be done quickly because more people were relying on digital tools for more efficient communication and collaboration.

Besides this, customer demands forced businesses to consider new technologies to improve overall customer experience. That is why companies turned to IT outsourcing providers that offer their specific project needs. Thanks to top IT talents from different parts of the world, companies can implement tech innovations in their business processes, redefining their strategies with modern solutions.

## Conclusion

Outsourcing is here to stay, especially with the skyrocketing demands for digital transformation and tech solutions. The COVID impact on IT outsourcing has been nothing but beneficial, with the skepticism on remote work fading and companies seeing the benefits and potential behind outsourcing IT services.

If you haven’t outsourced your IT needs, then it’s high time you do so with the right partner. We at INNOMIZE are the leading offshore development and global IT consulting company in Vietnam, possessing a highly skilled and efficient team of talents ready to meet your needs.

Contact us today and learn how we can drive your company to success!


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