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How Will the IT Outsourcing Market Transform by 2026?

1. From Cost-Centric to Value-Driven Engagements:

  • Cost saving is not the only goal of outsourcing strategies. Businesses now prioritize value-driven outsourcing.

  • Project-based model offers flexibility to access needed skills.

  • Multiple global delivery models enhance efficiency and speed.

2. Talent Scarcity Driving Global Expansion:

  • Offshore development is rising due to the tech talent shortages in developed markets, driving IT outsourcing trends.

  • Southeast Asia is popular for outsourcing, with Vietnam and the Philippines leading.

  • Mexico and Latin America offer a time zone advantage to US companies.

  • You can address skill gaps through professional outsourcing, dedicated centers, multi-sourcing, and BOT.

3. Regionalization & Nearshoring Over Offshoring:

  • Many companies prefer nearshoring because of the similar time zones and languages.

  • In Latin America and Eastern Europe, cloud migration and cloud-first strategies are upgrading the outsourcing landscape. India leads in business process outsourcing (BPO).

4. Specialized Niche Providers vs. Generalists:

  • One of the benefits of outsourcing IT is that you can access outsourcing firms with domain-specific expertise while following outcome-based delivery models.

  • Niche providers prioritize measurable results over working hours to ensure value for clients.

5. AI, Automation & DevOps-Driven Models:

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