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Is IT Outsourcing Dead

Here are some interesting facts to know about outsourcing.

The outsourcing market value is to increase by at least 8.5% between now and 2028

45% of companies would rather opt for increasing their outsourcing activities to access more professionals

By the end of the year, IT outsourcing spending by companies is to exceed USD 1.3 trillion 

IT outsourcing accounts for more than 55% of the shares in the outsourcing industry

All these facts point to one thing: outsourcing is still alive and kicking. But do not take our word for it. In the sections below, we undertake a detailed examination of the concept of outsourcing, its purpose for establishment, and the current state of outsourcing in the world. Indeed, the sections below will convince you of the vitality of outsourcing.

is IT outsourcing dead?

A Quick Dive into Outsourcing

Outsourcing is a simple but intuitive business concept: business owners and firms contract services from firms rather than training and assembling an in-house team to take care of the tasks. Recently, outsourcing has become a big thing in IT, with several efficient IT outsourcing firms coming to light. As expected, outsourcing has continued to dominate the business sector for many reasons, including cost saving, professionalism, and a better agile team. Many software development companies have taken a liking to IT outsourcing - for good reason. However, in light of more work options and cheaper labor costs, one can not help but wonder if it is only a matter of time before IT outsourcing and consulting firms become redundant.

Outsourcing Dead?: Yay or Nay

The consensus is that outsourcing is still alive and kicking. But do not take our word for it. Here is a journey through the history and until the future of outsourcing to show how viable the technique is and will continue to be.

The Past

Outsourcing is undoubtedly not a 21st-century concept or an IT concept. The technique officially dates back to the Industrial Revolution. The 18th and 19th centuries saw the mechanism of contracting production processes to suppliers and external contractors. Companies could cut down on the cost of production and direct their attention to other administrative functions. With increased industrial output, outsourcing began to spread across all sectors. Manufacturing companies could contract cheap services to minimize post-World War II costs and retain a competitive edge. The development of the Internet and IT firms saw outsourcing being used in other sectors other than manufacturing and production. Experts criticized the earliest form of outsourcing mainly because it relied on very cheap labor with poor working conditions and enumerations. However, that is certainly not the case presently.

The Present

Outsourcing presently has spread its tentacles to literally all sectors and industries. Globalization has made it such that any software development company can wade in a sea of professionals. Presently, outsourcing is geared toward producing mainly professional services, offering the utmost competence globally. The flexibility of outsourcing also gives companies the leeway to hire based on project requirements rather than human resources needs. It also helps in promoting collaboration and development across different countries and regions. Right now, IT outsourcing is well on its way to becoming a force to be reckoned with, and its current popularity is well-known far and wide. For example, YouDigital today specializes in providing top-tier talent for full stack development needs and delivering comprehensive Salesforce consulting and IT team augmentation services for companies and organizations globally.

The Future

A quick online search about the prospects of outsourcing and IT outsourcing firms will reveal several statistics and many more predictions. Regardless, one constant is the fact that the outsourcing industry is growing at an exponential rate, and the future seems the opposite of bleak. It is evident that outsourcing is thriving, and there is no indication that that is about to change shortly.


While the outsourcing landscape has experienced rapid renovations with IT firms employing other IT outsourcing firms for consulting purposes and utilizing strategic technological tools, the settled truth is that outsourcing is still very much alive. The earliest forms of outsourcing are dead and buried - rightly so because of the inherent difficulties in that particular form of outsourcing. But most of the outsourcing of IT outsourcing firms are still very active and should be the first, timely consideration for your business.

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