IT Outsourcing Post-Pandemic
                     IT Outsourcing Post-Pandemic
Satya K Vivek
Writes for Gadgeon.com, 
IoT software development services from Gadgeon 
and Gadgeon-IoT software development company
 
Ever since the Covid-19 pandemic struck, every sector has been 
witnessing some changing trends. The IT sector also has undergone 
massive changes with the introduction of practices like remote working. 
While IT outsourcing has been around for quite a while, the world 
witnessed a decisive rise in the demand for outsourced services. This 
upward trend is due to most of the brick-and-mortar activities moving 
online.
IT outsourcing trends before the pandemic
Outsourcing has been prevalent in the IT industry for a long time.Over the 
past decade, a growing number of companies have been expanding their 
in-house team to reduce their dependency on IT suppliers. This was for 
many reasons, including keeping external staff in sync with the company’s 
in-house culture. Moreover, outsourced services had started becoming 
more expensive, and in turn, less alluring.
How did outsourcing trends change during the pandemic?
The growth rate for IT services had started to decline compared to the 
past. However, the pandemic was a turning point for companies offering 
outsourced services. Initially, it seemed to make the situation even worse 
for these firms. But, this trend reversed quickly with a sharp increase in 
the demand for outsourcing.
What led to the changing trends during the pandemic?
As mentioned above, the situation worsened for outsourcing service 
providers at the beginning of the pandemic. This is because businesses 
faced severe operational constraints due to the pandemic, with various 
challenges in the continuity of operations. However, the businesses soon 
realized that cutting off the IT suppliers to curtail expenses would cripple 
them more. This was when they started expanding their ties with the 
outsourcing firms.
Several factors have contributed to the boost of the IT outsourcing trends:
Digital transition
With restrictions being imposed due to the pandemic, businesses had to 
adapt to remote working without any choice. But, this digital transition 
came with several challenges, especially for companies that always 
prioritized productivity through physical presence. The businesses that 
were already practicing remote work quickly got ahead. The ones that 
failed to follow the transition had to turn to their IT suppliers for help.
IT Outsourcing helps overcome obstacles in the transition
The pandemic has forced companies to practice social distancing and 
make remote working compulsory for the majority workforce. This 
situation has led to disruption in work processes. To cope with this 
situation, they had to turn to IT outsourcing partners to resolve any 
operational issues with IT-based solutions.
System up gradation boosted IT outsourcing
Remote working also calls for varied technologies, infrastructure, and 
support systems. For large companies to arrange such infrastructure on 
short notice from within the organization was quite not possible. Many of 
the issues are new to the companies but have been solved by the IT 
outsourcing firms. With their experience, competence, and specialized 
tech, outsourcing agencies have quickly helped businesses make up for 
this shortcoming.
In conclusion, all these factors have caused positive outsourcing trends, 
thereby boosting the demand for it. Considering the expanding relations 
between IT companies and their suppliers, these trends are now likely to 
stay for some time. Especially since the chance of another wave of the 
pandemic does not seem to fade anytime soon.
About Gadgeon
Gadgeon is known for its expertise in Industrial IoT and engineering 
excellence. We connect devices, operations, and processes to create 
business value, and revolutionize enterprises with the power of data. As 
an end-to-end technology services company, we successfully enabled the 
digital journey of customers with critical digital services ranging from 
embedded systems, cloud app development, mobile app development, 
data & analytics, application modernization, emerging technology based 
solutions, and testing & test automation across the industries such as 
connected factory, telecom & datacom, digital healthcare, CSPs, and 
home & building automation.
Thank you for time in reading this article!