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  • Writer's pictureZag Global

What Does the Future of IT Outsourcing Hold Following the Covid-19 Pandemic?

Post-Covid-19, casually popping into a restaurant or booking a flight abroad for the summer has not been the same. That is not the only shift we have seen as the BPO industry has also witnessed an abundance of change.

Due to the nature of the pandemic, businesses reduced their staff members and downsizing was seen across the board as well. This meant that telework became increasingly important and since the pandemic, the BPO industry has exponentially grown.

The introduction of virtual workplaces along with the significant absence of employees during the health crisis left plenty of room for business process outsourcing. This allowed outsourcing models beyond traditional IT outsourcing to come to the forefront. Businesses can now go beyond just lead generation for customer experience management.

We have compiled a list of trends that indicate what the future of IT outsourcing holds following the Covid-19 pandemic. You can now outsource services for data entry, recruitment processing, support services, Telemarketing, and verification services.

Read on for the different outsourcing models that have recently evolved the outsourcing system.

Digital Outsourcing Model

Digital outsourcing is a system that allows organizations to use third-party experts and keep up with the quickly evolving digital trends. Partnering with external sources allows organizations to rely on credible expertise that eliminates the need to spend on internal resources. Great Digital implications will help maintain your standard of CX across channels. 68% of US consumer product companies use outsourcing to improve their customer experience. Digital outsourcing offers omnichannel support that aligns a brand’s customer experience across platforms. Evolution is the foundation stone of any business model, especially in a fast-paced environment where technology and opportunities are both swiftly changing. A digital transformation in this environment does more or less mediate a business transformation. Your digital transformation will bring in the necessary initiatives in technology that ideally support your business transformation. With a professional at your beck and call, digital organizations will successfully transform from channel-centric and turn their attention to their digital customer experience.

Co-Souring Model

Co-sourcing is a model that many businesses have deemed much more successful than complete outsourcing models. Co-sourcing is a business strategy in the IT Industry that allows you to utilize external expertise without completely giving up internal control. Major companies will delegate the bulk of the technical work to outside allies while responsibly overlooking their tasks and implications in-house. In addition to expertise and control, co-sourcing is a model of outsourcing that will also enhance accountability because the involved stakeholders will know that they play a role in the success or the failure of this outsourcing model.

Project-Based Model

This is one of the most fitting models for companies that have irregular, one-off, test projects. Some of these projects may turn into mutually beneficial and long-lasting relationships. Project-Based outsourcing will allow you to offload the majority of your tasks off your hands. This helps your in-house team focus on prior tasks however, it may compromise key performance factors for your brand and at times may even compromise customer experience if the outsourcing party does not embody your business standards and values.

Dedicated Team Models

In this kind of model, you will hire specialists, mostly software development professionals who will work for you full-time but will remain in the dedicated team provider’s office. The majority of the time it’s subject to an agreement between the client and the service provider. The outsourced experts will be chosen on the basis of their particular skill set and expertise. The client may assign teams to aid the service provider with their services. However, the majority of the work is operated from the service provider’s office which sets it apart from the traditional employment of services.

Evolving Trends in IT Outsourcing

Along with the business process outsourcing models, there are also several trends that have surfaced in recent years. We have covered some of the most common market trends that are evolving yet here is what the future of IT outsourcing really holds:

Business Continuity and Disaster Recovery

Growth is paramount but retention is what will keep the brand moving forward. Business Continuity Planning (BCP) is the process of evaluating potential threats and challenges that a business could face and then evaluating them against the potential opportunities. Its essentially a plan of action that ensures that in case of mishap personnel and assets are protected and function as usual. Pre-Covid-19, BCP was largely dependent on the fact that resources could simply be relocated from one location to another however, as the post-covid situation has progressed organizations will have to come to terms with the fact that their business continuity plan deals with broad-based remote working and this system would be and should be implemented to test for optimal productivity.

Global Outsourcing Strategies

One of the major advantages of outsourcing is that a skilled force is utilized to maintain customer experience across platforms. Businesses have begun globally sourcing talent from low-cost regions creating a mutually beneficial situation. While the cost-control is always an attractive feature, however, there is always the risk of an unreliable supply chain as well as consistency and quality. As countries closed their physical borders, the best way for brands to be agile and adapt to the changing environment was to build global teams. Several businesses had to outsource to sustain their image and maintain operations. This strategy is expected to grow in the coming future.

Strategic Partnerships for Businesses

MNCs have adapted to the morphing economy in many ways in an attempt to blend and navigate the direction of the global economy. As the context of outsourcing responsibilities has evolved to introduce strategic planning and data management, there is a greater need for strategic partnerships.

Greater emphasis on Cybersecurity

Covid-19 may have nudged business operations into a direction that they were already headed. With the bulk of your data being stored in data storehouses, cybersecurity has become crucial for brands today. Business and customer information needs to be secured end-to-end to maintain cx. Several companies will outsource cybersecurity to implement multi-layer and multi-factor authentication and ultimately make sure that they protect their digital environment by the best means at their disposal.

Rise of Progressive Web Apps

Progressive Web Apps (PWAs) are still something that needs to catch on however, it has gained considerable popularity among BPOs in recent years. In fact, research estimates that the PWA’s financial value will reach $10.77 billion by 2027. PWAs will help solve the issue of load speeds and help maintain the digital customer experience. Businesses will increasingly implement PWAs due to the efficiency and convenience that it brings to customers.


Despite the current challenges, the BPO and IT outsourcing industry continue to adapt to these changes. As a result, a variety of initiatives are underway to help usher in a new era. In a digital world, it’s always advisable to keep an eye out for the latest trends and make sure that your business keeps enhancing customer experience to the optimal level that it possibly can.

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