Trends of IT Outsourcing: Current State and Best Practices


February 11, 2021

In recent years, IT outsourcing has become a huge industry to support many businesses throughout the country. The benefits of IT outsourcing are clear; it helps businesses to control their IT budget, increase the efficiency of their operations, and reduce the risks of cybercrime, and other potential errors.

IT outsourcing is an advantageous, cost-effective choice for many businesses, particularly for small businesses that wish to scale their enterprise over time. Additionally, different types of IT sourcing benefit different types of businesses individually; as a business owner, it is about finding the right program for your enterprise.

In this article, you will find the different types of sourcing, current trends of IT outsourcing, and some predictions for the future of sourcing in different areas of business. 

Types of Sourcing

There are three key types of IT sourcing currently trending, so here’s an overview of what they are, their differences, and their benefits. 


Backsourcing is the process of a company regaining in-house control of services that were previously outsourced. This might be done for many different reasons; it could be that the company preferred keeping their operations in-house, or perhaps the service they were outsourcing is no longer in great need.


Co-sourcing refers to the process of amalgamating in-house, and outsourcing operations. Co-sourcing allows a company to give over partial responsibility of their operations to an external company while remaining in control over the other corresponding half of that department. 


Outsourcing is, of course, the action of giving a part of your business operation over to an external body. This means that this area of your business will be designed and operated by an external company. 

2020 IT Sourcing Trends

The year 2020 has been a tumultuous one across all industries; for most, it’s been a struggle in growth. Despite the craziness of the year, there has been significant progress in the IT sourcing industry.

There has been a shift towards co-sourcing with the unpredictability of the economy, as businesses struggled with the downturn and sought ways to self-sustain. For that reason, co-sourcing has thrived, particularly with full-house IT services to help out with the rise in remote work, apps for food delivery, and the need for a stronger network to connect with others online.

Finally, a significant change in 2020 IT sourcing moved towards outsourcing more to software. This is likely to have been caused both by a tight budget due to coronavirus, and some businesses have survived, but it’s best managed with a team to properly install and monitor the software.

Foreseen Changes in Sourcing

With all that’s happened this past year, what should we expect next in 2021? Despite the shift towards co-sourcing in 2020, studies show that IT outsourcing will thrive in 2021 as companies seek to double down on cybercrime, which has risen exponentially during the coronavirus pandemic. 

In addition, many businesses are projecting ways to expand their enterprise after the height of the coronavirus-induced risk has receded. This could be in 2021 or even 2022, but certainly, sometime in the near future, outsourcing will play an integral role in providing the platform necessary for solid growth.


The year 2020 has been a turbulent year for businesses, including within the sourcing industries. But with the adjustment to more remote work, there has been a surge in partnering with managed service providers to better regulate the IT infrastructure, and to provide businesses with greater security.

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