The IT outsourcing landscape is rapidly evolving, driven by technological advancements, the need for agility, and growing security concerns. This article dives deep into the most critical IT outsourcing trends and how they will shape the industry by 2025. From automation to cloud services, businesses must adapt their outsourcing strategies to meet emerging demands. Below, we cover IT infrastructure outsourcing trends, software development outsourcing trends, and the role of Gartner’s insights in guiding these changes. 

AI and Automation Transforming IT Outsourcing

Automation and AI-powered solutions are at the forefront of outsourcing. Tools such as Robotic Process Automation (RPA) automate repetitive tasks, improving efficiency and reducing human error. AI is also transforming software development outsourcing trends, with tools for automated testing, code generation, and predictive analytics enhancing delivery timelines. 

• Stat: By 2025, 90% of large enterprises will employ some form of RPA, according to Gartner 

• Real Impact: Automation reduces costs by 25–30% in managed IT services, enabling companies to scale faster. 

Sustainability in IT Outsourcing

Sustainability is becoming a core value in IT outsourcing strategies. Companies increasingly partner with providers that adopt green practices, such as energy-efficient data centers and carbon-neutral operations. Outsourcing providers are incorporating circular economy models, recycling old IT equipment to reduce environmental impact. 

• Example: Google’s data centers now operate with 100% renewable energy. 

• Trend Insight: Governments are promoting green IT policies, driving outsourcing providers to adhere to environmental standards like ISO 14001 certification  

For more on sustainability in IT, visit Singapore's Green Plan 2030. 

3. Regionalization vs. Offshore Strategies 

While offshoring remains cost-effective, regionalization offers better risk management and shorter turnaround times. Businesses are strategically distributing their IT services between regional hubs and offshore centers to ensure operational continuity. This hybrid approach aligns with global IT outsourcing trends focused on resilience. 

• Trend Insight: The COVID-19 pandemic exposed the risks of relying solely on distant outsourcing hubs. 

• Example: Nearshore centers in Southeast Asia and Eastern Europe are emerging as key outsourcing regions for Western firms. 

Gartner predicts that by 2025, 60% of outsourcing will involve both regional and offshore models  

Cybersecurity Becomes a Top Priority 

As data breaches become more frequent, cybersecurity-focused outsourcing is gaining momentum. Providers are offering zero-trust models, multi-factor authentication, and cybersecurity-as-a-service (CaaS). With IT outsourcing trends Gartner tracking this shift, businesses are adopting advanced cybersecurity outsourcing to protect sensitive information. 

Cybercrime damages are projected to reach $10.5 trillion annually by 2025, making cybersecurity a top outsourcing priority  

Example: Companies increasingly require providers to comply with ISO 27001 and GDPR regulations. 

Stay informed with ENISA's cybersecurity reports. 

Cloud Services: The Backbone of IT Outsourcing

Cloud-based services continue to dominate the outsourcing landscape, offering businesses scalability, cost savings, and flexibility. Providers offer cloud migration, Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service (PaaS) solutions, driving the adoption of cloud-first strategies. 

The cloud services market will exceed $1 trillion by 2030, according to Statista  

Cloud outsourcing allows companies to integrate hybrid cloud models for better data management and business continuity. 

Discover more cloud trends at Statista. 

6. Emerging Technologies and Future Trends (2025) 

Looking ahead, emerging technologies like blockchain, IoT, and quantum computing will shape the future of outsourcing. Providers are investing in these technologies to offer cutting-edge services and cater to new business needs. Software development outsourcing trends are also evolving, with a shift towards low-code and no-code platforms to speed up innovation. 

Quantum computing will enable faster data processing, revolutionizing outsourcing in finance and healthcare. 

IBM and Google are working on quantum solutions to provide advanced computing capabilities to their outsourcing clients. 

Explore future tech at IBM Research. 

Kaopiz’s Expertise in ITO trends

Kaopiz aligns with key IT outsourcing trends by integrating automation and AI to streamline workflows and enhance software development through RPA and machine learning.

It offers cloud migration and infrastructure management, exemplified by projects like its Warehouse Management System (WMS) move to AWS, optimizing performance and costs.

Kaopiz ensures security through ISO 27001 compliance and secure coding practices while embracing regionalization with agile services across Vietnam and Japan.

In support of sustainability, it promotes energy-efficient cloud solutions. Additionally, Kaopiz explores emerging technologies like IoT and low-code platforms, positioning itself as a reliable partner in navigating the evolving global IT outsourcing landscape through 2025.

Conclusion

The IT outsourcing industry trends are shaped by automation, sustainability, security, and cloud services. As companies prepare for IT outsourcing trends 2025, they must adopt strategies that combine offshore and regional models, prioritize cybersecurity, and embrace emerging technologies. The future of outsourcing lies in balancing innovation with resilience, ensuring that businesses remain competitive in an evolving digital landscape.