How to Outsource IT Services Wisely in 2022: Pros, Models, Examples, and Pricing

What IT Services You Can Outsource?

Top Regions to Outsource IT Services
  • Asia — cheap workforce at a relatively high level of provided services
  • Eastern Europe — affordable services, high quality of provided services, strong technical experts
  • Latin America & Mexico — low development cost, no extreme time differences
  • USA — the center of the development world, no time difference but high prices

What the IT Outsourcing Industry Looks Like in 2022

  • Global outsourcing market revenue was estimated at $92.5 billion in 2019. In 2021, the market is projected to have grown to $359.8 billion in revenue. By 2026, the market will grow to $425.19 billion at a CAGR of 4.5%, (Statista, 2022).
  • From 2020 to 2024, the market of IT outsourcing is projected to grow by $97.51 billion at a CAGR of 4.58%, (Technavio, Jan 2020).
  • In 2021, small businesses planned to outsource some tasks to improve efficiency and access required resources, (Clutch, 2021)
  • In 2020, 70% of businesses turned to a company providing IT outsourcing for cost reduction, (Deloitte)
Outlook for Business Outsourcing Solutions

List of IT Services to Outsource: Examples

  • Software development
  • Web and mobile app development
  • Software support
  • Quality assurance
  • UX/UI design

IT Outsourcing Models

  • Staff Augmentation
  • Dedicated Team
  • Project-based Team
  • Offshore Dedicated Center (ODC)
Local vs Nearshore vs Offshore Outsourcing
  • Local outsourcing
  • Nearshore outsourcing
  • Offshore outsourcing

Outsourcing IT Services: Pros and Cons

  1. Reduced Expenses
  2. Access to Global Talent Pool
  3. All-Encompassing Expertise
  4. Reliable Technicians & Qualified Service

Disadvantages of Outsourcing IT

  • Security issues
  • Potential downtime
  • Missed objectives
  • Limited scalability

Industries that Can Benefit the Most from IT Outsourcing

1. On-demand Economy Domain

2. E-commerce & Retail

3. Banking & Finance

4. Healthcare & Medical Industry

5. Automotive & Transportation

Outsourced IT Service Costs: Main Drivers

  • Service Specifics
  • Engineers’ Professionalism
  • Vendor Rates
  • Region
  • Cooperation Model
Differences Between Key IT Outsourcing Pricing Models

When to Outsource IT Services to MLSDev

  • If you lack in-house IT
  • If you want to save costs and find real experts
  • If you want to augment your in-house team
  • If you want the utilization of the best, the newest, or the most mature technologies

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