As businesses continue to adapt to rapid technological changes, the demand for outsourcing has seen significant growth across multiple sectors, with the global outsourcing market projected to reach an impressive £631.2 billion in 2024.
IT outsourcing has now become a key strategy for businesses to utilise cutting-edge technology and expertise without the substantial overheads associated with an in-house team. Let’s take a closer look at the IT outsourcing trends in 2024 and the factors shaping this evolving industry.
Outsourcing for UK Businesses
A recent survey reveals that 63% of UK organizations intend to either increase or maintain their outsourcing efforts in the coming year. This growing dependence on external providers for key services like IT support, software development, and cybersecurity highlights the need for businesses to strike a balance between reducing costs and driving innovation in a rapidly changing economy. Outsourcing has become a vital strategy, particularly in areas where in-house resources are limited.
The Evolving IT Outsourcing Model
IT outsourcing has transformed beyond its original role as a cost-cutting measure. With the rise of cloud migration and cloud-based services, the motivations for outsourcing have shifted. Businesses now focus on leveraging outsourcing to fuel growth, enhance customer satisfaction, and disrupt the competition—making it an essential component of their overall business strategy.
The Key IT Outsourcing Trends in 2024
1. Increasing Market Demand
The IT outsourcing market is experiencing robust growth in 2024, with an annual growth rate projected at 9.53%, set to reach an impressive £32 billion by 2029. This surge is largely driven by increasing investments in digital infrastructure, cloud services, and artificial intelligence. Industries like the public sector and financial services are leading the way, with 83% of public organizations and 62% of financial institutions cite access to talent as their main reason for outsourcing.
2.Emphasis on Advanced Technologies
Advanced technologies like AI and cloud computing are dramatically reshaping business operations, fueling a growing demand for IT outsourcing. As companies adopt AI-driven solutions, particularly in the areas of generative AI and machine learning, they increasingly seek external expertise to manage these complex implementations.
3. Blockchain Solutions on the Rise
Blockchain technology is gaining traction, particularly in industries where security and transparency are critical. Businesses are increasingly outsourcing blockchain development to manage solutions that improve operational security and regulatory compliance. In the UK, the growing focus on blockchain technologies aligns with the government’s push for more stringent cryptoasset regulations.
4. Cybersecurity Outsourcing Takes Center Stage
Cybersecurity has become a top priority for businesses – annual global cybercrime costs are projected to reach a staggering £8.61 trillion over 2025. Cyber threats grow more complex and frequent, and as a result, more companies are turning to outsourcing to tackle these growing security challenges.
Specialist IT security providers offer 24/7 monitoring, incident response, and advanced expertise – all capabilities that many in-house teams find difficult to maintain. At Northstar, we offer a comprehensive managed security service, ensuring your business is protected from evolving cyber threats.
Keep Your IT Future-Ready
The IT outsourcing industry in 2024 is not only growing but also evolving to meet the challenges of an increasingly digital and decentralised world. By partnering with the right providers, companies can navigate the complex technological landscape with greater confidence and efficiency.
Contact us today to discover how our expert IT solutions can support your business. Whether you need comprehensive outsourced services or strategic support for your internal team, Northstar are here to ensure your IT is always ready for the future.
