“The IT service market revenue is projected to grow at a CAGR of 6.86% to reach $1507 bn by 2027”. ~ Statista
This exponential growth of the IT industry is attributed to digital transformations, growing demand for IT infrastructure to support remote workers, and greater dependency on tech products and services, and other significant trends.
However, they are not just centered around tools or technologies. Instead,
These trends are far-reaching and encompass work culture, skill requirements, project management approaches, and more.
Hence, it is imperative for IT firms to adopt these trends to stay competitive and sustainable in the hyper-competitive business environment.
This blog elaborates on all the latest trends that have the potential to shape the future of the IT industry business landscape.
But before that, let’s first dive deep into the history and understand what this industry looked like until a decade ago.
1. A brief glance at the IT business landscape before the 2020s
The IT industry has undergone significant evolution since its inception in the mid-20th century. Key developments include the creation of the first electronic computers, the advent of the internet, the rise of personal computing, mobile devices, and the emergence of cloud computing that minimized the need for high on-site storage costs.
Today, the industry continues to transform rapidly, with emerging technologies such as AI, blockchain, quantum computing, and 5G technology poised to shape the future of computing and communication.
The onsite and offshore model in the IT industry gained prominence in the beginning of 1990. As a result of globalization, the organizations wanted to cut down their software development cost significantly to stay competitive. Over time, the companies have started using a mix of onshore and offshore resources to balance cost, quality, and delivery time. Moreover, as more IT firms are aligned to make their products environmentally sustainable, investment in green technology is also gaining momentum.
Furthermore, project management methodologies in the IT sector is another vital aspect that evolved to meet the changing needs of the industry. Initially, IT projects were managed using the traditional Waterfall model, which focused on detailed planning and sequential execution.
However, as IT projects became more complex and dynamic, Agile methodologies (Scrum, Kanban & Lean) emerged in the early 2000s to make project management more efficient. More recently, many companies are adopting a hybrid approach that combines multiple methodologies in a single project to improve their operations and customer experiences.
The tech industry is also marked by fierce competition among companies, particularly among the dominant players in the software, hardware, and internet services sectors. Therefore, it has become essential for firms to remodel their businesses and align with the changing times.
So, the following are the latest trends that every IT organization must integrate.
2. IT industry trends to look for in 2023 and beyond
Bill Gates rightly observes, “Investing in tomorrow’s technology today is more critical than ever.”
The growth of an IT firm can’t be imagined without investing in the future. So, one can adopt the following prominent trends to keep up with the changing market scenario.
A. Emergence of advanced tools and technologies
Information Technology was conventionally limited to basic hardware/software installation, resolving computer issues, and fixing bugs. However, several emerging advanced tools and technologies, like AI, ML, IoT, etc., are redefining the IT industry. For instance, robotic process automation helps build, deploy, and manage software robots that automate manual actions and human-like interactions. One application of RPA in the IT industry is automation testing, which replaces time-consuming and laborious manual testing.
Another use is AI for IT operations (or AIOps). AIOps uses Machine Learning and Big Data to automate data processing and decision-making with the help of both historical and online data. This increased adoption of the latest tech trends has also helped businesses lower operational costs, improve the customer experience, and increase revenues. It has further helped the IT industry scale up and change for better efficiency and productivity.
B. Prominence of integrated project management
The complexity of IT projects has increased over time, making it necessary to improve their management. One of the best trends in this direction that has emerged popular of late is Integrated Project Management (IPM). It is the combination of traditional and agile methodologies for a project. So, project managers are leveraging this hybrid approach for better performance and profitability.
For example, let’s consider an IT project of creating software and its infrastructure. Here, the manager can use the traditional Waterfall approach for high-level deadlines, milestones, or standard phases, like procurement, vendor management, and installation. They can then use the Agile cycle to execute the actual software development using sprints, that are time-boxed periods for completing a set amount of work. Hence, IPM is a vital approach that aims to deliver projects on time, within budget, and to the required quality standards.
C. Preference for remote/hybrid work model
Most IT firms formerly favored an in-office work culture due to several reasons. First, there were no robust cybersecurity measures to protect the data against breaches, spyware, or malware attacks, when moved outside the premises. Second, companies believed that remote/hybrid work would cause a loss in productivity and efficiency. However, the onset of the pandemic forced most businesses to adopt a remote/hybrid work model, but it didn’t hamper productivity, as speculated earlier.
Moreover, this model is welcomed by IT employees, especially millennials and the GenZ, as it provides a better work-life balance, and increases their engagement at work. It also helps firms save infrastructure, maintenance, and utility costs. Further, organizations now realize they can move the data outside the organization with improved cybersecurity measures. Therefore, it is clear that the trend towards more flexible work arrangements is here to stay.
D. Increased focus on data analytics for informed decisions
Clive Humbey, a British mathematician and a data science entrepreneur, rightly says, “Data is the new oil. It’s valuable, but if unrefined, it cannot really be used”.
The IT industry works on large amounts of historical and real-time information.
To analyze and convert the data into valuable insights, companies are using several prominent approaches, including business intelligence, n-memory analytics, data/text mining, etc.
Through these analytics, businesses can now collect and analyze customer behavior, predict market trends, and make informed decisions to minimize costs, optimize processes, and enhance organizational efficiency. Thus, it is clear that the importance of data analytics will continue to grow in the years to come.
E. Growing emphasis on Diversity, Equity, and Inclusion (D, E, &I)
McKinsey reveals that 33% of firms with ethnical and racial diversity are likely to outperform their peers on profitability.
IT firms were formerly confined within domestic limits and preferred hiring people from their location. However, as businesses expanded globally, companies hired talent beyond domestic boundaries to lower project costs and enhance profitability. Thus, to make everyone feel welcomed and valued irrespective of their nationality, gender, ethnicity, creed, etc., companies are now focusing on creating an indiscriminative work culture.
For instance, global tech giants like Google, IBM, etc., publish annual diversity reports to foster transparency and trust among employees and stakeholders. Besides, employers are open to hiring competent differently-abled people for remote job positions to foster an all-inclusive, collaborative, and high-performing culture. Furthermore, IT companies are taking steps to ensure parity of incomes between males and females for similar positions. All these measures help foster inclusion, reduce stress, increase engagement, promote collaboration, and enhance efficiency and productivity.
F. Adoption of robust cybersecurity measures
As most IT businesses are shifting online, their vulnerability to security threats, like phishing, zero-day attack, ransomware, etc., has increased. However, IT firms are now implementing a multi-layered approach that combines technologies, processes, and policies. It includes firewalls, antivirus software, data encryption, etc., to safeguard businesses against cybercrimes and prevent financial losses. This is why the worldwide cybersecurity market has seen a massive surge in its revenue.
“The global cybersecurity market is expected to hit $352.25 billion by 2026”.
One of the most prevalent cybersecurity technologies today is edge computing. Besides enabling processing at higher speeds and volumes, it also protects data that transports out of centralized systems through several devices. It aims to protect users and sensitive data at the “edge” of a company’s network. Another innovation in this direction is biometric sensors. They allow access to sensitive information only after collecting and verifying biological signals from a human. This way, they minimize the chances of unauthorized access to sensitive data and keep it safe.
G. Rise in the significance of soft skills
Earlier, firms prioritized technical skills while hiring engineers and IT consultants. However, firms now have also realized the importance of soft skills like leadership, collaboration, integrity, delegation, negotiation, etc., in the modern workforce. So, companies have now revamped their hiring strategy to evaluate the candidates’ soft skills through behavioral assessment tests or interview questions.
One of the most sought-after soft skills these days is emotional intelligence.
Emotional intelligence is the ability to perceive, evaluate, and leverage emotions to communicate, collaborate and build relationships more effectively.
Besides hiring people with soft skills from outside the organization, IT firms are sponsoring training and certification programs to train their workforce for the same. Further, as AI and automation will significantly impact the IT industry, soft skills are seen as a key differentiator for human workforce.
Now that you have understood the prominent trends, let’s understand how advanced resource management software can help incorporate them.
3. How can a resource management tool help adopt IT trends effectively in a firm?
Every IT organization depends on three pillars- “People, processes, and technologies” for success. At the same time, it is crucial to adopt the trends that can transform all these three aspects. A resource management tool is the key to embracing the latest IT trends in the following ways.
Here’s how –
- The enterprise-wide resource visibility helps the firm stay abreast of the existing workforce’s skills and competencies. It also helps update a consultant’s profile easily when they learn a new skill or acquire a relevant certificate. This real-time competency tracking helps cater to evolving demands and implement the latest trends. For instance, if a company got a project to work on a new technology trend like cloud computing, the ERM tool can help identify and allocate the required personnel, hardware, and software to this project.
- Next, the project vacancy report helps assess the pipeline projects’ requirements and identify whether they are one-time or recurring. It also enables the identification of trending skills in the marketplace. Accordingly, the manager can hire either a permanent or contingent workforce or create the right mix of both to complete projects successfully while ensuring high profit margins.
- The capacity-vs-demand report helps evaluate the skill gaps to be filled. Further, using the training scheduling solution, managers can frame an efficient training/upskilling program to help IT professionals acquire highly demanded skills. It can also sponsor certification programs and courses for employees and encourage them to attend IT seminars and conferences to be aware of the latest trends and technologies.
- Business Intelligence Reports, including resource utilization, availability, and forecast-vs-actual time/financial, help track respective critical performance metrics and keep them at optimal levels. These insights also facilitate the in-depth analysis of the available data to make informed decisions.
Thus, by using a robust resource management tool, a firm can ensure that it has the resources to integrate the latest IT trends effectively.
Marc Benioff, the Salesforce co-founder, rightly says, “The only constant in the technology industry is change.”
Therefore, every IT company must be well-prepared to stay on top of the latest trends and keep their business sustainable and profitable. By adopting the above-listed trends with the help of a resource management solution, you can unleash the maximum potential of your IT workforce.
So, what’s your approach to implementing the latest trends in your firm?
5. The SAVIOM Solution
SAVIOM is the market leader in offering the most powerful and configurable solution for managing your enterprise resources effectively and efficiently. With over 20 years of experience, this Australian-based MNC has created its global presence across 50 countries and helped more than 100 customers achieve their business goals. SAVIOM also has highly customizable products for project portfolio management, professional service automation, and workforce planning software based on business requirements.