The Future of IT Outsourcing: Strategic Solutions for CIOs in a Changing Digital World
My name is Christina Markova and I’ve been an Account Manager at Proxiad SEE since 2017. In my role as a customer-facing professional, I’ve seen firsthand how IT outsourcing has shifted from a cost-cutting exercise to a strategic growth lever. Working with clients in procurement, spend management and IT services, I’ve watched companies move away from outdated models and embrace smarter, more resilient approaches—like nearshoring, friendshoring, and rightshoring – which is what we’ll be looking at today. Join me in exploring what this evolution looks like in practice, and why it’s reshaping the future of IT delivery.
Is IT Outsourcing Dying?
Outsourcing emerged as a business strategy in the late 20th century to help companies reduce costs, streamline operations, and focus on their core competencies. By delegating non-essential tasks – especially IT and back-office functions – to external providers, businesses could access specialized talent, scale faster, and remain competitive in an increasingly globalized economy. At the time, the most common outsourcing model was offshoring – moving (part of) your operations to a far-away country – thus, the term has become synonymous with outsourcing as a whole.
Offshoring started to lose its shine when businesses realized that the traditional model that focused mainly on cost-cutting often came at the expense of quality, control, and agility. Offshore teams in vastly different time zones and cultures sometimes created communication gaps, security risks, and slower delivery cycles. As digital transformation became a priority, companies needed more than cheap labor – they needed strategic, collaborative partners; or, in some cases, none at all.
A Look into the Current State of Outsourcing
According to the 2024 Global Outsourcing Survey by Deloitte, outcome‑based outsourcing now dominates talent strategies. 67% of organizations are now prioritizing business outcomes over cost savings in vendor relationships. That’s a marked shift from 2020 when cost reduction was the primary driver—going from 70% to just 34% in four years” (source: Global outsourcing survey 2024 | Deloitte Global).
That shift raises a bigger question: what does modern outsourcing actually look like in practice? Whether you’re building fintech platforms, connected healthcare systems, or global logistics tools, let’s unpack how outsourcing has transformed into a growth enabler, not just a cost lever.
The Key Trends Redefining IT Outsourcing
1. Nearshoring – leveraging the similarities between client and provider
Nearshoring is the outsourcing of services or IT development to nearby countries with similar time zones and cultural alignment to improve communication, collaboration, and delivery speed. Due to that, it is especially valuable for collaboration-heavy work like front-end development, data pipelines, and machine learning projects (source: Software Engineering Nearshoring | Deloitte US).
However, nearshoring isn’t without its challenges. It generally involves higher labor costs compared to traditional offshoring, and some regions face growing competition for skilled talent, which can impact availability and retention. While cultural alignment is typically stronger, differences in work styles and communication can still require some adjustment. Despite these considerations, nearshoring remains the most balanced and strategic option for many companies – especially in the EMEA region.
From Frustration to Transformation: A Real-World Scenario from Our Experience
One of the largest digital banks in France faced a major challenge: keeping its core systems reliable while driving innovation. At the time, the company had 360,000 clients and a vision to lead the future of banking. In order to do that, they needed a stable partner to maintain their legacy systems and introduce new digital services.
That’s when Proxiad SEE stepped in with a nearshore delivery model, providing full-time development and support teams with deep domain expertise in banking technology. From maintaining existing software products to implementing new payment features and mobile functionalities, the team ensured continuous delivery and innovation.
By 2024, the bank had grown to serve over 7 million clients, while the Proxiad team supporting them expanded to 45+ experts – including full-stack developers, quality assurance specialists, technical project managers, and business analysts. This nearshore setup allowed the bank to retain full control and compliance while gaining the scalability and agility needed to thrive in a rapidly evolving financial landscape.
Learn why nearshoring and a fixed price model worked best for France’s most popular online bank.
2. Friendshoring – stability and risk mitigation first and foremost
Friendshoring is the practice of outsourcing IT services to countries that are politically and economically aligned with your own—typically within the same trade bloc or alliance—offering increased stability, trust, and risk mitigation in an unpredictable global landscape.
While the term gained traction in manufacturing and supply chain contexts, its relevance to IT services is growing rapidly. From a tech perspective, friendshoring allows companies to build long-term partnerships with vendors in regions that share not only political values but also data protection laws, cybersecurity standards, and regulatory frameworks—all crucial in heavily regulated sectors like finance or healthcare.
For example, EMEA-based companies increasingly prefer to work with nearshore/friendshore IT teams within the EU or associated countries (e.g., Bulgaria, Romania, Poland) due to shared alignment on GDPR, IP protection, and digital infrastructure investment. In contrast, outsourcing to vendors in politically unstable or less regulated regions often comes with increased risk of data exposure or compliance violations.
Though friendshoring can limit the geographic range of available talent, the trade-off often results in greater operational continuity, simplified governance, and stronger trust—particularly important for projects involving sensitive customer data, for example, personal details regarding health or finances.
3. Rightshoring – The Right Team in the Right Place
Rightshoring is another evolution of outsourcing strategies. Specifically, one that’s built around fit, not just geography. It means placing specific functions where they deliver the most value, whether that’s onshore for regulatory oversight, nearshore for collaborative agility, or offshore for high-volume support. For example, a company might keep cybersecurity oversight in-house, collaborate with a nearshore team on frontend and backend development, and offshore low-risk maintenance work.
At Proxiad SEE, we help clients enrich their rightshoring efforts by offering dedicated nearshore teams that strike the perfect balance between technical depth, delivery speed, and cultural alignment. Learn more about how we can build your dedicated team to fill any shortages you may be encountering.
Which Model Is Right for You?
The following table takes a look at the biggest benefits of nearshoring, friendshoring, and rightshoring compared to the more traditional offshoring/outsourcing model.
Addressing Common Concerns
Skepticism about outsourcing is valid—concerns about data security, communication lags, and cultural mismatches have plagued the industry. But modern partners tackle this head-on with compliance (e.g., ISO 27001, GDPR), integrated delivery teams, and knowledge-sharing frameworks that keep institutional expertise in play.
Should You Build or Partner?
If you need speed to market, access to niche skills, or flexibility, a partnership model may serve you better. Retain critical functions in-house, but leverage outsourcing for scalability, rapid delivery, and lower operational risk. Outsourcing isn’t a threat to your team—it’s a strategic extension of it.
Our Regional Advantage
At Proxiad SEE, we support clients in finance, healthcare, procurement, transport and logistics across Western Europe and North America. With offices in Bulgaria and North Macedonia—and certification to handle sensitive data—we provide proximity, talent, and trust. Our teams act as an extension of your own, offering flexibility and strategic alignment without the risk of traditional outsourcing.
Let’s Talk About Your Sourcing Strategy
Looking to build a trusted, scalable IT team that aligns with your growth goals? Contact us to explore modern outsourcing strategies tailored to your digital journey. Whether you’re new to outsourcing or ready to scale further, we’re here to help.
