Industry analysts are predicting significant increases in information technology (IT) and outsourcing spending in 2024, with some predictions being in the double digits. Surges in artificial intelligence (AI) use case development, cloud migration, security investments and platform modernization are leading factors that are fueling the predictions.
A common thread in industry discussions is the belief that AI technologies, including generative AI, will result in a long-term net increase in services-related spending and an improvement in overall customer and employee experience.
Keep in mind the following as 2024 continues:
Outsourcing and Tech Spending will Continue to Increase
- Discussion of AI and AI use cases will take center stage.
- Spend is expected to significantly increase in outsourcing, AI, cybersecurity, and cloud migration.
- This means more projects for the legal and sourcing teams—so prioritization will be key.
Outsourcing Hot Topics
- Cost reduction objectives are important, but service outcomes and compliance remain a central focus in 2024.
- Joined-up contracting across the key areas of charges, scope, and service levels is critical to achieving a successful outsourcing agreement.
Digital Transformation Projected Benefits Are Tremendous
- While AI is exciting, there is a lot to consider, from compliance to intellectual property (IP) rights.
- Contracts should include consequences for unrealized benefits as well as strategies for risk mitigation.
Contracting Approaches in the US and Globally
- There are identifiable contracting approaches in the United States versus other jurisdictions, driven not just by choice of law but also by regulatory differences, approach to data, and operational capabilities and expertise.
If you are interested in Outsourcing and Technology 2024: New Challenges, New Opportunities as part of our Tech & Sourcing: An Industry-Focused Webinar Series, subscribe to Morgan Lewis publications to receive updates on trends, legal developments, and other relevant areas.
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