IT outsourcing keeps on growing to bring key changes to companies all over the world. Following all the latest trends, a lot of businesses have already embraced the inevitability of digital transformation. Ventures of all kinds are keeping an eye on software development outsourcing trends. According to Gartner, IT spending is only expected to increase in 2021.
IT outsourcing is shaping the world market and revolutionizing the way companies use software development. We’ve singled out the most promising trends in IT outsourcing in 2021. What has changed with the industry in 2020? Has it become more disruptive? Let’s take a closer look at what a new decade holds in store.
Why do businesses outsource more development tasks?
Clutch surveyed more than 500 small business owners in the US to learn why they outsource. Here’s what they found:
— Companies delegate operations that involve accounting, IT-related services, and development tasks.
— The key reasons why companies choose to outsource tasks is to achieve better efficiency, increase expertise, and raise flexibility.
— Companies that employ more than 50 specialists are more willing to outsource.
Top IT outsourcing trends
Value over price
Some time ago, companies were outsourcing software engineering mainly because of lower costs. Now more and more companies are looking for better efficiency and high-qualified professionals. In 2021, collaboration will not focus on the lowest prices any more. Value is what will be appreciated.
More popular outsourcing destinations
Eastern Europe has become one of the most popular outsourcing destinations. Software development specialists in Poland, Belarus, Ukraine, and Romania demonstrate a rapidly increasing and highly competitive source of IT talents. One of the main reasons why it’s happening is that these countries offer favorable conditions for the IT industry. Most of them are also strongly supported by the government.
Earlier 70% of the demand for IT outsourcing services came from the USA and Western Europe. Today India, China, South Africa, and Eastern Europe are the top regions that fulfill the demand.
Finding a reliable partner and building trustful relationships with remote teams is not easy. Earlier before there was a tendency to outsource IT services within one project to multiple vendors. Now companies focus on single-vendor outsourcing. It means that organizations will mitigate risks associated with managing multiple vendors. Companies also aim to avoid the risks of working with multiple vendors. In 2021, they will concentrate on building partner relationships with the vendor.
Both customers and vendors agree that it is much easier to measure relationship success through outcomes. That’s why we can expect contracts to be outcome-based. Contracts will be even more focused on the quality of results rather than output levels.
IT outsourcing will become more collaborative which will result in greater benefits for both sides.
A growing number of outsourced IoT, AI, and blockchain projects
Today businesses invest tons of money in IoT, AI, and blockchain initiatives. Analysts anticipate that the global AI market will increase to $190.61 billion by 2025 while blockchain spending will reach $12.4 billion in 2022.
As the demand for AI, IoT, and blockchain solutions is rapidly growing, customers want to hire outsourcing companies to access IT talents.
For example, blockchain is widely used to enable a high data security level. It also helps remove any mediators from transactions and provide trust between autonomous parties.
If the client doesn’t have enough in-house engineering talents, it becomes a clear reason to outsource. It is reasonable to hire a company that is able to provide a dedicated development team tailored to your project.
More industries will be digitized
IT outsource trends usually come along with trending technologies. Fintech, healthcare, telecom, etc. are anticipated to be in high demand for outsourcing services. Artificial Intelligence, AR, VR, Blockchain will become the new normal in these industries. Healthcare will be interested in outsourcing services in virtual reality to offer a higher quality of care and efficiency to patients.
Business automation is the number one priority in our modern digital environment. Logistics management, payment processing, and customer experience can benefit from implementing robotic process automation. Robotic automation has a lot of advantages — reducing operation costs, improved work coordination, less manual mistakes. That is why IT outsource companies invest in business automation, robotics, and analytics.
Progressive web apps
With an increased demand for better customer experience, there’s an increasing need for progressive web apps. PWAs are designed to create an app-like experience at websites. PWA can be the future of content consuming on mobile devices. It offers speed, reliability, and better user engagement. Here are the advantages PWAs have:
— offline usage. Once the connection is lost, the service caches the page with formerly stored data which allows users to keep browsing. PWA brings reliability to the users making them feel more secure.
— native look. PWAs provide an entirely native, app-like experience.
— push notifications. Since PWAs are identical to native apps, you can use push notifications to remind users to come back to the site.
— development. The development of progressive web apps is much easier in comparison with the native app. PWA developers need to monitor only one codebase — no worries about testing and fixing bugs.
With an increasing demand for building more and more digital products, IT outsourcing companies gain popularity quickly. A lot of companies look for trusted software development partners that offer highly specialized skills and best expertise.
Along with the adoption of new technologies, IT outsourcing companies need to take a customer-centric approach. Building trustful relationships with the customers and encouraging them to participate in building the solutions is crucial.