What a year we’ve been through! In addition to the routine joys and pains that each of us experienced, the outbreak of the planetary pandemic was what significantly changed our plans and determined our actions in 2020. COVID-19 made us reconsider our approaches. at work, ways of entertainment and even social costumes. By keeping the abandoned people in their quarters, he provoked contemplations on the fragility of contemporary civilization under the assault of such a small enemy.
The scourge was the main factor affecting all major trends in the global economy. One such trend is the fundamental shift in remote employment and outsourcing. Having started gaining momentum not long ago, it has increased dramatically in the virus-plagued world of 2020, becoming vital for the survival of many domains.
Trends in the outsourcing industry are particularly practicable in the IT industry, where this drive has rapidly evolved from a nascent novelty to a regular practice. Consumers and providers of digital products and services benefit enormously from this business approach, which is sure to add substantially to the $ 3.9 trillion dollars spent this year by global IT market stakeholders. What will be the best trends in the field in the next year?
Trend analysis of outsourced software development for 2021
We’d like to offer insights into 10 outsourcing trends that will shape the contours of the IT industry in the year ahead.
1. A change in the role of outsourcers
The importance of outsourcers in software development is gradually increasing. They have long since ceased to function as mere contracted hands (or rather brains) instrumental in the execution of commissioned tasks. Given the complexity of projects and their fundamental importance for the smooth functioning of entire companies, outsourcers will be recognized as decision-makers at the same level as management personnel. They will share strategic planning, risk prevention, system architecture design, and generally act as visionaries responsible for decision making in organizations.
2. A focus on long-term cooperation
The previous trend goes hand in hand with this one. With outsourcers turning into a decision-making body for many companies, their CEOs will increasingly opt for stable cooperation with a single supplier. Finding a reliable and knowledgeable outsourcer is no easy task, so having hired such a godsend, companies will be looking to build a lasting partnership with them. Therefore, establishing trustworthy relationships with software service providers for the benefit of both agents will eventually turn them into an integral part of many businesses.
3. New approaches to bargaining
The change in the role of outsourcers will lead to a review of contractual practices. Built on mutual trust and the deep involvement of suppliers in the decision-making process, relationships between stakeholders will enter a more interpersonal phase. In contractual terms, it means less process regulation and a greater focus on delivery, with the definition of notice periods and project duration. Therefore, the emphasis is shifted to the outcome and the expected level of performance which will become a touchstone of the project’s success. In 2021, customers will gradually gain recognition that priority should be given to the contacted high quality of the final product rather than price.
4. A growing demand for specialization
Today, the pace of scientific progress is so rapid and the scope of digitization is so vast that it is difficult for an in-house IT department (if the company has one) to keep abreast of everything that is happening in the high-tech realm. . Innovations and new applications of existing technologies emerge almost every week, so attempts to touch all the hot buttons are doomed to be defeated, no matter how experienced a group of specialists in modern technologies may be.
Of course, there will always be people who, specializing in a limited sphere, will surpass the Jacks of all trades. The coming year will see a growing demand for high-quality experts in a narrow field who can bring maximum value to the project they are assigned to. However, if an outsourcer has a whole roster of experts who can provide full-cycle product development, they will gain a serious edge over their competitors and be sought out more avidly.
5. Involvement of different outsourcers
The growth in the scope of digitization puts a strain on large companies as they struggle to try to close all breaches and reach as many potential customers as possible. With an eye to several projects to be implemented at short notice, these firms will juggle these assignments among multiple outsourcers. Therefore, 2021 will see an intensification of the cooperation of outsourcers, which in turn will place a strong emphasis on the control and coordination activities of different teams who may be in remote corners of the world and have different work ethic.
6. Rocks adaptability
The coming year has shown that the general environment and consequently business needs can change in a split second. 2021 is likely to maintain this trend, so it will become essential for outsourcers to show maximum flexibility. They must be ready to go up or down if the customer requests it, increase the speed of the development process, instantly introduce changes in established plans, react promptly to the emergence of new technologies and improve the skills of their staff accordingly.
7. Return to Eastern Europe
A couple of years earlier we have seen a contraction in hiring of software outsourcers based in the US and Asia, while the employment of Eastern European vendors has shown a rapidly growing pattern that is 4 to 5 times faster than somewhere else. Customers from North America and Western Europe appreciate the high quality of performance, commitment and affordable prices charged by suppliers from Ukraine, Belarus, Romania, Poland, etc. This trend is likely to continue into the next year, so opting for outsourcers from this talent-rich region will become a more tempting prospect.
8. Head in the clouds
According to Satista, about 80% of organizations globally leveraged cloud-based services (specifically SaaS) last year and this number will grow exponentially in 2021. Not only will companies be looking for private cloud service providers like Azure or AWS. , but will actively employ vendors who offer cloud-based software solutions or help move their existing infrastructure to the cloud.
9. A greater push for safety awareness
Data is the most precious resource of our times. Those who have access to it come to possess enormous power, both political and economic. Realizing this, many cybercriminals attempt to break into the software of companies and governments to make easy money. A United Nations report said a sixfold increase in malicious emails detected during the COVID-19 outbreak, with a cyber attack recorded every 40 seconds worldwide. Of course, organizations seek to enforce software security measures, and more than half of them employ outside parties to provide them with security services. In 2021, more and more companies will try to comply with the General Data Protection Regulation, and outsourcers will lend a hand in this.
10. Discovering the power of the PWA
While other IT outsourcing trends mentioned above have been around for some time, the start of Progressive Web Apps is a relatively recent development. However, their progress in conquering the app market is astounding. Being a website in its nature, a PWA outperforms native apps in flexibility, cross-platform usage, SEO visibility, size, development cost, and network-free performance. The realization of the benefits of PWAs is spreading in the business world, so outsourcers who can offer services to build this type of app will reign supreme in 2021.
The realm of IT outsourcing is undergoing constant transformations as it tries to meet the challenges posed by ever-changing external conditions. Digital service providers who take on these challenges calmly have a distinct advantage over their competitors. IDAP is one such company whose skilled and versatile experts are ready to tackle any software project you have in mind that is sure to bring value to your business.