Given the challenges of the talent environment today, however, customers will want to ensure their third-party providers are on top of their games. When the pandemic hit, many companies were forced to allow their workforce to work from home. A study by ConnectSolutions revealed that 77% reported increased productivity when working offsite, while 30% reported that they finished more work in less time.

Technological innovation and advancement will further optimize the performance of the product, enabling it to acquire a wider range of applications in the downstream market. There’s no denying that information technology advances are developing with upsoar rate, resulting in the ever-growing number of service end-users. To this point, businesses who want to be ahead of the curve have to take advantage of being the pioneer, meaning they have to be the fastest and the most productive. Instead of the traditional way of expanding the team with experts in the field , many of the business owners decide to go for a cost-effective approach, AI and automation. The world has witnessed the unprecedented growth in the information technology market, which can be seen in almost every aspect of our daily lives. All this data signifies that the world is gradually turning mobile which will result in businesses significantly reducing desktop software development and investing in the development of mobile apps.

About 40% of businesses are planning to adopt virtual assistants in 2021. Also, businesses with an online presence will heavily invest in building top-notch online shopping platforms. Israel, one of the top three tech startup nations of the world, is experiencing a 15% software developer shortage. Sweden alone will be short of 70,000 developers or digital-related specialists by 2022.

And outsource employees worldwide, payroll requires adjustments to keep up with different countries’ rules and regulations. Companies will then begin to utilize cloud-based payroll services to make the process more efficient. Even further in the future, digital outsourcing will include blockchain technology for information storage and the ability to perform transactions for multiple customers.

Nearshore Development Vs Onshore, Offshore

IT outsourcing has an impressive list of advantages and disadvantages that create a balance. Improvements in the interaction between executing companies in the outsourcing market allow this area to become increasingly popular and even develop trends. What direction is IT outsourcing moving in, and what should we expect in the future? With outsourcing, businesses will reach max efficiency in minimum time.

It is worth mentioning that Ukraine is one of the European countries’ primary IT service suppliers. Despite the forecast of various companies, the IT market in Ukraine has not ceased; it hasn’t practically changed. To minimize IT outsourcing trends the risks of getting a low-quality product, we advise thoroughly studying the intermediate stages of development. This approach lets your employees detect and fix the issues before they vanish in hundreds of code lines.

With that said, 75% of the companies reported using robotic process automation to support the remote workforce. The overlooked potential of outsourcing in Eastern Europe is no longer under the radar. This region is becoming an increasingly appealing location for outsourcing services and for a good reason. IT outsourcing in Ukraine, for instance, presents a formidable competition to established tech spots. High-quality specialists and diverse expertise as well as competitive prices and business paradigms of responsibility led many to find the labor in Eastern European countries. When partnering with Groove Technology, we will provide the right talent for your project to expand your team capacity in the long run.

Technical Services

Outsourcing companies should acknowledge this trend and start focusing on becoming morecustomer-centric. This will help to stay competitive, win bigger deals, and acquire strong partners. At last, all parts of the Telecom Outsourcing Market are quantitatively also subjectively valued to think about the Global just as regional market equally. This market study presents basic data and true figures about the market giving a deep analysis of this market based on market trends, market drivers, constraints and its future prospects. The report supplies the worldwide monetary challenge with the help of Porter’s Five Forces Analysis and SWOT Analysis. For example, as the Covid-19 pandemic took its toll on the world, some 5G-based applications have already made their way into medtech, especially in the adoption of telehealth and remote monitoring.

The goal is to collect the best collaborators for the overall product’s success. This latest report researches the industry structure, revenue and gross margin. Major players’ headquarters, market https://globalcloudteam.com/ shares, industry ranking and profiles are presented. The primary and secondary research is done in order to access up-to-date government regulations, market information and industry data.

From being a cost reduction tool to a key strategic player, digital transformations and organizations opting for AI, RPA, Cloud, and IoT have opened up the role of IT outsourcing. Security risks have increased with the software giants moving to the software-as-a-service model. Outsourcing security IT provides the benefit of 24/7 monitoring, with professional technicians who work to prevent and patch security breaches. It may cost a fortune for businesses to hire cybersecurity experts and solutions.

It Outsourcing Trends: To Surge In 2021

Indeed, the number of connected IoT devices has increased by 9% to 12.3 billion globally. With innovations in technology and the lack of skilled developers, the workforce demands continue to increase. It might be too challenging for your in-house development team to keep up with the project demands.

Regardless of the project, you will always find a specialist who knows a specific language or plugin. The rich availability of outsourcing technologies helps reach the maximum results without additional expenses. In contrast to your in-house team dedicated to a particular current task, outsourced talent is ready to do the work for you and move further. You are not obliged to hire professionals for the long term if you only need them for a single project.

Major It Outsourcing Trends For 2022

Alongside its emerging deployment in major aspects such as medtech or Internet of Things, 5G also plays an important role in the development of AI implementation. In June 2020, Amadeus completed its strategic agreement with Vinci Airport to provide a platform for automation to modernize Belgrade Airport. In November 2020, DXC Technology and Tradeshift completed an agreement to transform account payable and procurement processes.

• It is worth mentioning that Ukraine is one of the European countries’ primary IT service suppliers.
• The global IT outsourcing market size was valued at USD 528 billion in 2021 and is anticipated to generate USD 781 billion by 2030.
• Your in-house talent may not be suitable for taking on roles like leveraging AI to analyze complex datasets, but an independent contractor or outsourcing team may be.
• However, to reap the maximum benefits of these IT outsourcing trends, you need a trusted, expert, and experienced outsourcing IT partner.
• Outsourcing companies will need to train developers who know how to develop PWAs and keep them up-to-date.

Offshoring will continue to play an important role in IT service delivery but is no longer considered the answer to everything. “Expect greater localization of talent as agile delivery takes center stage,” says Gupta. IT leaders should also understand that their providers will have to do more to retain top talent. Over the past two years, digital transformation strategies have accelerated as fundamental to business survival. Companies are expected to spend $6.3 trillion on direct digital transformation investments between 2022 and 2024, according to research firm IDC’s most recent predictions. These are only some of the locations where offshore outsourcing is available; nearshoring is also an option.

Predictions For The Tech Industry In 2021

The statistics only confirm that the technical transformation efforts of online businesses will be aimed at making online shopping more convenient. Statista predicts that more than 2.14 billion people worldwide will be purchasing services and goods online in 2021. McKinsey’s survey shows that 87% of organizations are already experiencing a talent shortage. The value of IT services companies delegate to external suppliers may exceed $413.72 billion by the end of 2021, says Statista. If you feel comfortable with a particular outsourcing company and have a good rapport with their representatives, there is no harm in choosing them.

Software Development Sources

Digital transformation is what can contribute to business longevity and help battle the economic repercussions. Therefore, the volatile economic environment is stamping the focus back on the numbers. Even if the cost may not have the last say, it’s certainly accountable for the initial impulse. Since the outbreak of the pandemic, there has been a significant increase in the use of remote work.

Enterprises are vulnerable to cyber-attacks, and new types of dangers as technology evolves and diversifies exponentially and employees access networks remotely. Data security is demanded of BPO organizations that work with sensitive data. From the initial log-in through the storage of data backups, business and customer information must be secure from beginning to end. To avoid security breaches, most outsourcing organizations have implemented multi-level security measures such as multi-factor authentication.

Experts expect the healthcare, telecommunications, and fintech industries to be top users of IT outsourcing services. Given the advantages, disadvantages, and trends of IT outsourcing, one can conclude that it is the future of the IT industry. The primary issue with feedback is that an individual outsourced developer is not your team member. They will not consider your corporate ideas or be bound to the company with a contract of employment. It means that the developer can stop working on your project without even notifying you about it.

Increased Efforts In Security

Besides that, more companies keep discovering new regions and countries like Ukraine to outsource programming. Apart from outsourcing, business leaders are opting for alternative staffing models like outstaffing and R&D offshoring. This is what we did for SBTech, a leading provider of betting solutions and management services to partners across the globe. Before they found our solution, the company had been failing to hire 20 employees via HR outsourcing for an indeterminate amount of time.

Additionally, distinction in offerings amid the presence of multiple players has led to the development of specialized teams. New contract models transform IT outsourcing into value-driven and interpersonal value, as well as the development of technical teams. As IT organizations accelerate their digital initiatives at scale, their relationships with IT service providers have grown more important. IT outsourcing is no longer just a lever for faster, cheaper technology services, but a key partner in driving business growth, improved customer experiences, and competitive advantage.

In the following year, we’ll see the rise of the emerging IT outsourcing market located in Eastern Europe. Software development market statistics of the tech countries — Poland, Ukraine, Romania, Czech Republic, Hungary, Bulgaria, Belarus, and Croatia. On the bright side, the report by HLB shows that 55% of polled companies are planning to spend more on cybersecurity in 2021.