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We live in the digital world, where companies heavily rely on the software application to automate their internal process, achieve optimum operational efficiency, and effectively cater to the needs of their customers and industries. It is safe to say that software applications stand at the core of any business, irrespective of its size and nature. However, managing software applications is no cakewalk, and many companies lack the internal capabilities to regularly test and manager their software. This is where software development outsourcing plays a pivotal role in many organizations. Software development outsourcing services allow companies to hire dedicated companies to manage their software while they concentrate on their key operational areas. Over the years, outsourcing has become a huge aspect of website development service. Below we are mentioning some of the popular software development outsourcing trends in 2019 –
- Increased Implementation of Artificial Intelligence
With the massive growth of artificial intelligence, the software is designed to carry out various tasks that were once limited to human minds. The AI-based software can think as we humans can, so evidently, there would be more and more usage of this kind of software. Moreover, machine learning and deep learning are two prominent subsets of artificial intelligence that have also gained tremendous acceptance.
With the help of AI, companies make it easier and efficient to implement changes in the software. Companies are increasingly opting for these technologies to take their website development services a notch higher. Artificial Intelligence streamlines and improvises various business tasks in order to achieve better results. Today AI is implemented in every sector, including education, banking, healthcare, etc.
- Outsourcing Influenced by Dearth of IT Skills
With the exponential rise in the use of technologies by companies, IT companies are pressurized to stay competitive. From AI, machine learning, to blockchain and cryptocurrencies, the surge of new technologies has surely become overwhelming for IT companies. And, companies are looking for professionals with strong IT skills to cater to the demand effectively. According to Gartner, IT spending is speculated to reach USD 3.8 Trillion by the end of 2019; this is a 3.2% increase from its spending last year.
The lack of proper in-house engineering talent is forcing companies to outsource their software development and maintenance services. In the UK alone, 70% of companies expected to experience IT talent shortage in the coming 12 months. Moreover, there will more around 1.4 Million IT jobs available in the US by 2020; however, universities will not be able to cover even one-third of this demand.
- Increased Spending on Outsourcing Services
Cost-reduction remains a popular trend that drives IT outsourcing services. Earlier, companies were reluctant to outside website development services when they felt like local engineers can do the same work at lower costs. However, in 2019, companies across the globe have begun to invest more in order to obtain expert services. This trend is aligned with the previous trend, that is, a shortage of relevant IT skills.
Businesses today are forced to increase their IT budget to contract their software development services in 2019. The relations between clients and outsourcing vendors will also witness a significant shift. Low cost per hour is no longer the main concern of companies; rather, they are more focused on work ethics and value. The increased IT budget will allow companies to leverage better IT outsourcing services.
- The Relationship Shift between Companies and Vendors
A few years back, companies did not even reveal that they are outsourcing website development services. However, in recent years, companies have begun to understand the benefits that IT outsourcing offer, including speedy production, cost reduction, access to specialized talent, etc. Evidently, more and more companies have made website development service outsourcing a prominent aspect of their operational routine.
Outsourcing has become a common aspect of any growing enterprise. The role of IT outsourcing companies has shifted from being manual labors to high-level decision-makers of software architecture and product development. In 2019 more and more companies will be adopting IT outsourcing services to increase their overall operational efficiency. In fact, choosing the right vendors has become of the most important decisions contributing to the success of any business.
- Association with Multiple Vendors
Conglomerates continue to expand their business and the scope of expansion struggle with a serious lack of relevant skills. Companies require experienced managers, proficient engineers, creative designers, and skillful salespeople to accomplish their growth objectives. Unfortunately, it has become extremely difficult to get all the right talent under one roof.
Therefore, companies are likely to associate with more than one vendor. Rather than hiring one all-encompassing service, companies will focus on contact smaller companies with specialized tech services. Earlier, companies used to avoid associating with a different vendor, however that resistance has seen a notable decline. In the last decade, the resistance to hiring multiple vendors has reduced from 42% to 15%. Apparently, when companies choose that offer specialized website development service, they receive better customer services.
- Advanced Contract Models
Over the course of years, there has been a significant change in the relationship between client and vendor. This shift has encouraged changes in the legal arrangement associated with outsourcing contracts. In 2019, the role of software developers is shifting from far-away contractors to service integrators who are responsible for important decisions. The focus would be more on project results and shared value as opposed to merely outputs.
This will help both companies and vendors to build strong and enduring relationships. Moreover, the procurement process becomes essential as opposed to ongoing control during the project course. Since the competition between IT vendors is intensely highly, contracts will demonstrate a high degree of loyalty and commitment to providing valuable services to their customers.
- More Emphasis on Cybersecurity and Compliance
Cybersecurity and compliance are among the very few things that forecasters see eye to eye on. Public awareness has become one of the imperative aspects of data security. There is a high demand to have all data entirely encrypted. With every passing year, cybercriminals are taking data breaches to a new level. Companies have understood the prominence and consider employee security awareness training an important aspect of the business process. Evidently, IT companies are extending the multi-level security approach in order to mitigate the security risks, protect business data, and adhere to the compliance standards.
IT outsourcing services are increasingly becoming popular across the globe. However, there are some companies that are still reluctant about adopting outsourced website development services. Following are some of the prominent reasons that will make companies leverage IT outsourcing –
- Notable Cost Advantages
One of the common and important benefits of IT outsourcing is the cost benefits that companies receive. You can get complicated tasks to get done at a lower cost and high quality. Additionally, your fixed IT costs turn into modifiable costs as you only pay for the services you have utilized, thereby reducing overall IT budget in the long-term. Outsourcing website development services also enable you to reduce labor costs as you don’t have to employ IT staff and pay salaries to them.
- Stay Competitive in the Industry
If your business is growing consistently, then it is probably time to invest in internal support to compete with big companies. Associating with reliable outsourcing companies will make sure that you obtain the same level of services and technologies that your competitors are receiving and gain a competitive advantage. Since you have someone completely managing your IT department, you will have more time to invest in building effective growth plans and strategies.
- Mitigate Risk Factors
With growing competition and government policies and economic changes, the business realm is engulfed in various risks and threats. When you hire a specialized entity to manage your IT department, you significantly reduce the risk factor. And you can have peace of mind since the work is handled by experienced professionals who know how to deal with complexities without impacting the operational efficiency.
- Access to Latest Technologies
When you choose website development services, you get the opportunity to access the latest technologies for your business. Additionally, by implementing advanced technologies, you can accelerate your business process, thereby attracting new clients as well as retaining the current ones.
- sPotentials to Multi-task
Outsourcing allows you more flexibility by enabling you to concentrate solely on your business without being disturbed by technical issues. The fact that outsourcing companies often work round the clock, help you stay rest assured. With your software working efficiently, you can ensure that there is optimum productivity in your business processes.
Not every company can afford to establish an IT team to manage and control the software and other technical aspects. Small and growing companies, therefore, have the option to outsource their IT services to professionals who are trained to cater to your IT system. While professionals manage your IT, you can concentrate on your core operational area. These services are gaining tremendous popularity because of the extensive benefits they offer companies. Above are some of the important trends that companies can witness in 2019 with regards to IT outsourcing services.
Ravi Sharma is a young Entrepreneur who has beautifully held the command of his website development company, Webomaze. He is a passionate and enthusiastic traveler who is working to change the definition of innovative web development through powerful UI and UX.