IT and software outsourcing is one of the fastest growing industries worldwide. It offers you several advantages such as: B. the reduction of overhead and operating costs, increased efficiency, a stronger focus on the core business, improved quality, the availability of a global team of experts and much more.
The COVID crisis and the pandemic have further fueled the growth of the industry. acc Grand View Research, Global Software IT Outsourcing (ITO) Services Will Register The Fastest CAGR Of 12% During 2022-30. Other Report by Deloitte states that the global ITO will reach USD 519 billion in 2023.
As you can see, IT software outsourcing is set to reach new heights year after year. And several software outsourcing trends will help take the market up a notch. Here we present some of the key outsourcing trends to come in 2022.
Top 5 software outsourcing trends of 2022
1. The talent gap gives outsourcing a stronghold
The tech industry continues to be driven by digital transformation, and it’s not slowing down. However, it suffers from a never-ending shortage of tech talent. As of 2021, there are over 40 million tech talent vacancies worldwide, which is expected to grow to 85 million over the next 10 years.
The biggest challenge for recruiters has been hiring developers, which is often lengthy, difficult and costly. Because of this mismatch between supply and demand, the average developer salary rose to $110,140.
The alternative is to outsource software development. The increasing talent gap has allowed the IT industry to try flexible working arrangements. Nowadays, software outsourcing development teams are becoming more and more popular due to the global demand for resources.
Leveraging the global team of experts, IT leaders can effectively reduce software development costs. You can sign up for a cheaper software outsourcing development rate that starts at $25-$50 per hour, which is a fraction of the cost of hiring onshore staff.
2. Switch to the employee approach
Third-party providers and outsourcing companies are no longer seen as substitutes but as long-term partners. They are now viewed as team members who can contribute to the company’s liabilities. Additionally, the intense research and statistical analysis has shown why you should hire software outsourcing vendors.
The first and most important reason is to reduce the cost of outsourcing. And many studies from various sources have confirmed that companies outsource primarily to reduce costs. If not cost reduction, many companies do so simply because of the flexibility, speed to market, ease of access and agility that outsourcing providers give them.
Another reason that has fueled this software outsourcing trend is the involvement of outsourcing vendors in strategic planning, decision making, risk prevention system and architecture design. This effectively means that outsourcing providers are treated as virtual employees.
3. Accelerated digital transformation
Digital transformation is gaining momentum like never before. Despite the pandemic, more and more companies are focusing on developing initiatives to improve their companies’ innovation, resilience and competitiveness.
Digital transformation has become essential to their long-term viability. And as we move further down the digital maturity curve, the technical staffing increases. Since each phase requires specialists, it is imperative to quickly scale qualified development teams. However, most organizations are not agile and will not be able to keep up.
Therefore, most IT leaders believe that their organization needs external expertise for digital transformation projects like cloud computing, robotic process automation, AI, and others. This makes them open to hiring on-demand software outsourcing talent and allows them to rapidly innovate into their IT software products.
A reliable and trustworthy partner at an affordable software outsourcing price in 2022 can help you get closer to publishing your digital transformation projects.
4. Remote work will shape the outsourcing reality
Post-pandemic, the remote working culture has normalized as most large companies have embraced the hybrid working approach. The IT industry is ready to adopt this working model for more convenience in managing such teams. This acceptance also prepares the conditions for software outsourcing.
Best of all, most outsourcing service providers are already experts at remote work. They are already in position to provide stability, staff capacity and compliance to best serve their customers. Also, they offer affordable software outsourcing development rates in 2022.
The benefit of this software outsourcing trend is that your team doesn’t feel stressed or overwhelmed and can work more creatively to be more productive. If we move forward, this trend alone will lead the outsourcing market to more worthwhile destinations.
5. Cyber Defense with Outsourcing
Cyber attacks like ransomware can seriously disrupt the vibrant IT software industry. In addition, governments and companies worldwide agreed that the evolving cybersecurity threat must be tamed with appropriate measures.
Stricter cybersecurity legislation for better compliance by governments and organizations has become necessary. In addition, there is an acute shortage of required talent with strong skills to counter cyber threats.
This has prompted companies to find experienced software outsourcing providers to stay active in the cyber landscape. The highly experienced team will help you build and improve your current security infrastructure by finding gaps and mitigating them through appropriate benchmarking.
However, a record number of companies are looking for outsourcing partners with precise specialists for their cybersecurity needs. Therefore, this software outsourcing trend will see greater demand from companies like banks, e-commerce stores, and payment gateway providers.
Driven by the pandemic, software outsourcing will take a bold leap forward thanks to all the software outsourcing trends of 2022 mentioned. These trends will increase the reputation of the IT outsourcing industry. They will play an important role in the coming future as companies adopt more digital initiatives and transformation projects.
Additionally, the software outsourcing engagement will be streamlined as a range of higher degree specializations become available. However, keeping up with the software outsourcing trends mentioned above is not an easy task.
However, having the trusted partner by your side can help you navigate complex technological requirements to accelerate your digital transformation.