Technology advancing is nothing new, every day, the technopreneurs are thriving hard to match up the pace. Moore’s law is proof that there is no end to technology and it is just expanding at an unparalleled speed. So, in such a fast-paced environment, every business is investing in newer technology enhancements to build software of their own. The demand of software applications have never stopped, leaving all business to adopt the latest technology trends, the facts show the same scenario. Let’s get deeper into emerging technologies in software development outsourcing.
Table of Content
- Overview of Technology Market
- Reasons Why Businesses Need the Help of Software Outsourcing Companies
- Software Development Outsourcing is the Solution
- 3 Major Technologies Becoming a Game-Changer
1. Overview of Technology Market
According to the Gartner survey, global IT investment reached $3.8 trillion in 2019 and is projected to rise in the coming years. At the same time, Statista has also estimated that the rate the global outsourcing industry’s sales will see spikes.
With all this information in hand, it is imperative for us to address how and when these technologies impact businesses. Every business wants to integrate these technologies within their businesses to gain exceptional business results. Before that, in this blog, we will also discuss one of the vital factors that insinuate businesses to outsource.
To start with, Businesses take advantage of other software development companies because of many reasons. Enlisted are some of them.
2. Reasons Why Businesses Need the Help of Software Development Outsourcing Companies
1. Lack of Understanding of the Market
The IT market is ever-expanding, there is increasing use of technology in almost all business domains and industries. Indeed, you will find demand holes by analyzing the markets and mapping consumer demands to the solutions offered by existing businesses. Companies place a high priority on this knowledge, so it can improve the offering. But not every business has in-depth knowledge about the changing dynamics of the market and how to make insightful decisions in favor of their business. This is one of the reasons why businesses contract with third-party companies.
2. Shortage of In-House Skills in Latest Technologies
Often businesses focus on their primary business offering, because of which they do not expertise in specific IT skills and hence need the help of specialists. As a business, taking help from experts is a smart way to work towards business success. So, this means businesses have lack IT skills and they cannot deliver as expected results. Thus, we need to take the help of third-party companies.
3. Inability to Integrate into the Legacy System
Your in-house talent is skilled in all other aspects except IT. So, in such cases, you need the help of a third-party company, For instance, even if your business has a complete idea of how and what should be done, which technologies to be integrated, and why you have all the answers. The only concern is you don’t have the capability of how to build the application. Integration of your application with your app does not give desired results. Hence, it is always advisable for businesses to get it done for experts that will save the majority of their time, efforts, and money.
4. Costs More than the Estimation
When you decide to develop something on your own, there are multiple costs that are involved along with just the development cost. More than that, there involves training cost, hiring cost, material expenditure, IT software licensing cost, software learning cost, and several other hidden charges. Thus when we cumulatively see everything, it will exceed the budget and charge more than what is estimated.
5. No assured Results
If you decide to go on your, the developed product may or may not be as expected. There can be flaws since your in-house team is amateur and learning to develop the software. The results can vary and can require re-work. Thus, when it comes to developing software it is always advised to partner with experts who are skilled in software services and have expertise in developing cutting-edge software solutions.
3. Software Development Outsourcing is the Solution
Did you know what did the two inventors of WhatsApp did when their recent update faced server technical complications during the initial stages? Jan Joum and Brain Acton(before the purchase by Facebook) decided to outsource their development as a beta version of the application was not performing as expected during the pilot phase. With outsourcing, businesses got their exemplary results and it was a cost-effective way of getting work done and bring the application back into the league.
Most offshore software development outsourcing providers now have a vast pool of IT talent, allowing businesses to easily access the skill set and skills needed in new technology. Outsourcing addresses many of the issues that businesses face when retraining or upskilling their in-house workers.
Outsourcing, in most cases, reduces your development expenses than recruiting local talent. This enables the corporation to successfully manage its spending. It provides the best balance of technological experience and business insight, something in-house teams may struggle to do if they’ve never worked on a project like this before. If we talk about benefits to the client company, then there are a plethora of benefits that they can receive such as
- Lower operational cost
- Higher return on Investment
- Access to global talent force
- Faster time to market
- Improved business efficiency
- Higher profitability
4. 3 Major Technologies Becoming a Game-Changer
Industry dynamics, propelled by new technologies and market curiosity, have prompted business CIOs to re-evaluate their IT investment. Machine Learning, Artificial Intelligence, Cloud Computing, DevOps, and other domains that specifically impacted businesses. Companies will continue to boost their online investment with the help of technologies to ensure that they get a cut of the profits from the multinational consumers in their domain. This is especially difficult for companies and enterprises. So as it is difficult to keep up with all of the emerging changes in the economy, technology, and customer behavior.
1. Blockchain Development Outsourcing
The global market for blockchain applications is expected to hit 6.6 billion dollars in 2021- Source
With a high demand for blockchain growth, a scarcity of local IT expertise, and a significant ability gap in blockchain development. So to develop any type of application, blockchain is a secured network and plays a major role in developing new-edge applications. Outsourcing to an advanced software company TatvaSoft allows businesses to rapidly tap into the skills of an overseas blockchain team to reduce crucial time-to-market. And remain ahead of the competition, while still avoiding costly recruiting errors.
Businesses may find themselves vying for the same IT talent to develop all types of all applications. Enterprises are looking to outsource to help them easily fill in the ability gap in order to overcome the challenge of recruiting and retaining experienced blockchain developers.
2. Artificial Intelligence (AI)
By 2030, AI is projected to add $15.7 trillion to the global economy, with AI being used by 37% of companies and organisations-Source
AI as a technology has been initiated years ago, it dates back to the 1950s and the work of “neural networks”. So AI technology has advanced as computing power and the capacity to store vast volumes of data have improved. This technology is a connected network that is an amalgamation of reasoning, self-analysis, and information.
AI technology has been used to turn datasets into actionable information and provide real-time responses to consumer and stakeholder questions using a chat-style interface. Artificial intelligence can also monitor vast volumes of small data, such as sales, sensors. And machinery manufacturing, and come up with ways to increase productivity in those fields.
3. DevOps Consulting
According to Gartner, “By 2023, 70% of companies would have implemented value stream control to increase the flow of the DevOps pipeline, resulting in quicker distribution of consumer value.”- Source
DevOps for businesses is like a magic wand, every business wants to imbibe it in their day-to-day activities. In fact, Every business is embracing DevOps as a service. So there is automation along with concurrency that DevOps brings to the business. Accordingly, by using the expertise of a DevOps consultancy firm, the team will be directed through the whole DevOps deployment process, resolving any possible disruptions, preventing any speeding, and organizing, controlling, and pacing the process steadily.
Undoubtedly, technologies have come a long way when it comes to helping businesses to use technology at their best. Technology empowers businesses to perform well. It is essential for every business to partner with the right set of talent and gauge their proficiency in multiple technologies that will streamline business processes and operations. To sum up, in this changing market dynamics, a good upper hand in technologies will bring successful results along with higher productivity, efficiency and profitability.