Getting insights into the key IT outsourcing markets today will make your hunt for seasoned software specialists much more effective. Introducing AI and IoT technologies in the IT-sphere might be among the most critical software outsourcing trends in 2021. Despite the pandemic, some tech businesses even decided to increase their IT budgets, outsourcing statistics from 2020 show. Once you identify the skill gaps in your tech team, you can identify the elements of your project that need to be outsourced. High-quality outsourcing services like the ones Apiumhub provide, allow companies from all over the world to instantly fill any skill gaps in their teams, setting them up for digital acceleration in the long term.
- Central and Eastern Europe are not lagging behind either with roughly 1 million developers concentrated in countries like Ukraine, Poland, Latvia, and Lithuania.
- In essence, outsourcing non-core activities empowers companies to innovate, expand, and thrive in a rapidly evolving market.
- User experience (UX) and software quality have become critical success factors, and software development outsourcing trends.
- New programming languages are introduced, new methodologies are constantly being developed, and previous industry-standard practices become obsolete as more innovative approaches take over.
- This trend means that the later you reach out to outsourcers, the more you’ll need to pay for their skills.
When it comes to the United States outsourcing statistics, a large number of jobs are being sent overseas, leaving hard-working Americans without employment. Asian developers, namely in India and Vietnam are also quite popular among the US companies who seek to outsource their projects and save money. The same goes for many Central and Eastern European countries, especially Ukraine. This is one of the top outsourcing destinations in Europe thanks to its vast talent pool, low hourly rates, and consistent quality across the board. It makes sense for US-based companies to outsource their projects to developing countries nearby. Jemin Desai is Chief Marketing Officer at Positiwise Software Pvt Ltd, he is responsible for creating and accelerating the company’s marketing strategy and brand recognition across the globe.
The Latest Statistics on Software Development Outsourcing Every Business Must Know:
Let’s delve into the latest and most eye-opening statistics in the world of software development outsourcing. Indeed, about the only thing that hasn’t changed in the business world is the managed services delivery model. That’s largely because ITOs have no incentive to change—and in many ways, they are incentivized not to change.
In 2023, outsourcing companies offering application, network, cloud, and infrastructure security services will skyrocket their capital. Hence, enterprises are looking to hire software developers from outsourcing companies having expertise in .NET development. From frontend to backend, both technologies help to optimize the overall software. In addition, you can embed AI virtual assistants to enhance customer relationships. So, let’s find out the views of a CTO and HR Manager under partnering with a software outsourcing company.
of small businesses outsource their software development tasks for cost-saving.
Out of all Californian jobs lost to China, 74% were in the manufacturing sector. Over the past three decades, it has become an integral part of business management on a global scale. Especially if you’re looking for in-demand coding skills like React.js, Redux.js, Scala, Go or Ruby. Software engineers and architects are already among the highest-paid professions barring medicine specialists. Bureau of Statistics indicate that between 2019 and 2029, the percent change in employment for software engineering professionals will reach 22%, five times the national average. If you’ve been thinking about cloud computing services, think about outsourcing as well.
It is much harder to hire people on your own, it takes too much time, and it is too expensive. With the US alone outsourcing a massive number of jobs overseas, developing countries that amass the most labor force in the IT domain gain a huge economic boost. According to EngineeringUK, there’s a gap of around 21 future trends of outsourcing to 24% between young men and women interested in engineering careers. One should understand that being interested does not mean they would actively pursue such careers in the future, though. This leaves us with a conclusion that a gender gap in software engineering would not be bridged in the nearest future.
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Well, it means that a larger number of custom software development companies will shift their gears towards this prospective domain. Software development companies try to capitalize on that crisis by hoarding up local developers and partnering with US companies for their projects. The tech talent crisis is already upon us, and it will only get worse because there simply aren’t enough people. With more than 189,000 jobs opening each year, there’s simply no way to cover that demand with domestic human resources. The staggering software developer job statistics show exactly how bad the gap is, which leaves outsourcing as the only viable option to cover the growing demand. Before you commit to hiring a software development company, it is important to check its reputation in the marketplace.
Interest in IT outsourcing is growing thanks to accelerating digitalization, the wider use of enterprise applications, and the increased popularity of home office setups. More than ever, IT oursourcing is being adopted by large and mid-sized companies across a range of industries from telecoms and finance to e-commerce and manufacturing. Most often, companies are looking to outsource IT support, infrastructure management, and business application operations. The shortage is caused by demographic issues and the high demand for skilled workers. Small businesses, along with global corporations, choose between various outsourcing solutions, including IT services and digital marketing services, whereas some even choose to outsource their entire business process.
The top three ways outsourcing can help small businesses are — generating profit, growing revenue, and improving cash flow.
Agile practices enhance collaboration and communication between your team and the outsourcing partner. We at Cleveroad stick to Agile methodologies, namely Scrum, providing benefits by promoting collaboration, adaptability, and transparency, allowing teams to deliver high-quality products efficiently. Verify that the outsourcing partner follows industry-standard security practices and complies with data protection regulations, especially if handling sensitive data. Ensure that robust data protection and security measures are in place throughout the project. Discuss confidentiality agreements and data handling procedures with your outsourcing partner to safeguard sensitive information. At Cleveroad, we traditionally implement security measures like data encryption, access-based control, and ensure compliance with industry regulations.
To cut down the costs of labor, numerous manufacturing companies turn to outsource. Based on the outsourcing cost savings statistics, China is the most popular country for manufacturing outsourcing since the labor cost is cheaper. Technology is constantly evolving, so companies need to make sure to follow the trend. Over 94% of organizations using IT outsourcing make due improvements by using cloud services. For instance, accounting and IT services make up 37% of all outsourced jobs, whereas digital marketing makes up another 34%.
Remote Work Preference.
Encourage collaboration, knowledge sharing, and mutual learning to maximize the partnership’s potential. Choosing cross-platform development can reduce the costs of mobile app development by 30% to 40%. The IT industry outsources the most, and represents 54% of the total outsourcing market share worldwide.
Emphasizing this significant fact thus delves into the heart of effective collaboration and resource utilization in today’s globalized software development environment. The anticipated revenue from software development outsourcing is set to reach an impressive $122.7 billion by the end of 2023. The latest offshoring data shows that the IT sector is moving toward outsourced suppliers most quickly. In fact, about 64% of outsourced offshore technology functions have to do with software application development.
Leverage the Power of Software Development Outsourcing
A study has found that up to 65% of businesses and companies are planning to continue outsourcing either at the same rate or at an increased rate in the upcoming couple of years. Namely, approximately 83% of companies that have an in-house security team are currently considering outsourcing some of their security efforts to managed service providers. Outsourcing statistics point out that the ever-increasing demand for cloud and SaaS (software as a service) solutions are going to drive this demand for IT services even further.