IDAP BLOG IT outsourcing

Staying Trendy in 2021: What Software Outsourcing Trends to Expect

Intro

What a year we have been through! In addition to routine joys and sorrows each of us experienced, the outburst of the planetary pandemic was what significantly altered our plans and determined our actions in 2020. COVID-19 made us reconsider our approaches to work, the ways of entertainment, and even social mores. Keeping people marooned in their lodgings, it provoked contemplations on the fragility of the contemporary civilization under the onslaught of such a minute enemy.

The scourge was the main factor that conditioned all top trends in the global economy. One of such tendencies is the fundamental shift for remote employment and outsourcing. Having started to gather momentum not long ago, it has increased dramatically in the virus-afflicted world of 2020 becoming vital for the survival of many domains. 

Outsourcing industry trends are especially viable in the IT sector, where this drive has rapidly developed from a nascent novelty into a regular practice. Consumers and vendors of digital products and services benefit from this business approach exceedingly, which is sure to add substantially to the $3.9 trillion that was spent in the departing year by the stakeholders of the global IT market. What will be the best trends in the field in the next year?

2021 Outsourcing Software Development Trends Scrutinized

We would like to offer insights into 10 outsourcing trends that will shape the contours of the IT industry in the year to come.

1. A Change in the Role of Outsourcers

The importance of outsourcers in software development is gradually increasing. They have long ceased to function as mere contracted hands (or rather brains) instrumental in performing commissioned tasks. Given the complexity of projects and their core significance for the successful operating of entire enterprises, outsourcers will be recognized as decision-makers on the same footing as the managerial personnel. They will share in strategic planning, risk prevention, system architecture design, and generally act as visionaries responsible for policy-making in organizations.

2. A Focus on Long-Term Cooperation

The previous trend goes hand in hand with this one. With outsourcers transforming into a decision-making body of many companies, their CEOs will increasingly opt for stable cooperation with one vendor. Finding a reliable and proficient outsourcer is not a simple task, so having engaged such a godsend, companies will try to build a lasting partnership with it. Thus, establishing trustworthy relations with software services providers to the benefit of both agents will eventually turn the latter into an integral part of many enterprises. 

3. Novel Approaches to Contracting

The shift in the role of outsourcers will cause an overhauling of contract practices. Built on mutual trust and the deep involvement of vendors in decision-making, relations between the stakeholders will enter a more interpersonal phase. In contract terms, it spells less process regulation and more focusing on delivery, with a stipulation of notice periods and project duration. Thus, the emphasis is switched to the outcome and expected performance level which will become a touchstone of the project’s success. In 2021, clients will be gradually owning up to the recognition that the contacted high quality of the final product rather than the price should be prioritized. 

4. A Growing Demand for Specialization

Today, the pace of scientific progress is so swift and the scope of digitalization is so vast, that it is hard for an in-house IT department (if the company has one) to stay in the know of all that is going on in the high-tech realm. Innovations and new applications of existing technologies crop up almost every week, so attempts to touch all the hot buttons are doomed to defeat no matter how well-versed in modern technologies a group of specialists might be. 

Naturally, there will always be people who, specializing in some limited sphere, will outperform Jacks of all trades. The oncoming year will witness a growing demand for high-quality experts in some narrow field that can bring maximum value into the project they are assigned to. However, if an outsourcer has a whole roster of experts who can provide full-cycle product development, they will get a serious edge over competitors and will be searched after more eagerly.

5. Involvement of Several Outsourcers

The growth of the digitalization scope puts additional strain on big companies that struggle with trying to fill all the breaches and reach out to as many potential clients as possible. With an eye to several projects to be implemented on short notice, such enterprises will juggle these assignments between multiple outsourcers. Thus, 2021 will witness intensifying cooperation of outsourcers, which in its turn is going to place a heavy emphasis on control and coordinating activities of several teams that may be located in far-sundered corners of the world and have a different work ethic. 

6. Adaptability Rocks

The expiring year showed that the overall environment and consequently business needs can change in a split second. 2021 is likely to keep this tendency, so it will become essential for outsourcers to manifest utter flexibility. They must be ready to scale up or down if the client requests, rev up the development process speed, instantly introduce alterations into pre-arranged plans, promptly react to the appearance of new technologies, and upskill their personnel accordingly. 

7. Homing on Eastern Europe

A couple of previous years witnessed shrinkage of hiring of the US- and Asia-based software outsourcers while employment of the Eastern European vendors displayed a rapidly growing pattern of 4 to 5 times faster than elsewhere. Customers from North America and Western Europe have come to appreciate the high-quality of performance, commitment, and affordable prices charged by vendors from Ukraine, Belarus, Romania, Poland, etc. And this tendency is likely to continue into the upcoming year, so opting for outsourcers from this talent-rich region will become a more appealing prospect.

8. Head in the Clouds

According to Satista, last year around 80% of organizations globally leveraged cloud-based services (notably SaaS) and this number will grow exponentially in 2021. Companies will not only seek private cloud service providers like Azure or AWS but will actively employ vendors who offer software cloud-based solutions or will help to transfer their existing infrastructure to the cloud.

9. An Increased Drive for Security Awareness 

Data is the most valuable asset of our times. Those who have access to it, come to possess a tremendous might – both political and economic. Realizing that, many cybercriminals attempt to penetrate the software of businesses and governments to make some easy cash. A UN report stated a six-fold increment of malicious emails that was spotted during the COVID-19 outburst, with a cyber attack registered every 40 seconds around the world. Naturally, organizations go after tightening their software security measures and more than half of them employ outside parties to provide security services for them. In 2021, more and more companies will seek to become compliant with the General Data Protection Regulation, and outsourcers will lend a helping hand in it.

10. Discovering the Power of PWA

While other IT outsourcing trends mentioned above have been around for quite a time, the onset of Progressive Web Apps is a comparatively recent development. However, their advancement in conquering the app market is astounding. Being a website in its nature, a PWA surpasses native apps in flexibility, cross-platform usage, SEO visibility, size, cost of development, and no-network performance. Realization of PWAs’ benefits is spreading in the business world, so outsourcers that can offer services of building this app type will reign supreme in 2021.

Summary

The realm of IT outsourcing is undergoing constant transformations trying to address the challenges posed by the ever-shifting external conditions. Digital service providers that take those challenges in their stride have a definite edge over their competitors. IDAP is one of such companies whose qualified and versatile experts are ready to tackle any software project you have in mind that is sure to bring value to your business.

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