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IT Outsourcing Trends that Will Matter in 2019

IT Outsourcing Trends

Technology penetrates into all areas of the economy and our lives. The demand for IT specialists keeps on growing, and many companies are finding it harder and harder to employ them in their city. In addition, it will be unprofitable for the business to employ them in most cases since tasks are mainly casual and workloads are insufficient.

These reasons and many others lead to the fact that as far as the economy grows, more and more companies attract independent contractors, resorting to the IT outsourcing model.

As it happens in other areas, it is also important to understand the direction in which the market is moving to conduct a successful business. Here are some important 2019 IT outsourcing trends that will determine the development of the niche in the near future.

Price Is No Longer a Key Factor

Outsourcing relationships have become more standardized and, now, the parties are more focused on people and processes than prices. This factor allows outsourcing service providers to feel confident about the future.

Cost reduction is still one of the main arguments taken into account when hiring third-party contractors, but this factor is no longer the key one in making decisions.

The modern market requires innovation and high-speed decision making from business. Therefore, in software development, you have to solicit support from reliable partners. Moreover, low prices for software development services very rarely mean high quality.

Comprehensive Expertise Rises in Value

To show a high level of operation, it is no longer enough for contracting companies just to fulfill the tasks set by customers according to specific TOR. It is important to be proactive, provide your own advice and adjust the customers’ initial plans if necessary.

Outsourcing skills needed in 2020

[Global Sourcing Association]

This approach requires additional time and effort but increases the likelihood of successful project completion. Certainly, such things are impossible without good expertise and immersion in the customer’s business. Moreover, the value of this kind of expertise becomes obvious for customers as well.

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More Customized Solutions

It is very hard to find the most efficient solution to the tasks set without taking into account the individual features peculiar to a particular business for which an IT product is developed. This process increases the requirements for personalization levels at certain stages of development and sometimes even with respect to the entire project.

Cut-and-dried solutions are gradually becoming the lot of low-cost projects with a low complexity level. It is true for any niche.

Rise of the Multi-Vendor Trend

The more diverse customer needs are, the more difficult it is to satisfy them using the resources of a single outsourcing company. Consequently, we can see a trend towards simultaneous interaction with several contractors.

For instance, when developing a mobile app, customers can delegate tasks on design development, coding, and content creation to three different companies respectively.

Multi-Vendor Outsourcing Trend

[Deloitte]

This approach makes some outsourcing providers switch to some niche expertise. Generally, it is very important for market participants to be able to establish efficient cooperation with remote teams.

Outsourcing Becomes a Competitive Advantage

IT outsourcing can help a small company gain access to advanced technological resources, making it possible for them to compete with larger companies.

Outsourcing advanced IT solutions can be a resource otherwise unavailable for the company because the implementation and maintenance costs can be very high.

This practice can create a wider field of competition among large and small companies, and it is especially important for start-ups.

From Contractor to Business Partner

Besides purely technical tasks, companies are also gradually starting to outsource more and more complex business processes. Customers need a technology partner who is able to help them sort out the task and take responsibility for its completion the way that the company’s own tech unit would do. At the same time, the contractor is expected to implement the project faster and at the highest quality level.

Business Partnership

The boundaries between a remote contractor’s status and partner relationships are gradually blurring.

Summary

Outsourcing service providers can feel confident about their future as they provide their customers with access to specialized expertise, saving time and resources for them and allowing them to focus on their key business issues.

Outsourcing is one of the most appropriate tools to inexpensively and efficiently reach particular objectives, allowing a company to remain competitive and avoid hiring additional staff.

The world IT industry is changing, and businesses have to respond to these changes. If you are searching for a reliable technology partner capable of solving the tasks your company faces, contact us, and we can help you, providing efficient solutions based on your business needs.

Lvivity Team
Lvivity Team

Flexibility, efficiency, and individual approach to each customer are the basic principles we are guided by in our work.

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