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IT OUTSOURCING TRENDS  /
November 6, 2019
Viktoriya Polyarush Social Media Coordinator, an avid reader with the passion for technology.

Nowadays, companies are finding it harder to meet the challenges of a globalized world economy relying on their internal resources alone and often have to look beyond their own borders for more cost effective and beneficial sources.  As outsourcing contracts are expected to increase dramatically in the upcoming year, these trends are shaping the way companies outsource their software projects:

Dedicated Team and Quality Centered Approach

Although cost reduction remains a major factor in business decisions, most companies are choosing vendors more carefully than previous years. While many enterprise companies are renewing their outsourcing agreements, it appears as though there is a shift occurring away from the “fixed-price” model towards employing local specialists and outcome-based, agile contracts. Enterprises are looking for highly skilled teams that are able to work in the Agile framework as an extension of their own development teams. The shift away from cheap contracts is expected to continue and trending towards employees that can easily integrate into already established development teams with advanced programming and creative skills. As technology advances faster, outsourcing projects will have to move faster as well.

The Superstar Based Economy

As technology becomes more automated, the scarcest and most valuable resource is all about highly talented, innovative people. Outsourcing provides the chance for large corporations to find  innovative people that may not be available or affordable locally. With less focus on cost-savings, many outsourced service providers are evolving into innovation centers. The best companies are using these innovators to capture marketplace advantages like improving software quality and enhancing user experience to achieve a competitive advantage they could not achieve with only onshore resource.

Later on, we might see further development and innovation with trends specifically related to cloud technology, social responsibility, and data security.

  • Data Security Becomes Top Priority: Development of new technologies has raised the level of security concerns, while IoT prevalence further intensifies the risks. Thus, next year is expected to observe the emergence of Security-as-a-Service, offered by specialized security BPO service providers. Enterprises and outsourcing agencies will strive to protect the data, irrespective of its size and location.
  • Demand for Higher Efficiency: The outsourcing industry is inclining towards offering more efficient services by automating processes. The next focus will be on increasing automation and scalability with an emphasis on the development of reusable platforms to deliver efficient tech support for IoT.
  • Robotic Process Automation: RPA is on its way to increase the ease and efficiency of business processes. The automation will ensure increased productivity at reduced costs through a quality process execution, using software robots to replace humans for repetitive tasks. However, a rise in this trend will create a challenge of managing touch points between manual and automated tasks, leading to more flexible agreements between vendors and clients.
  • Buyer-Oriented Contracts: From fixed vendor-specific terms, the trend is changing with contracts to be formed as per buyers’ needs. Businesses will now be able to get contracts framed with favorable legal and commercial conditions, and a chance to scale up/down as per their needs.
  • Integrated Cloud Platforms: Cloud technology is set to become the next trendsetter for the outsourcing market, with more businesses moving to cloud this year. This will enable outsourcing companies to deliver improved and innovative services, and tackle future big data needs, for increased agility and efficiency of business processes.
  • Socially Responsible (or Impact) Outsourcing: A new social responsibility based model for business process delivery is expected to gain traction. The focus of this model is to deliver quality services at low costs and employee attrition, employing socioeconomically disadvantaged workers at BPO centers.