Back in 2016, a Deloitte study showed that 72% of businesses outsource IT services and about a quarter are going to outsource more. Forecasts are coming true, and Gartner and the GSA (Global Sourcing Association) predict further growth in IT outsourcing.
IT Outsourcing is a partial or full transfer of products and services to support, maintain and modernize IT infrastructure to an external service provider.
- No need for a big amount of full-time staff (=less costs).
- Key personnel focuses on strategically important tasks.
- Fast scaling depending on the load (this is especially important for companies with seasonal and cyclical demand).
- You can increase or decrease the number of outsourcing contractors rapidly (in comparison with the full-time staff). The fact is that job interviews, reduction of in-house staff and permanent staff are expensive for companies. Especially if there is no stable full workload, and the company’s needs are often changing.
So, outsourcing is a common model of work in the IT market. Hiring a programmist for a specific task or scope of work is convenient for companies: they can reduce costs, solve a highly specialized problem, gain missing competencies and see potential full-time employees in action.
IT outsourcing market trends
GSA, Gartner, Deloitte, Flat World Solutions, Statista and other market analysts point out several IT outsourcing market tendencies that should be considered in 2020:
- Lack of in-house personnel, which means the demand for outsourcing specialists.
- More companies are turning to IT outsourcing due to rising prices for fuel and raw materials. Flat World Solutions predicts greater openness of small businesses, start-ups and SOHOs-companies (Small Office/Home Office) to IT outsourcing.
- Transition to aaS-models (“as a service”) in IT.
- The price will become less important in IT outsourcing. CEOs focus on interaction with people, standards, building processes, strategy and results.
- In the coming years, IT outsourcing will become a mechanism for businesses to grow and gain a competitive advantage.
- Outsourcing of narrow specialists. This trend can be seen as favorable for newbie developers.
- Deloitte notes the multi-vendor approach to outsourcing, that is, a growing tendency to buy services from different outsourcing vendors rather than one. This means that new players in the outsourcing market have ample opportunities to access clients, especially if they have innovations that give competitive advantages.
Programming outsourcing with Cuspy Software
We provide highly productive dedicated teams that help you build reliable and cuspy software. Over the past ten years, our dedicated development teams have been nurturing products for startups and enhancing the digital presence of large enterprises. Today, we create dedicated teams that code robust software and lead businesses to online success through strategic actions. What you can gain from programming outsourcing with Cuspy Software?
- Reduced costs. You get access to a talent pool with different interaction models available depending on the client’s budget.
- Flexibility. You get as many resources as the project needs.
- Experience and knowledge. When hiring specialists, you do not need to spend money on their training and competitive selection. We take on the job of selecting and recruiting potential employees to provide our clients with instant access to a group of experienced programmers who are experts in their field.
Recommendations for effective outsourcing
- Make a list of project requirements to make sure that all the technical details of the project are taken into account.
- Communicate. To effectively control what is happening, be constantly in touch with the programmers. Ask as many questions as you have to stay on top of what’s going on.
- Plan your budget. It’s important to develop the right strategy within your budget without compromising on quality.
- Set a deadline. The schedule helps you to properly allocate capacity and resources for your project.
In this article, we discussed the latest trends in the IT outsourcing market and how Cuspy Software can help you. Stay tuned for our new posts!