IT Outsourcing Trends in 2021

outsourcing trends in IT

IT outsourcing is becoming more prevalent, offering effective changes to companies all over the world. Companies choose software development outsourcing for a wide range of purposes, which includes specialized expertise, and cost savings. 

The pandemic has transformed the forces that influence a business’s need for outsourcing and its digital transformation plan. Organizations have undergone significant changes in business strategies, organizational processes, and employee engagement patterns. Businesses had to shift to a remote mode of work and depend on digital platforms during 2020.

The year 2020 posed unexpected obstacles to the industry, reshaping its anticipated potential software development outsourcing trends.

Let’s have a look at the expected outsourcing trends for 2021.

Still working from home

As a result of the pandemic, an increasing number of businesses are encouraging employees to work from home. Even before this global event, the majority of tech companies in common outsourcing destinations like Ukraine were operating remotely. According to Global Workplace Analytics, by 2021, about 25-30% of the world’s workforce will be working from home several days per week. 

Any company that has workers who operate from home needs to secure its privacy. At some point, such companies will have to rely on third-party vendors to ensure that their home networks protect and capabile of performing quickly. This might imply a transition toward hybrid clouds with strong security properties. Employees can also use on-premise cloud systems with a connection to the business network through a secure channel.

Quality over price

The collaboration will no longer be focused on the lowest cost; rather, the value of quality will be rated higher. Though cost reduction continues to be the main incentive for companies to outsource, efficiency and operational proficiency will become equally relevant. For quite some time, the primary motivation for organizations to outsource software development was to save money. However, owing to a lack of professional talents available to employ for internal growth needs, there has been a change in recent years.

So, IT outsourcing trends have arisen, with an emphasis on quality results. As competition on the market among outsourcing firms heats up, so does the standard of service provided. Businesses also give up expensive local IT experts in favor of specialized IT professionals located abroad.

Collaboration with one vendor

Since companies place a greater emphasis on product quality rather than cost savings, it is also better to strengthen communication and partnerships with vendors. Previously, there was a tendency to outsource one project with several vendors. In the coming years, businesses will rely progressively on single-vendor outsourcing. They will want to minimize all of the problems and uncertainties that come with handling several vendors.

Companies will avoid contracting to multiple providers and instead focus on developing partnerships. Organizations are looking for outsourcing vendors that have experience in delivering the highest level of service, and the need to collaborate with more than one isn’t a question as long as you will gain expected outcomes. Although, if a major outsourcing company does full-cycle software production with a team of experienced developers, it would still have a significant advantage of being a better choice in terms of building a reliable partnership.

Popular outsourcing destinations

This year, we will see more interest in the IT outsourcing market of Eastern and Central Europe rather than China and India. While India and China will continue to be the leading outsourcing countries, where concentrated the majority of global outsourcing income, Ukraine, Poland, Belarus, and Romania will be impressive competitors.

High-quality facilities, well-trained staff, and still good prices are driving the expansion of the outsourcing market development in Eastern and Central Europe.

More mobile and web apps

In 2021, the most commonly outsourced IT service is apps development. Over 60% of businesses use outsourcing for at least some of their apps last year we could observe 56%.

The vast majority of users worldwide want mobile-based platforms. In reality, some people are abandoning desktops in favor of mobile devices. This tendency will continue in 2021. Mobile use actually accounts for 50.88 %, while laptop usage accounts for 46.39 %. 

Given that more people are working on the go, the demand for smartphone apps will increase further. If more and more customers don’t use laptops, you need to make sure that your company is going in the direction towards mobile transformation. A mobile-friendly website and apps are the perfect ways to achieve success.

To sum up

Outsourcing enables companies to create competitively beneficial technologies at a quicker speed. These outsourcing trends are pretty evident, at least to those who have been paying attention to what is happening within the industry of IT. It’s time to get interested if you’ve neglected these trends. If you do not follow market tendencies, you will find yourself falling behind the competition. Considering how flexible businesses must be just to stay up to date, falling behind might be costly.

We at Keytotech are on our client’s side and are always willing to lend a helping hand in the adoption of innovations. Our company works only with upskilling professionals so that they can create and guarantee the best services.

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