11.07.2021
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10 IT Outsourcing Trends of 2021


If your company focus on improving your outsourcing strategies, you should be aware of the best trends in IT and software outsourcing. When IT issues are holding you back, let an IT outsourcing provider solve them. Outsourcing is one of the best possible ways that helps you find forces and means and deal with damaging pandemic outcomes.

In this blog, we point out trends in IT outsourcing in 2021. Read on and find out which is the best fit for your business. 


What is IT outsourcing?


IT outsourcing is the practice of delegating some IT tasks to an external provider to solve internal IT-related business problems and to achieve business goals. 

Outsourcing allows business to may benefit from the ever-growing changes in tech without breaking the bank. IT outsourcing allows businesses of all sizes to appear on the market faster, have access to expertise, and get the product delivered as scheduled.


Why do companies outsource software development?


  • Access to digital innovations

Software development outsourcing is crucial, especially when a business decided to grow. Companies that don’t want to be left in the basket try to adopt the latest development trends.

  • Access to world-class talent

It can be challenging for in-house developers to keep up with the pace of developing technologies because of the lack of human resources. In this case, choosing outsource software development is a good choice.

The State of CEE IT Outsourcing and Offshoring 2021 Report shows other reasons for outsourcing IT services including saving time and money, access to skills not available in-house, possibility to innovate, flexibility, and level of organization. 

What is the cause of the increasing outsourcing of software development to external suppliers?



Why is IT outsourcing on the rise?

2020 with its pandemic, restrictions, remote work have caused changes in the world of software development. As office-based work is turning into a home office, so businesses have had to shift to remote working and rely more on digital tools.


“Consumers are moving dramatically to online channels, and companies and industries are responding.” The survey results confirm the rapid shift to interacting with customers through digital channels.”
A global survey of McKinsey executives

So, what trends in software development outsourcing will be significant in 2021?


Major Software Development Outsourcing Trends in 2021


1. More focus on cybersecurity 

Security above all. Cybersecurity is not something new, but the technologies surrounding it have greatly developed. Data is one of the most valuable resources, and in the wrong hands can be rather dangerous.

According to UN report during the COVID-19 outbreak there was a cyberattack registered every 40 seconds around the world.  

In 2021, more and more businesses seek to become compliant with the General Data Protection Regulation, and outsourcers ready to lend a helping hand in it.



2. Growing use of cloud services


Today, cloud is a must-have. Companies gradually turn to outsource for effective cloud platforms. They actively partner with vendors who offer software cloud-based services or help to transfer their existing infrastructure to the cloud, and take responsibility for cloud security. 

Companies willingly actively apply to vendors who offer software cloud-based solutions or ready to help to transfer an existing infrastructure to the cloud. The amount of data that needs to be stored can be huge. The other challenge of cloud migration is its cost.

However, cloud computing provides a lot of advantages, such as great data security, fast data operation, access to the most innovative technology, and cost optimization.

In 2021, the requirements for suppliers of cloud solutions is as high as in 2020, however, companies are ready to pay for privacy, data security and identity. 


3. More focus on product quality


In recent years, cost savings is not the main reason for outsourcing software development as it used to be before. The priorities have changed.  

According to InfoQ and 2020 report of the National Outsourcing Association, the main critical factor in outsourcing is product quality.


4. Expanding it outsourcing hub in Eastern and Central Europe 


As we mentioned above, the companies in 2021 focused on product quality rather than lower prices. That’s why the outsourcing destinations are changed from China and India to Central Europe.

The most appealing hubs of experienced outsourcing development specialists to cooperate with are Ukraine, Poland, and Belarus. These teams are well-trained and provide high- quality services and affordable prices.


Фото: DOU


5. High Demand For Blockchain Services


There can be no doubt that the security is the main of pros of blockchain technology. It offers security in many useful ways. With this chain of data, there is no need for a third-party to control or verify transactions.

The other interesting advantage of blockchain technology is a numerous solution for startups and small businesses to earn money.

Statista says that global blockchain costs are expected to attain over 18 billion U.S. by 2024. 

While the popularity of blockchain technology is rising, the need for highly professional specialists increases accordingly. However, blockchain is one of the leading IT trends and currently, there is a shortage of skilled specialists in this area.


6. Digitization of the Fintech, Healthcare, and Telecoms industries


Trending technologies in outsource change the way of working of some specific industries. In particular, Fintech, Healthcare, and Telecom is in great demand for outsourcing services needed for their digital transformation in 2021.

The Fintech industry is interested in AI technology integration, Blockchain technology, and Peer-to-Peer transactions to provide secure for conducting business. 

Meanwhile, hospitals is looking for outsourcing companies that offer Virtual Reality aided by Artificial Intelligence services. These technologies are going to assist health professionals in their work on diagnosis.

On the Telecom industry, the 5G network opens the doors to unprecedented opportunities for massive connections to IoT networks.



7. The hype around robotic process automation


Can we imagine logistics management, payment processing or replying to emails without automation? But robotics process automation is now trending due to business automation and mundane tasks. 

RPA allows clearing time for more complicated work. It will reduce costs, improve work management and reduce manual mistakes. 

According to Gartner, robotics process automation software will generate income of nearly $2 billion in 2021.


8. Progressive Web Apps


Today, the development of Progressive Web Apps play an increasingly important role. They that use the most innovative network tools and seems to be almost identical to a dedicated mobile application.

The main pros of Progressive Web Apps is better user experience. They are easy to develop and support.



9. Better collaboration and partnership


Today, it can be pretty challenging to find a trusted provider and build effective relationships with a remote team. Most companies focus on establish a strategic partnership with one vendor (not multiple vendors). It helps to avoid all the unpleasant situations and risks.


10. The rise of narrow specialization software companies


Nowadays, large outsourcing companies offer a full-cycle software development with a diverse team of skilled professionals. However, businesses are focused on outsourcing providers skilled to bring the maximum quality. 

That’s why they start looking for more specialized outsourcing development companies. More and more companies need experts specializing in a narrow sphere, which can bring maximum value into the project.


Final Thoughts


So, in summary, these days we’re facing a fast-growing tech environment and focus on quality, experience and relationship. To gain a competitive advantage in 2021 companies need to adapt quickly to current challenges.

Still, there are some challenges. One of which is the speed of innovation. The other one is working in different time zones. However, software development outsourcing provide success to organizations and build competitively lucrative solutions. 

The trends mentioned in this article that helped organizations to continue to choose and shape software development outsourcing in 2021.  

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Author: Svitlana DomanchukCopywriter

Опубліковано в категоріях: IT Articles

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