IT outsourcing keeps on growing its popularity, bringing fundamental changes to businesses worldwide. According to the Gartner report, worldwide IT spending with a total of $3.8 trillion in 2019 is only expected to increase in 2020. At the same time, Statista estimated the revenue of the global outsourcing industry to be $92.5 billion dollars in 2019, as well as predicting the rapid rise in 2020.
These figures are the embodiment of limitless emerging technologies potential. Following all the latest innovations, the majority of businesses have already embraced the inevitability of digital transformation. Having this in mind, ventures of all sizes are keeping an eye on prevalent software development outsourcing trends.
Outsourcing is shaping the global market, revolutionizing the way companies perceive their development, and bringing unrivaled opportunities to seize. That is why we have singled out ten trends in outsourcing software development in the unprecedented times of 2020. So get ready for all the hype your company can benefit from.
Software Development Outsourcing Trends: What To Expect In 2020
- The Rise of Narrowly Specialized Boutique Software Companies
The opinions may differ: some say they’d prefer dealing with one outsourcing company. Others claim they enjoy the advantages of multiple vendors. Still, the facts show that more and more businesses find themselves in need of narrow specialization companies. The reason behind this trend is the fast-evolving tech area. It is impossible to have an in-house team able to keep up with all the innovation appearing every day and thus possessing all the needed skills. Companies are looking for outsourcing providers skilled to bring the maximum quality, and the necessity to collaborate with more than just one vendor isn’t a problem, as long as the desired results will be achieved. However, if a large outsourcing company offers a full-cycle software development with a diverse team of skilled professionals, it will as well have a severe advantage being a great vendor to create strong transparent relationships.
- Customers Will Crave Enhanced Experience with AI and IoT
Online shopping has long penetrated our daily lives. In addition to that, with the COVID-19 outbreak, it has become the new normal according to Forbes, and even the age category of 65+ are saying they are likely to buy more online than offline. The rising demand for online buying experience causes companies to invest more in enhanced User Experience (UX). Customers are likely to spend 140% more having a positive experience. The solutions with AI and IoT capabilities will enhance e-commerce by offering a more personalized customer journey. AI-Powered Chatbots are already substituting human interactions when providing clients with needed guidance and advice. The recent Gartner report claims that 85% of clients will be ordering items or services with no human contact. 80% of customers prefer companies with personalized client experience to those that don’t offer it. IoT will be one of the means of improving customer satisfaction by providing real-time data, gathering statistics to personalize communication, and detecting problems with equipment.