Software outsourcing is on the rise. According a report by Computer Economics called IT Outsourcing Statistics 2017/2018, large organizations have increased the share of their IT budgets spent on outsourcing from 6.3 % to 8.7 % and medium-sized companies from 4.7 % to 6.5 % in the last year.
This trend of increase will continue in 2018 especially for some specific industries. Let’s take a look at some rising software outsourcing trends for this year.
As to the Computer Economics report, 37 % of the companies which has already outsourced some of their application development needs plan to increase the amount of work they outsource in 2018. This is not surprising when we think of the year-by-year increase in application download numbers and application use rates.
Machine Learning is a hot topic just like the more general concept, Artificial Intelligence. It has a huge potential across so many different industries like health and finance. This potential is the reason why companies are investing so much to this field. Because it is a new and innovative technology, the cost of the technology to produce AI-based products is also high and that is why organizations are expected to consider outsourcing options in this area more and more with the time.
According to the IT outsourcing report by Computer Economics, 47 % of the respondents to the survey said they plan to increase the amount of work they outsource in this area. Because security risks are growing, spending on cybersecurity products and services are on the rise as companies look for the ways to respond the threats. Using the right expertise in this area by outsourcing is one of those major ways or responding.
According to a study conducted by Deloitte, HR outsourcing of the organizations are increased from 22% in 2014 to 32% in 2016. Outsourcing HR tasks is important for companies because it helps them reduce costs and reallocate internal resources to more substantial tasks. And with the rise of the online HR solutions, companies will likely outsource not only HR tasks but also the development of digital HR platforms and tools.
Internet of Things (IoT)
As the world goes more connected with the increase in the number and use of smart devices, the IoT industry is booming. According to IDC, the global spending on IoT through all industries was $737 billion in 2016 and it is predicted that this number will grow to $1.29 trillion by 2020. When we take a look at the survey of 500 executives by Inmarsat, we see that 46% of them identify a deficit of staff with experience in analytics and data science. This is the main reason why companies will look to outsource IoT projects to developers with experience and know-how.
Businesses are relying more and more on cloud computing to accomplish most of their diverse business goals. It is foreseen that cloud demand will comprise 60% of IT market growth through 2020. This puts issues related with cloud among major IT outsourcing trends. It becomes more and more critical to choose an outsourcing partner who can meet your particular cloud needs.
Risk assessment, forecasting future events, personalizing customer experience are all among the reasons why big data becomes an essential part of the businesses. That is why, organizations are turning to outsourcing solutions more and more to benefit from big data. This gives them the capability to make the most of their data to support their digital strategies without laying entirely on internal resources.