It is expected that 2017 will be no exception when it comes to keeping the exponential growth rate experienced in recent years. Keep reading to find out the coming new trends.
2017 has just begun and the outsourcing trends in IT market are still getting on the table. As last year revealed Deloitte in the Global Outsourcing Survey, “the market for outsourced services will likely continue its rapid adaption to meet—and in many cases to anticipate—the demands of the customer”.
Are you aware that outsourcing is becoming a major pathway to promote innovation and productivity in your company? Do you want to know what will this year bring in terms of outsourced services? These are some outsourcing trends to look for in 2017.
1. More and more technological improvements
Outsourcing is the ideal option for many companies to develop and increase their competitive advantages while minimizing operational costs. That is why companies that look for an outsourcing partner put much of their focus on how updated they are in latest technologies, languages, frameworks, etc. (Do not miss: How do you select your technological partner? Key points to make the right decision).
Besides that, this year the main focus will be the centralization of IT solutions. Instead of having several IT providers, companies will ask more solutions (in one place) and a bigger offer from their software development partners.
Standardization, lowering cost and increasing of quality and productivity will put nearshore and offshore companies to the test. (Read more: Is Argentina an attractive hub for American companies?).
2. Innovative services: Value more than cost
Outsourced services are an effective alternative to respond the globalization and the business world’s velocity. And according to the market’s evolution one of the outsourcing trends is that companies will be investing to offer innovative services.
Currently, clients expect innovative services from their service providers, they need to be sure their tech partners are equipped and have wide knowledge not only in the technologies but in different industries so they are capable to respond their particular needs. In brief, they prefer added value over low cost. (Check this out: 5 Keys to understand why to hire a generalist software company).
They are likely to consider how providers help them to take their businesses to a higher level through innovation.
3. A mature Cloud computing… Going towards Hybrid Cloud
Increasingly, companies are leaving behind the use of desktop application or web applications hosted on premises in favor of hosting their solutions in a cloud based platform.
The Cloud computing market will mature in 2017 as customers are becoming more knowledgeable and demanding for fast access to the information whenever and wherever. This is so important that industry experts estimate that by 2018, at least 50% of IT service providers will utilize cloud-based technology.
Companies are demanding more value from Cloud service providers to drive transformation and innovation within their business. “According to that, and talking about outsourcing trends, one of the most significant is the Hybrid Cloud, an integrated cloud service that uses both private (corporate) and public cloud solutions that work together in order to adapt the enterprises’ needs. This is a way for companies to maximize their efficiency by taking advantage of each model: the security offered by the private cloud and the scalability from the public one”, says Rodrigo Alfonso, manager at Hexacta.
4. The biggest concern: Security
Data security continues to be a major concern for companies and is expected to increase in importance. This year, the trends are set in advanced security automation, threat intelligence and security analytics solutions.
Providers will take more of a lead role in protecting the enterprise through security offerings and they have to show their clients there are able to comply with policies, methodologies and technologies used to protect data… In other words, “software providers must continue looking for stronger solutions, not only to respond to potential weak points in their developments, but to ensure they are properly tackling the new challenges”, says Alfonso.
“The risks will increase even more this year if we have in mind the ubiquity of telematics and the Internet of Things (IoT). The development and evolution of technology brings with it many threats and new vulnerabilities. Building robust security solutions and paying closer attention to data policies and protective tools will definitely be a great challenge for software and IT providers”, concludes the Manager.
5. Machine Learning, an outsourcing trend that goes up
Machine learning will take a place in the forefront of the outsourcing process giving its advantages such as direct cost reduction, speed and the improvement of operating processes. (This might be interesting: Would your company be ready for Machine Learning?).
Even though many outsourcing solutions can be handled by automation, there are others that cannot be managed this way. That is why Machine Learning gets into the scene to work in a more efficient and productive way.
6. An industry that shouts out efficiency and agility
Taking into account the evolution and changes of the outsourcing industry, the sector is moving towards offering more efficient services aided by the automation of processes and new technologies.
The focus will stay then on increasing scalability and the development of platforms or solutions that can be reusable to deliver efficient tech support and that enable the seamless addition of new features.
Agile methodologies will definitely have a big impact to make this possible. Remember what one of our managers, Juan Emilio Inzaurraga, said in his article ‘Communication in agile software development… Does it matter?’ about being agile and how this impacts on the development: “(…) in agile methodologies, client and development team work more closely together, making the feedback cycle faster and ensuring the development meets the client’s expectations. The daily, planning, review and retrospective meetings allow us to be synchronized with the client to achieve the goals”.
Efficiency and agility are two words that the industry will speak out loudly this year.
7. Agreements oriented to client’s requirements
If we talk about outsourcing trends, one that definitely climbs the top is the Time and Materials engagement model where the agreement is made according to the client’s needs. (Read as well: Fixed price or time and materials contract: in pursuit of the ideal contract).
Enterprises are looking for software development companies that offer contracts framed with legal and commercial conditions that drive to more scalable projects and that allows them to fit their own needs and expectations. (Check this out: Custom software development: Why to choose it instead of off-the-shelf solutions?).
8. Virtual work
Telecommuting is certainly a trend that has come to stay, working remotely with outsourcing providers takes advantage of this tendency, recognizing that any modern service oriented company has come to experience and accept this new model.
The possibility to do real-time monitoring and daily meetings, among other agile practices, makes integrating seamlessly with an outsourced team quite possible, while aiding in providing low workforce costs and improvements to your company’s internal processes.
TO SUM UP
The ecosystem of outsourcing is constantly changing, there is no doubt about it. Factors of a legal, economic and the nature of the markets make outsourcing service providers aware of the need to face significant challenges in order to stay alive.
Only those who understand and react to such changes and keep working to stay abreast of the outsourcing trends, will continue to have a share.
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