The pandemic has proved to be a humanitarian challenge of unforeseen scale threatening people, businesses, and communities that are scurrying to secure their financial situation, supply chains, customers, and employees.
The impact of the current situation has been more intense on the worldwide demand for IT services and products, which includes outsourced software development, compared to the initial estimates. This has been a natural outcome as COVID-19 continues to loom large over countries like the USA, undoubtedly the biggest outsourcer of IT services and products in the world.
Not being bowed down by the difficult times, the IT outsourcing industry of the world is all set to rise above the negative impact of the pandemic to sustain its business.
Reasons for outsourcing software development to stand out
Reports suggest that nearly 45% businesses will be outsourcing over insourcing in the next eighteen months, due to the challenges of handling security risks that come with in-house IT management.As geographic dispersion is identified as one of the most efficient risk management approaches, software development outsourcing can be helpful in letting businesses build resilience and ensure quality against disruptions, like pandemics and natural disasters.
A well-distributed services model and appointing offshore teams from the regions still comparatively safe from the impact of the virus can help companies in diffusing enterprise risks.Conventionally, outsourcing has always been a value-driven and cost-driven vertical, which will continue to be the same even in a post-pandemic world.
The simple math here is that the average rates for appointing a senior level software developer in America, is more than hiring someone with the same skills and experience in Asia. The rates of an offshore Software Development Company in countries like India are much lower than the average price quoted by any IT vendor in Eastern Europe.
The continued economic slump caused by the pandemic made the businesses adopt strict budget cuts, which left no scope for any kind of discretionary spending. It highlights the demand for resilient and flexible business models. Businesses are now more focused on the core business initiatives due to the outsourcing of software projects. But, in a world clearly marked by the pandemic, the view on outsourcing companies would go from being just hired developers to crucial strategic partners that are indispensable in enhancing brand reputation and growing the business.
We are living at a time when product quality has superseded cost reduction as the main driving force for the companies involved in making decisions about outsourcing. The outsourcers are more interested in improving customer experience and enhancing cybersecurity, in terms of outsourcing their software development.
Having an offshore company working for you takes away the burden from your in-house team to spend more time on support and maintenance. Your remote team provides software support, like timely updates and bug fixes, which leads to considerable downtime reduction and mitigation of revenue losses.
Addressing the common misconception about outsourcing
The most common myth about outsourcing is that it’s more useful for mega enterprises compared to startups and SMEs. This can be a dangerous notion to hold on to in the current scenario of the pandemic. After all, SMEs and startups getting into outsourcing can gain from the incubation without shouldering the hefty costs of relocating entire teams.
In the present time, maintaining the steady flow of cash is important for a business’ survival. Thus, it is high time for the SMEs and startups to take into account the long-term financial feasibility of outsourcing.
A spike in outsourcing software development in the post-pandemic world
Adopting large scale cybersecurity solutions, cooperative applications, AI, and big data after the pandemic outbreak has given the outsourcing vendors an opportunity to experiment with innovative concepts in software development.
The pandemic has increased cloud adoption as the businesses are trying to support the remote workforce they have. Recent reports suggest that the cloud market is slated to go from $233 billion in the year 2019 to over $295 billion by the year 2021, with a CAGR of 12.5%.
The increased demand for cloud services also comes from the increase in the adoption of ecommerce, OTT streaming apps, and digital payments during this time. Cybersecurity threats are also looming large as more people have resorted to remote work, which pushes the demand for better cybersecurity solutions.
The pandemic has also led to a rise in the demands for digital healthcare services, like telemedicine, after the imposition of the lockdown for managing the outbreak as the asymptomatic carriers might be driving the transmission.
Cloud-based telemedicine services that came up as the protective shield for the healthcare workers during this time, will continue to be relevant in a post-pandemic world.
IT vendors also need to be careful about the emerging AI trends for disease prevention and detection for staying relevant by testing solutions for disease and drug information, clinical trials, social program management, and so on. In the current software landscape brought in by the pandemic, IoT (Internet of Things) can go ahead and become the leading tech for organizations to gather insights about the customers and the way they engage with the products or services.
Experts also suggest that blockchain will find its way into the regular business process, and the global spending on this decentralized public ledger will exceed in the coming years. This trend is evident already thanks to the adoption of blockchain at a massive scale by top names in the business, such as IBM, Microsoft, and Facebook.
A glimpse at the post-pandemic world
It might look seem a long journey to reach the goal of economic recovery, but a consistent rise in software outsourcing businesses looks certain in the times to come, mainly from the US, because of the factors like:
- Disruptions in the local IT industries
- Slump in recruitments
- Technology-talent gap
- Cash flow challenges
So, the fact is that after this short season of slowdown, the global economy will rebound to its pre-pandemic activity level for driving the demand for outsourced IT services from Asian countries.
The exact impact of the pandemic will be evident in the coming months. However, the people helming the affairs in the outsourcing industry worldwide need to take on a proactive role to find the opportunity amid this adversity.
Finding the right outsourcing partner for your business
Offering superior levels of services to the clients in remote working environment has to become a mindset and not a contingency plan. Developing innovative and unique tech solutions through outsourcing is the need to the hour for the businesses to navigate through these turbulent times.
It is important to rely on an outsourcing partner that has certified developers to offer unwavering support for diversifying the business risks to reduce coronavirus business impact.While the hurdles will always be around in some or other form, an experienced company will focus on the bigger picture and make sure of the complete restoration and recovery of the business.
There is no denying the fact that outsourcing software development is going to be critical in mitigating the business and human impacts of COVID-19. All you need is a reliable outsourcing partner that constantly monitors the reports from local agencies and health offices to alleviate any imminent threat to your business due to coronavirus.