400 CTO survey. Main pain points and issues of C-level managers.
During the past 10 years of experience in software development, we’ve seen and conversed with more than 400 CTO and C-level managers. We’ve received a thousand comments, concerns, compliments and appreciation. We’ve also addressed hundreds of issues and problems.
With this accumulation of knowledge, we’ve built this list of the main pain points and concerns CTO’s face.
We asked 400 CTO across all industries, including healthcare, fintech, automotive, energy, agriculture, manufacturing, media and entertainment, and education. Our survey presents significant insights into data and information for almost everybody involved in the information economy and reveals the main pain points, explains them and hopes to prevent other CTOs from making similar blunders.
Who is the typical CTO we work with?
The CTO, as “Big Brother” and “Idea Creator,” gauges how innovative technology could be applied inside the company to accelerate common efforts in:
1) facilitating new working methods and business courses;
2) increasing in income; and
3) outpacing competitors in the race for customers.
Afterward, the CTO is in charge of implementing and maintaining this technology often in the position of ‘Operations Manager.’ Therefore, the CTO must have a unique mix of industry and technological experiences with the purpose of effectively outlining the practical and methodological features of the company strategy, and later develop the IT system to perform its elements.
A CTO must deal with the organization’s present tech arrangements, fill in as the outward substance of the organization, know about new innovation, and work with different administrators on a financial limit for executing new arrangements and tackling issues. Notwithstanding these obligations, CTOs should contemplate the organization’s bearings, in general objectives and how innovation will factor into key business choices.
Why do CTO’s decide to outsource software development?
We asked our partners: “Why did you decide to outsource the software development process and how did you do it?”
Global IT investment was predicted to be almost $4 trillion in 2019, a rise of 1.1% from 2018, which was outlined in the most advanced estimate by Gartner. The decisions CTOs make regarding technology implementation and IT spendings are crucial to the profit of the digital business. Up-to-date rising technologies like artificial intelligence (AI), machine learning (ML) or cloud-based solutions will restructure market rules along with the economics of companies. Each year innovative companies invest more and more money in automated solutions, software development and the implementation of cutting-edge technologies. However, to implement new technology, most organizations require additional staff and resources. Here is where our CTOs started to think of outsources.
”Lack of local talents”
Almost 50% of our clients told us that it’s difficult to find experienced developers in their region.
“It’s more cost-effective ”
Around 30% of our clients said that outsourcing tech departments allow them to save up to 20% of their software development budget
“Less stress in terms of the controlling process”
Almost 10% of our clients consider the decrease in stress as a reason for outsourcing. They don’t go into routine processes, therefore, they minimize overall anxiety about the project and can manage the high-level tasks.
CTOs’ pain points regarding outsourcing:
There are many myths and fears about outsourcing tasks to another company. And even more about choosing the right partner.
Here are a few insights about the real fears of our partners:
1) Timezone Contrast
One of the biggest fears of anyone who is considering outsourcing is that the country is about 7 hours ahead of the U.S. For some people this is a critical point. However, Ukrainian engineers operate on projects almost an entire day ahead of their U.S. customers and this impact on the job is often positive. Even possible uncomfortable situations are minimized by great organization and teamwork. Here at KitRUM, we can arrange a call for any comfortable time, morning or evening.
2) Language Barrier
If you outsource services to another country you will unavoidably meet another significant problem: communication. Communication difficulties restrict essential feedback on different functions.
3) Lack of experience with IT outsourcing vendor
Knowing how things function is essential for the flourishing IT outsourcing process. When you pick an outsourcing firm, you have to establish explicit and consistent scopes and frames for the partner and your development department. It contains the idea of the project, the creation of steps, the time-to-market plan, along with the program for additional products’ support.
4) Legitimate issues
Intellectual property rights, accountability, information security, legal agreements – all these points can generate some difficulties in software outsourcing. Some of our partners were especially concerned about signing an outsourcing contract. It happens that sometimes the contracts don’t cover a time agreement, the organization of the selected workers, overtime protocol and so on. Depending on the partnership type you prefer (dedicated development team, fixed price, or hourly rates), the legal terms will differ.
5) The partnership isn’t adaptable
The world continues to evolve every day and yesterday’s business models might not work today. A dozen years ago, businesses could hire an outsourcing team and carry out a durable collaboration with an outsourcing partner with a standard invariable agreement. However, to survive now and win a great partnership you must be more flexible than your competitors. A lot of our partners were afraid of the narrow-mindedness and inflexibility of other outsourcing firms. It can be closely related to the incomprehension of entire business processes inside the client’s company.
What CTOs said:
“During our cooperation with KitRUM, I’ve never felt that I have to think or worry about any legal aspects. I knew every step they made and our lawyers checked every document they sent – it was clear and without fear. I haven’t faced any kind of corruption, and actually, I suppose it only takes place only on the government-level organization.”
The worldwide tendency said businesses prefer IT outsourcing to obtain skilled developers nearby, increase their engineering abilities, reach tech proficiency, or even accelerate the time-to-market. However, there are still some bottlenecks and doubts about the process and aspects of outsourcing. Many CTOs question the value outsourcing can bring and the issues it can produce.
To create this article we went through an opinion of C-level groups and included the most typical dilemmas of outsourcing and gave tips on how to answer them. We hope it will help you gain a high-level software development company, create strong long-term partnerships, and delegate control of the product development process.