The State of Outsourcing Software Development in 2019


The future of software development outsourcing will continue to increase and expand. More companies are preferring to outsource their software development needs to professional providers. What IT outsourcing trends will come in 2020 and which countries should your business choose to benefit the most next year? 

Read on to find out more about the state of software development now and the future of IT outsourcing.

By reference to the above images,  we can see that almost 70% of tech companies already try to outsource now. And, almost 80% decided to choose software development companies for this purpose. 

The NOA surveyed 134 companies (buyers, service providers, and maintenance companies), asking them to give their viewpoints and ideas on forthcoming trends and technologies.

According to NOA, 83% of service providers expect the outsourcing industry to grow, and 70% of buyers plan to increase their use of outsourcing. 

There are plenty of common causes why companies outsource, including improving operational flexibility, gaining way to new skills and, for sure, decreasing expenses.

Let’s have a closer look at our top 5 reasons for considering outsourcing:

Rate Decrease (or Better Cost-Control) is Always the First and Foremost Aim for 63% of Respondents
The cost gap between American countries and outsourcing areas is still huge. Presently, outsourcing software development in Ukraine, Poland or Mexico can save you about 30–40% of the price of local employment. Let’s see the numbers: 

New Tech Skills and Technical Talents

Outsourcing can give you access to the IT expertise and skills that are unreachable inside the local team. For example, Ukraine has almost its entire focus education. 83% of citizens have graduated from higher education institutions, and 57% of IT specialists have obtained STEM (science, technology, engineering, math) degrees. The country is full of tech talent that is waiting to help you with your projects.

Faster Project Development
If you have no time to establish and run a team of software developers, however, you still have “IRONS IN THE FIRE.” You can utilize outsourcing as a method of project development for part or all tasks to quicken the development process.

Use a Remote Partnership
Outsourcing is now shifting to a partnership based method. It means that customers need engineers and remote companions with deep knowledge in managing multiple IT jobs. So, such a service is more than picking someone who will foolishly create the code. Outsourcing team may be treated as a remote “mind” with a capacity to offer excellent tech solutions. This partnership is created with the possibility to align this cooperation with the business’s lifestyle and values. 

Service Improvements and other Value-Adding Benefits

Finally, the biggest trend in 2020 will be outsourcing less for cutting costs or saving time. The connections between a company and a software development provider will be more process inspired and less cost-oriented. It will all be about adding value benefits and creating relationships.

Conclusion 

With the bulk of customers’ intent on improving the range of outsourcing.  business regarding outsourcing is increasing. More companies are being driven to outsource, with goals of a  “manage client-first” approach and to increase modern tech skills, rather than only to decrease expenses. 

A different outsourcing environment is coming, where the future relates to the best client-oriented providers who know what their customers need and will use the freshest technology to implement it.

So if you’re creating a magnificent product as well but winning skilled software developers became a challenge, KitRUM helps you. Since 2016, We’ve been leading the efforts of 300 developers across a variety of software engineering teams distributed across Ukraine, Poland, and sunny Florida. Contact us now to discuss your ideas.