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The State of Outsourcing Software Development

July 2nd, 2019

The future of outsourcing software development 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.

Some Statistic About Outsourcing First:

State of outsourcing for 2019
State of outsourcing for 2019

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. 

prediction about outsourcing

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

The Top 5 Reasons for Considering Software Development 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.

What are the Best Locations to Hire Remote Developers?

The rise in the number of online businesses today has increased the demand for talented developers.

Although there are thousands of software developers available for hire, getting a high-quality developer can be quite time consuming, costly, and challenging. Amongst the massive sea of developers for hire, there are unfortunately some who are under-qualified, inexperienced, or unable to handle the demands of a top-performing company. It is not all doom and gloom though — you just need to figure out how to find the good ones. As it turns out,  where you are hiring from also affects the quality of developers you get.

Outsourcing for IT talent can be ideal for some businesses, as it allows them to get high-quality web developers at a more affordable cost.

There are a few countries in the world where you can hire remote developers, and smart companies are starting to realize this.

You will find a large number of excellent outsourcing services in Eastern Europe. China and India are two of the cheapest locations for IT outsourcing. Ukraine is one of the leading countries for IT outsourcing and is one of the top choices for organizations seeking professionals to help with software development. Other locations include Poland, Bulgaria, Hungary, and Romania.

Let’s look at Ukraine as a location for outsourcing software development.

Ukraine is one of the best locations for IT outsourcing services. Companies like Bosh, Skype, and eBay have already realized the potential of this place. The largest country in Europe, it is easy to move from the county to many other European countries, and the population that is over 40 million gives the country the potential of a large labor market.

According to the EBA report, it is expected that the IT enterprise industry will increase in value from $2.5 billion to about $10 billion by 2020. Ukraine has over 1,500 outsourcing companies for IT services and over 10 research and development centers for companies like Cisco, NetCracker, Samsung, Magento, and Siemens.

Kharkiv and Kyiv are two of the most significant cities in this Eastern European country when it comes to outsourcing IT services.

IT potential in Kharkiv

The large IT talent pool in this country is another reason why it is a leading destination for hiring software developers. Kharkiv, which is the central academic hub of the country, has some of the top IT schools that can be found in Eastern Europe. It is the second-largest city in the country with a robust technological infrastructure.

The city has over 20,000 software development specialists, and companies like Gameloft, Huawei, Oracle, and many more have made this city their home-base.

IT potential in Kyiv

When it comes to the talent pool of software developers, Ukraine is a force to be reckoned with. Today, it ranks 4th in the world for its number of IT professionals.

Kyiv is the capital, and it contains the highest number of them — about 40,000. This large number of IT professionals makes the city one of the top destinations for organizations looking for software outsourcing companies. Many of the city’s IT experts traveled for schooled or have experience working abroad, which is another reason many companies find it easy to establish relationships with these them.

Ukraine is an excellent choice for any business looking to outsource their IT and software development needs.
Although it can seem more expensive when compared to other options around the globe, the quality and high rate of success far surpass any cost discrepancies. Therefore, if you are looking to hire remote developers, you should consider Kharkiv and Kyiv in Ukraine, which are two of the best IT locations in the world.

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 2014, 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