In 2019, the IT outsourcing industry was worth 92.5 billion U.S. dollars, which is 7 billion more than the year before that. The market is growing at an unbelievable rate, penetrating new industries and pushing digitalization trends. Numbers can tell us a lot about current and future IT outsourcing trends 2020 – and Syndicode’s experience confirms the tendencies.
This year, businesses will focus on implementing new technologies to connect with end-users and optimize internal processes. Software outsourcing provides skills, lacking in in-house specialists and allows focusing on higher-priority tasks. Our outsourcing forecast is based on our actual experience – and of course, we threw some numbers into the mix.
What are future trends in IT outsourcing?
Numbers can tell us a lot about current and future possibilities of the market, giving business owners valuable insights for their investment planning. Let’s take a look at the future outsourcing trends and technologies that will be most actively outsourced over the year. We promise, it’s not another theoretical “IT Outsourcing Trends 2020” report with far-fetched innovations, but a deep outlook of experienced developers – yes, with cases ahead.
Innovations in the online shopping experience
By 2021, more than 2.14 billion people will be buying products and services online. E-commerce possibilities are booming right now, but this spike of interest will drive new brands to the market. Small businesses and large corporations alike will increase their efforts in digitalization; users will become more experienced and develop new expectations.
This will create a need for drastic improvements in the online shopping experience. The most likely candidate for distribution of the field is AI and Machine Learning. Brands will use smart tools to gather insights about their target audience, predict users’ actions and needs, and reach out to potential customers on social media.
The takeaway: businesses should focus on developing AI-based chatbots, analytical platforms, and adopting AI into their CRMs and ERPs. The IT outsourcing industry grants business owners access to rare tech stacks and internationally recognized skills in development, often unavailable in-house.
70% of employees believe that automation provides them with opportunities to focus on more fulfilling and creative work. Substituting manual work with algorithms and robotics is no longer regarded as a threat but as a possibility.
In 2020, businesses will be turning to outsource companies to develop custom CRP, ERPs, productivity tracking tools, and team management platforms, as well as integrate existing solutions. We can tell because Syndicode’s team developed a lot of automation tools over the last few years. Our team worked on Shipwise, the platform for order management and delivery, UkraVit — a custom CRM for a global provider of agricultural services, and LessAccouting, a web service that automates financial operations.
The takeaway: using software outsourcing to power automation helps businesses to reduce the number of human errors, increase operational efficiency, track the outcomes, and eliminate redundant work.
71% of enterprises are already using Agile for their business management, software development, and everyday operations. Businesses recognized the value of flexible project management and strive to use these practices in software development as well. Naturally, companies will be looking for experienced Agile software development teams that have well-established Agile practices and are ready to share this expertise with clients.
This could be one of our favorite business process outsourcing trends 2020. Why? At Syndicode, we’ve been focused on implementing Agile practices in our custom software development for a while. Our teams are small and flexible, we focus on business priorities before defining functional requirements. Each project is released in multiple interactions with feedback collection after each update. Our developers and testers happily share Agile management practices with clients, so that businesses can sustain these methods on their own.
The takeaway: Agile development will be among leading business process outsourcing trends 2020. Business owners should focus on partnering development teams that have experience in building Agile processes from scratch and share their organizational and management systems.
The worldwide mobile population amounted to 4 billion people in April 2019. Between 2017 and 2022, the rates of mobile users are predicted to increase 17 times. Mobile users now account for more than half of all online traffic, and, likely, desktop traffic might soon be the minority.
Companies will gradually abandon the desktop-first approach and start their digitalization by developing a mobile app, making a web version later on. Applications like Uber or Snapchat already betted on mobile solutions, developing web versions after the solutions were well-scaled. Syndicode mobile developers fully confirm these future outsourcing trends — we often start the product by developing a mobile client, prioritizing smartphones over desktop devices.
The takeaway: businesses can no longer be competitive without responsive mobile versions of their website and apps. Users expect to see no differences between their desktop and mobile experiences. If you don’t have a responsive mobile app or web interface, it’s time to turn to an outsourcing partner who can get you up to speed with outsourcing industry trends.
The big data market is predicted to grow up to 274.3 billion U.S. dollars in 2022. It’s one of the fastest-growing technologies right now, used in multiple industries, from healthcare to entertainment.
The adoption of big data technology allows businesses to collect, store, and analyze big masses on the information. This data is used to create smart insights on users’ behavior, interests, market trends, and is used for marketing, software development, interface design, and interactions with customers.
The takeaway: big data can track online and offline information by analyzing online interactions and measuring changes in the physical environment with connected sensors. This is why big data is among future outsourcing trends in many industries, from agriculture to e-commerce. Usually, it’s achieved in the partnership with software outsourcing teams, since in-house teams lack knowledge of big data development.
Internet of Things
In 2020, there will be more than 20.4 billion connected devices worldwide, according to Gartner. IoT is used to connect many processes and workflow simultaneously so that organizations and individuals can keep track of their productivity, track workload, and accomplish routine tasks. Smart assistants like Alexa and Siri already demonstrated the global impact of the market of connected devices on daily lives.
IoT technologies can be used by businesses to reach out to end customers via their mobile and desktop devices; also, they can optimize inner processes by connecting monitoring devices and automation tools. Syndicode’s IoT developers built a tool that connected cash registers to a digital platform. Store’s business owners and teams receive real-time updates on their cash flow, track their revenues, and manage prices.
The takeaway: business owners should focus on employing software development teams with IoT, big data, and Cloud expertise. Combining these technologies with outsourcing industry trends will improve the customer experience and improve the company’s efficiency.
In 2020, 83% of all organizations’ workloads will be performed in the Cloud. This means companies will be either using third-party computing services like Amazon Web Services or Microsoft Azure or develop their private Clouds. Cloud services will be used for data storage, software development, business management, monitoring, and automation. Now, the technology disrupts multiple business areas, from software testing to accounting, and penetrates dozens of industries.
Syndicode team alone developed multiple software-as-as-service projects that use Cloud computing for data storage, transfer, and processing. One of many examples is Hotel Cloud — a web B2B platform for hotel managers and apartment owners, also adapted to iOS and Android. Business managers receive access to a powerful CRM that keeps track of their revenues, interactions with clients, and business growth. The software also acts as a marketplace, connecting guests to accommodation providers.
The takeaway: Cloud development will be used to develop software-as-a-service, a prominent business model that allows delivering digital tools as services, continuously. Companies receive profit not from a one-time purchase but every month. Additionally, businesses will turn to software development companies to implement Cloud computing to run internal operations, such as automation, data management, software development, and deployment, etc.
Syndicode team on IT Outsourcing Trends 2020
In 2020, businesses will use software outsourcing to adopt innovative technologies and get access to tech stacks that aren’t available in the in-house team. Offshore teams will work on high-priority projects, not just assisting with mundane maintenance and refactoring.
So, what are future trends in outsourcing?
Our outsourcing forecast is that outsourcing teams will be seen not only as reliable assistants but experts with internationally recognized expertise. At Syndicode, we can confirm that business owners now turn to us, first and foremost, for expert services and high-end development skills. Companies trust offshore developers to work on long-term expensive projects, striving to introduce innovations to their market.
If you have a concept for marketplace development, a web platform, or mobile application, and need the team of expert software developers and testers for the execution, you can get in touch with Syndicode developers right away. We will take a look at your request and offer a combination of technology and skills that fits your business objectives.