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The Changes of Software Outsourcing Methodologies in 2022

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Introduction

In this fast-paced world, the concept of outsourcing has today become very useful, evolving from being old and weary to new and fresh. At first, small tasks came to outsourcing companies from some particular countries as they offered cost benefits but today it has become the norm to succeed through cost-saving and out-of-the-box services. Outsourcing software development can give your business many benefits. However, the ongoing covid pandemic has turned the world upside down. Each and every sector has been taken aback by this sudden outburst of coronavirus. Businesses at large were not ready for it. According to research by McKinsey, strong steps are needed to adopt digital technologies at an early stage and to have the maximum reach, combined with the heavy allocation of resources against digital initiatives in order to create value. Everything has gone digital and businesses that are still not embracing digitalization may cease to exist. In order to meet the needs of a growing IT industry, companies will need to look for global solutions and find technology partners that are highly skilled, experienced, and cost-effective.

Impact of Covid on the Software Outsourcing Industry

The pandemic wreaked havoc on each and every industry possible including the IT sector. The majority of the businesses restricted their spending and put the development of software on hold. According to Gartner worldwide, IT spending declined by 7.3% in 2020. However, with the vaccine roll out things are slowly but surely getting back to normal. 

One positive to come out of this situation for companies’ world over is that they have realized the importance of digital transformation. There are going to be changed in software outsourcing methodologies moving forward. The focus of software outsourcing is going to be on cybersecurity and extensive development (as well as usage) of cloud facilities. They are sure to stay dominant in all IT outsourcing statistics 2022 will yield. 

Software Outsourcing Methodologies That Are Going to be in Demand

For a lot of sectors and businesses, online channels have become the main source of the customer-engagement model, and automated processes have become a primary driver of productivity—and the basis of flexible, transparent, and stable supply chains. Companies around the world have been resisting the concept of a distributed workforce, but now the COVID-19 situation has changed a lot of things, very rapidly. This is an opportune time for businesses to reassess their digital initiatives whether the solutions offered by them provide near-term help to employees, customers, and the stakeholders and how is their business positioned for a post-crisis world. In order to achieve all this, some of the custom software outsourcing methods focus on: 

  • AI-Assisted software development: It is a common practice that software development companies are adding this capability to increase development speed and easiness. Using AI for software development and for business growth is now a competitive differentiator. It can speed up an outcome, allow more informed decision-making, as well as provide more relevant and meaningful customer experiences.
  • Security-focused software: Companies are taking utmost care that their professional activity is safe from both internal and external threats employing software that can ensure the security of their infrastructure, software, and data (both on-premises and in the cloud).
  • Strong focus on collaboration and delivery: Software outsourcing and development teams can automate implementing and evaluating change as the software development evolves. Thus, helping them to speed up the flow of technological improvements to build environments and intensify the feedback loops in the distribution pipeline of the implementation stage. As a result, in the creation stage itself, they notice problems early and act upon issues rapidly.
  • Swift prototyping, innovation, and implementation: Many organizations have increased focus on having customized low-code platforms and prototyping tools to facilitate more innovation. These technologies turn concepts rapidly into prototypes, minimum viable products (MVPs), and even entire applications. 
  • Customized designs: Customised solutions are specially designed for the particular needs and bespoke requirements of a company. The approach helps you get exactly what you want from your software project. Custom software designing and development for a small-midsized business is turning into a great option. Tailor-made solutions scale and adapt as per your project’s progress.

Conclusion

The contribution of an outsourced software development company to business performance is on a dynamic rise, causing a fundamental shift in how businesses operate. Given the across-the-board drive for long-term cooperation with outsourced agencies, outsourcers have grown out of their previous habit of buying commercial-off-the-shelf software. Instead, they are increasingly looking for custom software to help with their business needs as required. Moreover, these companies are ready to try software outsourcing allowing for a fair share of decision-making responsibilities, engagement in strategic planning, risk prevention, system architecture design, which effectively turns outsourcers into virtual employees on a regular payroll.

Bespoke software solutions are becoming popular and so is software outsourcing. All this is designed for the particular needs and requirements of a company. Designing custom software as per your business requirement helps you get exactly what you want from your software project. So, in case you want to get a unique product, choosing custom software development for a small-midsized business will be a great option. Tailor-made solutions can be scaled and adapted to your project’s progress. Companies that are outsourcing software development must be ready to take any of these steps on short notice and restructure their workflow as circumstances demand.

The way forward will definitely depend on lessons learned during the corona crisis. Software Outsourcing will be a key strategy to develop critical factors for future-proof business models.

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About Author

Thanh (Bruce) Pham

  • CEO
  • Saigon Technology Solutions
  • https://saigontechnology.com
  • Email: [email protected]
  • A Member of Forbes Technology Council 
  • Mobile: (+84) 913 666 227 
  • Skype: tienthanh.pham (Thanh Bruce Pham).