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Software Outsourcing Trends 2019

The future of software outsourcing is bright and it will have a great influence in reshaping the whole global industry. As the IT industries are turning more strategic, so are their needs for partnerships with outsourcing service providers increasing.

The benefits of outsourcing are plenty and in the fast paced innovations, the extent of what you can outsource is also increasing constantly. From healthcare to accounting and retail businesses, more and more organizations are now hiring reputed software outsourcing companies to get various tasks done by experts.

In today’s article, we will discuss some important points that will help us prepare our business for outsourcing partnership in 2019.

Latest Outsourcing Trends That You should Watch for:

Latest business models will bring a change the IT outsourcing market and it will become more competitive and collaborative at the same time. Clients will now look for outsourcing agencies who offer customer centricity and are experts in the latest technologies.

Reduced Focus on Driving Cost Reductions: The relationship that the software outsourcing agency and the client enjoys will be more process and people driven and less cost oriented. There is no doubt that the price reduction will remain as the core advantage of outsourcing, but it won’t act as a decisive factor while choosing a service provider. Clients, nowadays are focusing more on the value that is delivered rather than cutting the costs. IT outsourcing companies will now become system integrators and focus on delivering value added services.

Alternative IT Outsourcing Destinations: The highest share of global outsourcing revenue was generated in Europe, Africa, Middle East. Among these regions, China and India are leading outsourcing countries. But in the years to come, the countries of Eastern and Central Europe will offer a stiff competition and Poland, Romania, Ukraine will also become software outsourcing hub spots.

New Contract Models: Clients and IT service providers anticipate the use of new contract models, which will help IT outsourcing more interpersonal and value driven. According to the GSA Report, it states that new contracts will now be based on the outcomes instead of the outputs. Outsourcing service providers can now be contracted as service integrators and they will be sharing responsibilities and risks. Procurement will also become an important part of the contracting process.

Intelligent Automation of Business Processes: Automation is one of the core IT outsourcing trends that will bring in a revolution in the future. Using virtual bots and agents will help streamline routing tasks and huge investments will also be made in robotic process automation and AI.

The demand for professional data scientists, AI experts and big data analysts will increase. Shifting to automation models will also become a trend.

Outsourcing Tasks Beyond Core Business Services: Industry experts are hopeful that supplier and customer relationship will become trustworthy. This will change the outsourcing of core business operations to non-core services.
Clients will also look for partners who can help them handle financial and accounting tasks, recruitment processes, research services and etc. Modern organizations will now tap into the expertise to maintain streamlined operations and stay competitive. Outsourcing non-core activities will soon gain popularity among companies that want to stay ahead of the game.

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