Keeping in mind the exponential growth rate of organizations outsourcing workload to offshore development teams, below is a list of some offshoring trends to watch out for in future:
New Offshore locations
The world’s most offshoring destination in India. According to a recent market survey, approximately eighty per cent of the world’s top five hundred reputable companies has outsourced their workload and operations to offshore teams. Therefore, to meet this growing demand, new offshore locations like Latin America and Asian countries like the Philippines are emerging. They are already catching up with their BPO services, but India remains a leader in recruiting offshore software development teams due to its flexible cost, a wide range of IT policies, high-grade services and top quality technical knowledge.
Enhanced Data Security
Data Security is one of the main concerns among businesses that recruit offshore development. It is evident that outsourcing does open up a risk of data theft since the protection of intellectual property is not guaranteed, which may lead to the compromise of the client’s trade secrets. With the advancement in the World Wide Web, security risks for businesses have increased even more. However, dependency on outsourced development is increasing day by day, and the clients and vendors are mutually coming to security solutions to address such concerns as soon as possible.
Cloud Computing Technology
One of the most common reasons to move into the cloud is the ability to reduce costs. However, it’s essential to be able to optimise, spend and pay only for what you need and when you need it. When you optimise costs, you can help your organisation get the most of your investments; helping need demand and capacity while using the most economically productive options. The public Cloud gives the agility, flexibility, efficiency and ability on the market without expensive physical infrastructure. However, it is humanly impossible to continually match the application’s ever-changing resource demands with the best supply among millions of product alternatives; many of which are being improved daily.
Enhanced usage of collaborative tools
Since the boom in the offshore development industry, a collaboration tool is now being considered as the link between the vendor and the client teams. App developers are attentive towards communication and collaboration tools, even more, these days. Miscommunication, disruptive time management, and unnecessary cost have mainly reduced. Some collaboration tools that help in building a robust offshore team are Trello, Jira and Yammer.
Increasing demand for innovative skills
As the world is fast progressing into the global scenario, offshore development is emerging as the new age international rule of business. What was once considered as a move by organizations to cut down on operation costs is now seen as an investment to progress the quality of operations and move in the pace of the market with high scalability and flexibility in services. This radical shift in perception is due to several reasons. The main reason for offshoring is the lower operational and labour cost that leads to a positive impact on the company’s revenue. Not only does a proper offshore development project mean a considerably good saving to the client’s business, but it also allows the company to focus on its core competency.
Emerging Technologies like blockchain are helping to drive this new wave of FinTech feature innovation. Start-ups and incumbents alike are exploring how these new technologies can help to provide better products and services while increasing efficiency. However, against this, companies also have to balance data privacy and cybersecurity that have mishandled and undermined customer trust and resulted in significant regulatory sanctions.
The long- term vision
In the new globalized business situation, statistical figures show that more than half of Fortune 500 businesses rely on offshore outsourcing as their business strategy. The advantages of specific outsourcing characteristics of the client’s load to certain financial parts of the world are many. They are better able to give undivided devotion to the client’s core specifications in the areas of Information Technology, such as the improvement of new software.
Offshore outsourcing does not pose any hindrance to the daily work transactions between the client and overseas vendors because IT uses language and skills that go beyond national and cultural barriers. The client’s time and money spent on developing bespoke software lead to outsourcing the workload to the cheapest vendor a top priority.
Respect the team’s expertise
The offshore development industry has earned respect and is considered as the epitome of innovation, one which focuses on delivering solutions that offer returns on investment and does not typically focus on cost reduction. Other reasons worth mentioning are that offshoring helps in space management, scalability and risk management.
Establish consistent processes
This type of in-depth predictive analysis of workload patterns gives companies the insight they require to optimally leverage their offshore development services while reducing operational risk and costs. Companies are recommended to modernize their outsourcing approach by moving to newer offerings from offshore development vendors.
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