(P) Evolution from software outsourcing to IT partnership
IT services outsourcing has become popular since companies realized they lacked high-end developers in their talent pool or had spent too much to keep experts in-house. Hiring external professionals or a whole IT team is the best choice if a company needs to engage additional competencies in projects.
“Do what you do best and outsource the rest”. We may all recognize this famous business tagline from the 1990s coined by management consultant Peter Drucker. 30 years later, the slogan still applies as outsourcing IT services is essential for professional and forward-thinking businesses.
The need for IT services outsourcing increases, as reflected in numbers:
- In 2020, the global market for IT outsourcing was estimated at $342.9 billion. The value is projected to reach $410.2 billion by 2027 (Business Wire).
- According to a Deloitte survey, the top reason for outsourcing (70%) is cost reduction.
- The value of IT services companies delegated to external suppliers may exceed $413.72 billion by the end of 2021, says Statista.
What is software development outsourcing?
It is handing the responsibility of software development to an individual, a software team, or an external company for business outcomes. There are assorted options of software development outsourcing, e.g.:
- Homeshoring - handing software development projects to a company in your location.
- Nearshoring - choosing a development team based near your country, accessible in terms of location and cost.
- Offshoring - commissioning software development work to distant countries (e.g. India).
- Onshoring - moving work that has been near- or offshored to a software developer in the same country as yours.
Business growth-oriented companies decide to outsource software development to benefit from:
- software developers’ expertise
- technology available for the project
- savings of time and money
- having employees focused on core business
When choosing an outsourcing company to work with, bet on years of experience, competencies and check if they have already delivered for your industry. Sometimes it is worth paying more to ensure quality and smooth delivery.
Even though simple outsourcing is still popular, many companies make one more step and bet on an IT partnership. And by doing it they get more value and better effects from collaboration.
From outsourcing to a modern IT partnership
As modern organizations rely heavily on software for their operations and vital business processes, the software grows constantly. Thus, managing the development in-house poses a challenge, as businesses must focus on sales, operations and marketing. As covering only a specific area may not be sufficient, many companies choose a full IT partnership. Thanks to this they can benefit from the software development company’s experience, various competences like consultancy, security and more. Working with a reliable partner gives a possibility to get the most for one's business, sharing the responsibility and being sure that the project is in expert hands.
IT business partners hold regular meetings with stakeholders throughout the company to understand specific goals of the overall business and individual departments. These professionals translate those needs into technical requirements for IT development.
A software project may take between a few months and a few years. It is crucial to maintain the relationship with your partner during the development process after the product is made and deployed. It will be helpful when you require additional support or product enhancement. Thus, collaborating with a trusted IT partner that knows your business goals and challenges, helps design the solutions that answer your company’s needs, and have all the competencies available for you is essential.
The future possibilities
At Future Processing, we have been solving business problems using technology for 21 years now. We are software development experts who leverage technology and ask the right questions to bring tangible results in reliable, high quality, sustainable software delivered on time, effective from the very start. As an experienced, long-term IT partner, we manage our clients’ entire software development lifecycle process from initial analysis to maintenance. We also contribute to digital innovation, conducting digital transformations for our clients, implementing machine learning, cloud or data science solutions in different business areas. Our approach works successfully as our most extended partnership has lasted for 13 years.
(p) - This article is an advertorial.