5 IT Outsourcing Trends in 2022

A few years ago, before the pandemic of Covid-19, a small share of people thought about remote work instead of a lovely office with colleagues and a cozy atmosphere. But the quarantine forced us to try out working from home or any other available place for us. Was it a successful experience? Yes!

Most of the companies had some initial issues organizing remote work, but after they adjusted all the processes, companies estimated the value of remote and outsourcing.

Definition of outsourcing and reasons people choose outsourcing

Outsourcing is a way of cooperation with external software development teams, companies, or separate freelancers. Outsourcing resources can be used as your main team instead of an in-house team or as an additional help to your in-house team who needs to unload some unnecessary work to do more critical and urgent tasks.

More and more companies choose outsourcing due to the following reasons:

•  Lower cost in comparison to the in-house team

Prices for outsourcing services are usually lower than local. You can find decent specialists from other countries or continents for a fair price. If your company is from Germany, it is much more profitable to hire a development team from Eastern Europe than in Germany. In this case, the location of the outsourcing team does not play any role. Besides, you don’t need to spend the budget on maintaining an office, hardware, and other necessary equipment as outsourcing teams and companies already have everything they need to work.

•  Time saving 

Outsourcing teams and specialists are more self-disciplined and ready to start working immediately in comparison with in-house teams, where you need to spend time introducing them to everything.  

• A wider selection of specialists

Even if you live in a megapolis like New York, London, or any other big city, you still can experience difficulties with hiring specialists, especially if you need a team or specialists with a rare set of skills.

• Scalability

You can easily remove or edit the number of needed outsourcing specialists. It makes the outsourcing development process flexible and more profitable, as you do not maintain redundant resources and still always have all you need to perform a quality development.

Freelance or outsourcing software development agency?

When you choose between freelancers and outsourcing software development companies, you better choose the company due to the complete approach to the development process. The company has a full team to cover all your needs and has an aligned process of teamwork. It is important as a team that consists of different freelancers needs time to start smoothly cooperating. Moreover, when a company already has all the necessary tools and is ready to start working asap, a team of freelancers needs to cope with a row of challenges of choosing tools and confirming the working process.

Outsourcing trends in 2022

• Cloud services

Cloud services allow companies not to worry about the personal physical data storage maintenance. It is much easier, cheaper, and predictable to work with clouds due to the following reasons:

– you are confident about the price you have to pay each month for the cloud services in comparison with the maintenance of physical infrastructure as the price can fluctuate; 

– you can customize cloud services to use everything you need, so it prevents wasting your budget on the features you do not need at the moment. 

– a single place where you save all the necessary data, which gives fast and comfortable access to data. Thankfully for the fast access to everything, when you hire new team members, they can immediately start working without spending a lot of time adjusting accesses.

• Eastern Europe is the most appealing region to outsource

Despite many myths and stereotypes about Eastern Europe countries, IT outsourcing in Eastern Europe gains more and more clients from around the globe each year, and in the future, this trend will expand even more. For example, Ukraine is one of the most appealing countries to outsource. The reasons for such popularity are:

• its high level of professionalism 
• reliability and fair price, 
• a high percentage of specialists who speak English, 
• the ability to work under stressful conditions as Ukrainian outsourcing companies are still working even during a full-scale war with russia, and they meet all the deadlines. Working with Ukrainians means you get a quality product in discussed terms!

 

• Outsourcing rise among startups

Rising demands for outsourcing among startups is not a surprise as it is the most beneficial approach for startups to start developing their product with limited resources. Startups can use such benefits of outsourcing as no need to maintain an in-house team, lower price of services, and customizable teams.

•  Increasing IT outsourcing spendings 

IT outsourcing keeps growing and won’t stop soon. According to Statista, revenue is expected to show an annual growth rate (CAGR 2022-2027) of 8.26%, resulting in a market volume of US$587.30bn by 2027. From the statistics, we can see that even more money will be invested in outsourcing, which means there will be a higher demand for these services.

• Nearshore outsourcing

Yes, despite the fact the most beneficial in terms of budget saving is offshore outsourcing meanwhile, nearshore outsourcing also gains popularity. Nearshore has many benefits for companies:

• similar time zone when you do not need to adjust to each other time, for example your team can be from Ukraine and you are from France;
• easier communication as usually neighboring countries speak each other’s language or at least understand each other.
• lower prices on services, maybe not as much lower as offshore, but still, you can save some part of the budget using nearshore.

Outsourcing trends show us the actuality and bright future of outsourcing. With the development of technologies and services, remote work and outsourcing will become the most beneficial type of cooperation. Eastern Europe still is one of the most appealing countries to outsource, so try to find a long-term partnership before it becomes too hard to find such a company due to its high popularity in a few years.

References:

stastista.com