Though we are already in the middle of the first quarter of 2016, the question “what is next” in the outsourcing industries are passionately discussed. Today, the software development outsourcing has journeyed a long way ever since the firms started sending the work to inexpensive locations in the 80’s. On the other hand, reduction of cost remains the key driver for outsourcing.
In the present scenario, the practice of sending work related to Software Development to any third party companies has progressed to become more strategic. The third-party firms would than aid businesses expand their tech abilities and obtain their products to market more rapidly.
In 2016, technology plays a prime role to make corporate decisions, and it will keep on driving strategies for software development outsourcing this year and beyond. To set a challenging trend in 2016, the IT sector would adapt to change that will require producing fresh software solutions and best-in-class infrastructure.
The market growth of IT services will be mainly driven by the outsourcing establishments during 2016. On the other hand, the uncertainty is linked to the future of outsourcing. Today, you will find companies adapting to the cloud and IT technologies for which offshore vendors need to upgrade their marketing strategies. They also need to set up responsive yet customer-oriented agreements.
Expansion of efficiency: In the leap year 2016, the IT firms like HP, IBM, ATOS, and Accenture and so on will have to renew their big budgeted outsourcing agreements. These leading companies will either have to start changing their contracts or have to make use of local professionals. Presently, companies are opting for the processes of automation, IT environment simplification and creation of an inexpensive cost structure.
Priorities have been given more to create some reusable delivery service platforms to increase scalability as well as automation by only means of leveraging newly made software tools that will help the companies to manage, quantify and take control over the process of implementation within and between firms. For example, you can take the driver and vehicle licensing agency from the UK into account which had been a proven track record of outsourcing IT services for nearly around 30 years.
Now, the newly allotted CEO of this agency had decided to bring back IT services into its house. Conversely according to the new term, the company Whitbread has expanded its outsourcing bond with Steria recently to reduce its expenses by overall 14%. Thus, IT outsourcing companies should focus more on shifting the agile and result oriented contracts rather than depending on the fixed price model. Hence, it can be predicted that 2016 will be the good year for the firms which will offer the dedicated development services to the audience.
IoT improvisation: Next year, it is anticipated that the M2M and US IoT market revenues will see a growth of one and a half billion dollars. Undoubtedly, the IoT security provisions remain a highly debatable problem, but still mobile phones, smart gadgets, wearable applications; new web services are bound to get launched in 2016’s tech market. The year 2016 will offer necessary tech solutions to the entertainment, tourism, and e-commerce sections.
Dawn of cloud computing: The advent of cloud computing was in 2015 and starting from that day to till date it is offering seamlessly scalable cloud-based solutions to the enterprise. Doesn’t it? But those companies are really in a close relationship with cloud computing ethics could expect to dominate the market in 2016. In some cases, professionals do believe that the clients and businesses will start cloud computing will simply follow them.
Analysis of data: The amount of data generated back in 2012 on a daily basis by using several mediums of digital devices had estimated to reach 2.5 billion GB. However, in the year 2016, the number of the connected devices is calculated and found that it has seen a massive growth reach 22.9 billion. IBM says there are still collected data are available which are not even analyzed yet. This piece of information could help the companies to enhance their workflow management while reducing the cost of expenditure. Thus, it could not be wrong to say that IT service outsourcing will become one of the major trends of the year.
Rahul Panchal is a Founder and Managing Director of Rlogical Techsoft Pvt. Ltd, a web & mobile app development company India specialized in Hybrid, Native, Android and iOS App development.
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