Companies with dependency on IT, outsource for various reasons such as operational requirements, leveraging of latest technology skillsets, and cost reduction. However, trends in the market are changing. According to the report made by GSA UK, some outsourcing trends will be less significant than they are presently.

1. Software Development Outsourcing – What You
Ought to Know?
Satya K Vivek
Writes for Gadgeon.com, IoT software development
company and product engineering services.

2. Companies with dependency on IT, outsource for various reasons such as
operational requirements, leveraging of latest technology skillsets, and
cost reduction. However, trends in the market are changing. According to
the report made by GSA UK, some outsourcing trends will be less
significant than they are presently. 2021 was the year when the change
was evident and in 2022, it is accelerating. Companies that want to have
contemporary technology must keep abreast with current trends in IT
outsourcing.

3. What do we mean by IT outsourcing today?
To reinvigorate your memory of what we understand about IT
outsourcing, let’s look at the list of the most outsourced IT operations that
ended in 2017 and present outsourcing trends.
The functions recorded from the most popular to the least used are web
or mobile app improvement, software application sustenance,
datacenters, IT frameworks, helpdesks, networks, integrations, and HR.
The list mentioned above are expected to go through changes in the
future. The National Outsourcing Association has accomplished a
research campaign that unveils the direction of modern outsourcing that
will be prevalent soon.

4. Expected IT Outsourcing Trends
It is difficult to predict the future with certainty. In general, the anticipated
IT outsourcing trends are:
• Value over cost – collaboration will not focus on the lowest prices
anymore. Value is the thing that is acknowledged more.
• Various providers – clients will tend to select multiple partners with an
aim to establish relationships with multiple collaborators.
• New outsourcing sectors – IT developers from Central and Eastern
Europe are predicted to be selected.
• Changing business models – outsourcing partners may share burden of
delivering results measured on non-technical parameters. So, the
agreements are becoming more outcome based.
• Automation – virtual foundations like bots, AI, and robots will become
technically skilled to perform routine IT tasks.
• Cloud-based platforms – IT sector will witness a rise in storage and
safety related projects.

5. The most notable IT outsourcing trends for 2022:
• New inspirations
Both outsourcing clients and providers were called for reasons to
outsource. Among them, 35% answered that cost reduction is the most
significant, and 23% said it was customer experience. It is also a fact that
the latest IT outsourcing is growing together with the number of people
interested in outsourcing more tasks.
The main reasons behind outsourcing companies may vary, but the
majority accept that a customer-oriented approach and discovering new
proficiencies are more lucrative than cost-cutting. These things often
become a decisive factor when selecting whether to perform a task with a
partner on-shore, near-shore, or off-shore.

6. • Focus is on outcomes and adding value
According to the GSA UK, about 90% of respondents firmly believe that
both purchasers and providers will be signing outsourcing agreements
focused on outcomes and value going forward. Also, 69% of the surveyed
people predicted that the outsourcing suppliers are expected to work as
system integrators. About 31% expected that outsourcing suppliers would
lift all the risk on themselves.

7. • Businesses concentrating on alternate delivery models
More and more business decision makers are considering alternate
delivery models including Software as a Service (SaaS), business process
utility (BPU) and infrastructure utility services. Notice periods and the
length of agreements may become a bit curtailed compared to what is
prevailing now.

8. About Gadgeon
Gadgeon is known for its expertise in Industrial IoT and engineering
excellence. We connect devices, operations, and processes to create
business value, and revolutionize enterprises with the power of data. As
an end-to-end technology services company, we successfully enabled the
digital journey of customers with critical digital services ranging from
embedded systems, cloud app development, mobile app development,
data & analytics, application modernization, emerging technology based
solutions, and testing & test automation across the industries such as
connected factory, telecom & datacom, digital healthcare, CSPs, and home
& building automation.

9. Thank you for time in reading this article!