Latest Trends in Software Development Outsourcing

1. Latest Trends in Software Development Outsourcing For several years, the outsourcing market is evolving and growing in size. Nowadays, this evolution is driven by some technological and business trends, including: The Rise of Big Data and AI An ever-increasing number of enterprises are adopting data-driven strategies. This means that they strive to leverage large volumes of data for a variety of heterogeneous sources (typically Big Data) in order to optimize their business processes and their decision making. This requires a pool of data science expertise in all functional areas of an enterprise, including production, marketing, sales and human resources. However, there a significant talent gap in data science, Big Data analytics and AI for business processes. This creates fertile ground for outsourcing Big Data activities, which is one of the fastest growing segments of IT outsourcing. Automation and Industry 4.0 We are living in the era of the fourth industrial revolution, where machines are taking over laborious tasks. Many enterprises are therefore outsourcing tasks to “robotic” applications and services, rather than to low cost employees. Such robotic applications are offered over cloud-based infrastructures based on pay- as-you-go modalities (e.g., AI as a Service, Machine Learning as a Service), which represent another form of IT outsourcing.

2. Regulatory Complexity and Compliance Many enterprises are nowadays faced with a complex regulatory landscape, which increases the sophistication and cost of their operations. To this end, they are increasingly seeking ways of outsourcing regulatory compliance tasks, such are tasks associated with cyber-security and data protection in line with applicable laws and regulations. Partnerships with outsourcing companies In many cases companies want to take advantage of the benefits of outsourcing, while keeping their operations transparent to their customers and collaborators. In this direction, they are not keen on have “black-box” third- party processes. As a remedy, they are considering partnerships with their outsourcing vendors, as a means of increasing the transparency of their operations and business relationships. We therefore expect to see more partnerships between enterprises and their outsourcing vendors in the years to come. Overall, outsourcing is nowadays playing an increasingly important role in business operations and is one of the factors that shapes the global IT industry. It is also evolving in-line with technological and business trends. Enterprises have better monitor and understand these trends in order to optimize their outsourcing strategy and to maximize the benefits of their outsourcing agreements. Resource by: https://www.itexchangeweb.com/blog/buyers-journeys-and-latest- trends-on-it-outsourcing/