It’s no secret that outsourcing software development has been a global trend for a while and is nowhere near stopping. In fact, a typical IT budget that goes to outsourcing vendors has risen sufficiently this year. According to a recent Outsourcing Study executed by Computer Economics, in 2019 it has grown by more than 30% compared with the previous year, from 9.4% of the total IT budget in 2018 to 12.7% in 2019. The reasons why these numbers keep progressing might be numerous but what they keep showing is that companies are familiar and comfortable with relying on outsourcing partners.
Another interesting shift in the IT outsourcing sector we are witnessing these days is the change of the primary reasons for outsourcing. Traditionally, it was deemed that companies opt for outsourcing as a way to cut budget costs, improve operational flexibility, maybe increase the quality of their services or just augment in-house capabilities. But none of these reasons implied long-term commitment. So what has changed? Today outsourcing is not about saving money and finding a quick fix, today companies are after real partners they can collaborate with, disrupt markets, implement new services companies are not capable of doing by themselves and generally drive innovation and leave their competitors far behind.
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