2019 Top Tech Trends in Outsourcing Development
IT spending is expected to climb to $3.8 trillion in 2019, according to a Garter report. This 3.2 percent increase from the projected spending in 2018 and the spur of investments in IT are both directly related to outsourcing development.
As the popularity of outsourcing tech talent increases with the growth of the tech industry, several trends will become apparent in 2019. Check out five likely trends for IT outsourcing in the upcoming year.
1. Increased shortage of specialized IT skills
As a whole, the IT skill shortage in the US will intensify throughout 2019. Around the world, more and more businesses are being driven by technology. Naturally, because of this, the demand for skilled IT employees will increase in the upcoming year. In turn, the US will see more companies being pushed to outsource development.
As outsourcing IT roles will begin to play an even greater role in companies of various sizes, the companies’ demand for key skills such as mobile, open source, and Microsoft software development skills are likely to grow. While the demand for specialized skills in current technology increases, programmers with these skills will become more difficult to find.
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2. Tighter security measures
While security has always been a concern for companies both internally and externally when outsourcing tech talent, we’ll see security measures tighten even more in the upcoming year. Several serious security breaches happened in 2018, such as the Cambridge Analytica data scandal, which exposed up to 87 million Facebook users’ data and caused consumer outrage.
These security breaches along with new General Data Protection Regulations (GDPR), which became enforceable in May 2018, have caused new data security implementations. The GDPR affected European organizations as well as companies that may interact with European data. Now, we are seeing more data security changes than ever.
In 2019, we’ll likely see changes on the outsourcing side as well, as many of the top firms upgrade security measures to help ensure client comfort and safety. In fact, the majority of outsourcing firms already implement strict security measures. So, when outsourcing development talent, be sure to ask about how the provider deals with security concerns.
3. The debut of new contract models
In 2019, it’s anticipated that both clients and IT and tech service providers will be making use of new changes to contracts. The reason behind these new contract debuts is to help make IT outsourcing more interpersonal and data-driven, N-iX says.
Rather than being based on outputs, as previous contracts for outsourcing tech talent were structured, new contracts will be based on outcomes. This contract model alteration goes both ways for both buyers and service providers, according to Jeremy Coward from the National Outsourcing Association. These contracts will allow buyers and IT and software development service providers to share risk in order to reap greater rewards in the end.
Additionally, N-iX predicts that procurement will become an important part of the contracting process and that notice periods will shorten significantly. In 2019, competition between service provides is expected to increase, allowing contracts based on outcomes to help clients seeking tech talent to determine the top IT vendor for the job who can deliver the most value.
From our experience working with clients in the US and Canada, there’s been a significant increase in popularity in the staff augmentation model, which provides companies with a full-time developer, 100% dedicated to their team. This model is growing in popularity, as it allows companies to scale and gives tech and engineering leaders control over their own projects.
4. Cloud-based business processes will continue to expand
Organizations all over the world are embracing disruptive outsourcing technologies, including cloud and robotic process automation (RPA). This is a trend that will continue into 2019.
In the upcoming year, it’s very likely that enterprises will continue to integrate cloud services into their business processes. According to iTexico, enterprises will favor a hybrid approach while integrating these technologies. This approach will employ both public and private cloud solutions, providing quick and easy access to the majority of important business functions.
5. A demand for increased skills
In the upcoming year, most outsourcing companies will need to greatly rely on technology such as cloud computing to effectively collaborate with their clients. With the emergence of new technologies such as cloud computing along with other expanding technologies such as artificial intelligent (AI), machine learning, cryptocurrency, and blockchain, it’s imperative for companies to determine the right candidate for the job—someone who can competently handle the latest tech and innovations.
With an increased demand for heightened skills, outsourcing companies will need to work with their staff in 2019 in order to increase their capacities in handling the latest tech tools and practices. Because of this need, organizational online training programs such as courses and classes on LinkedIn Learning and Udemy are rising in popularity.
At Jobsity, we run constant trainings for our staff so that their skills are as sharp as possible and they’re ready for anything clients throw at them.
As the need for outsourcing tech talent grows in 2019, high-quality talent will become harder to find. If you need help finding top-notch programmers and developers to join your team, contact us! We build amazing teams, deliver exceptional solutions, and we’d be happy to chat about your next developer.