Why is Software Development Outsourcing Necessary During & After The Pandemic?
When the COVID-19 pandemic outbreak was first identified in December, humanity has to deal with a massive life-or-death crisis. This new virus has spread incredibly quickly among people, affecting 213 countries and territories around the world.
According to the statistic, there are more than 7 million coronavirus cases around the world at this very moment.
And just like any previous pandemics, the COVID-19 will lead to significant shifts in the current state of the global economy, politics, culture, healthcare systems, and educational systems around the world.
The IT industry is not an exception. The global IT outsourcing industry is gearing up for when the pandemic passes. Fortunately, the global demand for IT products and services has not decreased while the pandemic continues spreading in many countries as we’re in our fourth industrial revolution.
Software Development Outsourcing is a Game Changer during this pandemic time
According to the 2020 ‘Global Managed Services Report’, in which 1,250 executives across 29 countries participated states that 45 percent of companies will search for help externally over the next 18 months. Only 12 percent of organizations said that they were highly prepared for the impact of the coronavirus.
Leaders must be ready to deal with these types of crises by establishing a resilient culture, creating broader ecosystems based on social collaboration, building a human and machine workforce, and adopting a distributed global services model.
Workforces and command centers should be moving virtual so that leaders can monitor operations from anywhere, employees already aware of working virtually. Work-from-home shouldn’t feel like a heavy task since all have mastered self-discipline to keep the workflow going on.
Hiring offshore teams cocoon the on-going work from the severe impact of the COVID-19.
Another reason how IT outsourcing can be an absolute solution is that outsourcing IT systems development can be the solution in terms of risk management.
About 57 percent of the participants agree that managing an in-house IT team is a key challenge. Businesses are struggling to protect their employees, customers, stabling their financial position while maintaining the quality of work and managing risk.
And since geographic dispersion is proved to be the most effective risk management strategy: not only it spares them time, but it also works as a backup plan, ensuring quality and building resiliency during a time like this: pandemics and disasters.
Outsourcing is a go-to solution when it comes to cost reduction, it still remains to be the reason during this distressing time.
The average cost of a senior software developer in the US is roughly about 60 USD, but you can hire a similar developer with similar experience and technical skills in Asia for 40 USD, sometimes lower if you approach countries like India, Philippines, Vietnam.
The economic downturn during this time has compelled businesses to cut down their budget, there is no room for discretionary spending.
Companies who want to maintain their work’s quality but have low budgets at this moment can, and should go with the BPO solution. Not only it can help solve not only problems in their pockets but also allow businesses to focus more on their business activities.
In house team won’t have to spend much time on maintenance and support. The remote team can provide various services based on their client's needs like bug fixes, timely updates which leads to a reduction in downtime as well as prevent the revenue loss.
Outsourcers now are no longer considered as someone you just hire but a strategic partner. They tend to emphasize more on improving cybersecurity and enhancing your experience as a business partner.
Don’t get tricked by the misconception that outsourcing is only and more suited for large enterprises. SMEs and start-ups can leverage the benefits without worrying about the relocation cost. It makes perfect sense for SMEs and start-ups to invest in outsourcing to maintain a steady cash flow both long-term and short-term.
Increasing in Software products, Services, and Technologies post-COVID-19
Cloud computing is now in demand since businesses need to support their remote workforce. It is expected that the global cloud market will grow to 295 billion by 2021, at a CAGR of 12.5 percent according to MarketsandMarkets. Cloud services will increase rapidly along with the increase in digital payment, e-commerce, OTT media services during this time.
On the same hand, cybersecurity risks are also increasing since more people work remotely. IT vendors are working nonstop to come up with the latest cybersecurity solutions.
Digital healthcare such as telemedicine-enabled home care is a new positive movement during this time. Cloud-based telemedicine software will be a protective shield for healthcare providers against the coronavirus since it can be used for numerous different services like medication management, management of chronic health conditions, consultations, follow-up visits, all can be done via secure video and audio connections (mobile or computer).
The global telemedicine market is expected to worth over 34 billion USD. It is stated that during this time, and maybe post-COVID-19, many healthcare systems will reduce the number of hospital visits and the length of stay in hospital. There is an extreme growth potential for offshore software development vendors in this domain.
Telemedicine includes many subspecialties like tele-pediatrics, telepsychiatry, teleradiology, and telecardiology. IT vendors should keep an eye for emerging technologies in AI for disease diagnosis, detection, and prevention.
IoT will become a cutting-edge technology for healthcare providers to gain more insights about their clients.
When the smoke clears
No one knows when this coronavirus will come to an end, and the road to recovery the economic downturn might look daunting for now, but when businesses are well-prepared themselves in such situations, there is nothing to be worried about.
The software outsourcing industry seems to be certain due to the disruption in the local IT industry; slowdown in recruiting; businesses insistently need to fill the talent gap, ensure projects’ quality, protect their employees and business; tight budgets, etc.
It is almost a pattern when in every decade, crises or pandemics will occur to rearrange the world’s order. This is not the first time. While the economic impacts of COVID-19 are inevitably clear, members of the C-suite have to be more proactive to seize the opportunities and convert this adversity.
How we can help our partner
While many countries are still in lockdowns, Vietnam has eventually come back to its normal life.
During the lockdown, we have been working nonstop from home and now back to the office to ensure our partners’ projects are still on the right schedule. Our teams are here to help your business navigate through this turbulent time.
Depends on the specific requirements of the project, we have various cooperation models for our partners to choose from:
- Fixed cost projects
- Offshore development center
- Build - Operate - Transfer
- Investment and partnership program
Talk to one of our experts to know more about our previous projects and offered services!