To Quang Duy is CEO of Newwave Solutionsone of the first Vietnamese outsourcing firms ranked for sustained growth.
One of the critical factors supporting the rise of enterprise apps and remote work has been companies’ ability to work alongside outsourced software development and IT teams. This is partly why the outsourcing market has grown dramatically in the last few years: According to Statista, the spending on outsourcing IT reached $971.2 billion in 2023, 22% higher than in 2019.
This trend is expected to continue. The revenue generated by the global business process outsourcing market is expected to grow at a CAGR of 9.6% between 2025 and 2030, according to Grand View Research.
To fully benefit from outsourcing IT and software development services, however, businesses must adopt effective strategies that ensure smooth collaboration and secure operations while aligning with their targets. Let’s look at some of the ways companies can best position themselves to succeed when outsourcing IT or software development.
1. Examine your current technology stack.
According to Forbes Advisor, 64% of businesses expect AI will boost their productivity. Not only does AI cut down human error, but it also improves workflows, allowing developers to focus on their highly creative and high-impact tasks.
Since many companies don’t have AI expertise in-house, they may consider outsourcing AI experts. In fact, Deloitte found that “60% of organizations (download required) are leveraging existing third-party vendors for AI-powered outsourcing” and that “57% of organizations are developing new outsourcing relationships with focus on AI.” Likewise, by integrating AI-powered tools, outsourcing providers can deliver projects faster and more cost-efficiently with tools like automated testing and smart coding assistants.
When integrating AI or any emerging technology, though, gaining a deep understanding of your tech stack will uncover major obstacles and areas that need upgrades, facilitating smoother transitions to new software trends. This assessment allows businesses to implement highly innovative technologies and work better with outsourcing partners.
2. Make strategic investments in team training.
Likewise, providing regular training in emerging technologies is essential for keeping teams up-to-date in the rapidly changing IT industry. Ongoing education promotes innovation and adaptability, enabling teams to efficiently navigate new technologies and methodologies.
If your internal team understands new trends and developments, they’ll also be better able to partner with outsourced partners and communicate your company’s needs.
3. Invest in data and security.
By 2025, according to 2023 research by Gartner, 60% of organizations were expected to use cybersecurity threats as a primary consideration in their business engagements with third parties. This is likely equally true for compliance, as industry regulations such as the GDPR or HIPAA are a pivotal concern when outsourcing.
On top of understanding whether the partner will be able to deliver on specific technical tasks, it’s important to know that your company’s data will be protected. By checking the outsourcing vendor’s security processes and protocols, you can decide whether they align with your company’s security standards and compliance requirements.
4. Kick-off with a pilot project.
A pilot project is essential before committing to a long-term collaboration.
During this initial test, evaluate the vendor’s performance, communication and compatibility with your team. You’ll also want to be sure to judge their technical skills, ability to meet deadlines and responsiveness to feedback.
Conclusion
Outsourcing has generally been seen as a strategy to save on costs. However, as the Deloitte report cited above notes, many business leaders are also “prioritizing skilled talent and agility in their outsourcing decisions.”
Today, businesses face difficulties in cybersecurity, AI/ML expertise and scalability. Outsourcing IT and software services is a strong option to solve these challenges with experts you may not be able to find or hire in-house. Businesses that use these services strategically, such as with the best practices listed in this article, stand to make the most out of these relationships.
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