Outsourcing Software Development to Mitigate the Human and Business impact of COVID-19
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COVID-19 pandemic has left more than 188 counties counting costs and wondering what recovery could look like. There's a drastic impact of coronavirus on domestic and international businesses across countries and sectors. The effect of the Covid-19 pandemic in human life is undeterminable and it continues to grow in the world. The global humanitarian challenge of massive scale that threatens people, communities, and businesses that are scrambling to protect their employees, customers, supply chains, and financial results.
The business impact of COVID-19 could be more profound on the global demand for IT products and services including outsourced software development than the initial estimates while the pandemic continues to engulf countries like the US, inarguably the biggest outsourcer of IT products and services in the world.
Since unusual times call for exceptional measures, much like every other industry the global IT outsourcing industry is too gearing up to 'reinvent the wheel' for negating the impact of COVID-19 and sustain business continuity.
To develop greater business agility and resilience, companies are increasingly looking to reduce the Covid-19 risk through outsourcing. Outsourcing has traditionally been a cost-driven and value-driven industry vertical, which shall remain to remain true and fundamental even in the post-COVID-19 world.
Since geographic dispersion is recognized among the most effective risk management strategies, outsourcing IT systems development can help businesses ensure quality and build resilience against disruptions such as natural disasters and pandemics.
Adopting a distributed global services model and hiring offshore teams in the regions still cocooned from the severe impact of COVID-19 can enable organizations across industries to diffuse enterprise risk.
A prolonged economic downturn caused by COVD-19 has compelled companies to adopt stringent budget cuts leaving virtually no room for discretionary spending. This underscores the need for flexible and resilient business models. Companies can focus more on their core business activities by outsourcing their software projects.
However, in the new world vividly demarcated by the coronavirus pandemic, the perception around outsourcing companies would change from just 'developers on hire' to 'strategic partners' that can help grow business and enhance the brand reputation.
In recent times, product quality supersedes cost reduction as the primary driving factor for companies in outsourcing decision-making. Outsourcers lay more emphasis on improved cyber security and enhancing customer experience when it comes to outsourcing software development.
A misconception around outsourcing is that it is more suited for large enterprises. However, this is a dangerous assumption to make for SMEs and start-ups, and more so in the prevalent scenario marred with COVID-19. Small businesses and start-ups foraying into outsourcing for the first time can leverage the benefits of incubating without bearing the cost of relocating their team.
In the current scenario, where maintaining steady cash flow is crucial for the survival of a business, it makes perfect sense for start-ups and small businesses to consider the long-term economic viability of outsourcing.Software Products, Services, and Technologies Expected to See Spike in Outsourcing in the New World Post-COVID-19
The adoption at a massive scale of collaborative applications, cyber security solutions, big data, and AI post the outbreak of COVID-19 has handed offshore IT vendors with an opportunity to test waters by experimenting with new concepts in developing software solutions.
The COVID-19 pandemic has led to a proliferation in the adoption of cloud, driven by the need of businesses to support their remote workforce. The global cloud market is expected to grow from $233 billion in 2019 to $295 billion by 2021, at a CAGR of 12.5%, as per a recent report from the market research company Markets and Markets.
The demand for cloud services would further snowball with increased adoption of digital payments, e-commerce, and OTT streaming services during the pandemic. At the same time, cyber security risks are also likely to rise due to more and more people working remotely pushing up the demand for cutting-edge cyber security solutions.
The corona virus outbreak has rapidly spiked the demand for digital healthcare solutions such as telemedicine-enabled home care after lockdowns had to be imposed to manage the spread of the virus since asymptomatic carriers could be drivers of transmission.
Like a protective shield for healthcare providers against corona virus, cloud-based telemedicine software is expected to retain its sheen and relevance in the post-COVID-19 world.
Since the global telemedicine market is estimated to be worth over $34 billion, with North America accounting for almost 40% share, there is a tremendous growth potential for offshore software development companies in this niche domain.
IT vendors must keep an eye for emerging trends in AI for disease detection and prevention to stay relevant by experimenting with solutions for social programs management, clinical trials, drug and disease information, and more.
In the COVID-19-imposed software landscape, the Internet of Things (IoT) would go on to become the forefront of technology for organizations to gain insights about their customers and how they engage with their products and services.
Market research firm IDC estimates that blockchain, as a decentralized public ledger, will make inroads into general business processes, with the global spending on blockchain to exceed $11.7 billion by 2022. Since companies like Facebook, Amazon, Microsoft, and IBM are already adopting blockchain technology at a humongous scale, this trend is already visible.
Businesses will need to completely rethink their strategies. it is impossible to fully understand the implications of Covid-19, companies must invest in adaptability and resilience. Fundamentally, this means developing the ability to understand market changes and react instantly. Only then can the brand cope and even flourish in a post-COVID-19 economy.
The road to economic recovery might look fairly long for now, but a steady flow of software outsourcing business looks almost certain in the coming time from countries like the United States due to factors such as:
uninterrupted services to clients while 'working remotely' is not a 'contingency plan' for us, but a mindset. It is imperative of our time to develop unique and innovative technology solutions through remote development teams to help your business navigate through the turbulent coronavirus seas.
Our globally distributed software development network comprising of certified developers assures you unwavering support services for risk-diversification in these unprecedented times. While the siloes will never cease to exist, we focus on the larger picture to ensure complete recovery and restoration of your business.
As your reliable strategic outsourcing partner, we're constantly monitoring reports from the World Health Organization and local agencies to thwart any immediate threats to your business operations due to COVID-19. Talk to one of our outsourcing experts to know more about our outsourced software development services.