Top 5 IT offshoring development trends changing the way we work
Since gaining popularity in the early 2000s, the offshore model has reshaped many global industries. Where once it was seen as a purely cost-driven move, today, it is an opportunity for businesses to access niche skills and scale at speed. As the number of organisations that work with offshore teams continues to grow at an exponential rate, here are some IT offshoring trends to watch out for in the coming years.
- Increase in demand for cutting-edge skills
The acute global tech talent shortage led to over 40 million unfilled jobs in 2020. And according to experts, this number will reach 85.2 million within the next decade. Left unchecked, this will lead to roughly €7.1 trillion in unrealised annual revenues.
The reality is that businesses in the West are simply unable to find engineers proficient in cutting-edge technologies such as Machine Learning, Artificial Intelligence, and automation. In fact, the USA, despite being the undisputed tech leader, could lose out on over €136 million in revenue unless it finds more skilled tech workers.
Offshore development: A solution in sight?
One of the primary benefits of building an offshore development team is the opportunity to access massive talent pools in emerging tech nations. For instance, according to a recent market study, India will have a surplus of over 1 million skilled tech workers by 2030, potentially making it the next tech leader.
And so, one of the top IT offshoring trends in the coming years will be the establishment of dedicated teams in countries like India to overcome the increasing requirement for individuals with cutting-edge skills. While the primary focus will continue to be on technical skills, soft skills such as teamwork, communication, and leadership will also be in great demand.
2.New offshore locations
Currently, India is the world’s number one offshoring destination. In fact, 80% of the world’s 500 largest companies have established their dedicated teams in the country, thanks to many benefits such as low operational costs, flexibility, an attractive array of IT policies, exceptional quality of services, and technological availability.
However, as demand for skilled tech workers continues to grow, more businesses are moving to new offshore locations in Eastern Europe, America, and Asia. For instance, the Philippines, famously known for its BPO services, is expected to become a popular choice for offshoring. So if you’re a small-scale organisation looking to jump-start your business, hiring developers from the Philippines can be a great option.
Despite the pandemic, 2020 saw huge investments in the tech space, specifically in Europe. Today, Eastern European countries like Poland, Belarus, and Romania are also emerging as preferred nearshoring destinations for businesses in Western Europe. With a negligible time difference and cultural compatibility, organisations are leveraging the nearshoring model to save money and access talent that they can’t find locally.
3.Enhanced data security
Despite more and more businesses building globally distributed teams, one major concern regarding offshoring that still prevails is data security.
Years of low-quality outsourcing and exaggerated horror stories about offshore security breaches have led to organisations questioning the safety of their intellectual property and confidential data with their distributed team. Some businesses still see offshoring as opening themselves up to the risk of data theft and compromising their trade secrets.
Therefore, one of the most important IT offshoring trends in 2021 is cybersecurity for distributed teams. For example, the DSCI (Data Security Council India) Annual Information Security Summit held in 2020 discussed some critical themes such as the national cybersecurity strategy, end-to-end encryption, data-driven organisations, protection of critical infrastructure, cyber insurance, and more.
On the other hand, businesses are also educating themselves on the fundamental cybersecurity frameworks they must implement to mitigate security risks and protect sensitive data, irrespective of where their team is located.
If you’d like to know more about how you can implement security measures when working with offshore teams, you can check out our in-depth blog post, ‘A Guide to Cybersecurity for Globally Distributed Teams’.
Source: https://thescalers.com/6-offshore-development-trends/