In the wake of COVID stricken world where customers are learning to readjust their lifestyle with the ongoing conditions, businesses don’t merely have to survive but thrive too.
And to prosper in such tough times, businesses should look for ways to streamline their operations, extend their reach, cut costs, and upgrade their performance. Software development outsourcing and digitization of business are considered as the routes to sail smoothly in the markets.
Nowadays, the business world has become tougher than ever. Today, global businesses are competing with each other to gain a competitive advantage of minimizing cost, enhancing customer service, and maximizing efficiency.
But not every business is blessed with a proper in-house software development team who can help them to build and maintain an excellent online presence as well as for other e-commerce purposes.
So how to deal with this issue? The answer to this question is IT outsourcing software development. And for this, you need to hire experienced outsourcing partners that can help you to get the best out of your software development outsourcing projects.
But before you start talking with any IT outsourcing company about your next project, you need to get an in-depth knowledge about the practical application of software development outsourcing into different industrial domains.
In this blog, we are going to share a detailed list of ten premiere industries where software outsourcing services would be beneficial. Also, we will show you the impact of coronavirus on different industries that have changed their way of operating.
Also, we will show you how these industries can successfully utilise the benefits of software outsourcing. Let’s get started without further delay.
Some interesting software outsourcing market statistics
Every year brings amazing opportunities for the software outsourcing industry and the same can be said for this year as well. Currently, outsourcing software development acts a life saver for small and medium enterprises, startups, and for corporate players.
Even top-notch software development companies look for software outsourcing and the following data is a proof of it:
- As per Business Wire, the worldwide market of software outsourcing is estimated to reach $410.2 billion (approx.) by 2027.
- According to a survey by Deloitte, 70% of businesses prefer to go for software outsourcing to reduce their operational costs.
- As per Research and Markets, the global IT outsourcing market is predicted to grow at a CAGR of 5% (approx.) in the period of 2020-2024.
Hope you get a better understanding of software outsourcing market stats. Let us now dive into the industry verticals that are applying software outsourcing for a better market presence.
Ten industry verticals that can harness software outsourcing at its best!
By assigning software development to external agencies or companies, businesses can focus on growth, aggressive marketing and long-term strategies. Furthermore, software outsourcing provides an aid in operational automation and faster deliveries.
Almost every sector today needs IT outsourcing services. In this blog, we are going to show ten industries in particular, for whom software development outsourcing is like a boon:
1. Tech
Quick overview:
Today, even big tech giants like Facebook, Google and Amazon themselves can benefit from outsourcing their software needs to an outside provider.
Even startups like WhatsApp, Slack, GitHub, Alibaba, and Skype are some popular names that were built on the line of IT outsource product development.
Challenge:
While technology allowed many businesses to survive during the times of COVID-19 pandemic, there are many IT issues that need to be considered as we look forward to the future full of technological success.
These issues range from dealing with cyber attacks, information security issues, issues with implementation of IT strategy to widen the skill gap.
Solution:
Some technological project need professionals with specialised skill sets, or the team wants further assistance to complete everything they have on their plate. But the possibilities are endless for areas like healthcare, government, healthcare and finance, and that might be a stepping stone towards the new era.
Besides this, education, real estate, and insurance are the prime contenders who often turn to third-party software development outsourcing service providers, too.
2. Healthcare
Quick overview:
Undoubtedly, healthcare is one of the crucial industries across the globe. It is all about making people hale, hearty and fine.
And with a touch of innovation, the healthcare sector goes hand in hand with the software outsourcing to manage the technical complexity.
Software development outsourcing plays a game changer role in the healthcare industry. As per Data Bridge, the healthcare app developmentmarket is expected to grow at a CAGR of 11% (approx.) between 2020 to 2027.
Software outsourcing supports the healthcare segment by equipping them with advanced cloud systems, robust analytics, clinical apps, patient portals, and other digital healthcare services.
Challenge:
With declining funds and resources and the need for services grows — Facilities and professionals need reliable, efficient, and cost-effective technology for the healthcare industry that builds tools they need quickly without sacrificing quality. Fast and dependable solutions are needed to meet these requirements.
Solution:
In the times of pandemic, patients are trying to avoid direct contact in the times of the pandemic. As per Centers for Disease Control and Prevention, approximately 69% of patients used telemedicine platforms to get treated at their homes.
Currently, doctors, nursing staff and frontline workers are employing a wide range of technologies that comprises Tele-medicine, AI based medicare apps and medical consultation apps, to keep themselves and their patients safe. Application of AI to detect fever in patients is considered as a good example of it.
3. Retail
Quick overview:
Software outsourcing has empowered the retail industry by creating a great boom in it.
And this boom was on a great peak as shoppers are unable to step out of their homes because of rigorous lockdowns and social distancing norms.
Challenge:
The retail industry was forced to shift and re-prioritize a majority of their business online after suffering from the hit of the coronavirus pandemic. And the reason behind such drastic change is that a big chunk of the global population was staying home because of the rigorous lockdowns and social distancing norms imposed by the government.
Solution:
Customized retail mobility solutions can help this industry in many ways. Here are some leading-edge tools that have drastically transformed the retail industry in the past few years:
- AI Powered Chatbots
- Virtual Reality solutions
- Interactive voice assistants such as Alexa and Siri
4. Finance
Quick overview:
When finance and technology joined hands, the result was FinTech. FinTech has drastically improved the delivery of modernised digital finance services via futuristic and ultra modern mobile wallet apps, money transfer apps, mobile finance solutions and interactive chatbots.
Even banking has also become seamless, with the inception of tech-savvy banking solutions.
Challenge:
Financial service providers are often the soft target for the cybercriminals and fraudsters. The reason financial services get targeted more compared to other industries is that they carry too much sensitive user data.
As per Ciodive, the chances of a finance business getting hit is 300 times more than compared to any other business.
Apart from this, financial services need to follow ample regulatory norms imposed by the government from time to time. And financial businesses are spending a heavy amount of money to ensure that they get compliant with these regulations and constantly changing industry standards.
Moreover, consumers often expect a detailed analysis of their spending habits and advice on financial management. Besides this, they are also interested in getting insurance as per their requirements.
Solution:
Financial institutions have succeeded to a great extent in solving the above challenges by outsourcing a major chunk of their projects to software companies. And this cross-section of finance and software outsourcing holds a promising future for even more impactful innovations.
Here are some utilities that software outsourcing can provide to the finance sector:
- Domain-based finance apps and portals
- Payment gateway integrations
- Multilayer platforms with technical support
- Multi-currency support
So here is all about how software outsourcing is going to benefit the finance sector.
5. Transportation
Quick overview:
The travel industry entirely depends upon customized software services because the visibility of a hotel, resort, rides or travel destination solely depends upon the online presence.
Challenge:
The transport industry was also not spared from the wrath of the COVID-19 pandemic. But now, the travel industry is gradually picking up the peak after the lockdown and people have started commuting again.
Apart from this, the ride-hailing industry also suffered the massive hit of COVID-19 pandemic as the movements on roads suddenly stopped.
Solution:
Mobility solutions for the transportation industry is quite a complicated task. Here are some advanced ways in which software outsourcing is playing an important role in revolutionising the transport industry:
- Self-driving cars
- Traffic management
- User friendly ride hailing applications
- Improved navigation
- Reduction in collisions
6. Food and beverages
Quick overview:
The food and beverage industry has had to undergo a lot of changes with their offerings. And the reasons behind this are changing food preferences, expectations, and behaviours in consumers.
Today, customers have become so discerning and sophisticated. They expect a great level of personalisation and safety when it comes to food.
Challenge:
Moreover, the industry has its challenges thanks to the perishable nature of the products, the necessity of complying with many regulations and risks posed by potential contamination and recall.
Apart from this, food and beverage businesses need to maintain fixed food temperatures, gain a better stock visibility, for ensuring streamline dispatches and packaging methods.
Solution:
Software outsourcing can help the food and beverage industry to meet with the food safety compliances. Restaurant mobility solutions, consist of multiple features that can help the food and beverage business in many ways, such as food service management system, menu management system, kitchen management system, food distribution management system, food safety management system, ERP management system, etc.
Apart from this, software outsourcing offers below-mentioned benefits to food and beverage industry:
- Reduce wastage of inventory
- Innovation in products
- Decrease time delays and
- IAdherence to compliances
- Rapid tracking
- Improves brand value
- Simplify complex processes
- Procure quality ingredients from verified vendors
7. Logistics
Quick overview:
The reason for the survival of the logistics industry over the past few years is all thanks to the technology that it leverages and thereby evolving with time.
The latest technology has drastically transformed the logistics industry. Today IT outsourcing companies and mobile development outsourcing can provide you with advanced fleet tracking systems that include advanced tools required by your business and customer needs.
Challenge:
Technical complexities and ever-changing consumer demands have made the logistics and supply chain industry more competitive than ever. In addition to this, the logistics industry is also facing some other challenges that are as follows:
- Reduced transportation costs
- Improving the customer experience
- Visibility issues of supply chain
- Economical condition
- Frequently changing government regulations
Solution:
Ultra-modern mobility solutions become helpful to streamline their delivery of smart transportation & logistic app solutions of managing things such as fleet management, shipment & tracking the location times and maintain schedules while gaining control over real-time data collection.
8. E-Commerce
Quick overview:
Software is the most crucial thing for the e-commerce industry. But even the e-commerce segment often faces hurdles in the form of late deliveries, faulty discount codes and website crashes.
Challenge:
User experience is the core of an e-commerce business. A vital part of user experience is the payment checkout process of an e-commerce platform. International and domestic payments are also considered as one of the roadblocks for an e-commerce business.
Solution:
E-commerce retailers need a specialised software outsourcing that would automate the backend and customer support. As businesses are going online day by day, they need innovative software that enables them with multiple capabilities, such as seamless logistics service, consumer behaviour analysis, better inventory management, faster checkouts, accurate visitor tracking, etc.
9. Edtech
Quick overview:
Edtech platforms are used to manage online lectures, student subscriptions, questions and quizzes, student tracking system, evaluation tools, etc. Coursera, edX, Udemy, upGrad, Teachable, etc. are some of the popular Edtech platform names.
Challenge:
The COVID-19 pandemic has made it hard for the students to visit schools or colleges. It disturbed their studies to a great extent.
As per UNESCO, over 750 million children and youth had to stay at homes because of the coronavirus pandemic. 1 out of 5 students are unable to attend the school.
Solution:
Software outsourcing further helps the Edtech industry in many ways. e-learning applications mobility solutions that equip the Edtech industries towards the betterment of teaching and skill evaluation.
Along with this, the software outsourcing has equipped the Edtech sector with constant live chat support, customer support and learning based mobile apps.
10. Government
Quick overview:
Every type of government, whether it is local, state or federal, requires extensive cybersecurity to protect its sensitive data.
Along with this, the government needs a technical edge to update its existing laws and jurisdictions by taking a ‘Smart’ approach via IoT Internet Of Things.
Challenge:
Generally, the government sector approaches contracts based on the same old and rigid waterfall method to manage its projects. Unfortunately, the waterfall model leaves minimal space for shifting needs and priorities over the course of a project.
By the time the government is ready to find a solution, it’s likely already obsolete.
Solution:
Technology boosts community development and growth. Because of which, governments across the world are gradually turning towards the software development companies or partners that are capable of helping them with the segments in which they are lacking.
Conclusion
Globalization and the hazardous effects of the COVID-19 pandemic have changed the world to a great extent. Today, we are living in a world where everything is interconnected. Global markets and industries are evolving constantly and to stay ahead in the cut-throat competition, software outsourcing is a must.
Constant evolution is the name of the game. And in today’s critical time of the pandemic, companies are looking for effective ways to meet rising customer expectations. Moreover, they want to remain flexible and committed to upgrading technology, people, and processes.
Because of the aforesaid reasons, the motivation for choosing an outsourcing vendor is changing gradually. Today businesses are shifting towards getting quality services from industry experts.
As today’s professional environment becomes online, software outsourcing organisations are becoming the drivers that use their skills and expertise to optimize processes and push the company forward in the digital era.
I hope that this blog has provided you with everything that you need to know about the implementations of software outsourcing in popular industry verticals. After reading this blog, if you are looking to outsource your software development, then Peerbits is the right choice for you.
Peerbits is a pioneer in delivering state of the art software solutions to its clients worldwide. It is a prominent software development company with a proven record of outsourcing highly skilled developers.
Peerbits can offer you with the finest developers across the industry, no matter how complex your project might be.
