The debate has escalated with the new President in the White House. Outsourcing, has been the market driver for countries like India, where many top application development companies in India are working for overseas clients. Outsourcing has helped the origin country as well, because even the small capital holder start-ups can get their work done by paying less money to the contractors in the other part of the world. In today’s era outsourcing is generally monopolised by tech companies. They are the leading in outsourcing the work and receiving the work, as well.
But with the intentions of Donald Trump, the situation is slightly critical. He has spoken against the outsourcing in the election campaign and he seems to stick on that. Although US is experiencing acute shortage of tech specialist, the new administration shows no reverse trend.
Apart from US, there are other hot spot regions of outsourcing that are changing in the 2017. Here are they. If you feel something is left, please comment down below and also let me know what you think about the new policy.
Shortage of Tech Specialists in Europe and US
According to Talent Shortage Survey, 46% of employers in US face difficulties in filling the vacancies. This fact becomes even more scary at 57% in UK in research of Silicon Valley Bank. The commonly prevailed trend of shortage of IT related professionals in Europe is expected to grow even further. But this will not cover Europe as a whole, rather it will be concentrated in western Europe. Eastern Europe, however, may try to fill the gap.
Technological education in Eastern Europe is quite high as compared to that of US and Western Europe. Countries like Poland, Ukraine, Romania and Russia may provide support to decreasing IT professionals in the required regions of the world. Ukraine alone produces 36000 technical degree holders each year. Russia also has high standards in engineering since Soviet era.
But Eastern Europe countries have to raise the bar even higher to compete with countries like India. Educational level still lacks at least 2 times than in Western Europe. But it has a significant benefit of close proximity than India, which is more than 6700 KM away from UK.
Outsourcing to increase in IoT and Cloud
IoT and Cloud are the two hot topics of the day in IT. And there is no wonder to see more outsourcing in these arenas. According to Vodafone, 76% of the companies consider IoT as important for their future growth. TCS also claims that 57 large IT companies will spend more than $500 million in IoT. These facts prove the surge in the IoT market, and it will not be a surprise to see huge volume of Outsourcing in this technology.
According to EY survey, cloud services has the highest outsourcing tech with 36% share. And this trend is expected to continue. Cloud provides many features over the traditional systems such as better data management, cheaper infrastructure and simplified access. And this makes the cloud the perfect choice for top app development companies in India and abroad as well.
Better Services and Quality Products
Deloitte conducted a global outsourcing survey in 2016 which stated that customers are expecting more innovative services from their offshore contractors. And they do outsourcing not only to save money but to get better services and higher quality in products. And we expect this trend to grow simultaneously with the outsourcing volumes in the world.
Clients and service providers all over the world are engaging the outsourcing industry so as to provide the right suited service to the business.
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