5 Emerging IT Offshoring Trends for 2021 and Beyond
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 organizations that work will offshore teams continues to grow at an exponential rate, here are some IT offshoring trends to watch out for in the coming years.
1. 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 unrealized 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 organization 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 Ukraine, Poland, Belarus, and Romania are also emerging as preferred nearshoring destinations for businesses in Western Europe. With a negligible time difference and cultural compatibility, organizations are leveraging the nearshoring model to save money and access talent that they can’t find locally.
Read the full article at: https://thescalers.com/6-offshore-development-trends/
