In the world of digitalization and rapidly evolving software technology, the need for new, efficient, cost-effective software and software outsourcing has increased. Another reason behind this is that there is a technical solution to almost every day to day problems. From clothes to food and business insights to invoicing everything is just a matter of clicks now.
Due to this, outsourcing has been around for quite some time, as companies always look for cost-efficient ways to manage specific business processes off-site. Earlier, companies used to outsource only certain things like customer support, accounting, recruitment, etc. But now, firms have also started software outsourcing.
The reason why American and Western European companies outsource tech jobs is that because of the talent shortage, high development costs, and the cut-throat competition on the employment market. This has led to the shift from cost-efficient to cost-and-quality-driven approach while choosing a tech vendor has opened the doors for the software outsourcing companies in India.
Let’s start with top stats related to software outsourcing for 2020 and years to come.
The Asia Pacific region or the APAC held the largest market share in 2019. The area is expected to provide several growth opportunities to market vendors during the forecast period, i.e., 2020-2024. The growth in IT outsourcing from APAC is expected to be 37% in 2020 and in the years to come wherein India, Japan, and China are the key markets.
The contract value of the information technology outsourcing market worldwide 2000-2019. In 2019, the global market size of Information Technology Outsourcing (ITO) amounted to $66.5 billion. Another survey says that 70% of technology companies in the UK are expected to face a talent shortage in the next 12 months.
The largest economy of the world, the United States of America, also faces a shortage of technology talents. Gartner, a global research and advisory firm, predicts that 1.4 million computer specialists’ job vacancies are on the rise of this year.
