Fast, iterative delivery of high-quality software means better customer engagement and higher satisfaction, so an effective development organization is more important than ever.
But nowadays software development and delivery leaders are facing new opportunities and challenges as software technologies and platforms pivot into new areas where traditional skills, programming metaphors, and delivery processes no longer apply, says Forrester.
Therefore they are looking to service providers for custom software development to help accelerate their digital transformation and can opt for a number of new partnership models that are proving successful for both vendors and clients, adds the market researcher in its recent report (New Engagement Models Emerge For Custom Software Outsourcing, November 2017).
Staff augmentation services involve allocation of dedicated technical resources, typically hired as overseas development extensions of in-house application development teams on various, fixed or flexible terms and conditions.
This outsourcing strategy allows application development and delivery leaders to maintain higher control and better integrate with in-house processes while adding new, specialized skills they were missing in their existing teams, and obtaining additional resources needed to complete their projects on time. Last but not least augmenting their development teams in this fashion they can manage frequently changing staffing needs in a cost effective way.
Mixing offshore, nearshore and onshore developer team augmentation will increase these benefits. Having developers in different time zones means continuous output and 24/7 support, better understanding of local customer needs, access to talent in different regions and bringing in new ideas for innovation.
Powerhouse Eastern Europe
According to a Research and Markets report the global IT outsourcing market will grow at a CAGR of 5.84% over the 2015-2019 period.
While the market was initially driven by short term goals such as cost reduction and efficiency, companies are now looking for specialized skills and experience in industry specific areas or solutions, with high expectations for innovation from the software development providers.
Going forward strong adoption of cloud services will make it possible for outsourcing to move from non-core to more substantial processes. Companies will leverage the experience gained in outsourced projects and make more informed decisions about different models and out- or in-sourcing.
Eastern Europe has emerged as a software outsourcing powerhouse and now 4 of the top 20 countries listed on AT Kearney's 2017 Global Services Location Index can be found here. The region can provide cost-effectiveness, product quality, a proximity to Western Europe, cultural affinity and high-level skills that companies are looking for.