65% of companies in an Annual Survey on IT budgets and technology trends are still bullish about outsourcing. 83% of them will increase or keep their IT budget the same next year. 58% of them choose India to outsource their business.
If these statistics are not enough to convince businesses about the viability of outsourcing, the latest trend in IT should – CIOs start building their own custom software instead of buying or sourcing them from the cloud.
Inspite of the availability of more economical and ready-made/packaged business apps in the cloud, or Enterprise wide comprehensive solutions, businesses still think that the best way to establish a competitive edge is to create innovative software. Whether it is to cater to a unique business process (logistics software for sending goods to Afghanistan in pristine condition) or to forge ahead of the competition (business intelligence to mine data from 70 companies across 9 industries), CIOs are creating business cases to justify the development of custom software.
So are businesses returning to the good ol’ days of huge application development? Not necessarily, says Exeter Group’s Gutierrez. “… innovative companies will always find the need to develop custom code. Not because they want to return to the days of big application-development shops, but because the stuff just doesn’t exist yet to do what you want to do.”
How does this trend benefit outsourcing companies? Immensely, if you read between the lines. Businesses want custom software for which they need to justify the risk, time, and money spent. And since custom software is based on the unique business needs (which will change as businesses enter new markets, or create new products), projected development costs can go for a toss quickly. Add to this the need to hire developers (temporarily or for the long-term) with different skill sets, including overall understanding of the business objectives and the need to keep the project under wraps until fruition.
Agile development, low risk and investment, developers with experience in business and technology, zero tolerance for delays, world-class IP protection, and flexibility in cost is the need of the hour for CIOs looking to increase their competitive advantage through customer software development. May we recommend Suyati’s DGT?