Shortage of skills in Emerging Technologies can pose a challenge for IT Outsourcing in 2020

IT outsourcing is an excellent way for small and medium businesses to evolve faster and use resources meaningfully. While this holds, the rest of the year 2020 that is hit by the pandemic, will see the bout of fluctuating demands over time, making it difficult for the business to tap into skilled IT resources.

Companies were looking to leverage the remote workers experienced and committed to delivering results regardless of where they are. The skilled resources can get things done remotely without the constant need for supervision, driving progressive businesses to opt for such staff. This will create a shortage of staff for IT outsourcing 2020.

Effects on Businesses due to the shortage of IT skills 


Productivity – There will be vacant positions within the business’ IT infrastructure, making it challenging to tap productivity with new, immediate hiring.

Growth of New Technologies – Evolving technologies allow businesses to make new IT investments. These technical advances need new skills that can be acquired through training – which takes time – or by outsourcing to offshore / nearshore locations with the requisite skills.

Costs – The cost of hiring and maintaining a team poses a significant issue as firms try to go minimal during the pandemic.

The Fourth Industrial Revolution has seen the emergence of emerging technology causing market disruptions worldwide. It is now COVID-19 that has seen people glued to their smartphones, speaking volumes of the influence of the digital business model. This means businesses will now require IT experts, to reach and manage new customer touchpoints efficiently.

Emerging Technologies and its Influence in Outsourcing Software Development in 2020

The new technology will demand the best out of businesses requiring top talents to offer IT solutions and services that can create a global impact.

  • Old software and application reengineering are required to accommodate the most advanced technical aspects.
  • Demand for highly qualified software developers and suppliers that can offer creative IT solutions for industries will go up.
  • Businesses will look to analyze and schedule the outsourcing of software development to offshore experts.
  • Old tech service providers will face challenges and competition with new technology service providers who can transform modern businesses.

Strengthening relationship networks

Most businesses were moving towards digital transformation. The IT outsourcing in the USA by the end of this year will shift in the value chain, where it will be transferred to a more versatile and scalable value network.

In reality, networking of value was a priority for many companies in 2020. But what does the outsourcing value network mean? It means trusting the IT solutions and outsourcing company to translate the values you imbibe into your customers’ business culture. This requires trusting people who work for you, and the outsourcing value network will mean a system of substantive connections and contracts.

Expect leveraging the following networks when you choose to outsource any critical business process:

  • A buying network in which two or more companies will join forces to leverage outsourced services for cost savings.
  • A network of service providers where they come together to address diverse IT demands and challenges.
  • A single organization may also recruit remote developers from multiple service providers to boost its performance.

Outcome-based contracting to gain prominence.

The basis on which outsourcing contracts are developed is the next thing that could change in the outsourcing sector in the post-pandemic 2020. We can see a shift towards more result-based externalization than the conventional project that needs technology, price, or time-based contracting.

IT solutions and services companies are increasingly aware of the risks and will now develop results-based projects instead of having an output-based contract. Not only will the risk of outsourcing purchasers be mitigated, but even the outsourcing services providers are inspired by the sharing of rewards of growing technology.

Firms view service providers as business management firms, which complete the project and share costs and profits. Companies would also benefit from a contract to allow for a detailed evaluation of the potential technology to strengthen the outsourcing ties.

Why choose expandFORCE for CloudShoring in 2020?

Hiring expandFORCE for the CloudShoring projects would mean getting access to experienced and qualified software developers. These experts stay available for service providers globally and even help benefit your customers with their industry experience.

Moreover, you are sure of the latest SaaS tools to automate plenty of processes in a sourcing life cycle from planning to execution. Such emerging technologies are useful in quick turnaround and providing quality services that keep you ahead.

If you are looking for IT CloudShoring in the USA, go with the expandFORCE experts as the team drives better engagement on the outsourced project with tools that provides governance. We can also act as a standalone contractor for your entire software development project and takes full responsibility to make it a successful one.

Talk to our experts at expandFORCE and get started to stand tall against the challenges posed by emerging technologies in years to come.

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