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Outsourcing always involves a partnership between two organizations. Even in a captive model, regional organizations can be seen as the cooperating partners. Such Outsourcing relationships are very complex. The processes and needs have to be handled with care and an understanding of the other party. Failing to do so will cause problems for both, the customer as well as the service provider. It is a fact that customers are the most important part but does it symbolize that they are always right? Or they can never be wrong?

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With the increase in the consumption of internet by humans as well as by systems (IoT), technology is touching each sphere of human life in some way. Aspiration shall be to create a future where quality of life can be much better and humans or systems will become more productive. Considering the advances in Artificial Intelligence (AI): What if technology can undergo self-development or evolve again and again automatically and inevitably with a minimum effort by humans? Sounds impossible? We would say not really.

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Outsourcing of Software development is probably one of the most sought-after approaches that comes to action whenever CEOs, CIOs and other IT leaders of an organization identify a need to develop back end Software, a web application or a mobile application that will help to improve or boost their business productivity. Information technology today has become more advanced and undergone changes manifolds and lately the IT Outsourcing market faces many challenges. This can also be attributed to the globalisation of teams (Offshore, nearshore), globally changing IT Infrastructure and more advanced technologies like IoT, machine learning, AI etc.

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Outsourcing Software Development can be a tricky task, with a number of factors that govern software outsourcing decisions. Those factors are impacted by the size of the outsourcing company, the sourcing destinations of interest, them being far off (offshore), nearby (nearshore) or even very close by (inshore, domestic sourcing). US companies have been outsourcing software development from quite a long time and the customers have their own reasons in doing so. If you ask US companies what are the major factors driving software development outsourcing one will surprisingly discover various other reasons than just cost arbitrage.

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IoT-technology is already extending the data foundation required to enhance the “Digital Business Eco System” and opens the path to new business opportunities. Digitizing the businesses requires a solid and well-defined data foundation. Currently discussed technologies like AI, RPA, machine learning – all the analytics and big data applications work on data retrieved from the business eco system. Automated data collection and various types of sensors embedded in IoT-technology need to be developed to build the enhanced data foundation.

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