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We are at the beginning of 2016 and many bloggers and companies are reviewing what happened in 2015 and what the new possibilities are in the Year to follow. This is the news of every company big or small. There are a lot of good articles out on the net explaining the major shifts happening in the different industries.


There are a few topics common to any industry and it seems vital for any company to deal with them:

  1. The only thing constant in Business is CHANGE and its pace is ever increasing.
  2. Digital disruption enters most areas. Companies need to adapt, fast and be flexible.
  3. Digital disruption builds on innovative minds (entrepreneurs, game changers) and Software.

Be fast and flexible - build on Outsourcing

E.g. Rapid prototyping of new concepts, innovative digital business models and selected user tests.

Outsoucring2016 pic1Before the concept of outsourcing was getting close to a commodity, companies were used to do everything by themselves/within their company. Building on the benefits of Outsourcing, they nowadays will start to outsource even more but with a better knowledge of the providers’ market.

Outsourcing software development is a powerful and effective business strategy for companies without the time or resources to complete a project in-house. Though there are many risks to the outsourcing of software development, most companies will be hesitant to let the risk factor – which can be mitigated properly anyway - stop them because of the benefits that can be obtained.

The right software development service providers are able to ramp up and down dedicated teams as needed by the customer and should have the capability to either already hold available or at minimum swiftly acquire the expertise required by the customer.

Save cost by maintaining quality - manage your providers well

Outsourcing2016 pic2In past companies used to outsource primarily to save costs, whereas nowadays they still want to save on costs but to have better quality and a higher flexibility at the same time. Today it is suggested that price is very important but not always the only measure.

The best vendors are those that offer a balance of a low price but high value and quality at the same time. A common recommendation from experienced outsourcers is to immediately discard the highest-priced and lowest-priced bids.

This way, you’re more inclined to choose a vendor based on what they provide rather than what they charge.

See also: 10 Best Practices for Outsourcing Software Projects in 2016.

Fitting skills and timely execution – by building on a global workforce

E.g. by building on a global pool of talents and experts to manage the global teams efficiently

Outsourcing2016 pic3In past service providers might have just decreased their price quote to get the contract, now they have to additionally show their value proposition through demonstrating delivering the right skills and executing projects in time, all without compromising on quality.

This needs to be supported by trusted references. Service providers simply bidding low to win the bid, then failing to deliver the project with the desired outcome on time and by this increasing the cost of the project etc. shall be a matter of the past.

Customers nowadays look for fitting, experienced and motivated service providers who are skilled and are able to deliver the project on time. Due to the transparency a global online world offers, customers are in a position to identify and select those fitting service providers.

Digital Disruption in IT Outsourcing – B2B Marketplace plus e-2-e tool chain

Outsourcing2016 pic4In past it was a challenge for customers to decide whom to trust if they wanted to outsource their projects. Nowadays there are independent subject matter experts like pliXos who do not only provide the sought in depth experience and market knowledge but also provide easy to use and standardized online tools which allow customers to search and identify his fitting set of providers from a global, prequalified list: pliXos B2B Marketplace.

The Next Big Thing

Automation and Cloud

In a recent blog post, BPM Watch predicted that service providers that had embraced the Cloud: “Even if the competitive edge does not turn out to be of substantial quotient for some service providers, they will be able to improve and innovate their service model that will lead to increased efficiency and agility in their business processes”.

See more at: Top 5 Outsourcing Trends for 2016.


It’s the generation of startup builders with new startups coming up each day. As per NASSCOM’s “Startup-India: Momentous Rise of Indian Startup Ecosystem” report, India ranks third globally with over 4200, 65 percent of these startups being housed in Bengaluru, NCR and Mumbai. Bengaluru, often referred to as India’s Silicon Valley, has been listed within the world’s 20 leading startup cities in the 2015 Startup Genome Project ranking. Chennai, Hyderabad, Pune, Ahmedabad, Jaipur are also emerging as startup-hubs. India, the 3rd fastest growing startup originator, is also one of the largest exporters of software and services. The competition is strong and even increasing which will lead to a further focus on value for customers and a shakeout of non performers – to the benefit of the customers.

A nice example from India is Tech Mahindra, the country's fifth-largest software services firm, which is sharpening its focus on innovation and on developing next-generation technologies. In an interview with K. Rajani Kanth, on the sidelines of Tech Mahindra's annual innovation conclave in Hyderabad, chief executive officer C P Gurnani and chief strategy officer and head (Growth Factories), Jagdish Mitra outline the company's innovation strategy, startup investments, and mergers and acquisition (M&A) plans.

See more at: We will have 10 startup investments in 2016: Tech Mahindra.

All of this can be achieved through the willingness and the determination of the people who want to look beyond the horizon and want to achieve greater heights. In this New Year the number of service providers - big or small - who want to further grow or jump into this big pool of software development is high in general. Those providers are keen to serve new clients, especially from the United States, United Kingdom or Central Europe.

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