Nowadays enterprises are facing multidimensional challenges on the globalized market such as pressure to control costs, meeting changing consumers needs, and retaining market leadership. Gartner’s Worldwide IT Spending forecast revealed that global spending for enterprise software in 2016 reached the amount of $367.5 billion. The further development of enterprise-level companies will be ascertained by their capability to adopt digital technologies like cloud computing, mobile payments, IoT, and their ability to leverage new opportunities offered by these disruptive forces.
However, developing and maintaining an enterprise platform is difficult to get right, especially when the technology is getting timeworn. So, to keep afloat, the business must reinvent its platform to avoid becoming outdated and losing its position on the market. In this case, offshore enterprise software development comes into play, offering flexibility and capacities to apply innovation across your existing operations and help you attract and retain customers. Let’s delve into the technicalities and peculiarities of developing enterprise software offshore and discover the potential opportunities it may open.
Offshore Development Helps Enterprises Speed Up Their Digital Transformation
According to WEF report, it used to take leading enterprise-level companies an average of 20 years to reach a billion-dollar valuation. However, today’s businesses are getting there much quicker. For instance, Uber, Snapchat, and Xiaomi have managed it in four years or less, due to the successful implementation of digital technology. Moreover, a survey by PWC revealed that around 45% of IT executives have experienced revenue growth by improving digital capabilities as a top priority. No wonder why the interest towards digitization is spreading across most enterprises as well.
In this respect, offshore enterprise software development may become an effective tool for accelerating the digital transformation in industries like banking, telecom, and many others. It provides access to a large talent pool, which allows to find and scale a professional team really quickly. What’s more, this enables you to fulfill the digital changes faster while focusing on your core area of expertise.
Outsourcing Enables You to Effectively Maintain and Modernize Your Legacy System
Today’s enterprises often rely on outdated software and few developers may actually be interested in writing the code and maintaining their legacy systems. Furthermore, due to the growing demand and constant evolution of digital technologies, companies realize the necessity of modernizing their existing systems. In fact, 90% of businesses already admitted that legacy systems were holding back their productivity. That is why more and more enterprises are embracing the digital trend and effectively harnessing innovative technologies to upgrade their existing systems. This opens new opportunities in terms of customer engagement and retention as well as alternative revenue streams.
However, lack of in-house resources and relevant expertise stimulates enterprises to look for offshore IT vendors to establish reliable and trusted business bounds. Eastern Europe becomes an instant choice for many enterprises due to the ever-growing number of IT pros and excellent quality/price ratio. Software outsourcing companies located in Eastern Europe often have enough experience and resources to allocate a team of strong specialists that can upgrade your legacy system and make it more scalable and advanced. What’s more, they may easily support the existing software thus minimizing the risks.
For instance, HotSchedules in cooperation with N-iX dedicated development team worked on the modernization of their legacy system. Despite the fact that the company is a well-established and leading hospitality provider in the US, they realized the need to upgrade their existing system to remain competitive. N-iX engineers maintained and gradually transformed the existing legacy product to help the company maintain a competitive edge by offering enhanced services. The modernization of existing solutions resulted in significant enhancement of all business operations and enabled the company to save valuable costs. So embracing the digital trend helps enterprises to stay ahead of the competition and open new revenue streams in today’s high-tech society.
Offshore Vendor May Allocate a Team of Strong Cross Domain Experts
Enterprises have their core area of expertise and are experts in those areas of activity in which they have core competencies. Thus they often lack flexibility in terms of launching new directions and diversifying their expertise. That is why one of the baseline requirements for a software development team is to have strong domain knowledge. Another essential requirement is associated with flexibility and the ability to introduce new technologies to the current business processes. Many offshore midsize providers have enough capacities to cover different areas of expertise and have already developed a strong domain knowledge in numerous verticals. Their cross-domain expertise may allow them to cover more technologies and understand the technicalities of enterprise-level businesses.
For instance, one of our clients- SCHAD provides mobility solutions to Honda, Toyota, Dubai Airports, ASDA, and many other well-known companies. Due to the technicalities and different operational principles of these companies, N-iX team needed to develop a customizable solution and adjust it to various clients’ needs. With the help of our strong cross-domain expertise, the team managed to apply the latest coding practices and integrate the solution with various CMMS systems. Now it can fit the requirements of enterprises in different industries.
All in all, today’s enterprises must embrace digital transformation to ensure customer experience, uptime, performance, security, and compliance while seeking new ways to increase release velocity and productivity. Furthermore, digitization is essential to the bottom line and, in modern IT environments, organizations must contend with an evolving business landscape to achieve these goals. Offshore enterprise software development may help you apply digital technologies and renovate your legacy systems smoothly while reducing costs and attracting new customers. It is one of the driving forces behind the future evolution of your business strategy.