More companies are offshoring sustainable application development and maintenance tasks to save money and focus their internal teams on critical tasks, recent research shows.
“Migrating engineering work offshore for stable applications that either have minimal investment planned or are scheduled to be retired/replaced, can bring a range of benefits to a company – but only if the right workstreams are selected at the right time,” Kforce Engineering Strategist John Wright said.
“The decision usually leads to enhanced operational efficiencies and a robust, secure and efficient software development process,” Wright said. “This frees internal resources to focus on developing new software, research and development and optimizing software spend for customer satisfaction.
Benefits like this explain why the IT outsourcing market is expected to only continue to grow. Statista projects that 2025 global revenue will reach $588 billion. According to ISG’s 2024 Market Lens study, 68% of enterprises turn to outsourcing to reduce costs. Once complete, the same companies reported an average of 15% savings and 11% quality improvements.
The savings are compelling, but selecting the right workstream is paramount to success, Wright said. This article provides a clear decision-making framework to help companies evaluate if, when and how to make this move successfully.