The history of outsourcing dates back to the time of the Industrial Revolution, which took place in Europe between 1750 and 1900. Today, outsourcing is on the rise – the market size of outsourced services has comprised $ 85.6 billion in 2018 in comparison with $ 45.6 billion in 2000, as Statista reports.
In the 1990s, application service providers (ASPs) started allowing companies to rent software applications instead of building their own. This was close to modern software development outsourcing. According to the results of the Global outsourcing survey by Deloitte, IT still remains the most outsourced industry, as specified by 72% of survey respondents. Now outsourcing is associated mostly with remote IT jobs, so in this article, we are going to discuss the latest outsourcing trends related to the IT industry. Additionally, we will find out what tools to use when assessing the outsourced candidates before the interview and monitoring their performance after they are hired.
Outsourcing trends: #1 New Outsourcing Destinations
India and the Philippines still remain the top outsourcing destinations. However, Europe is now catching up with the Asian countries. As per the same Global outsourcing survey by Deloitte, 65% of companies who outsource do so in Europe. Eastern European countries such as Ukraine, Poland, Bulgaria, etc. offer favorable outsourcing conditions because of reasonable prices but highly skilled tech talent.
Here is some proof:
- Poland is featured in the Top 5 of the Top Coder Statistics, next to China, Japan, the Russian Federation, and the United States.
- In 2017, the Global Sourcing Association (GSA) named Ukraine the “Outsourcing Destination of the Year”.
- Bulgaria is ranked at Clutch.co as the world’s 5th top outsourcing country.
Outsourcing trends: #2 Tech Talent Marketplaces
A tech talent marketplace is a platform that features the profiles of developers working at offshore software agencies. If the developers are currently free and waiting for a new project, an agency can share their profile to potential clients via a marketplace, thus acting as a vendor. The clients then look through the developers’ profiles at the platform, shortlist the ones that fit the project requirements, interview them, and form an offshore development team. Such marketplaces differ from freelance websites in a way that the developers are not self-employed – they work at local vendor agencies. The client can sign a contract with one or several vendors.