4 Ways to Optimize Your Business Using AI

At this moment, companies might have at least 6 months to get their act together before AI comes back with some hard changes for their industry. 

I want you to imagine your business right now, whether you’re the owner, an employee, or any sort of stakeholder. If you’ve been around for longer than 10 years, there’s a big chance you’ve had several major disruptions in your industry that you were forced to overcome.

Now, we stand at the cusp of yet another disruption that will completely transform not only the way your business operates, but the world itself. If you think that’s an overstatement, stop and think; how much does your company currently spend on employee salaries per month? I want you to think about that number and then look around at some AI service providers and see how much you could implement with that sum. 

It’s a harsh vision, especially to think that jobs people have done for decades could be taken over by AI. However, this article isn’t meant to instill fear about job security, we simply believe that by understanding the transformative potential of AI and its specific features, companies can make informed decisions to stay well ahead of the curve and remain competitive. With that said, here are 4 ways businesses can optimize their operations to adjust to today’s demands:

1. Managing The Supply Chain

Predictive analytics are miraculous in their range of abilities. Most notable is supply chain management, where the AI system can easily identify fluctuations in demand well in advance. This enables proactive planning and minimizes the carrying costs of inventory. 

What AI algorithms can do here specifically is analyze historical data, market trends, weather patterns, and social media sentiment to predict future demand with unbelievable accuracy. This is a big advancement whether your company actually produces material goods or offers a specific service.

For service-oriented businesses, effectively managing operational costs while meeting customer needs is the name of the game. The reason I bring this up is because predictive analytics are often exclusively discussed regarding their ability to serve companies heavy on manufacturing demands. But that goes against the whole basis of AI pertaining to its ability to manage data in just about any industry, so we’ll lay it out clearly.

For service providers, AI algorithms can forecast service demand which then allows companies to allocate their staff and resources more effectively. There’s always been that phrase business owners use: “Well I can’t predict the future, but…”. Now there’s no need for this, as AI algorithms can make accurate predictions.

2. The Core 4

Every business strategizing with AI is checking off one of the following boxes: efficiency, effectiveness, expertise, or innovation. According to a report from developer Jacob Bergdahl, each strategy is broken down in terms of the company’s data and will look something like this:

The efficiency strategy: Low data > Low work complexity

The effectiveness strategy: High data > Low work complexity

The expert strategy: Low data > High work complexity

The innovation strategy: High data > High work complexity

When strategizing with AI, first identify where your needs fall on this scale. If you don’t, you’ll end up with a solution that doesn’t meet your needs and isn’t sustainable. 

3. The Volume and Complexity of Data

Branching off the previous point, as markets continue to shift online, the amount of data businesses accumulate increases exponentially. With that being said, the number one reason businesses can survive this kind of change is through their ability and willingness to pivot. 

As a means to do so, the digital landscape has opened up new avenues for collecting as well as generating vast amounts of data from various sources such as user interactions, transactions, social media, etc. What’s important to know is that this rise in data gives businesses just as many opportunities as it does challenges.

On the one hand, the abundance of data gives businesses valuable insights into customer behaviour, market trends, and how their performance stacks up. It enables companies to make “data-driven decisions”, which are based on initiatives such as personalizing customer experiences, optimizing processes, and of course, identifying new growth opportunities. 

However, the sheer volume and complexity of this data can quickly become overwhelming without the right strategies and technologies in place. To mitigate this risk, businesses must integrate data management tools that can streamline data workflows. Here’s how this can happen:

Data Storage and Infrastructure: Cloud-based storage solutions, data lakes, and distributed databases all contribute to building a scalable and secure data storage infrastructure. By investing in the components needed for this infrastructure, companies will be a lot more flexible. 

Data Integration and Consolidation: Businesses often encounter data silos, where valuable information is scattered across different systems and departments. What implementing data integration strategies and tools can do is help consolidate and unify all of that data, which will give you an overall holistic view of your organization's operations and customer interactions.

Data-driven Decision-Making: This is a hot-button topic right now and for good reason. Encouraging a data-driven culture within an organization is vital to align the team with the vision behind change and ultimately where the industry is headed. Training employees on data literacy, promoting data-driven decision-making processes, and fostering a mindset that values data-driven insights will empower people to get behind these processes and leverage their capabilities.

4. Security

Cyber extortion and ransomware attacks have been on a huge upswing in 2023. In March, Ferrari, Skylink, and Alliance Healthcare were a few entities that faced serious issues with breaches. The threat of ransomware and malware becomes more significant as the volume of data that businesses work with increases.

For this reason and several others, artificial intelligence is a must for enterprise businesses. Here’s how it makes a difference:

Recognize Threats Early

An AI-powered security system is a digital detective that’s never off the clock. It will analyze data from your network traffic, log files, and user behaviour, to detect anomalies and potential indicators of cyber attacks. The machine learning algorithms embedded in these systems can identify irregularities that signal ransomware and malware, which will give you a response to early threat detection.

Respond to Threats Early and Automatically

When a security breach is detected, AI systems can trigger immediate responses, which might include isolating affected systems, blocking malicious connections, or initiating backup and recovery procedures. 

The difference between your business using an AI system and your competitor who’s too slow to strategize comes down to one thing: vulnerability. Your competitor is going to be highly susceptible to cyber threats and attacks without this threat detection and response system, while you'll have a robust defence in place.

Fixing Weak Spots

AI can help you find and prioritize vulnerabilities in your IT setup. It looks at things like system configurations, software versions, and patches to identify any weak points that ransomware and malware could exploit.

What to Know Going Forward

It’s a lot right? This information is as general as it gets when looking at the things companies need to do with AI because there’s so much subjectivity with IT. The best thing you can do as a business starting your journey with AI is to research and evaluate reputable AI service providers that offer solutions aligned with your business needs. Have consultations and ask for demonstrations to understand how their AI tools can be integrated into your existing infrastructure. Consider factors such as scalability, ease of implementation, and ongoing support to ensure a smooth transition.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to Fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

Introducing Computer Agents

Most people’s knowledge of AI stops at Chat GPT. The “GPT” part of which stands for “Generative Pretrained Transformer”. Didn’t know that? Good, let’s break it down:

Generative: The AI model's ability to generate new content rather than relying solely on pre-existing data

Pretrained: The system has been trained on a large dataset to learn patterns, structures, and relationships in language.

Transformer: The underlying neural network infrastructure that allows the model to process and generate text quickly and efficiently. 

To say the absolute least, OpenAI set a whole new bar and got an absurd head start once they introduced Chat GPT, which has placed OpenAI among the top 20 most visited websites in the world during the 6-month span the platform’s been out. But this success alone won’t sustain them forever, especially since it’s influenced rival companies and researchers who are working tirelessly to catch up by developing their own products.

The Other AI Systems on The Rise

When you give a tool to the public, it’s a certainty that they will do whatever they can to make it as beneficial to them as possible. This mentality has led to the creation of Computer Agents which essentially act as a computer’s personal assistant. In case you’ve never heard of a computer agent, we’ll break the concept down.

The entire premise for computer agents is to do one thing: automate the tasks required to reach goals. This advanced AI infrastructure goes beyond basic copywriting and idea generation. It’s more so tailored to cater to the needs of enterprise businesses.

There are 3 key types of agents: Deliberative, Hybrid, and Reactive. While all are unique in their processes and abilities, they share the common goal which is to complete tasks as quickly and efficiently as possible. But not in the same way that Chat GPT responds to your prompts, computer agents use APIs to work with applications and services to perform tasks on your behalf.

Here is a closer look at each one:

Deliberative Agents: Deliberative agents use advanced planning and decision-making algorithms to perform complex tasks. Ever heard someone say “Use your brain”? Well, these systems do just that. They take their databases of past experiences and use them to analyze problems and make informed choices based on the situation they’re presented with. While they may not have a brain, they generate a plan of action to achieve the intended goal. These helpers are great for tasks that require foresight and optimization.

Reactive Agents: These tools are the complete opposite of what we know about deliberative agents. As the name implies, the system responds to its environment, except without any clear understanding of its purpose. The agent's behaviour and the rules they follow are usually pre-determined and don’t depend on reasoning. It has no learning capacity and instead relies on inputs to trigger pre-programmed responses. For tasks that need quick responses to a predictive environment (like an assembly line), this tool can be a game changer.

Hybrid Agents: With hybrid agents, you get the best of both worlds. These are your self-driving cars, Siri on your iPhone, and even the robots used for manufacturing. These systems combine the strengths of both deliberative and reactive agents to form one process. They can reason and plan like deliberative agents but also react quickly to dynamic environments just like reactive agents. They’re that perfect balance between preplanned actions and on-the-fly adaptation, which makes them great for tasks that require flexibility. 

You might be wondering then, “What’s the point of deliberative and reactive when there’s a hybrid?” Each agent serves a unique purpose, and there are going to be times when a hybrid isn’t as suitable a choice. Here are 4 reasons why: 

1. Complexity: While hybrid agents can handle a wide variety of tasks with the conjoined capabilities of deliberative and reactive agents, the integration does add complexity to the system. In some cases, the simplicity and efficiency of reactive or deliberative agents are simply better for the task which as everyone in IT knows - tasks never need to be more complex. 

2. Application Requirements: Different applications have different requirements. Some tasks prioritize speed and real-time responsiveness, while others require careful planning and decision-making. Having that variety of agent types allows programmers to select the most suitable one based on the application’s specific needs.

3. Specialization: As we said before, reactive agents are best for applications where immediate reactions are crucial, such as emergency systems— especially cybersecurity. Deliberative agents, on the other hand, will cover the big-picture tasks. It’s just like a development team, members have their unique roles and abilities but all contribute to an end goal. 

4. Resource Constraints: Depending on the available computational resources, it may be more practical to use simple reactive or deliberative agents as opposed to a complex hybrid agent. This consideration becomes crucial when dealing with limited processing power or memory constraints in resource-constrained environments.

How it Helps Businesses

Artificial Intelligence, Machine Learning, Autonomous Agents, you name it— it’s cool, but how can people use it to help their business? These systems integrate to fit the custom requirements of your product or service. As the trends suggest, if a company is not trying to automate as much of their workflows as possible, they’re putting themselves at a major competitive disadvantage.

Why would a company not want to move toward automation? Among many reasons, here are the most common:

• A simple lack of awareness/underestimating new technology

• Resistance to change

• Security concerns

• The complexity of the process

• The investment

• Volatile business environment

Most of these concerns are to be expected since the process of digital transformation— especially with AI involved— can be a significant undertaking with no clear guarantees. However, this is what it takes for companies to survive in times of change.

If a business leverages AI, ML, and these autonomous agents with a clear strategy defined and aligns them with their unique goals, they can embrace automation and adapt to the evolving landscape. What we’re getting at here is that leveraging the capabilities of systems like deliberative, hybrid, and reactive agents, such as a GPT, can drive efficiency and innovation, especially in the long term.

Frameworks Behind Computer Agents

Integrating computer agents into a business’s internal system requires a structured approach. Because of this, there are several framework options:

1. Behavior Tree (BT) Framework: The Behavior Tree framework is used for designing reactive agents. It structures an agent's behaviour into a hierarchy of tasks and conditions. The agent then evaluates these tasks and conditions in real-time and makes decisions based on its immediate environment and the rules you’ve given it.

2. Belief-Desire-Intention (BDI) Model: The BDI model is a very popular framework used in designing deliberative agents. It focuses largely on the agent's beliefs about the world, its desires or goals, and its intentions to achieve those goals. This model puts a big emphasis on reasoning, decision-making, and planning capabilities.

3. Sense-Plan-Act (SPA) Architecture: SPA is a popular hybrid architecture used to create highly intelligent agents. Each step is part of a cycle that is sensing the environment, planning its actions, and executing those actions. This is considered the foundation of intelligence that every robot needs.

   The architecture enables agents to combine reactive behaviours with some higher-level deliberative processes. This makes responsiveness happen in real-time through the reactive component, while also providing the ability to reason, plan, and then make strategic decisions using the deliberative component. 

4. Multi-Agent Systems (MAS): Simply put, MAS frameworks involve multiple agents working together to achieve common goals. Using a MAS framework, agents can coordinate their actions and communicate to solve problems that would be impractical for a single agent to handle alone.

The Takeaway

With a solid infrastructure in place, businesses can get the most out of integrating computer agents into their workflows. Whether it's leveraging reactive agents for quick responses, deliberative agents for strategic decision-making, or hybrid agents for the best of both, businesses first need to think about how their goals align with their technology selection. 

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to Fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

IT Outsourcing & Software Development in 2023 Guide

Have you ever had a brilliant idea, but were left with no way to make it happen? There’s nothing more frustrating than knowing you could solve big issues— whether in your personal life, work life, or for the world at large— but not have the resources to bring it to life. Imagine you could take this idea and bring it to a group of people that know exactly how to build your solution. This is called outsourcing.

IT outsourcing has become increasingly popular over the years as technology continues to play a critical role in streamlining processes and improving operations for companies of all sizes. In simple terms, IT outsourcing refers to the process of hiring external vendors to handle specific technology-related functions for a company. This could include software development, web design, network management, and technical support, among others. The concept of outsourcing itself is not a new one, but the rise of technology has made it easier for companies to leverage the expertise of external partners in areas where they may lack in-house skills or resources.

IT outsourcing has a rich history dating back to the 1960s, when large companies began to outsource certain tasks such as data entry, payroll, and accounting. With the advent of the internet and other technological advances, outsourcing has evolved to include a wide range of IT services. Today, companies can outsource everything from basic web design to complex software development projects, and everything in between.

One of the primary benefits of IT outsourcing is cost savings. By outsourcing, companies can reduce the cost of hiring and maintaining an in-house team, as well as avoid expenses such as office space, equipment, and software licenses. Additionally, outsourcing allows companies to tap into a global talent pool, gaining access to specialized skills and expertise that are hard to find independently. Finally, outsourcing can help companies focus on their main purpose, allowing them to remain agile and responsive to market changes. These benefits have made IT outsourcing a popular choice for businesses of all sizes and industries.

Here is a clickable overview of everything this guide covers:

1. What is IT outsourcing?

2. How does IT outsourcing work?

3. Where is the best place to outsource?

4. Why should I consider IT outsourcing?

5. What should I look for when choosing an outsourcing partner?

6. What industries can benefit from outsourcing software services?

7. What are IT trends to look out for?

8. What exactly can be outsourced?

9. How do I know if outsourcing is right for me?

What is IT Outsourcing?

To reiterate, IT outsourcing is the practice of hiring a third-party company or service provider to manage and perform IT-related needs.

IT outsourcing can be categorized into three main types:

• Offshore: Outsourcing to a company in a different country

• Nearshore: Involves hiring a vendor in a neighbouring country

• Onshore: Outsourcing to a company located within the same country as the company.

When comparing IT outsourcing with in-house development, there are several advantages and disadvantages to consider. In-house development can offer more control over the development process, better alignment with the company's goals and values, and potentially better communication and collaboration between team members. However, it can also be more expensive, time-consuming, and may not provide access to specialized skills that are required for specific projects.

On the other hand, IT outsourcing can offer higher ROI, access to specialized talent, and scalability. By outsourcing, companies can reduce the cost of hiring and maintaining an in-house team, gain access to a larger talent pool, and scale up or down quickly based on business needs. However, outsourcing— particularly, offshore outsourcing— can also present challenges such as language barriers, cultural differences, timezone differences, and potential communication issues. Ultimately, the decision to outsource or develop in-house will depend on the specific needs and goals of the company.

How Does IT Outsourcing Work?

The IT outsourcing process is a complex one that requires careful planning and execution. The first step is to define the scope of the project during the project planning phase. This includes:

• Outlining the features required

• Determining the ideal timeline for delivery and

• Calculating the allocated budget

Once the scope is defined, the company evaluates potential vendors based on their experience, expertise, and quality assurance processes during the vendor selection phase. The company then negotiates the terms of the agreement, including the scope of work, pricing, and timelines, during the contract negotiation phase. Finally, in the project management phase, the company manages the relationship with the vendor, ensuring that the project is delivered on time, within budget, and to the required quality standards.

Effective communication and collaboration are crucial to the success of IT outsourcing. The company should maintain an open line of communication with the vendor to ensure that the project is progressing as planned. Regular status updates, progress reports, and milestone meetings can help keep the project on track. The company should also establish a robust project management methodology to ensure that the project is managed efficiently. If the vendor is highly experienced, they will come to the table with established methodologies that have been proven to work through past successful projects.

Best Place to Outsource Software Engineers: Latin America

When it comes to outsourcing software development, Latin America is quickly emerging as a popular destination for companies looking to reduce costs, access top talent, and benefit from cultural similarities. With a rapidly growing tech industry and a highly skilled workforce, Latin America offers several advantages over other outsourcing destinations. In this section, we will explore why Latin America is considered one of the best places to outsource software engineers and what makes it an attractive option for companies looking to outsource their software development needs.

Similar Time Zones: One of the biggest advantages of outsourcing to Latin America is the minimal time difference from North America. This means that communication between the outsourcing company and the vendor is more convenient, as they can coordinate meetings and calls without significant disruptions to their workday.

Cultural Affinity: Latin America shares a similar culture with North America, which facilitates communication and helps to bridge the gap between teams. Latin Americans are also known for their hospitality, making it easier to build lasting relationships.

High-Quality Work: Latin American countries, such as Argentina, Brazil, and Mexico, have a long history of producing high-quality software engineers, with many top-tier universities and tech schools throughout the region. This means that companies outsourcing to Latin America can expect to work with skilled professionals who produce quality work.

Competitive Pricing: While Latin American developers are highly skilled, the cost of living is generally lower in the region than in North America. This translates into more affordable pricing for outsourcing companies, which can help them save on costs while still accessing top-quality talent.

Language Fluency: English is widely spoken and taught in many Latin American countries, making it easy for outsourcing companies to communicate effectively. Additionally, many Latin American software engineers are bilingual, which can help to facilitate communication and prevent misunderstandings.

Proximity: Latin America is geographically close to North America, which makes it easy to travel for in-person meetings, project planning, or other important tasks. This close proximity can help to foster closer relationships between the outsourcing company and the vendor, leading to better collaboration and more successful projects.

Reasons to Consider IT Outsourcing

IT outsourcing has become a popular choice for companies that want to remain competitive in today's fast-paced business world.

Cost Savings

One of the primary reasons to consider IT outsourcing is cost savings and higher ROI. Outsourcing software development can help companies save money on salaries, benefits, and office space that would have been required to maintain an in-house development team.

Recruiting for Specialty Skills

Access to specialized skills is another reason to consider IT outsourcing. Software development requires a diverse set of skills, from coding to user interface design to quality assurance. IT outsourcing allows companies to tap into the expertise of specialized professionals who have experience in a particular area of software development. This can result in higher-quality software and faster development times.

Scalability

Scalability is another reason to consider IT outsourcing. Businesses are often subject to fluctuating demands, and outsourcing provides the flexibility to scale up or down quickly based on those demands. By outsourcing, companies can remain agile and responsive to market changes, without being weighed down by the costs and logistical challenges of maintaining an in-house development team.

Minimal Company Disruption

By outsourcing non-core functions such as software development, companies can devote more resources and attention to their core business functions, such as sales, marketing, and product development, or services.

Flexibility

Finally, outsourcing software development can provide businesses with greater flexibility. IT outsourcing allows companies to respond quickly to changing market conditions and adjust their software development needs accordingly. This can help companies stay ahead of the competition and remain relevant in an increasingly digital world.

Factors to Consider When Choosing an IT Outsourcing Partner

Choosing the right IT outsourcing partner can be a challenging task, as there are considerable factors that weigh in. When evaluating potential partners, one of the most important aspects is their experience and expertise. It is important to choose a partner that has a proven track record of success in the specific areas of software development that you require. Look for a partner who has experience working with companies similar to yours, and who can demonstrate a deep understanding of your industry.

Another important factor to consider is the quality assurance processes that the outsourcing partner uses. Make sure that they have a rigorous testing process in place to ensure that your software is delivered bug-free and to your satisfaction. A good partner will have a strong focus on quality and will take the time to thoroughly test and debug your software before delivery.

Communication and collaboration capabilities are also critical factors to consider when choosing an IT outsourcing partner. Look for a partner who has a strong communication strategy in place, and who can provide regular updates on project progress. The ability to collaborate effectively and openly with your partner is key to the success of your project.

Project management methodology is another important element to consider. Make sure that the partner you choose has a well-defined project management process in place, and that they can provide clear timelines and deliverables. You should also ensure that they have a project manager dedicated to your project, who will act as your primary point of contact throughout the development process.

Data security and privacy are also crucial to consider when choosing an IT outsourcing partner. Keep an eye out for a company that takes data security seriously and that has robust security measures in place. You should also ensure that they have strong privacy policies and procedures and that they comply with all relevant regulations and standards.

Overall, when choosing an IT outsourcing partner, it is important to carefully evaluate each potential partner based on their experience, quality assurance processes, communication and collaboration capabilities, project management methodology, and data security and privacy. By doing so, you can ensure that you choose a partner who can deliver high-quality software development services that meet your specific needs and requirements.

What industries can benefit from outsourcing software services?

Outsourcing is a major resource to tap into, no matter what sector a business is in. Here's a breakdown of how different industries benefit:

Insurance: Insurance companies can benefit from outsourcing software development to create customized applications that support their underwriting, claims processing, and customer service functions. This can help them improve their speed and accuracy in handling claims, while also reducing costs and enhancing customer satisfaction.

Technology: As mentioned earlier, technology companies frequently outsource software development work to supplement their in-house teams and access specialized skills. Outsourcing can help these companies stay competitive by accelerating time-to-market and reducing expenses.

Finance: The finance industry can benefit from outsourcing software work to build solutions related to tasks such as data analysis, risk management, and compliance.

Healthcare: Healthcare organizations can benefit from creating customized applications and platforms that support their clinical and administrative workflows. This can help them improve patient care and operational efficiency & organization.

Retail and eCommerce: Retail and eCommerce companies can benefit from creating customized websites, mobile apps, and other digital platforms that support their online sales and marketing efforts. This can help them improve customer engagement and increase sales, and accelerate time-to-market.

Education: Education institutions can benefit from creating customized e-learning platforms and other educational technology tools. This can lead to higher student engagement, accessibility, and student performance.

Transport: Transport companies can benefit from creating customized logistics and supply chain management systems. This could improve their efficiency in managing transportation and logistics operations while increasing profitability.

Laboratories: Laboratories can benefit from outsourcing software development to create customized laboratory information management systems (LIMS) and other tools that support their research and analysis workflows. This can help them improve the accuracy and efficiency of their laboratory operations, while also reducing costs.

Overall, outsourcing IT & software development can be highly effective for companies across every industry. Technology keeps moving forward, and the companies that thrive tomorrow will be the ones that keep up with it today.

Software Development Outsourcing Trends for 2023

The world of software development outsourcing is poised for continued growth and innovation. While it's difficult to predict exactly which trends will dominate the industry in the coming months, there are a few areas that are likely to see significant evolution and expansion.

New digital technologies will continue to shape the landscape of software outsourcing. From artificial intelligence and machine learning to blockchain and the Internet of Things, emerging technologies are providing exciting new opportunities for companies to outsource specialized software development work.

Outsourcing services are emerging to meet the evolving needs of clients in a variety of industries. For example, managed services providers are offering end-to-end solutions for software development, testing, and maintenance, while cloud-based outsourcing is providing greater flexibility and scalability for companies with fluctuating software development needs.

New actors are entering the outsourcing landscape, including niche providers with specialized expertise in areas such as cybersecurity, data analytics, artificial intelligence integration, and mobile app development.

Here are some vital statistics to keep in mind:

1. The IT outsourcing industry is expected to grow annually by 8.07%, resulting in a market volume of US$587.30bn by 2027.

   So, what does this tell us? This unprecedented growth in outsourcing means more and more companies are utilizing this resource. Businesses are catching on, and those that continue using outdated or in-house IT strategies will feel the consequences. Companies that use outsourcing are more agile, flexible, and scalable than those that don’t.

2. A 2022 study indicated that more than 68% of businesses spend one month or more to hire one developer.

   The labour shortage is real, and that applies to the technology sector. The hidden costs of in-house IT services include turnover (this same study found that 1 in 5 new recruits need to be replaced), training time, hours needed for talent acquisition, and more. The bill racks up quickly, and that’s money that could be placed into a company that already has the right people for your project.

3. Outsourcing for software development specifically is expected to grow by 70%.

   Building mobile apps, web apps, enterprise applications and more is complicated and time-consuming, especially if you’re starting from scratch with no dedicated in-house software engineers. When it comes to building technology, hiring a software company that’s already done all the work of hiring experts is the way to go.

4. The demand for software developers will grow by 22% between 2020 and 2030.

   Businesses looking to build technology will be facing fierce competition when it comes to finding the right talent. This makes outsourcing companies an invaluable asset to those looking to start a project.

5. According to a survey conducted by Deloitte, 70% of businesses looking to outsource are doing so for cost savings.

   Return on investment (ROI) is a critical factor in the decision-making process. This survey also cited agility as being a critical reason for outsourcing as well. In a post-pandemic world that is seeing a higher rate of globalization, businesses need to be ready for global changes at any moment. Technology is the only way for companies to stay at the top of the competition, as those that are innovating will lead in customer accessibility, trust, and reputation.

At ISU Corp, we are committed to staying at the forefront of emerging trends in software development and IT outsourcing. Contact us today to learn how we can help your business thrive in the ever-changing world of technology.

IT Services: What exactly can be outsourced?

When it comes to information technology (IT) services, outsourcing offers a highly customizable practice. Each project has unique requirements, and as it scales, new requirements develop that aim for higher goals. Outsourcing companies assign dedicated teams of highly skilled software engineers to assess, develop, implement, and provide support for clients, ensuring high-quality custom solutions.

Based on our experience, the most commonly requested IT services include:

Custom Software Development: Organizations outsource custom software development to achieve their ideal technology solution, whether it involves customizing an existing platform, developing simple applications for small businesses, or creating complex solutions for enterprises.

QA Services & Software Testing: Outsourcing quality assurance (QA) helps ensure that your product meets the highest quality standards in the market, drives innovation, and adds valuable insights to the software development life cycle.

Cloud Computing: By outsourcing cloud computing services, organizations can accelerate their digital transformation while increasing business agility, reducing costs, and simplifying IT complexity.

Mobile & Web Development: Developing highly engaging websites, authentic user engagement, and successful brand experiences is the result of top-notch web and enterprise app development services.

IT Maintenance & Support: Working with highly skilled software developers and support engineers makes it easy to manage IT processes with accuracy, flexibility, and structure.

Blockchain Consulting: Blockchain's powerful and verifiable network is helping organizations across every industry maximize efficiency and reveal new business opportunities while guaranteeing the validity of information through an immutable system of registers.

Big Data & Analytics: Capitalizing on the massive amounts of data resources available is a key factor for success. Data-driven strategies are the future (and the present) of business operations.

IoT Solutions: More and more companies are taking advantage of the Internet of Things to operate more efficiently, gain a deep understanding of their customers' buying patterns, and increase the value of their business.

UI/UX Software Design: Every company should strive to achieve a great User Experience (UX) strategy supported by an engaging User Interface (UI) design.

MVP Development: Working with a top Minimum Viable Product (MVP) development team will guide you through the bumpy road of new product development and ultimately turn your raw ideas into usable software in record time.

Outsourcing IT services can benefit organizations by allowing them to focus on their core competencies while leveraging the expertise and experience of specialized software development teams.

Questions to ask if you’re considering whether your business needs to outsource custom software:

• Does your company have the necessary expertise and resources to develop custom software in-house?

  Yes: Develop custom software in-house.

  No: Consider outsourcing software development.

• Is cost a significant factor in your decision-making?

  Yes: Evaluate the cost of outsourcing versus developing in-house.

  No: Evaluate other factors such as time, focus, scalability, risk management, and technology.

• Is time a significant factor in your decision-making?

  Yes: Consider outsourcing to ensure timely delivery.

  No: Proceed to the next question.

• Is software development a core competency of your company?

  Yes: Evaluate whether outsourcing aligns with your company's long-term strategy.

  No: Consider outsourcing to focus on your core competencies.

• Do you require significant scalability in your software development project?

  Yes: Consider outsourcing to rapidly deploy resources to meet changing demands.

  No: Proceed to the next question.

• Do you want to mitigate the risks associated with software development?

  Yes: Consider outsourcing to leverage the expertise of experienced professionals.

  No: Proceed to the next question.

• Do you require access to the latest technologies and tools for software development?

  Yes: Consider outsourcing to access state-of-the-art software development tools.

  No: Proceed to the next question.

• Final Decision

  If you’re still unsure, contact us for a free 30-minute consultation to see if outsourcing is right for you.

The Takeaway

IT outsourcing has become a popular option for businesses seeking cost-effective ways to access specialized skills and technology. From its humble beginnings as a cost-saving measure, IT outsourcing has evolved into a strategic tool for achieving business goals.

By outsourcing software engineering services to Latin America, businesses can benefit from the region's pool of highly skilled and cost-effective talent. However, when choosing an IT outsourcing partner, it is essential to consider factors such as experience, quality assurance processes, communication, and project management methodology. Successful IT outsourcing requires clear goal setting, regular communication, the use of project management tools, and thorough testing and quality assurance. In summary, IT outsourcing offers numerous benefits, including cost savings, scalability, and flexibility, making it a valuable option for businesses looking to focus on their core business functions while accessing specialized skills and technology.

Not sure if outsourcing is right for you? It can help to talk to an expert. Sign up for a free 30-minute consultation to discover how IT outsourcing could help your business thrive in the ever-changing digital landscape.

Written by Natalie Mansilla

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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to Fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.