Top Markets to Outsource Software Development 2018

The use of human resources is the basis for the successful operation of outsourcing in the world. Among the executing countries, India and China are leading, with orders from Europe, USA and Japan. At the same time, there is a tendency that the United States is gradually reducing part of the orders to these countries, planning, if possible, to reorient itself to outsourcing within its own country.

In turn, Japan, on the contrary, increases the number of external orders for outsourcing that China receives. At the same time, in Japan there is a tendency to allocate a relatively small share of outsourcing orders to the external market, focusing in its choice on the countries of the Asian region.

Performers in the countries of Eastern and Central Europe, China, and India are more likely to work as outsourcing labor for European customers.  Relatively high indicators of market dynamics were achieved due to the development of offshore outsourcing in neighboring countries with lower resource costs.

In turn, Ukraine, as a country focused on the export of its services, delivers its services primarily to the US, the EU countries and Israel.

Ukraine steadily maintains its 24th place in the TOP-25 of the Global Services Location Index, GSLI, which since 2004 has been prepared by the American consulting company A. T. Kearney.

Outsourcing potential of each of the 55 countries participating in the rating is estimated by 38 indicators, comparing financial attractiveness, professionalism and availability of the necessary human resource, as well as the business environment.

Ukraine is currently successfully exporting its IT services, but its domestic market is relatively small compared to developed countries. The United States and China remain the leaders in the IT sphere.

 

Analysts have divided the domestic Ukrainian IT market into three components:

  • Hardware (83%);

  • Software (7%);

  • Services (10%).

With the development of technology, one of the modern forms of outsourcing can be called crowdsourcing, when a wide range of people can be attracted to solving the set tasks through information and communication technologies all over the world.

Today, the human cloud is being used with the greatest frequency to perform millions of small tasks around the world. According to the latest report of Staffing Industry Analysts (SIA), the cost of crowdsourcing in the world ranges from 47 to 51 billion US dollars. Remote access to the execution of instructions, the location of the contractor without any binding to the place of rendering services, accounting for more than 80% of the costs from the above budget, is one of the indisputable advantages of the human cloud.

The trend is that over time, more and more corporations will implement solutions using the human cloud (crowdsourcing) to search and recruit talents.

Among the companies in the ranking according to the turnover, starting from 25 million US dollars in 2016, China is leading with the largest companies using human clouds in the B2B segment, followed by the US with companies that close the TOP-5. In addition, TOP-10 includes companies from Japan, Israel and Australia.

The world is changing much faster with the onset of the fourth industrial revolution (industry 4.0), the labor market is subject to undeniable influence, when most of the work is simplified by technology; one of the consequences is a departure from the usual settled labor relations and structures.

Our working environment, to which we are accustomed, radically change today.

New forms of cooperation can lead to legal relations beyond the legal framework in those countries that can not timely adapt their legislation for rapidly developing new business strategies, which often lack the notion of territorial boundaries and are mostly in demand for talents to effectively solve set tasks.