Major strategic decisions had to be taken during 2020, worldwide and across all sectors. Outsourcing software development was one of them. The force couple of the covid19 pandemic remains the Cost reduction and Cloud powered businesses combination. Outsourcing software development and IT has definitely emerged as one of the winning strategies for 2020/2021 according to the latest global analyst reports. In such context Cluj-Napoca, the 2nd major city of Romania climbed the rankings once again due to its software engineers and IT professionals.
The Breakthrough Lesson Of The Covid19 Pandemic
The covid19 pandemic displaced the major inhibitor of outsourcing contracts: it was now living proof that a physical co-location of resources was NOT necessary in order to establish a trusting working relationship. Remote work suddenly became the new normal.
Outsourcing, in its particular forms – offshoring and nearshoring, were often misunderstood and out of the comfort zone of many potential outsourcing beneficiaries. In 2021, the state of global telecommunication networks and technologies is such that a team from Canada can easily and fluently work with any team from Romania.
Why Outsource Software Development In 2021?
Each year we meet potential customers and we have this question addressed directly. The big “Why?” to outsource and to work with us? To be honest, since 1998 the why has changed a lot but in essence it all began for economical reasons. Our customers’ objectives in outsourcing software development to Cluj-Napoca vary but it remains an essential tool to support theirs strategic goals.
According to the Deloitte Global Outsourcing Survey 2020 on outsourcing software development and IT services the main objectives of outsourcing in 2021 are:
Cost reduction: In the global context of uncertainty and ambiguity, the focus shifted back to numbers. Cost is easier to measure and monitor than other business parameters. Rate cards, investments, cost of labor – all these are quantifiable and negotiable. Protecting the overall business by controlling costs is one of the bullet-proof strategies.
Locations like Cluj-Napoca, from Eastern Europe, bring to the table the advantage of lower living costs, lower salaries, lower infrastructure costs. The economic transaction between western or northern European, northern American or south Asian businesses carries positive financial results for both parties.
Flexibility: Outsourcing your software development to a specialized provider, allows the beneficiary to be flexible when choosing technologies, frameworks and development environments. It also provides clear timelines for the software development project work. The customer has the flexibility to opt in or out for further developments or new additions.
Software development companies in Cluj-Napoca, Romania are used to work for various industry verticals and geographic regions. The local culture is to adapt quickly to the given context.
Speed to market: Contracting expert and professional teams shortens the time of software development, thus a faster market product or solution launch is achievable. Software engineers and IT professionals take care of their continuous learning process in order to be always up to date and to the forefront of the field.
Cluj-Napoca hosts one of the elite university centers in Eastern Europe. STEM (Science, Technology, Engineering and Mathematics) disciplines are favored and promoted to future students.
Technology enablement: Outsourcing offers access to specialized software tools and processes. For businesses and organizations from all other economic sectors, having an internal development team is neither economic nor a purpose per se. That is when, having a collaboration contract with a software development company bring all you need, when you need it.
Cluj-Napoca counts 1330 companies – SMEs and start-ups – active in custom software development. This equals to many opportunities to find the right team for your technology needs.
Agility: Outsourcing software development processes allows the organization to focus on core processes and be ready for change, for pivotal moves and for innovation. It will create room for fast technology moves, for business transformation and rapid market adaptability.
In Cluj-Napoca, as in most software development poles, Agile methodologies are well known and practiced. This is a particularity of the software development process that any organization can benefit of.
What Do Outsourcing Customers Want In 2021?
In accordance with their beforementioned objectives, the software development outsourcing customers are looking for something different in 2021 more than in previous years. It was more and more obvious during our recent contracts and interactions that companies are into finding a business partner who is both able to:
- understand technology – per se and in their sectorial context
- understand the business – with its specific processes, standards and market ecosystem.
This translates into an outsourcing provider capable of bringing added value to the business and of managing all necessary internal stakeholders.
From this perspective, companies such as Codespring by Softech have evolved from a mere process execution partner to a reliable technology development partner. And this was a major step ahead for the entire industry.