Outsourcing · Oct 12, 2023
Custom offshore development: do it or not? Ethical or not?
The case for, and the ethics of, custom offshore development services.
Surging developer demand
The US Bureau of Labor projects that demand for software developers, testers, and QA experts will rise 22 percent between 2020 and 2030, making them among the fastest-growing occupations in the US and most G7 economies. Against this backdrop, IT outsourcing has become a transformative force reshaping software development.
A market that's here to stay
Deloitte's 2020 study found companies worldwide increasingly outsourcing software development. The IT outsourcing market reached 342.9 billion dollars in 2020 and is projected to hit 410.2 billion dollars by 2027.
What fuels the boom
More than 75 percent of executives favour outsourcing IT services, led by IT infrastructure, app and software development, and cybersecurity. Budgets for operated services rose 67 percent, managed services 57 percent, and traditional outsourcing 32 percent.
Custom offshore development
Custom offshore development services are the crown jewels of IT outsourcing, offering tailored solutions that fit a company's unique needs like a bespoke suit. They give businesses access to seasoned developers, testers, and QA experts while freeing internal talent to focus on core activities.
The scale of outsourcing
Three categories dominate IT outsourcing: web hosting, software development outsourcing, and administration outsourcing. Together they make up 63.5 percent of the market, roughly 218 billion dollars of the 342 billion dollar total.
The ethics catch
The revelation that OpenAI used Kenyan workers paid under 2 dollars per hour to improve ChatGPT sparked intense debate about ethics and fair compensation in IT outsourcing. Rubikal addresses this by keeping its talent under its own responsibility while they work under the client's name, with more than 15 verified Clutch reviews and experience across the EU and North America.