How do Offshore Software development Services bridge the gaps existing in your Business Operations?

How do Offshore Software development Services bridge the gaps existing in your Business Operations?
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The software outsourcing industry is growing in leaps and bounds! The advantages of offshore software development are being leveraged by large-scale as well as small-scale enterprises and even start-ups! Check out some interesting 2022 statistics researched by Zippia.com, about the US outsourcing industry!
  • The value of the global software outsourcing market was $92.5 Billion in 2022. This accounted for $62 billion of the entire international market revenue.
  • The US outsources approximately thirty-thousand jobs every year.
  • 59% of companies outsource to cut costs.
  • 66% of the business enterprises in the US outsource services for at least one department.
  • 78% of the global organizations that outsource services hold a positive attitude towards their respective technology partners.
  • The outsourcing market has been predicted to grow at a CAGR of 4% between the years 2021 and 2025.
Why is software outsourcing so popular? Well, this post discusses how offshore outsourcing models bridge the gap in existing IT operations and why every company, big or small, must consider offshore outsourcing.

Offshore Outsourcing Software Development Model

Offshore software development

Offshore Software development Services: Long-term Advantages

software outsourcing

Hassle-free Resource Hiring

For creating an in-house IT team from scratch, you need to invest an enormous amount of time, effort, and money. This is because, for carrying out the processes of recruitment, onboarding, and advanced training to the newly appointed resources; you need to assign resources, working hours as well as funding.
Contrarily, if you adopt the software outsourcing approach, you can save the cost and hassles of recruitment processes. You just need to define the project requirement and your outsourcing partner will take care of the rest. The offshore firm will provide you with resources that best suit your project specs. The resources can be either dedicated developers or an entire team of software professionals depending on your need.
Usually, outsourcing vendors maintain a curated pool of pre-screened candidates and so, do not need to invest additional time for conducting screening tests, interviews, and coding assessments. As such, your partner company can build a perfect team for you much faster than you can imagine.

Access to Flexible Team Structures

Your business enterprise may not need resources with the same kind of skillsets all the time. A majority of IT projects require a team of professionals with expertise in different areas of IT during various product developmental stages. Moreover, the project requirement may change at any time to keep up with changing times. And, the more the flexibility to change the technology stack, team structure, and business model; the faster will the project be able to adapt to ever-evolving specifications.
But, it’s difficult to achieve this flexibility with an in-house team, as it lacks a variety of skillsets. Mostly, you are left with very few options and have to settle down for the available resources even if they do not possess the required years of experience or specialized skills. Several companies invest in training their in-house resources for specific software development tasks.
In this regard, the offshore software development strategy proves beneficial as it offers a flexible team with a wide variety of skillsets for software engineers, programmers, developers, testers, etc. During the initial stages of the product development cycle, when more front-end engineers are needed, your software outsourcing vendor provides you with front-end development experts. And, when the server-side logic is being created, back-end development professionals will be allocated. This approach will be followed with each product development stage. As such, you’ll easily get specialized resources based on the requirement for each developmental phase.

Usage of the Latest Technologies

Most of the distinguished outsourcing partners have specialists and certified professionals skilled in the latest cutting-edge technologies. Such kind of expertise is rare to find within in-house teams. However, knowledge and expertise to work with emerging tech stacks are necessary for crafting a product that is competitive and relevant as per the modern market requirements.

Addresses Scalability Woes

It’s difficult to identify beforehand how many resources you will be requiring at each stage of your software product development cycle. So, with an in-house development team, scaling up and down as per the project needs become challenging. You either end up overpaying for resources or fall short of resources at certain product development phases.
The offshore software outsourcing model helps you to successfully address scaling issues. You can hire extra resources and expand your team when the demand surges or you need to speed up the development process. And, when the demand for resources is low, you may reduce the number of specialists. Offshore partners usually offer various outsourcing models like resource augmentation or dedicated teams, and you get to pick the model that suits you best.

Advantages of Time-zone Differences

Remote resources working from different time-zone may seem challenging to many, but is actually a boon for product development, as it leads to faster time-to-market. Remote teams working from different time zones with some overlapping hours make way for continuous services and round-the-clock development activity. And, as there’s always some resource working on the project, you can identify issues at the earliest and resolve them promptly.
This benefit is not available with in-house teams. So, during major service updates, your in-house resources need to work additional hours in late-night shifts. This again involves extra expenses in the form of additional wages to the staff. Contrarily, with the offshore software development approach, you always have IT professionals from different locations working on your project, a few hours ahead or behind your time zone. Hence, changes can be executed without disrupting the normal workflow or asking professionals to work for extra hours.

Time to Concentrate on Core Business Functions

Business enterprises that have outsourced development tasks to offshore technology partners do not have to worry about managing complex, time-consuming, and hassle-prone tasks related to project development. This leaves them enough time and energy to focus on core business activities and decision-making processes.

Lower Infrastructure & Operational Costs

The in-house software development approach requires you to invest heavily in infrastructural & operational expenses like maintaining office spaces, employee recruitment, obtaining software licenses, paying salaries to IT professionals, employee supervision, and many more. Also, you need to spend a humongous amount to keep your IT ecosystem relevant and updated with the latest market trends.
Hence, outsourcing software development to third-party companies saves you from all hassles as you only need to pay for the services delivered by a dedicated development team or developers for the project assignment within a said timeline. However, the labor costs in some countries like the US, Australia, Canada, etc. are very high regardless of the experience and expertise of the workforce. In such cases, picking an offshore outsourcing software development company from India will enable you to get a skilled workforce at minimal costs. The offshore business model promises to offer a partnership with experienced tech nerds, affordable product development rates, and flexible pricing models to choose from.
It has been observed so far that the services outsourced from South Asian countries like India offer the maximum value for your money.

Advanced Tools used by Offshore Companies to bridge the Communication Gap with Clients

It is essential for your in-house team to have continual and seamless communication with offshore teams. For this reason, most experienced outsourcing partners have a well-built communication infrastructure. It allows continuous, prompt, transparent, and secure communication with clients regardless of the time-zone differences. Advanced tools such as Zoom, Slack, Skype, Hangout, Asana, LastPass, HelloSign, Hackpad, etc. are used for convenient and safe communication between both parties. For instance, Slack, Google Hangout, and Skype are utilized for offering regular updates, Jira for project updates, Hubstaff for managing time, GitHub for managing the code, and so on.
Experienced outsourcing companies have been using these advanced communication tools for years and so, the team members are well trained on their usage. Such tools allow the client to effortlessly track the performance of their offshore team members, handle reporting functions, and understand the status of the project at any given time. Team calls via video conferencing are one of the most popular practices for synching the members of teams working from different locations.

Wrapping Up:

The offshore software development model brings a lot to the table for business enterprises. It offers benefits like access to a large pool of talent, innovation, and expertise, offshoring also promises a cost-efficient development cycle. Besides, you can also get the much-needed advice and new business insights from your experienced technology partner leading to productive outcomes and flawless decision-making.
You need to just select the right offshore team with the necessary experience and expertise needed for your project.

Noteworthy Technology Trends that are Revolutionizing the Insurance Industry in 2022!

Noteworthy Technology Trends that are Revolutionizing the Insurance Industry in 2022!
Outsourcing software Development Company
The past two years have been a testing time for insurance providers as they have encountered endless challenges in offering services to customers during the Covid19 pandemic. Moreover, insurance companies faced tough competition from peers to provide a digital-friendly customer experience that involves quicker services and lesser hassles and handles operational bottlenecks. To encounter the tough challenges, insurance sector has transformed a great deal; a sea of novel and innovative approaches has been adopted and a plethora of emerging technologies have been leveraged.
Let’s take a sneak peek into the most noteworthy technology trends that are disrupting the insurance industry landscape in 2022.
insurance technology

Embedded Insurance via open APIs

Embedded Insurance, enabled via open APIs, is a common insurance industry trend these days. Here, consumers are offered an event-triggered insurance coverage or protection when they purchase a third-party product or a service. In other words, insurance offers are weaved directly into the purchase deal at the right moment when the consumers are most likely to buy the coverage. For example, consumers get an option to opt for extended protection/warranty when buying a cell phone device, travel insurance while flight ticket booking, coverage for newly purchased appliances, and so on.
Insurance providers utilize open APIs to showcase their services to customers while external business partners make use of such insurance coverage offers for providing a value-added deal to their consumers. This way, business enterprises are connected using APIs to form an entire insurance ecosystem that ensures an elevated UX for customers.
The main objective of embedded insurance is to provide customers with customized and affordable insurance when there is an urgent need for it. Sometimes, customers are not even aware of the need for insurance cover until they are offered one.
Thus, the embedded insurance approach is beneficial for insurance companies, third-party service providers as well as consumers. For instance, an auto insurance provider can partner with a car dealer for selling insurance using the car dealer’s app. Customers also enjoy the convenience of purchasing a car and the much-needed insurance policy at the same time, without having to look for it separately.

Accelerated Underwriting and Automated Underwriting

Underwriting is a hassle-prone and time-consuming process that all individuals applying for insurance coverage policies need to undergo. Applicants need to provide a host of documents confirming their personal information, lifestyle, and medical records. This process is conducted for determining whether the applicant is insurable or not; and if so, what amount is that person entitled to as per his/her risk profile. Applicants with increased mortality risks need to pay higher insurance fees. Accelerated underwriting and automated underwriting are trending techniques that aim to make the underwriting process easier and speedier.
Accelerated underwriting, a trend that has gathered momentum during the pandemic outbreak, simplifies the underwriting process for consumers by employing ML algorithms and predictive analysis. Using this approach, qualified insurance applicants do not need to undergo medical tests or furnish a written statement from a doctor mentioning their medical history, or attach copies of their healthcare records. The removal of these steps has not only minimized waiting times for applicants but has also reduced policy costs and accelerated sales.
Coming to automated underwriting, advanced technologies like AI and RPA are being used for automating the repetitive tasks in the underwriting workflow of an insurance firm. Therefore, all relevant information needed by underwriters is available in a single place, resulting in a speedy and more informed decision-making process. This approach is immensely beneficial to underwriters in handling complicated quotes and binding processes.

Healthcare Wearable Devices

The usage of wearable devices in the healthcare industry is not new. Now, insurance companies have also started reaping the benefits of wearable technology. Insurance providers are linking their products with wearable devices for monitoring policyholders’ sleep patterns, daily steps, activity levels, oxygen levels, temperature, heart rate, etc. This information obtained from wearables is used for creating personalized health plans and rewarding policyholders for healthy lifestyles. The health and risk scores calculated using this data can be utilized for providing complimentary coverage, benefits, or better rates to an individual as well as corporate policyholders.

Improved Benchmarking and Modeling with Predictive Analysis

Predictive analysis is one of the most interesting insurance industry trends today. Historical data is collected and fed into AI-trained models for generating predictive data on the behavioral patterns and ongoing trends. Predictive analysis helps insurance agencies make more informed decisions on how to optimize workflows and execute tasks like quoting, recommending products to customers, etc. This particularly facilitates sales and underwriting.
Take a look at how these tasks are carried out. The usage of artificial intelligence for generating and recommending an alternative quote adds value to the process, reducing the chances of errors, and also minimizes guesswork. Machine learning algorithms process synthetic data and help insurers to identify the most popular plans amongst customers from specific demographic groups or industrial domains. As such, the decision-making process becomes easier and better.

Chatbots

The usage of AI/ML-driven chatbots for providing customer services is another noteworthy insurance industry trend. Chatbots are virtual assistant solutions that interact with consumers seamlessly through text messaging or voice messaging. Chatbots solve customer queries on insurance, provide them the relevant information on policies, and offer 24X7 services without the need for human interventions. Virtual assistants can even guide a customer all through the processes of insurance policy application and claims processing. Just like a human insurance agent, chatbot questions customers on their requirements and personal details needed for the policy. Based on this data, these chatbots recommend personalized policies, assist customers to compare different policies, and solve follow-up questions helping them to gain a better understanding of their policy.

Blockchain Smart Contracts

The usage of Blockchain Smart Contracts is a crucial insurance industry trend that comes with endless advantages. Today, several insurers are issuing policies to customers via Blockchain Smart Contracts and healthcare records encryptions. Such an approach not only establishes transparency between the insurance providers and policyholders but also enhances the efficiency and security quotient of insurance processes. Let’s take a closer look!
Smart contracts eliminate the need for mediators, speed up claims processing tasks, zero down the need for human interference, reduce the risk of manipulations as no mediators are involved, and securely stores data without the risk of being lost or stolen. Therefore, it becomes possible for insurance providers to lower the premium amount, thereby increasing their market share considerably.
Moreover, smart contracts enable insurers to review the data regarding the previous insurance policies and claims, allowing them to provide more precise cost pricing options for their products. This way, the quality and effectiveness of underwriting programs expedite.
Blockchain implementation also contributes greatly to lowering operational and infrastructural costs through automating servicing tasks and preventing fraudulent practices.

Drones for Risk Inspection

Drones are being leveraged by insurance providers to improve the efficiency of certain processes within the insurance lifecycle. Drones assist in preventive maintenance, collect data for calculating the risk factors before a policy is issued, and examine the amount of damage after a loss. Drones can perform tasks that their human counterparts can never think of achieving. Robots can effortlessly enter enclosed and perilous spaces for collecting data and their 360-degree cameras increase the efficiency of the process to a great extent. Moreover, one drone can gather data much faster and more effectively than a team of human surveyors. Examples of drone usage include gathering data on buildings, conducting roof inspections, etc.

Telematics

Telematics technology is another eye-catching insurance industry trend. It helps car insurance firms provide customers customized discounts and insurance policies based on actual usage, and identify falsified or fraudulent claims.
Here’s an example of Telematics implementation in automobile insurance. Cars can be embedded with monitoring devices that record information on the car’s current location speed, accident occurrences, etc. This data is processed using advanced analytics software for determining the premium amount and assessing the genuineness of claims. Whenever a policyholder files a claim for an accident or injuries, the auto insurers collect information from the black box telematics of the vehicle. This helps to figure out the actual incident that happened. This way, insurance companies can identify falsified claims and hence, save a great deal of money wasted on fraudulent claims.

Extended Reality

Extended Reality, also known as XR, is one of the newest and most disruptive insurance industry trends. Extended Reality employs a combination of Virtual Reality, Augmented Reality, and Mixed Reality for collecting more environmental information and enabling unthinkable experiences via AI.
XR is a great tool for insurers for promoting employee and customer engagement. This technology can create virtual customers for training customer service teams. It can train them on client interactions and the policy purchasing process. Moreover, augmented imagery allows insurance providers to remotely communicate with customers. Furthermore, underwriters can create XR simulations using illustrations and on-site images for assessing the risk factors in buildings accurately. Some insurers are also offering a 3D-simulated eco-system to consumers via VR headsets. Here, customers interact with the avatar of insurance experts for understanding insurance processes and resolving queries.

Over to You:

The aforementioned trends are game-changers that are set to redefine insurance sector operations. Smart digital tools and strategies are allowing insurance companies to provide elevated customer experiences and streamline service operations like never before. The most lucrative outcomes include offering convenience to customers in buying insurance, providing easy access to the desired information, and reaching out to customers when they need insurance services/products.
So, it’s high time for insurance companies to embrace a technological approach! However many insurers who are not tech-savvy are reluctant to smarten their operations due to the complexity of implementing and maintaining technological approaches. Well, in such cases, it’s advisable to seek technical assistance from experienced Software Development Company that will be your partner throughout the product development lifecycle.