Did you know that the global IT outsourcing market size was valued at $92.5 billion in 2019 and is projected to reach $430.5 billion by 2027? With such a vast and growing market, it's clear that businesses are increasingly turning to technology partners to help them navigate the complex world of custom software development and digital transformation. Some of the world's most successful companies, such as Microsoft and Apple, have relied on technology partners to help them achieve their goals. So, if you're looking to stay ahead of the curve in today's fast-paced digital world, partnering with a technology company may be the key to your success.
Why IT Outsourcing is Not Enough
Outsourcing IT development has become a common practice for businesses looking to cut costs and leverage expertise that they don't have in-house. However, outsourcing development work is not enough to ensure success in the long run. While developers can help you build software applications or websites, they may not have the strategic vision or technical expertise to understand your business needs fully. That's where a technology partner comes in.
Recent studies have shown that outsourcing IT development can lead to several challenges, including communication gaps, cultural differences, and issues with quality control. According to a survey conducted by Deloitte most of the businesses reported experiencing a negative outsourcing experience due to these challenges.
In 2016, Delta Airlines experienced a major outage due to a power failure at their data center, which was outsourced to a third-party provider. The outage resulted in thousands of flight cancellations and delays, costing the airline an estimated $150 million. This highlights the risks associated with outsourcing critical IT functions without proper oversight and management.
On the other hand, having a technology partner can help mitigate these risks and ensure a successful outcome. For example, when Apple was developing its Apple Watch, it partnered with several technology companies, including Intel and Qualcomm, to bring its vision to life.
Difference between a Developer and a Technology Partner
A developer's role is limited to writing code and developing applications. A technology partner has a deeper understanding of your business goals and how technology can help you achieve them. They can provide strategic guidance, offer technical expertise, and help you build a technology infrastructure that can support your business growth.
Suppose you are a business owner looking to develop a mobile app for your customers. You can hire a developer to write the code and create the app, but they may not have the expertise to understand your business needs fully. A technology partner, on the other hand, can provide strategic guidance, conduct user research, and create a custom mobile app that is aligned with your business goals. According to a study by Clutch, businesses that worked with a technology partner for mobile app development reported an increase in revenue compared to those that relied solely on internal resources or outsourced to a developer.
Let's say you want to implement a new technology solution to improve your business processes. A developer can help you build the software, but a technology partner can help you assess your needs, recommend the right solution, and provide ongoing support and maintenance.
Why Do You Need a Technology Partner?
A technology partner can help you develop a technology roadmap that aligns with your business goals as they have a team of experts who can provide the technical expertise required to build and maintain your technology infrastructure. They can provide ongoing support, ensuring that your technology infrastructure remains up-to-date and secure. According to a report by Gartner, businesses that invest in emerging technologies are expected to increase their revenue by up to 4.6 trillion USD by 2023.
Suppose you are a startup looking to scale your business quickly. A technology partner can help you develop a scalable technology infrastructure that can support your growth. Deloitte stated that startups that partner with technology providers are more likely to succeed than those that don't.
As businesses become more reliant on technology, the risk of cyber-attacks increases. A technology partner can help you manage these risks by providing expertise in cybersecurity, implementing security measures, and monitoring your systems for potential threats.
Things to Consider When Choosing the Right Technology Partner
Choosing the right technology partner can be a daunting task. Here are some things to consider:
- Expertise: Ensure that the technology partner has the expertise required to help you achieve your business goals. One real-life example is how Rootquotient partnered with a leading healthcare provider in the US to develop a telehealth platform that helped improve patient engagement and access to care.
- Flexibility: In today's rapidly changing business landscape, it is crucial to have a technology partner who can be flexible and adapt to changing needs. For example, during the COVID-19 pandemic, many businesses had to quickly pivot to remote work. A technology partner who was able to quickly adapt to this change and provide remote support would have been invaluable during this time.
- Communication: Communication is critical when working with a technology partner. Ensure that you have open lines of communication and that they are responsive.
Types of Technology Partners
There are several types of technology partners:
- Full-Service Partners: Full-service technology partners offer end-to-end services, from planning to implementation and ongoing support.
- Specialized Partners: Specialized technology partners focus on a specific technology or industry. Salsify is a specialized technology partner that focuses on product experience management for e-commerce businesses.
- Project-Based Partners: Project-based technology partners work on a specific project or initiative. Neoteric is a project-based technology partner that specializes in building MVPs (minimum viable products) for startups.
When Does a Startup Need a Technology Partner?
Startups can benefit significantly from a technology partner. A technology partner can help startups develop a technology infrastructure that can support their growth. They can also provide technical expertise and guidance, enabling startups to focus on their core business activities.
Benefits of Technology Partnerships
Technology partnerships provide strategic guidance, enabling businesses to align their technology infrastructure with their business goals, and technical expertise, ensuring that businesses have access to the latest technologies and solutions, ongoing support, ensuring that businesses can focus on their core activities without worrying about their technology infrastructure.
How to Build and Maintain Tech Partnerships
Building and maintaining tech partnerships require a collaborative approach. It's essential to establish clear communication channels, set realistic expectations, and have a shared vision of the project's goals. It's also crucial to establish trust and maintain open lines of communication throughout the partnership.
The IT outsourcing market is growing, but outsourcing development work alone is not enough for long-term success. A technology partner can provide strategic guidance, and technical expertise, and help build a technology infrastructure that supports business growth. Partnering with a technology provider can mitigate risks associated with outsourcing and improve digital capabilities, leading to increased productivity and profitability. Choosing the right technology partner requires consideration of expertise, flexibility, and communication. Full-service, specialized, and project-based technology partners are available options.
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