IT outsourcing keeps on growing its popularity, bringing fundamental changes to businesses worldwide. According to the Gartner report, worldwide IT spending with a total of $3.8 trillion in 2019 is only expected to increase in years to come. At the same time, Statista estimated the revenue of the global outsourcing industry to be $92.5 billion dollars in 2019, as well as predicting a rapid rise in 2021.
These figures are the embodiment of limitless emerging technologies' potential. Following all the latest innovations, the majority of businesses have already embraced the inevitability of digital transformation. Ventures of all sizes are keeping an eye on prevalent software development outsourcing trends.
Outsourcing is shaping the global market, revolutionizing the way companies perceive their development, and bringing unrivaled opportunities to seize. That is why we have singled out ten trends in outsourcing software development in the unprecedented times of 2021. So get ready for all the hype your company can benefit from.
Software Development Outsourcing Trends: What to Expect in 2020
1. The Rise of Narrowly Specialized Boutique Software Companies
The opinions may differ: some say they’d prefer dealing with one outsourcing company. Others claim they enjoy the advantages of multiple vendors.
Still, the facts show that more and more businesses find themselves in need of narrow specialization companies. The reason behind this trend is the fast-evolving tech area. It is impossible to have an in-house team able to keep up with all the innovation appearing every day and thus possessing all the needed skills.
Companies are looking for outsourcing providers skilled to bring the maximum quality, and the necessity to collaborate with more than just one vendor isn’t a problem, as long as the desired results will be achieved. However, if a large outsourcing company offers a full-cycle software development with a diverse team of skilled professionals, it will as well have a severe advantage of being a great vendor to create strong transparent relationships.
2. Customers Will Crave Enhanced Experience with AI and IoT
Online shopping has long penetrated our daily lives. In addition to that, with the COVID-19 outbreak, it has become the new normal according to Forbes, and even the age category of 65+ are saying they are likely to buy more online than offline. The rising demand for online buying experience causes companies to invest more in enhanced User Experience (UX). Customers are likely to spend 140% more having a positive experience.
The solutions with AI and IoT capabilities will enhance e-commerce by offering a more personalized customer journey. AI-Powered Chatbots are already substituting human interactions when providing clients with needed guidance and advice.
The Gartner report claims that 85% of clients will be ordering items or services with no human contact. 80% of customers prefer companies with personalized client experience to those that don’t offer it.
IoT will be one of the means of improving customer satisfaction by providing real-time data, gathering statistics to personalize communication, and detecting problems with equipment.
They were thus making it one of the leading trends and part of the IT outsourcing plan. From developing smart contracts to immediate microtransactions — distributed ledger technology has proven to enhance security, transparency, and offer innovative money-raising solutions for startups.
Since the demand for knowledgeable and capable blockchain services is increasing, so is the need for well-seasoned specialists. These days there is still a shortage of blockchain professionals.
That is why a wide range of industries, from financial institutions to private ventures, are seeking to outsource companies with a well-experienced team of blockchain experts.
Facing an increased need for blockchain talent as well as its scarcity, companies are competing to hire the best among equals.
4. A Growing Need for Increased Cybersecurity
Data has long become the most valuable resource. It’s no news. However, this is the reason why its protection has never been as crucial as it is today.
While cybercrime is rising, more and more companies will be investing their money to become compliant with GDPR (General Data Protection Regulation). The demand now is to have all the data well-secured.
Especially when governmental institutions become the victims of cyberattacks. Whether it’s an IT company or a small-sized family business with a website, owners will be reached outsourced cybersecurity services to eliminate any security concerns, guard their business data, and meet compliance standards of GDPR.
Source: Deloitte
Create high-end software solutions for your company with Intellectsoft
Another prediction by many sources, as well as Gartner, reports, says that the demand for cloud computing will only be rising. The forecasts predict global cloud shift spending to be near $1 trillion.
With the increasing number of data that needs to be stored, companies will turn to outsource for effective cloud platforms. The need for cloud outsourcing services will come along with the need for security services. Public cloud platforms for data storage are already increasing in their number.
Source: Deloitte
6. Fintech, Healthcare, and Telecom Industries to Be Significantly Digitized
Trends in outsource come along with trending technologies affecting specific industries.
In particular, Fintech, Healthcare, and Telecom will be in high demand for outsourcing services needed for their digital transformation.
AI, Blockchain, and Peer-to-Peer transactions will become the new normal in the Fintech industry. At the same time, Healthcare institutions, both public and private, will be seeking outsourcing services in VR aided by AI to broaden the horizons of diagnostics.
Not to mention, the impact of the 5G network on the Telecom industry opening the doors to unprecedented opportunities for massive connections to IoT networks.
Source: Deloitte
7. Expanding IT Outsourcing Hub in Eastern and Central Europe
While a few years ago, the demand for outsourcing services was greatly influenced by the need to cut costs, in 2021, companies will keep on focusing on quality rather than lower prices.
This will lead to exploring the favorable environment of outsourcing destinations in Eastern and Central Europe rather than China and India.
Ukraine and Poland are already becoming the appealing hubs of experienced offshore development teams to cooperate with.
The expanding development market in Eastern and Central Europe is caused by high-quality services, well-trained teams, and still moderate prices.
Shopping experiences are expected to be boosted with AR techniques. The recent launch of Pokemon Go is a vivid example of the interactive character AR will bring. These technologies will continue entering the markets of tourism, e-learning, manufacturing, etc.
While the market of AR and VR is still a bit uncertain, companies are looking for outsourcing services to implement interactive elements to boost their sales. Large companies like Mercedes or Apple have already been employing these technologies.
Reducing operation costs, improved work coordination, less manual mistakes — these are just a few advantages of RPA technology that is trending.
Business automation is the #1 priority in the ever-evolving digital environment. Logistics management, payment processing, the better-personalized experience will all benefit from RPA tech.
Virtual assistants and bots are just the tip of the iceberg to share the burden of menial and repetitive actions from humans. That is why IT outsource companies are significantly investing their time in business automation and augmented analytics.
10. An Increasing Interest for Progressive Web Apps
With an increased demand for a better user experience, there’s an increasing need for PWA. They are designed to create an application-like experience at websites.
The first wave was the unfriendliness from Google to the website with no mobile version. The second wave is the customers themselves who will not welcome a website with a negative UX. That is why businesses will be seeking outsourcing companies to employ PWA and satisfy the rising demands of their clients.
Summary: Why IT Outsourcing Trends Are Rapidly Growing?
These days we’re facing a fast-growing tech environment. Companies that don’t want to fall behind are already investing their time and money into digital transformation.
Still, there are several challenges. One of which is the speed of innovation. While even huge companies having well-equipped teams cannot keep up with the pace and are in dire need of outsourcing specialists, companies of smaller size neither can embrace all the digital changes without a supporting outsourcing team.
We didn’t use the words ‘teams’ by mistake. One of the critical software development outsourcing trends is indeed a strategic partnership with more than one vendor. Companies are facing a shortage of talent pool and have to contract out specialists.
However, despite building relationships with more than one outsource company, there is and will be a significant shift like these relationships.
The high demand for outsourcing help will make such collaborations more transparent and interpersonal. Furthermore, companies are focusing on value rather than lower costs.
For this reason, it will be a common practice to collaborate with multiple vendors, each specializing in particular services.
Summing up, to keep up with the times, and to meet quality standards 2020 will dictate, businesses will be looking for outsource partners to share risks and together create better value. We, at Intellectsoft, empower companies and their workforce with cutting-edge transformative solutions and data-driven insights. Are you and your organization ready to shift the mindsets and get the most out of innovations?
Talk to our experts and find out more about the topic and how your business or project can start benefiting from it today!
The hospitality industry depends a lot on keeping customers happy, but it’s getting harder to attract and keep them. The pandemic hit this industry hard, and now market competition is tougher than ever, with competitive offerings swaying customers. Hospitality businesses are willing to spend big to win customers back. The main questions for many are: how can we stay ahead of the competition, keep our customers, and increase revenue? Keep reading—we’ve got some answers.
Customers today have so many options that getting their attention is a real challenge. It’s not easy to make them choose your business over others. What worked 10 years ago doesn’t work the same way now. Back then, people often chose businesses based on reputation. But with new types of businesses (boutique hotels, craft cafes) popping up or big enterprises getting a new strategy, expectations have changed. The good news is these businesses have shown what works: great customer service. They focus on personalizing the experience, making things easy for customers, offering loyalty programs, and using smart technology.
In this article, we’ll explore these tech strategies and show you how they can help your business grow, and double the revenue. Keep reading to learn more!
The Importance of Customer Satisfaction in the Hospitality Industry
Customer satisfaction, which equals exceptional customer experience, is the backbone of the hospitality industry. It plays a central role in driving revenue and loyalty, as satisfied customers are more likely to return and recommend a hotel, restaurant, or other hospitality business to others. In fact, a study by the Harvard Business Review found that a 1% increase in customer satisfaction can lead to a 0.5% increase in revenue. Moreover, loyal customers are more likely to forgive mistakes and continue doing business with a company, even if they experience a negative encounter.
Let's quickly review the challenges the hospitality industry is facing right now so we can move on to the solutions and our case studies.
Challenges in Hospitality
As businesses navigate the changes in the hospitality industry, there are some key areas where a little improvement can go a long way. From improving customer service to embracing digital transformation and tackling labor shortages, we’ll take a closer look at today’s biggest challenges—and, more importantly, how technology can step in to help. Let’s get started!
Poor Customer Service
Even with strong and high-quality business offerings, poor customer service can drive potential customers and existing customers away. Common issues include:
Long wait times in customer service queues (it is worth remembering that our attention spans 8 seconds, and we live in a very busy world, so quick and efficient responses are more important than ever.)
Poorly trained customer service representatives
Lack of follow-up
Services not being done properly or quickly
Recall issues that require multiple service calls
These problems can frustrate customers. But, at Intellectsoft, we believe that the right approach, combined with technology, can address them effectively.
Digital Transformation Gaps
Approximately 50% of hotels are adopting new technologies, with 43% automating repetitive tasks and 39% upgrading existing systems. Source: workstaff.app
While many businesses are adopting digital solutions, some still struggle with outdated systems and fragmented data. Legacy companies often face chaos when trying to manage their data and create new systems or add features.
Some of the recent examples include clients coming to us to create AI solutions for their services while their data simply was not ready for the advanced tasks. We advise stepping back, communicating with a company objective, and working on keeping the data clean (centralized, structured, and segmented).
When we’re asked to create advanced systems using AI, we always emphasize the importance of organized data. To train AI and build such complicated systems that truly work, you need to start from the very beginning—collecting, storing, centralizing, and organizing it. We encourage our clients to align all departments to work internally on the data so we can create a unified digital system that delivers personalized experiences.
If you’re unsure where to start with your data, we can help. Collecting feedback at various touchpoints along the customer journey is crucial for gaining insights into customer satisfaction and loyalty. Book an IT consultation with us, and our experts will guide you in mapping out a path to get more from your data and build a system that works for your business and team.
Reskilling Staff
The pandemic hit hard in early 2020, especially for the hospitality and travel industries. Even five years later, many businesses are still feeling the impact. Recruiting and retaining skilled staff has become a major challenge post-pandemic.
Reskilling to address technology’s impact is of utmost importance, as about 40% of hotel General Managers place it among their top three workforce challenges.
We strongly believe that adopting the right technology can help. For example, creating an app to train your staff not only saves time but also ensures consistency in learning. AI assistants can also work alongside your team, helping with tasks like recruitment (providing industry insights, crafting emails) and staff training. Imagine having an app dedicated to making your team’s work easier and more efficient!
How Technology Tackles These Challenges and Supports a Customer-Centric Hospitality Culture
Automation, AI, and similar technologies may threaten many. However, the debate about replacing humans isn’t about that—it’s about cooperation and working hand in hand with technology to achieve the highest standards and establish brand-new “golden standards.” Technology is here to assist staff in listening to and collecting customer insights from data.
Let’s review some of our cases to see examples of how technology helps improve customer experience and supports customer service.
Examples of Intellectsoft projects
Property management systems (PMS)
We created a web platform and mobile app that makes managing daily tasks easier and offers extra services to improve residents’ experience. It gives a clear overview of daily activities and helps with managing units and users. Residents can easily book amenities, submit service requests, and report incidents. The platform also includes features for equipment management, key instructions, workflows, and custom permissions. This makes it easier for staff to stay on top of equipment and ensure residents have all the information they need. Plus, tools like announcements, quick votes, a forum, and a community calendar help build a connected and engaged community.
Guest Experience Management App
Our next app helped our client improve their guest experience by replacing printed marketing materials and the need for phone calls with a smart solution. Now, guests can easily order in-room dining, make reservations, and interact with staff— through a simple tablet in their room. The solution includes three parts: a custom in-room tablet with a variety of services, an admin panel for hotel staff and service providers, and a backend system that connects everything together. This approach makes things easier for guests and staff, improving both convenience and efficiency.
Existing Customers First: Building Loyalty with Personalized Touchpoints
Keeping existing customers is not just a strategy; it’s well-known that retaining existing customers is more cost-effective than acquiring new ones. In fact, research shows that it costs five times more to acquire a new customer than to retain an existing one. KPMG named customer retention as the number one revenue driver for the company.
Moreover, a 5% increase in customer retention can lead to a 25% to 95% increase in profits, showing the significant impact loyal customers can have on a business’s bottom line. Retention strategies, like personalized experiences and loyalty programs, can foster long-term relationships and generate recurring revenue, ultimately making them an invaluable part of any business model.
Personalization: How Technology Can Help?
Everyone loves to feel special—it’s part of being human. In hospitality, personalization has evolved from being a luxury to an essential standard. With the right technology to manage your data effectively, you can deliver those “wow” moments that guests won’t forget.
More than half of hotel chains are already using personalization features on their websites, booking platforms, and apps, and another 39% are planning to follow suit soon. They’re tailoring experiences to fit guest preferences perfectly.
Source: Deloitte
How does technology make it happen?
CRM Systems: They help you keep track of guest preferences, booking history, and special requests so you can offer services tailored just for them.
Loyalty Programs: Personalized rewards and offers show your guests that you value them, keeping them coming back for more.
AI Personalization: AI analyzes guest data to predict what they’ll love (from room upgrades to local recommendations) before they even ask.
IoT Gadgets: Smart room features like voice-activated assistants, or temperature controls adjust to your guests’ preferences, making their stay more comfortable.
With tech-powered personalization, you’re building loyalty and maximizing the lifetime value of every customer.
Our Case Study: Smart Hotel Management & Loyalty Program
For one of our clients, we created a smart room solution, complete with a custom IoT system. Guests can use a mobile app to control services, explore amenities, and find resort information-- with a special touch to their suite type. For the client’s entertainment business, we improved their legacy software by running a full IT and code check, fixing issues, and making the system better for customers.
Along with that, we developed a mobile app for the loyalty program, allowing businesses to effortlessly reward their customers and keep them engaged with exclusive benefits.
Our solutions not only helped the client with special experiences for guests; it also improved operations, cutting costs by eliminating inefficiencies. Here's what our experts shared:
"We transitioned away from ESB (Enterprise Service Bus) systems, which previously cost millions, and replaced them with more efficient, self-managed solutions. Similarly, we’ve implemented Device Farms that improved operations and saved resources."
Leveraging Software to Increase Upsell Opportunities
Here are some examples of tech tactics that will help your team sell more and introduce new offerings to existing customers, improve overall efficiency leaving your team grateful:
Dynamic Pricing Algorithms
For finance and marketing teams, manually calculating pricing by segment to introduce your clients can be incredibly challenging. AI-powered tools can strongly optimize these strategies by analyzing your database in detail.
Upselling via Apps
Boosting revenue in the hospitality business often comes down to personalized experiences. Imagine this: a guest books a room, and then your app suggests a spa package or a room upgrade at just the right moment. Later, it nudges them to book a dinner reservation or a guided tour designed to their preferences. With apps offering these personalized recommendations during and after bookings, you’re not just increasing your revenue per guest but also skyrocketing their experience. And you do it in a sustainable way, not by speculating, but by offering what your customers desire based on their previous experiences. It’s a win-win: seamless, helpful, and far from pushy.
Inventory and Resource Management Software
Making every resource count in your hospitality business is key. Inventory and resource management software allows you to effortlessly track everything from linens to room availability, ensuring nothing goes to waste. Having real-time insights to reduce overstock, avoid shortages, and optimize operations assists sustainably keep everything under control and know what you need to focus more. It helps maximize room occupancy by aligning bookings with available resources, ensuring every room and item is used effectively. This approach leads to smarter management, better guest experiences, and a noticeable boost to your bottom line.
Adopting these strategies not only optimizes your operations but also drives business growth. Ready to discover how technology can elevate your goals? We’re here to create a tailored solution for you.
Steps For Implementing a Customer Service Technology Solution
Improving customer service in hospitality doesn’t have to be a daunting task. With the right technology, you can smooth the path of your operations, speed up response times, and elevate the overall guest experience. Here’s where you can make it happen:
1. Understand Your Needs
Start by identifying the challenges your business is facing. Are you struggling to manage high volumes of inquiries, track customer feedback, or personalize the guest experience? Pinpointing your needs will guide you to the best solutions.
2. Pick the Right Tools
Choose technology that aligns with your goals. Look for solutions that are scalable, easy to use, and integrate effortlessly with your current systems. Options like CRM software, live chat tools, or a guest experience app can make a difference.
3. Equip Your Team
Technology is only as effective as the people using it. Train your staff to make the most of the new tools, so they can deliver exceptional service and resolve issues quickly. Confident, well-equipped staff creates happy, loyal customers.
4. Keep Improving
Once implemented, monitor how well the solution works. Are response times improving? Are customers more satisfied? Regular evaluations will help you fine-tune your approach and keep things running harmoniously.
Some Tech Ideas for Hospitality Businesses
CRM Software: Manage customer interactions and preferences.
Guest Experience Apps: Delight guests with personalized experiences right at their fingertips.
Amenity Management Systems: Simplify operations for everything from room service to facility bookings.
Live Chat Tools: Offer instant support and answers.
Social Media Management Tools: Keep customer interactions engaging and organized.
Integrating these strategies will not only improve your customer service but also deliver unforgettable customer satisfaction, loyalty, and, ultimately, your bottom line. Ready to take the next step? Book a consultation with our experts.
Conclusion
To wrap up everything we've discussed, customer satisfaction and experience are at the heart of hospitality. Retaining customers is more than just keeping them around—building strong, long-lasting relationships and consistently meeting their evolving needs. By understanding their pain points and offering personalized solutions, you can inspire loyalty and drive progress. With the right technology and continuous improvement, your business can stay ahead, let go of what no longer serves you, and keep growing.
At Intellectsoft, with over 17 years of experience in software development, our expert team is ready to help. We create everything from mobile apps to full-fledged portals and systems, leveraging the latest technologies like AI, Cloud, and Machine Learning. With deep experience in the hospitality industry, we’re here to craft personalized solutions that bring your business unforgettable customer experience and retain your valuable clients.
Ready to double your revenue and level up your customer retention strategy with personalized technology? Contact our experts, and we look forward to working hand in hand with you to build or revitalize the perfect app or system for you.
We have sent an email to acknowledge receipt of your request. In the event that you have not received our email, we kindly suggest checking your spam folder or alternatively, contacting us directly at info@intellectsoft.net
We will send a short email notifying you that we successfully received your request and started working on it.
Our solution advisor analyzes your requirements and will reach back to you within 3 business days.
We may sign an optional mutual NDA within 1-2 business days to make sure you get the highest confidentiality level.
Our business development manager presents you an initial project estimation, ballpark figures, or our project recommendations within approximately 3-5 days.
Request a Free Quote
4.9
Our rating on Clutch
5
Our rating on Business of Apps
We have offices in:
San FranciscoOsloNew YorkLondon
Contact usRequest a Free Quote
Thank you for your message!
We will get in touch with you regarding your request within one business day.
