Since the Covid-19 pandemic, the concept of distributed and offshore teams has become increasingly popular. In fact, it has slowly but surely transformed from a cost-driven model to an opportunity for organizations globally to access talent with specialized skills and scale their teams at speed.

In this piece, we’ve listed out the top 3 IT offshoring trends that will dominate the near future.

1. Increasing demand for specialized skills

Today, the world is experiencing an acute talent shortage like never before. With disruptive technologies like robotics, Big Data, and Augmented Reality taking over, businesses must hire engineers proficient in cutting-edge and specialized skills to beat the competition and build innovative software solutions.

And that’s why in the coming years, more and more businesses will begin offshoring to talent-rich countries like India, where the chances of finding skilled engineers at a lower cost as compared to the West is higher.

2. New offshore locations

While India will continue to be the preferred IT offshoring destination for businesses across the globe, we’ll also witness businesses moving to newer offshore locations like Eastern Europe, the Philippines, and Latin America.

In fact, according to research, countries like Ukraine, Poland, and Romania are emerging as preferred nearshoring destinations for businesses located in Western Europe. This is mainly because of the negligible time difference and cultural compatibility between the two regions.

Increase in the use of virtual collaboration tools

During the pandemic, there was a significant increase in the usage of modern communication tools like Zoom, Skype, and Slack. Similarly, project management tools like Trello, Jira, and Asana also became extremely popular.

With the rise in remote and offshore teams, digital tools are being increasingly used as a bridge between local and distributed teams. Implementing modern-day collaboration tools allows businesses to avoid miscommunication, stay on top of tasks, and manage their time better.

By keeping up with the evolving IT offshoring trends, businesses can ensure they have the right ingredients for success irrespective of any challenges.