Since the early 2000s, the technology industry has continued to grow massively, but there has been a drop in tech stocks for several companies recently. The digital valuation has continued to suffer for most tech companies, yet one sector remains booming within the business. Strange? Not Quite. the answer: Enterprise Tech-Enabled Services, before we delve into the software development sector, let us first understand the stock market drop.
Why is the tech stock market plummeting?
Overlapping challenges have struck the tech market as the years progressed. According to CMS Wire, companies like Alphabet are down by 19%, Amazon is down by 31%, Apple stocks have reduced by 13%, and Meta and Microsoft have also reduced by 38% and 17%, respectively. Other companies have suffered much worse drops as Netflix reduced by 65% and Shopify by 70%.
This goes to show how dire the economic frustrations are becoming. Some of the challenges faced in recent years that caused these drops to include;
- The lockdown brought by Covid 19
- The Russian-Ukrainian war
- Inflation hitting the world
- An influx in brands of the same technologies
One of the reasons why software development companies did not suffer devaluation is because the client reach did not waiver with the ongoing events. It is believed that the client base continues to grow every day, which means that;
- People continued to download apps to use while at home since working from home had become the new normal
- When the pandemic subsided, Those who went back to the office incorporated their apps and systems there as well
- Most apps and tools made for SaaS are more affordable
- Investors continue making their profits despite what goes on in the world
- The stock market is not affected by physical events since the software isn’t location sensitive
What is software development?
Software development is creating applications, systems, and programming software used by individuals, companies, governments, and organizations to perform various tasks.
Types of Enterprise Tech-Enabled Services Software Companies
Enterprise software and apps are made for organizations. They use tools suitable for use in large businesses and government companies. Their primary services include accounting, customer relations management, automated bills, and information sharing. For enterprise software developers, the aim is to increase control, work efficiency, and data management for organizations.
A third-party provider hosts software as a Service for businesses or individuals to use after paying a monthly fee. It is made for easy use by both individuals and companies. SaaS applications are accessible through the Internet, which increases their reach. Small and midrange businesses prefer SaaS because it is more cost-friendly.
How to choose between Enterprise software and SaaS
Most ERPs have started developing SaaS-friendly software to increase their client base. Saas is also tailor-made to suit your general needs at fairer prices. Some of the questions you can ask yourself to make the decision include;
- Are there any missing features on the app you choose?
- Do you want to interlink your existing software to a new one?
- Do you need a highly customized app?
- Do you need to upgrade your IT equipment?
- Are you willing to deal with significant changes, or do you prefer gradual?
Nearshore outsourcing of software
Nearshore outsourcing is getting goods or services, in this case, IT for your company from a country close to yours, either a neighbor or nearby. For US companies, the nearshore outsourcing would be from a country in South America or Canada.
Benefits of US businesses working with nearshore software development companies
Instead of choosing offshore or onshore outsourcing, here are some reasons why nearshore outsourcing is the better option;
A shared time zone
Most US companies struggle to outsource software from Asian countries because of the 10-hour time difference. The operational hours in Asia are the complete opposite of the operating hours in the US. Getting efficient help on time becomes almost impossible.
A shared mindset and language
Working with professionals who subscribe to similar cultures and mindsets makes cooperating easy. Communication is also more efficient and fast when you all speak the same language, in this case, English. You do not need to hire a translator, so you save on money and costs.
Familiarity with language, mindset, and time zones facilitates a harmonious working environment. The company you are sourcing from virtually becomes an extended part of your existing IT team. The two can easily collaborate on projects and produce the desired results faster.
Nearshore outsourcing is a money and financial savior on several fronts. For instance;
having in-person meetings becomes more manageable and quicker. Flights to closer proximity are less expensive, and depending on the time and schedule, you can opt to drive to your outsourcing destination. Traveling time is also less, so you can spend more time working.
The outsourcing company already has the equipment, facilities, and experts you need for your projects. You do not need to create a budget for such things; the money can be re-purposed. As a bonus, you also don’t have to worry about employee training since it is already covered in the general expense. This means that labor, facility, and equipment costs are already catered for, and all your team needs to do is show up.
If you are a business leader in The US, avoid expensive labor from the US or dealing with time and language barriers from offshore sources. You don’t need to look too far. There are a lot of nearshore software companies you can outsource or receive staff augmentation services from to ensure your company is well taken care of.