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Report | 10 Oct 2022
The future of IT outsourcing. Our IT world in 2050
Przemysław Pala
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Undoubtedly, people get easily inspired by articles and sci-fi movies about what the future holds in, let’s say, 30 years. Or how our world and technology will change and what our everyday life will be like in 2050? We decided to take a closer look at IT outsourcing in such divagations and try to predict the future of the IT environment as a whole. 

 

To make it easier for the readers to understand what we are talking about, we have added statistics and facts from McKinsey (a management consulting company) about what is changing us and how. There’s no certainty in our predictions, but they have a piece of solid evidence in facts and trends so far. Let’s trace it together.

 

A JUMP INTO IT OUTSOURCING IN 2050

IT outsourcing gradually transforms into a narrower business model and will be used only when necessary. There will continue to be a massive exodus of developer talent to the U.S. and Europe until 2030. Amazon and Google will offer salaries 300-4000% higher than their competitors and capture the expert market. IT companies will start to reengineer their business processes and sell services with the help of recruiters. 

 

Due to the fact that the constant demand for resources will invariably increase due to the increase in the number of projects and investments, those who will own the expertise and developers will control the market and the cost of development. Therefore, those who can retain their staff until the end of 2050 will hold an area larger than ten floors of a business center. Talent migration will force companies to invest in development centers to offer new projects at the idea level and thus curb the rate of staff turnover.

Many clients with funds for development will not have enough performers, and this will generate more and more narrow niche platforms, which will completely cover the development market demands. Shortly, we will see an active phase of outsourcing to the product business. Many developers will already find the strength to self-organize and, without babysitters (hr, pm, retention, happy manager), create development teams and products that capital-owning clients will actively request.

 

WHAT VALUES WILL STILL BE RELEVANT?

It seems to us that the value of money itself will soon cease to dominate the outsourcing market. Knowledge will dominate, and the payment process for a product or service provided to a client will change. The equivalent of money will be transformed into some other unit (not paper), and perhaps the calculation will be made in a virtual unit or amount of accumulated time for later access to the network (time = money). 

 

The second calculation unit will be a compulsory record in a distributed data registry, which will be the primary daily contribution to humanity. The data of this record will be deducted from your account automatically on a monthly basis. Accumulated time online - the transaction is deducted. Left owed - will have to refine. For large teams that will control most of the network space, perhaps the unit of account will be the transfer or control of the business, or even the management of parts of the state, eventually. 

The bottom line is that those who can gain a foothold in a given island of technology will have a significant advantage over the rest of the people who will have difficulty reaching the level of developer expertise. They will dominate and occupy the highest positions in the structures of companies and management.




IT OUTSOURCING ENVIRONMENT SCENARIO

As it is now, management will become obsolete and cease to be a point of control and supervision for many independent teams. The company will lose the office-chair-manager look that everyone is accustomed to. It will merely be the intellectual data security. And the steeper a similar protocol or mechanism is developed in a given company.

 

The more money can be made on it. Most developers will learn to work with customers themselves and organize their technical and management infrastructure to work and ship products. Founders and CEOs will lose their superiority as the tip of the iceberg. 

Everyone will now be able to be a CEO without the risk of being judged by their friends on the downs and ups of development. The fundamentals of doing business will be filled with all digital libraries describing clear actions in every situation. The business will cease to be intuitive and become predictable at certain stages of its construction and development, as the principal capital will not be money but expertise. Those who want to share their skills will be given access to implement the plans they have conceived. And opening or closing a business will be just an entry into a block of the ubiquitous system.

A standard IT outsourcing environment will be born in which everyone will be able to connect and use internal resources and services. There will be its own currency and its own timing. Many international standards will be abolished, and running a business will become a seamless zone for many. Customization and custom product development will get to the point where there will be no need to hire someone to implement an idea. Humanity will be engaged in a single race: to wait for a new version of a product so that there is an opportunity to generate their own product. The number of ideas and services that have already been implemented will gradually shrink in quality equivalent.

Salespeople will be relegated to the role of internal communicator in the team or company. Almost all communication with customers will disappear because of the automation of their engagement processes. No longer will you need to be convinced of the value or quality of what you offer and present.

The value will only be in being constantly connected to a computer network to provide internal demand to teams and companies.

 

Sales will provide the process through which important developer requests for the client will go. He or she will communicate developer ideas verbally/verbally to the client, not through mail or other electronic communication channels. 

Sales-as-a-manager-and-human will be an exclusive service for those who want normal communication using profanity. Customers will pay more for the human presence factor on projects. Being mobile by 2050 will become commonplace. It will be hard to get in your two-person drone and travel a distance of 1,000 km in 40 minutes.

 

POSSIBLE REALITY

There will be a struggle for intellectual resources on the world market. Countries (USA, UK, Australia) will provide more and more improved conditions for keeping developers on their territories until a war strikes. Many will be forbidden to travel abroad and will have to hide their involvement with Python version 78.88 and the launch of three generations of migrants to Mars.

 

The amount of electricity that will be used to power all electronic devices will peak, leading to the collapse of the electric power industry.  Mankind will be forced to accumulate energy to provide access to the grid to make a living. The entire field of labor will practically go to the grid. Everyone will work day and night on the device to ensure the product is functional. The streets will be deserted as there will be no need to go out to get groceries and spend time doing so. All processes would be automated.

Why do we think about facts and statistics so often? It helps us decide what we need now and what we will need in the future. As long as time costs an entirely different amount of money, there is a chance to learn, to add to our knowledge base, and to work on our mistakes. We are confident that in the future, we will be able to accomplish a lot by not wasting time today.

Read also:

  1. Will we ever permanently come back to the offices? The future of remote work
  2. How IT outsourcing can change the game?
  3. IT Outsourcing and Body Leasing. Two ways to find staff in a scaling business
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