The blockchain revolution is gathering momentum. While many people’s only reference point when they hear the ‘B-word’ is cryptocurrency and specifically Bitcoin, the reality is multiple sectors are rushing to embrace the power that comes with the ground-breaking technology. Blockchain’s ability to increase transparency of transactions, reduce risks and fraud, and ensure higher resistance to outside attacks – all in a cost-effective manner - is proving transformative for industries as diverse as healthcare, real estate, insurance, global logistics and major power networks.
Already recognized as one of the IT domain’s most highly promising technologies, the Blockchain boom is only set to get bigger. Valued at $3.67 billion in 2020, a Grandview Research study found the global blockchain technology market size is expected to expand at a compound annual growth rate of 82.4% from 2021 to 2028, with high-profile brands such as Pfizer and Walmart joining smaller companies in developing their own blockchain solutions.
However, technology booms can only continue if there are enough technical experts to deliver quality products and this is where enterprises exploring blockchain opportunities need to take stock. LinkedIn research has revealed job postings in the United States that include the words ‘blockchain’ and ‘cryptocurrency’ increased 615% from August 2020 to October 2021, while previous studies have shown there are 14 jobs available for every professional blockchain developer in the market. Needless to say, such competition for human resources is putting a strain on organizations wanting to step up their development programs.
While hiring a world-class internal team to develop leading blockchain products would be nice, countless companies are realizing there are significant challenges to doing so. From the talent shortage driving up salaries and associated incentivizing, to onboarding issues, infrastructure costs and negative hires, establishing a blockchain workforce can result in a ballooning budget before any development work is even done.
Fortunately, there is another option and it is one that an increasing number of savvy businesses are turning to in their blockchain development quest.
Outsourcing specific tasks to countries such as the Philippines has been helping companies reduce costs and increase efficiencies for years and it is no surprise blockchain development has joined the list of services on offer. By using external providers to deliver IT-enabled business processes, in-country firms are better placed to avoid mistakes during the development process and realize the best blockchain technology for their individual circumstances. At a time when local developer talent is in short supply, the advantages of looking abroad are numerous.
Oh, and then you need to cross your fingers they will actually accept the job, let alone wait for them to finish their previous role and hopefully pass their probation period with flying colors. Outsourcing blockchain development sees seasoned providers entrusted with filling positions as quickly as possible – often immediately given their wide talent pool – and means you are not responsible for all the sourcing, interviewing and evaluation that take so much time as candidates are already pre-approved.
While outsourcing has incredible benefits for blockchain development, it would be remiss not to acknowledge there are potential challenges. Fortunately, they can all be mitigated with careful management and engaging the right provider.
Needless to say, there is no simple answer to this question. Just as every organization is unique, so too is every organization’s blockchain development needs. Such projects vary in complexity and there are undeniable challenges in managing them solely in-house.
Working with outsourcing providers immediately ensures that experience. While a skills gap is a reality in Western countries such as the United States, there are highly qualified and cost-effective blockchain developers waiting to fill the breach from foreign shores.
Many companies are also finding success by implementing blended models, with blockchain experts managing the technical aspects of such projects and in-house teams managing traditional development such as UI design. This model also allows the potential for forward-thinking firms to start training their own developers to work with blockchain and learn the skills needed to manage ongoing maintenance once the system is operational.
While many companies will have the scale and know-how to manage their own blockchain developments, it would be highly recommended to explore outsourcing if an organization should tick any of the following boxes:
Blockchain technology has already changed the world. Now it is time to put a plan in place for it to change the fortunes of your own company.
In a world where technology is evolving faster than ever, how do you ensure that you make the right decisions when there are so many decisions to be made? Discover seven top things to look for when searching for the right tech solution for your business.
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