The most prominent IT outsourcing trends for 2020 and beyond

The most prominent IT outsourcing trends for 2020 and beyond

Spending on IT services is expected to reach a record $1.1 trillion in 2020, reported by Statista. But Do you ever wonder why the IT outsourcing trend is booming? Organizations outsource IT services for various reasons. Yes, Companies are delegating mobile app development tasks to third-party contractors because not only it reduces the app development costs, but also it improves time-to-market. Additionally, it helps you to hire a professional IT team. Since this strategy offers many conveniences, it is winning enormous popularity in the market.

Do you know? In 2020, 52% of small businesses stated that they’re willing to partner with remote tech engineers for their IT needs. Statista forecasts that in 2021 the IT outsourcing market’s turnover will grow to $96.7 billion from $89 billion in 2018. The main reason behind such rapid market growth is the business process optimization by Technavio’s analysts.

Hiring an Android/iOS app development company is tried and tested paradigms for a successful business. Over the last few years, this strategy is adopted by all types of businesses as it allows businesses to focus on their core business operations while saving money. Hence, we can say that the IT outsourcing trend is going to boom in the upcoming years. In this blog, we will share with you some of the IT outsourcing trends for 2020. 

Before we jumped directly into this, we would like to share key Outsourcing Statistics.

key Outsourcing statistics.

  • The contract value of the IT outsourcing market amounts to over $ 409 billion by 2022. 
  • As per Gartner’s estimation, the no. of computer specialist job openings will be over 1.4 million in 2020.
  • According to Gartner, worldwide spending on IT outsourcing is projected to total $3.79 trillion in 2019.
  • According to the Statista report of 2017, the most commonly outsourced function by IT leaders worldwide is a software application that is 64%.
  • 3/4 of businesses give positive responses to their outsourcing partners.
  • More than 50% of companies use third-party support to associate with their existing or potential audience.
  • In order to boost outsourcing, 93% of companies have embraced cloud services.
  • About 71% of financial service executives outsource any and all of their services.

Why businesses are rapidly adopting IT Outsourcing?

Though there are numerous reasons why companies work with the offshore development company, some of the primary reasons are

  • Cut costs
  • Enhance the quality issues
  • Gain access to talent capital
  • Expand business to a large extent
  • Speed up organizational transformation
  • Focus on core business increased
  • Eliminates the capacity issues
  • Improved Security

Top 10 Competing Countries for Outsourcing ( High to Low)

Based on the financial attractiveness, people skills & availability, and business environment, these are the name of some outsourcing destination that you must consider-

  1. India (6.95)
  2. China (6.49)
  3. Malaysia (6.05)
  4. Brazil (6.00)
  5. Indonesia (5.99)
  6. Thailand (5.92)
  7. Philippines (5.88)
  8. Mexico (5.87)
  9. Chile (5.72)
  10. Poland (5.68)

Types of IT outsourcing

Outsourcing, Nearshore Outsourcing, and Onshore Outsourcing, there are three major categories of IT outsourcing based on location. You can choose either of them that fits the best according to business functions.

  • Onshore: IT outsourcing means getting the work done by companies located in the nearby region or the same area. The several benefits of onshore outsourcing are:- easy to control, the same timezone, no language understanding problem, and can be easily accessible. 
  • Nearshore outsourcing: It involves working with a provider that is located in countries having less or no timezone differences.
  • Offshoring: This means Handing over tasks to a company from another country. It provides access to a large talent pool and specific expertise with a cost-effective advantage.

Here The Most Prominent IT Outsourcing Trends for 2020 and Beyond

Exploring new capabilities

When the question asked to both outsourcing clients and outsourcing providers about the significant reason for IT outsourcing. Do you know what they answered? 35% of respondents listing cost reduction among their top three reasons for outsourcing. Other key drivers are access to specific knowledge, expertise, and tools.

Undoubtedly, the reason for the growth of modern IT outsourcing is the vast no. of people are willing to outsource for their tasks. The reasons may vary. But the majority agree that the customer-centric strategy and exploring new capabilities are a way more appealing than cost-cutting

Covenant

According to the report prepared by GSA UK, nearly 90% of respondents firmly believe that both IT outsourcing companies and their customers are heavily in favor of signing outsourcing contracts converged on outcomes and value in 2020+. All KPIs will be discussed, approved, and written in the contract. Besides, 69% of people said that outsourcing providers would work as systems integrators. It will involve sharing more risk with the clients. Only 31% forecasts that outsourcing providers would take all the risk on themselves.

 Sustainable outsourcing: shared responsibilities 

As organizations are increasingly under scrutiny for their sustainability efforts, this is becoming an essential component of the outsourcing contract. Companies are aware of their corporate social responsibilities and their impact on their brand and reputation. Many clients are careful to ensure the outsourcer follows their CSR directives and requirements.

More Small Businesses are Outsourcing

As IT outsourcing helps to reduce costs, access to specific knowledge, expertise, and tools, small companies and startups are more collaborating with third-party contractors. However, large companies and even corporations are also delegating their projects to outside IT service providers. Considering the burgeoning need for complex, innovative solutions associated with AR, VR, blockchain, AI, and IoT, IT outsourcing is the best approach for organizations worldwide.

Closing Words

These top IT outsourcing trends promise a bright future not only for large enterprises but also for SMEs. The COIVD-19 outbreak is making it challenging for businesses to manage and build software products in-house. Undoubtedly, this is the golden period for businesses to avail of the benefits of IT outsourcing. Do you want to be on the top in terms of innovation? Are you the one that lags behind IT outsourcing trends in 2020? Get in touch with us, and we will help you drive growth in your company.

8 Technology Trends to Watch Post-COVID-19 Pandemic

8 Technology Trends to Watch Post-COVID-19 Pandemic

Due to COVID-19, the whole world has come to a screeching halt. Industries are forced to stop production, educational institutions are being closed, and so is every business and the lives of many are affected. In this depressing period, the technologies are significantly playing a vital role in the day to day lives. As it entirely transformed the way businesses carry out their work. All the emerging technologies are playing a vital role in every industry and are helping businesses stay open at the time of lockdown, even the educational institutions are providing facilities of e-learning, and it has become a new trend. So, we have curated the list of 8 of the technology trends 2020, which will be booming post-COVID-19 pandemic:

1. Work from Home

Work from home or WFH is not a new concept in the professional world. People were working from home rather than going to the office and do the tasks. But, work from home wasn’t a very common pre-coronavirus period. Although many companies have opted for it, not everyone. Experts believed that after this pandemic ends, work from home might become a hundred percent solution of jobs for a long time. The idea of working from home will be applied in every professional sector and will become the new normal. A survey conducted by the US Bureau of Labor Statistics said that about 25% of workers worked from home from 2017 to 2018. Further, they added that college professionals are at least five times more likely to get jobs that allow them to work from home as compared to the people having high school diplomas. Also, clients nowadays prefer to hire offshore development teams online. Moreover, companies are learning and implementing a virtual onboarding program for a New Resource.

 2. Distance Learning

Just like work from home, distance learning has been implemented by a handful of university names. But as the countries got shut in April 2020, so did the school and university due to the pandemic. To tackle educational issues, universities and schools started providing online courses to students. E-learning has become the new source of education in these tough times, and educational institutes will be following this technology trend post-COVID-19 pandemic.

3. Digital Payments

Digital payments might become the booming technology trend post-COVID-19 pandemic. It is believed by handing cash to the shopkeeper, or the vice-versa might spread the virus. To tackle this issue, countries like South Korea and China have ensured that the currency notes are clean. Also, governments have recommended cashless and digital payments. But, the problem with digital payments is that there are around 1.5 billion unbanked people. So, it might get tough for them. Digital payments also require the Internet, and there are many regions in the world where stable internet connection is still a rare happening. Keeping it aside, e-commerce during coronavirus lockdown is at its peak, and most of the people are using digital payment methods.

4. Driverless Cars

Companies like Tesla and Google have been working on driverless cars for a long time now. There will be no better time to see them on roads post-coronavirus. This might hurt many drivers who get their wages from Uber and Ola. But, automation will be at its boom, and so will be artificial intelligence post-pandemic. So, it will be no surprise that people start booking driverless cabs post-coronavirus.

5. Telehealth

Telehealth can be another trend post-COVID-19 pandemic that will be followed by the healthcare industry to contain the spread of COVID-19.  For primary care of patients, personal IoT devices can help, and chatbots can diagnose the initial problem based on symptoms. Telehealth usage has increased over the COVID-19 pandemic period. As the medical costs are sky-rocketing in many countries, TelehealthTelehealth might need some tweaks like insurance coverage. The Internet can be an issue here too, and so does the technical knowledge. Still, TelehealthTelehealth is a distant way to give prescriptions and cures for common problems like cold, viral fever, cough, and many more. 

6. E-entertainment

Online gaming has boomed during coronavirus pandemic. People are playing online games like PUBG, CSGO, and FIFA to pass their time in this hardship. And, this booming period will stay for a long time even post-pandemic. Netflix and Amazon Prime are some online entertainment platforms where people are watching movies, and the bounce rate has gone high for these entertainment brands. It will be no surprise that movie stars start releasing their films on these platforms only.

7. Supply Chain 4.0

Coronavirus has affected the global supply chain in the worst possible manner. With social-distancing in the account, factories are shut down. The supply chain is suffering and has become vulnerable. So, the Supply Chain 4.0 with technologies like Big Data, cloud computing, Internet-of-Things (“IoT”), and blockchain have brought an intelligent supply chain management system for the future.

8. Online Deliveries by Autonomous Vehicles and Robots

COVID19 has transformed online shopping and e-commerce gets a boost as customers prefer to stay indoors. According to reports, 80% portion of deliveries will be made by Autonomous vehicles by 2025. The robust logistic system has supported the online retail industry through Autonomous vehicles. Furthermore, many companies are adopting technology that reduces their dependence on human workers. Retail was already tiptoeing toward a high-tech future before sniffles hit the fan. COVID-19’s spread will likely accelerate the migration to robotic and autonomous vehicle associates in stores. Hence, this technology trend will be going to boom after the Covid-19 pandemic.

Sum it up

Since every industry has been affected by COVID-19, companies, and business people, have started looking at future practices post-lockdown and pandemic periods. Digital payments, introducing driverless cars, and working from home might become a permanent trend post-COVID-19 pandemic. It might hurt a small proportion of the population, but for the larger good and well-being, these trends will become essential and hence going to implemented by almost every country. If you have any queries regarding the same, then ask your questions on our comment section box. For more updates about mobile app development trends, stay tuned, and keep checking our blogs. If you liked the information, then share it with your friends, colleagues, and family.

Roadmap for a successful virtual onboarding program for a New Resource

Roadmap for a successful virtual onboarding program for a New Resource

As a result of this pandemic, Parangat has hired a few new employees online. With no physical office how our HR team managed to conduct the welcome of our new employees with a complete virtual onboarding program, Lets read here.

With the advent of the COVID-19 outbreak, it is still unclear how long the encouraging work from home will last. Not every business can afford to halt their recruitment plans entirely because certain positions are necessary to maintain. To expand a company in these uncertain times is very important. 

Being a part of a mobile app development company and working with all sorts of customers with a wide variety of business-based applications. At Parangat we need to employ a skilled developer who can handle projects in a qualitative and timely way & increase our productivity. This means that some new employees will be onboard virtually to our Parangat family. But the question is what will be the roadmap for a successful virtual onboarding program well let’s dive straight into it.

The Predicament we Hr’s Face While Virtual Recruiting

When you develop your remote squad, recruiting is only half the equation. The other half increases the chances of staying and sets our new team members up for success through remote onboarding. The process of orienting new employees virtually is a tricky business. 

Occasionally on the 1st day to Parangat, we welcome a newbie with a greeting kit in hand at the office. Show around to the office, introduce employees to others, arrange a meeting, if required then the training process. At midday we HR’s swing by employee desk to tell them to stop working and to join the team for lunch. In the coming weeks, these regular and deliberate interactions will help them familiarize themselves with the business, their work, and the people with whom they do it. But virtual onboarding program needs the right amount of planning, coordination, and proper tools.

Here are a few tips for a successful onboarding program for new hires

1. Virtual Face to Face Communication With the New Hire

There will inevitably change with the required communication with the new employee. Through video conferences and internal messaging apps, we introduce staff to our recruit. This makes it possible for new hires to speak to each other, which builds personal relations. It is also crucial that virtual employees know how the business operates, even though everyone is remotely working. This information should include:

  • Links for engaging in any video conference 
  • A simple plan of the first few days they can anticipate 
  • What computer would they use? You may need to attach via your personal computer to help them set up their work computer 
  • At what time embarkation sessions start and end? 

This is the first time that the recruit operates remotely so that it should be as transparent and instructive as possible. 

2. Modifying your content for virtual Learning

If you already have an onboard mechanism in place, you’ll want to make your content available for virtual employees. The content to rework includes:

  • Welcome binders 

Well usually at Parangat we hand over welcome kits and binders to recruits, filled with valuable documents. But now we fused the document into a PDF type and send it digitally.

  • Providing a New Hire Checklist

It’s crucial to provide new hires with a sense of how they learn and start their work. So we build a to-do-list in advance and allow small-scale warm-up duties. In the to-do-list, our new team member on board to learn more about company services & team culture. For each employee, the lists of on-board tasks are different.

Department items for a Software Developer could include the following:

  1. Set up a meeting to get introduced to the code base
  2. Gain access to the company’s GitHub account
  3. Schedule pair programming call with a senior developer
3. Set Expectations

At parangat, we ensure that new workers understand their jobs and the systems they use. By Discussing future projects, with team members, and access to common staff tools. We try to establish a work out a schedule to attend team meetings. To contact the recruit for the answers and advice, they are provided with documentation of the virtual onboarding process. 

4. Make New Workers Feel Welcome

Remote work can be a challenge for those who are used to a conventional shared workplace. It’s essential that virtual workers feel confident enough to share their ideas. Remote workers who have a connection with the business are more likely to make a positive impact. It’s imperative for the team that new employees become functional to achieve satisfaction and success. So we ensure that the rest of the team accepts the new employee. By introducing the new employee with the mentored team members for a better understanding of company priorities and values. 

5. Equip New Employees with a Virtual Mentor

We pair new team members with a mentor. So that new employee does not sit alone wondering how they are going to fill their first few weeks of work. Like in parangat we paired our new employee Uday Singh & Rashi Srivastava under Mr.pulkit Goyal( Senior developer). As we provide some material or presentations via video conferences to new employees, we check every minute to ensure they are both interested and active. The virtual onboarding program sets the tone for the employee’s company experience to make it a good one! 

Wrapping it up

Well, the virtual onboarding program is tough turf, but again being an HR it’s my persistence to solve all obstacles for the company and the employees. Well, it’s an offbeat experience recruiting virtually but I guess it was a good experience. And I would love to welcome Mr.Uday Singh, a software developer & Rashi Srivastava UI developer to our Parangat Family.

A Complete Guide to Hire Offshore Development Team

A Complete Guide to Hire Offshore Development Team

Reducing the cost of development is not the only main motive for a company to hire an offshore development team. As the competition between the companies to make their product best among the league has gotten more fierce, people are looking to outsource most of their development to the offshore development team. This guide highlights the key points to keep in mind before hiring an offshore development team and also how to select one that would be right for your next app development.

Introduction to an offshore development team

An offshore development team is a vendor team that provides its development expertise from a country other than the service requester country.

Popular terms searched by the companies in 2019-2020 for their software requirements

These search terms reflect the competition got more fierce between the companies to develop their products and codebase, and also the increase in need of an Offshore or an in-house development team.

Each app development agency has its SDLC processes and engagement models. Usually, such agencies offer a simple several-steps process. However, to stand among the top in the competition, a company should choose a team of offshore developers, that provides a complete solution package.

Today, offshore outsourcing is at its popularity peak, as the key reason is the lower cost to the requesting company when compared to in-country developers. When compared the gap between the salary packages of the development teams between developed and underdeveloped countries, it’s enormous. In the USA, the average amount charged by an iOS app development agency is around 15,000 USD, whereas, in India, it is around 4000-5000 USD (based on project and experience).

However, despite the fact of lower development costs, companies are more skeptical in hiring an offshore development company. They have doubts and wonder whether outsourcing is worth it. Are there any risks, pitfalls, or drawbacks involved while hiring an offshore development team. Let’s weigh up all the pros and cons.

Pros of Hiring an Offshore Development Team

We have curated the top benefits of hiring an offshore development team, that will factor into your decision.

Cost Savings

It is an estimate that a top Android app development startup company based in the USA or any other developed countries will charge higher to their clients due to high labor costs. With offshore outsourcing, clients can save money in countries where there are low labor costs.

Talent Acquisition

With fierce competition among companies, acquiring talent in the native country is getting difficult. Whereas, in offshore countries like India, Ukraine, and many more., there is a tech pool being developed, having highly qualified and talented developers exist at lower rates.

Tax Savings

Many undeveloped countries give tax benefits to the companies that invest in the employment generation. Countries like India, which has the top iOS app development agency, open-source development company, has Zero tax rate. 

Time-Saving Opportunities

With offshore development teams, the company can give more time to the business part rather than the development of software. Even a company can hire both an open-source development company and the best WordPress development company for multiple projects, which means more revenue generation.

Cons of Hiring an Offshore Development Team

Below are the curated feedbacks or critical points highlighted by the companies that tried hiring an offshore development team and failed.

Language Barriers

For product development to be successful requires constant excellent communication between the product owners and developers. Language plays a vital role in this. For example, with a miscommunication between the company and Android app development startup companies, it can lead to the wrong extraction of project requirements. Hence, the product delivered will not be as expected by the client.

Travel Costs

Sometimes, for the client, it is required to meet the offshore development team. So, it becomes expensive if the offshore development team is located in some remote location. It is futile for the client to burden travel cost, even though the offshore is the best open-source development company.

Legal Risks

Some offshore development team does have tendencies to sell the same software to multiple companies, also though the companies might be competitors. Since there’s no particular law regarding Intellectual Property rights, it might cause serious legal risk, unless everything is signed and documented between client and team.

Lack of Proper Documentation

There’s a high chance that offshore teams fail to create adequate documentation for the clients in case of troubleshooting. Based on the fact of improper documentation, they might charge extra to their clients for post-delivery support.

Tips for Finding the Top Offshore Development Team Seamlessly 

Focus on Goals

Instead of defining the “How” for the offshore development team, the client should focus on “What” they desire from the product. 

Look for Expertise

Expertise in the software development industry will make sure the developed product follows the industry guidelines strictly, and also understands the client’s need.

Stay Involved

The client’s timely involvement during product development helps a lot to the offshore development team. As the client knows his business requirement well and can steer the product development according to his need.

Clear Expectations

A client should define their expectations. It helps the offshore development team to deliver the product on time and matching the client’s expectation level.

Defined Contract

Contract plays a crucial role in binding the expectations and the delivery of the product. It ensures the delivered product is an outcome of a negotiated and agreed contract.

Conclusion

If we summarize the above guide, we can conclude that hiring an offshore development team is not that easy, and it’s cost-efficient, but not easy. The client and the team should have their expectations matched, and the client should know their “What,” and the team should know their “How.” They both should prevent language barriers and have clear communication about their goals. All these key points will ensure the client stays afloat in the tight competitive market.

Coronavirus: E-commerce Gets a Boost as Customers Prefer to Stay Indoors

Coronavirus: E-commerce Gets a Boost as Customers Prefer to Stay Indoors

The World Health Organization (WHO) has formally declared the Corona Virus (COVID-19) disease a pandemic. This ongoing pandemic is affecting our way of life; it has changed the way we spend our time, shop, and invest our money. The global economy market has been hit hardest as this pandemic spreads across the world. While most of the companies, startups, and enterprises ( in India and other many countries globally) are slowing down and allowing their employees to work from their homes. The eCommerce companies saw a steep hike in sales, a new record for the sector, as consumers stock up for an extended time at home and stop eating out at restaurants. Also, We saw a whopping hike in demand for virus-related products such as sanitizers, soaps, masks, etc.

At the time of lockdowns, and social isolation, people prefer buying goods, especially grocery items, vegetables, and other day-to-day basic needs from online platforms.  As per industry insiders, online retailers, and big e-commerce names like Amazon, Flipkart, BigBasket, Grofers, and others have seen a significant spike in their business. Insiders believe that they have got around 20-30 percent growth in their businesses. As customers are avoiding to go to crowded places, they have switched to online shopping even more than before.

Due to the pandemic fear, consumers across the countries are stocking up on necessary goods from the supermarket. That’s how the shelves of the supermarket are getting empty sooner. And some people facing the issue of not getting basic stuff. To tackle the situation, many retailers across the country have put a cap on the purchase of essential items to avoid stocking of goods by consumers. Many stores have pulled their shutters down and are accepting online orders only. And also, customers prefer to stay at home to avoid getting affected by pandemic Coronavirus disease. This has put extra pressure on the delivery network as people,” said an e-commerce industry executive. But yes, because of all this e-commerce gets a boost as customers prefer to stay indoors.

Changes in Revenue across Ecommerce during Corona Virus lockdown

Since consumers have adopted lockdown and self-isolation as the only way to stop the spread of coronavirus influence, traditional street-side shopping has usually gone down. Due to this pandemic, there’s an increase in the number of people opting for online shopping and eCommerce sites for purchasing their daily essentials as well, instead of purchasing in person or physical stores.

But, in reality, eCommerce revenues are not currently higher around the board, although specific sectors are witnessing significant upwards. Online sellers of household goods and groceries these industries are seeing upwards. According to a survey, people are spending 10-30% more online. 

1. Grocery eCommerce

Especially in the second week of March, Grocery eCommerce soared as consumers turned online to find the necessary household items. There is no drastic spike in the rest of the eCommerce industries. It might be up a little bit! Since the local vendors have shut down their shops, the best solution is to get groceries from online vendors. 

2. Medical and Healthcare

People are avoiding to get out of their homes. To take safety measures, they are ordering the healthcare essentials or required medicines from their homes only. There are many online shops selling medicines. Even doctors have gone online and have started providing prescriptions in these tough times. As a result, people with minor cold or any medical problems can consult doctors online, get medical assistance, and buy the medicines online by just showing prescriptions.

3. Other eCommerce categories

In addition to grocery, e-commerce covers a vast number of products across categories. Look below to see the increment in COVID-19 data on eCommerce shopping behavior. Amidst the lockdown, everyone is shut in their homes and places. Due to it, the gaming industry has skyrocketed. People sitting at home are ordering PS4 or Xbox games from online shops. In the case of pet food, too, people are knocking the doors of online vendors like Amazon.

Ecommerce Consumer sales (COVID-19)

Ecommerce Consumer sales (COVID-19)
4. Sudden Skyrocketing Orders 

We see a sudden boom in the eCommerce industry not only in India but also in China, which is COVID-19’s first hit nation. There have been countries now who are relying on the internet to buy their daily usage goods. From dairy, grocery, health products to any household stuff, people are highly dependent on online retailers. Most of the people are working from home these days. As a result, e-commerce brands have doubled their business to satisfy every customer’s needs. There has been an enormous order spike in these businesses. So, delivery networks have become busier. Demands of products like fresh fruits and vegetables, milk, flour, rice, lentils, personal hygiene, pet food, instant noodles, baby food, and Ayurvedic items have skyrocketed.

5. Safety measures by e-commerce Fabs

E-commerce development companies like Amazon and Flipkart are putting every penny to monitor the deliveries and supplies. Further, they have integrated thermal scanners and guns in their warehouses to check the temperatures of the staff. While delivering the delivery personnel are wearing disposable gloves and masks. As per BigBasket, their employees are not only wearing gloves and masks but also their grocery crates are sanitized regularly.

6. The dark side of e-commerce amidst COVID-19

While many e-commerce app development companies have been seeing a significant spike in their business, there are other ride-sharing companies like Uber and Ola. They have witnessed a dead drop in many cities as people have abandoned coming out of their homes. The main reason behind it is that employees are working from home and are not commuting to offices like before. Many insiders also believe that taxis and rental cars are not hygienic, and might international travelers use this. So to keep themselves safe and avoid taking health risks, most of the people have abandoned taxi services, be it local taxis, Uber, or Ola cabs.

What is m-commerce? Advantages, Disadvantages, and must-have features.

What is m-commerce? Advantages, Disadvantages, and must-have features.

Mobile commerce, popularly known as m-commerce, is a medium that helps people to buy and sell goods and services through their smartphones and tablets. In simple words, m-commerce means any monetary transaction completed using a mobile device. Kevin Duffy introduced this term in 1997. Some examples of m-commerce include purchasing, e-commerce apps such as Flipkart, Amazon, or a digital wallet app such as Paytm, Samsung pay, apple pay, and android app.

According to the report, spending through mobile devices, the total eCommerce sales accounts to 34.5%, and the number is still growing. It is the most rapidly growing sector of e-commerce, and web app development companies play a vital role in developing a robust, interactive, and feature-rich application. In India, approximately more than 70% of online transactions happen from mobile phones, and it is a 700 billion dollar industry all across the globe. The most affected industries by m-commerce include financial service, telecommunications, service and retail, information service, and many more. 

Here, in this article, we will discuss the advantages, disadvantages, and must-have features of m-commerce.  

Advantages of M-commerce:

1. Provide easy store access

No doubt, M-commerce websites, and apps help customers to explore the product available in the market. They don’t need to travel to the store to purchase any goods or services of their needs. They can buy their product online with their smartphone or tablets. This helps to save their efforts, time, and money.

2. The large order processing platform

M-commerce allows store owners to sell numerous products or services at once throughout the day. As customers don’t need to go through a checkout line for any transaction that takes so much time. A customer can easily log onto any platform and purchase anything or everything according to their requirements.

3. Better user experience

User experience matters the most in e-commerce as there is no possibility of direct contact in this kind of shopping. In today’s era, people are so well acquainted with their smartphones or tablets. And, they know precisely how to search or purchase the desired products or services of their need in just some simple clicks. Not only does m-commerce provide better user experience, but also it saves time too. To provide smooth user experience, make sure your mobile app must be fast, convenient, interactive, and exclusive. This will also help you to make your eCommerce business successful.

4. Higher ROI

According to the Google reports, approximately 67% of people prefer to purchase any product or service from a mobile-friendly m-commerce site. And, about 61% of people move away from a website that is not mobile-friendly. Even though your product explicitly states it’s benefits, but a word of mouth marketing boosts the sales. When a customer using your product, gives their review offline or online, they motivate other potential customers. Since this type of marketing is free, it generates more profit and covers the cost of upgrading your eCommerce site.

Disadvantages of m-commerce :

1. It requires technology access

What if a customer doesn’t have a smartphone? Well, if a customer doesn’t have a smartphone or tablet, then he can’t leverage m-commerce service that mostly business provides. If a customer has a smartphone, then also it must be able to retrieve company information and transmit a sales order. So that the user can get a brilliant experience. 

2. High competition

M-commerce creates a global market, so the competition for any product or service becomes automatically super high. There are numerous m-commerce apps available all across the globe that provide precisely the same service you provide. As you are not the only provider in your community, it takes a lot of time and effort to build up sales from mobile commerce.

3. Requires fast service at all times

Obviously, it requires a fast service to engage potential audiences. With m-commerce, you have to provide quick service at all times, no matter what. According to the report, customers will stop using an app or website that takes more than 10 seconds to load the information.

You must be vigilant enough to maintain your mobile platform to avoid issues that could cost some business.

Must-have Features of an m-commerce application

Add Analytics and Information- In the world of big data, analyzing and recording the data is one of the essential features that you must embed in the application. Analytics helps you to make the necessary changes in the decision, and it also allows users to compare and make the right decision. With the help of data analytics, you can understand the user behavior and can improve the user experience significantly. To offer useful, delightful interaction, and easy to use m-commerce applications, make sure that you hire the best UX design company in India

1. Log-in with Social Media Account

Another critical feature that you should consider while developing an m-commerce application is providing a simple and easy log-in option. Offering Social Media log-in option, users can seamlessly register themselves within the app without any fuss. This system will also help you to get the required information about your potential audience. 

2. Push Notification

One of the most compelling features is incorporating the push notifications, which helps you to reach out to your every potential user with an immediate effect. With push notification, you can inform your users about promotions, discounts, sales, and other marketing activities that give you beneficial results. Customers can get all the latest updates about your m-commerce application. From the perspective of business growth, push notifications are helpful.

3. Search and Filter Option

Must include advanced search and filter option features in your m-commerce application to offer a seamless experience to the users. With the help of an advanced search option, users can search the product based on their needs, which saves the users time. 

Filters are an extension to search the target product or similar ones when applying the filter option, either individually or in combinations.

Wrapping Up

If you are planning to develop an m-commerce mobile application, it is necessary to offer an amazing experience with all the critical elements. A great experience is a soul of shopping for users. 

According to Business Insider, it is expected that m-commerce volume to rise at a 25.5% CAGR from 2019 to hit $488.0 billion in 2024. Smartphones and Tablets are driving the m-commerce revolution. Are you looking for a top mobile app development company in India? Share your app idea with us and take your business to the new level!