The Internet of Things (IoT) is modeling the way we play, live and work. And it is high time to transform the way businesses operate again considering the differences of competitors, survival and progression with-in the years to come. With improved technology, the ability to observe and respond to the surrounding environment, IoT adds tremendous value for decision making in a broad range of industries including energy, automotive, aviation, oil and gas, healthcare etc.
The IoT market is unbelievably extensive and growing faster than any other market. Among any other, one thing is clear in IoT that is the enormous opportunity. NelsonHall estimates the global market for IoT services at $1.2bn, and this is expected to grow to $9.5bn by 2020, making it the fast-growing of the ‘digital transformation’ market segments (51% CAAGR). Windriver.com published white paper reveals, according to Berg Insight, experts predict that there will be over 20 billion to 50 billion connected devices by 2020. With Machine-to-Machine (M2M) technology alone there are already more than a billion M2M devices at work in sensors, smart meters, industrial control systems, mobile healthcare assets, video surveillance systems, automotive and telematics solutions, smart buildings and more. Wireless M2M connections alone increased by 37 percent last year to reach 108 million.
The challenge is to translate the intelligence in connected embedded devices into new products and services that solve customer problems at the same time bring value to economies. Internet of Things is far more exciting and disturb present day business. The challenge start from the beginning to the end such as finding man power to the development of products to making polices to establish the products.
Path to success
Outsourcing may be a cleaver decision to make in-terms of IoT developments to see whether it is attainable for any enterprise. Once the decision is made to do, selecting partners from external resources will lessen the investment involved. And it will allow the investor to test efficiently before committing long term. This move can solve problems that accompany IoT development, such as limited knowledge, resources, and creativity according to ZDNet.
Alex Brisbourne, KORE, CEO explains, to succeed in IoT through outsourcing, the investors have to know what they look for. Basically, there are six factors to keep in mind:
- Develop a strong business model – Your buyer must understand your business objective before you can invest in IoT. This starts with developing a strong business model. As part of your due diligence, perform a cost-benefit analysis to determine where it makes the most sense to outsource.
- Focus on your strengths – Make sure you allocate internal resources toward your core competencies and outsource anything beyond your team’s comfort zone.
- Plan for growth – Separate your company by outsourcing research to garner as much insight as possible from audience and gain a clear advantage over other IoT players.
- Find partners with a proven track record – Arming yourself with guidance from those who have tackled these challenges early as it is crucial to your success.
- Target partners with flexible options – Having access to adaptable pricing, connectivity, technology options, and other solutions is important.
- Consider post-deployment support – Make sure to answer strategic support service questions involving capability and cost before deployment.
More aspects to consider
There is a significant difference in what traditional software outsourcing and IoT outsourcing will involve especially on development side. As there are hardware components and intense domain skills involved in developing devices, analysing the data produced, it looks Asian IT companies, with specific domain and technical skills will gain a good chunk of this market. This is a unique chance that these small companies should utilise to grow.
According to Outsourcing Centre, there are 3 distinct areas in which companies need to focus on to get outsourcing deals as a contractor.
- As there are number of domains involved IT companies will have to hire agriculturists, doctors, radiologists, scientists, environmentalist and meteorologist etc, to be able to get IOT deals depending on the subject.
- Companies, start-ups, which are developing their own devices and mastering newer technologies will be in a good shape to get outsourcing deals.
- Traditional businesses will also get a chunk of businesses from IOT trained staff’s such as monitoring devices, alarm handling, processing data, device selling, device on-boarding etc.
However, the golden period of IoT outsourcing is yet to come and will present a huge opportunities globally. It has already started and will be growing excessively in coming years. China has already taken a lead in both building the electronic components and actual adoption in IoT, but an interesting development is happening in newer product development companies/start ups in India and Sri Lanka that are focusing on product design and innovation.