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How custom software development has changed during COVID crisis

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How custom software development has changed during COVID crisis

Unlike other business areas, the software industry has managed to navigate the COVID-19 crisis with more ease and even managed to grow at a faster pace. While social distancing and restrictions have affected companies across most sectors that rely on in-person interaction with clients, tech businesses seem to have dealt with the situation reasonably well.

This is due to the fact that this unprecedented situation has forced most organizations to turn to digitalization and accelerate the adoption of technology. As a consequence, software development companies had to perform better and deliver unflawed results, like never before. But how was this possible?

The challenges and opportunities of digital transformation

As weird as it may sound, the pandemic brought businesses to a point that is both extremely difficult and beneficial: a crisis that forced them to risk and focus on innovation. The global health situation is responsible for the digital transformation of companies that, under normal circumstances, could have carried out their activity without problems for years. However, they accelerated the adoption of technology, to be able to provide their services and products in the context of remote work and social distancing. Of course, custom software cannot be prioritized over health measures, but the truth is a lot of private and public institutions needed an upgrade, and this was the moment to do it.

Tech companies were also somehow forced to keep up with the increasing demand for software from organizations in a wide array of domains, and, unlike most sectors, the industry was propelled by the pandemic.

Why has CODIV-19 accelerated software development?

Companies allocated bigger budgets for digital transformation

Expectedly, companies have adopted a policy of cost-cutting during the pandemic, in the context of uncertainty. However, the expenses dedicated to digital transformation were maintained, and sometimes even increased. Taking into consideration that most businesses saw the importance of having steady software that can support their remote activities, they invested in technology more than before.

Bigger budgets helped software development companies grow and allowed them to innovate and experiment more, since they were facing new demands from clients, especially in terms of custom software. Those organizations that took a shot and invested during the pandemic can confirm that their projects were successful and paid off. After all, increased budgets enabled businesses to access more qualitative software services, and thus to obtain better results and faster ROI.

Some of the most popular tech areas that companies have invested in since the beginning of 2020 are fintech, automation for distribution and services and digital infrastructure. When it comes to software as a service, it seems that the tools that facilitate remote work were in high demand.

Software solutions increase productivity during remote work

Last year saw the biggest shift from the traditional way of working to a remote, stay-at-home model, with little exceptions for certain essential industries. While most managers feared that the lack of face-to-face communication and the limited collaboration between people would affect their business, it turned out that, on the contrary, productivity increased due to remote working. This, of course, was possible because most organizations started using software based on RTC technology and made sure their infrastructure can support virtual interactions between employees.

Moreover, a recent survey shows that the pandemic conditions increased software companies’ focus on a more dynamic way of working, with DevOps as the main project management methodology. This set of practices combines software development and operations, focusing on constant feedback and delivering better solutions that can bring immediate results for clients. Another change in the world of technology has been the intensive adoption of Cloud computing, which results in more flexibility for software users – an ideal option given the remote work conditions imposed by the pandemic, which is proven by the over 150% increase in CRM usage over the past year.

Organizations across all industries needed software professionals

Although demand in most industries dropped in 2020, the data and software development areas thrived. The continuous growth is due to businesses’ necessity of implementing automated solutions that helped them keep their employees connected, on the one hand, and support sales and customer interactions, on the other hand.

Because of the pandemic, it has become clear that technology is the pivotal element in ensuring the remote way of working is as productive as possible. So, the increased demand for technology led to a boom in terms of need for HR and specialists who could serve the industry and deliver the expected results. The economic slowdown forced organizations to invest in what was essential, and that was the need for automation, software and technology.

Customer demands have been constantly evolving

The evolving customer demands have made software companies improve and even perfect their services and products. The diverse expectations and requirements from clients came as a result of disrupted customer behaviors. For instance in retail, perhaps one of the most affected industries, people went from in-person shopping to ordering foods and clothes online or choosing click-and-collect services – way more comfortable and safe during the pandemic. Therefore, if companies wanted their products to reach the correct audience, they had to come up with performing online platforms to make sales happen. The same applies to industries such as manufacture, agriculture, learning, events and many others.

To meet these expectations, software specialists provided quick and effective solutions to assist businesses in adapting to the pandemic’s issues. The volatile environment and the changing demands tested organizations’ adaptability, forced them to adjust very frequently, and this can only be beneficial both for developers and for end-users, as it has shown they can navigate difficult times and still thrive.

Because some of the most valuable lessons often come from the hardest times, the fast adoption of technology has been the beneficial aspect of the pandemic. Before the beginning of 2020, very few companies had the necessary infrastructure to deal with such challenging circumstances, and yet they managed to act fast and adapt, which allowed software development providers to step forward.

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