Welcome!

Related Topics: @DevOpsSummit, Java IoT, Linux Containers, @CloudExpo, @DXWorldExpo, @ThingsExpo

@DevOpsSummit: Article

IPOs, IT, and the Future of the Product Development Services Market

Why would companies like Google and Expedia rely on product development partners to bring their software products to life?

For a number of years, analysts at Forrester, Gartner, and other research firms have heralded the growing importance of the product development services (PDS) market in helping companies accelerate time-to-market and product innovation. Forrester analysts John McCarthy and Charles Green published a report last year on a growing trend - that of non-tech companies becoming more and more reliant on software products to connect with consumers.

In 2013, IPOs from PDS companies like Globant and Epam brought the growth of the relatively nascent PDS market further into the public spotlight. Globant, which provides outsourced software development services for companies like Google, LinkedIn, and Orbitz, filed for an $86 million IPO in August of last year. Epam, the subject of a Bloomberg article on the proliferation of "Eastern bloc" software development companies, builds software products for companies like Expedia, Sephora, Coca-Cola, and Adidas.

Why would companies like Google and Expedia, either of which could surely attract some of the world's most talented engineers and developers, rely on product development partners to bring their software products to life? For one, the competition for development and engineering talent has never been greater. Product development partners can provide a steady flow of on-demand talent to help companies turn their product visions into reality, without those companies needing to continually hire talent that possesses the latest and greatest technological expertise.

Another contributing factor toward the rise of product development services has been the acceleration of consumer technology. The massive impact of technology on our lives that started with the PC era has become even more pronounced in the era of the smartphone and the tablet. The consumerization of IT has led to increased expectations for the user experience of software products at work and at home. This means that the most successful software development partners will possess expertise in a wide array of disciplines, including creative/UX, product engineering, quality assurance testing, and long-term support. One-stop shops for PDS will soon become the norm rather than the exception to the rule.

The Innovation Age we live in today requires companies to demonstrate agility in adapting to the changing shifts in technology. Customers no longer pledge allegiance to any brand when superior competition comes along. Look no further than BlackBerry's long, slow march toward obsolescence for indisputable evidence of this fact. If your company is not leveraging emerging technologies to drive business results, chances are your competition is. To truly succeed in the business marketplace today, companies need to look not just 12 or 24 months ahead, but 84 months into the future. A recent HBR article on Bally Technologies' Innovation Lab supports this point exactly.

Some important questions to ask include: Where do you want to be in 5 years, and what will technology look like at that time? How will consumers be interacting with their devices by that point? Or will they be interacting with them at all? How can you start planning for that now?

The growing trend of established companies forming strategic partnerships with outside vendors for core product and technology development services is a telltale sign of things to come. I predict it won't be long before we find ourselves in a world where the PDS space mirrors the world of "traditional" advertising and its agency model. When it comes to advertising, Nike doesn't "Just Do It" - Wieden & Kennedy does. I envision a world where in 5-10 years, many major corporations will have "agencies of record" that are focused on continual improvements in the software development space and are as essential to a company's success as their "brand" agencies of record in decades past.

More Stories By David DeWolf

David DeWolf is the founder and CEO of 3Pillar Global, one of the Mid-Atlantic’s fastest growing technology companies. In this role he has guided 3Pillar to a leadership position within the Product Development Services sector, establishing 3Pillar as the go-to innovator for content, information, and data-rich companies looking to grow revenue through software.

In 2012, David was named one of SmartCEO Magazine’s “Future 50.” In 2011, he was recognized by the Washington Business Journal as one of “40 Under 40” who are Washington, D.C.’s brightest young business leaders. In 2010, he was selected a winner of the Franciscan University of Steubenville’s Outstanding Young Alumni Award.

David earned a Bachelor of Arts from the Franciscan University of Steubenville, where he studied Communications and Theology. He and his wife, Teresa, have six children.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Latest Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.