We are seeing a trend line of industrial companies buying up software companies, likely in the name of digital transformation. This makes sense, too: in 2015, Jeffrey Immelt (former CEO of General Electric) said in a speech that “Industrial companies are in the information business whether they want to be or not.” We’ve seen that trend with our clients too; even if your main product or service is a physical, manufactured product, you still cannot compete without effective software development behind your processes. In 2016, the number of technology companies acquired by non-technology companies (682) outnumbered the number of tech companies acquired by other tech companies (655).
If you can’t build it, buy it.
Meanwhile, the smart manufacturing platform market has a CAGR of 19.7%, and is expected to go from a $4B industry to a $10B+ industry in the next few years.
With the rise of technology, one of the biggest challenges is to be efficient in following industry trends. In the long term, this is a strategic decision to get the best possible technology. Maybe you will need to do more with the Internet of Things for the next few months, but then after that, you might have road map needs about augmented reality or machine learning. With outsourced software development you can address those challenges. Anyhow, you have to have a reliable partner to outsource software development.
To find out more about how to select the best software development partner for your digital transformation, download our checklist here: