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The Definitive Guide to IT Cost Optimization
IT cost optimization refers to a series of strategic, programmatic, and innovative tactics businesses utilize to sustain enterprise-wide programs. As a CFO, CIO, or executive of IT the responsibility to weigh in steps to take to reduce IT operating costs lies with you.
If you want to be prepared to maximize cost savings while sustaining business value dowload this guide.

What will you find in this guide:

Cost Management and Control framework

Defining Cost Managment

  • Resource Allocation
  • Estimate Operational Costs
  • Cost Budgeting

Defining Cost Control

Developing a Strategic Cost Optimization

  • Setting Your Priorities Straight
  • Optimize Costs While Keeping Your Team Productive
  • Align Your Strategy to Your Business Goals
  • Long-term Cost Optimization Opportunities

Key personnel involved in IT Cost Optimization

Cost Optimization Initiatives

  • Automation
  • IT Infrastructure
  • DevOps (Cloud)
  • LowCode
  • Offshore
The Definitive Guide to IT Cost Optimization

About ZirconTech:
A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.

The Ultimate Offshore Software Development Guide for CEOs
Offshore software development services emerged for businesses looking to reduce operational costs while having access to a global talent pool. Recently, the US tech job market has been saturated, which resulted in companies looking for more options.
If you want to get ahead of the crowded offshoring market, check out this guide on offshore software development. Learn why it has been considered reliable and profitable among CEOs and stakeholders.

What will you find in this guide:

What is Offshore Software Development?

Benefits of Offshore Software Development

  • Lower Operating Cost
  • Access to Diverse Talent Pool
  • Focus on Core Business Goals

Augmenting Offshore Developers with Your In-House Software Development Team

Finding the Best Offshore Development Company Partners

  • Prioritize Quality Over Quantity/Costs
  • Are They Reliable?
  • Is Their Time Zone Going to be an Issue?
  • English Proficiency

Where Can You Find Offshore Software Developers?

  • Eastern Europe
  • Asia
  • Latin America

How CEOs Manage an Offshore Software Development Team

  • Impart Your Vision
  • Managing Cultural Differences
  • Communicate Effectively
Get the ultimate offshore software development guide for CEOs. Download my ebook.

About ZirconTech:
A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.

Strategic IT cost optimization

When CIOs face cost optimization on IT companies they need to make a healthy balance between common IT spend, and investments in business innovation. The best strategies are those that pursue innovation while reducing unnecessary costs. According to Cognizant, Strategic IT Cost Optimization techniques are the right path to follow when CIOs want to prepare their organizations to grow. Always looking for the right balance between reducing IT spend on one hand, and increasing investments in innovation and IT improvement initiatives on the other. 

Strategic IT cost optimization process

IT cost optimization cannot be a one-time initiative, They should rather be a continuous process and a guiding principle for managing IT most efficiently. Although organizations can achieve an effective cost savings program, business uncertainty will continue to impact IT organizations. To overcome these situations, a CIO requires a strategic IT cost optimization program to:

  • Generate process efficiencies.
  • Improve the quality of service.
  • Build a stronger value chain.
  • Improve skill management.
  • Increase customer satisfaction.

Now we will focus on the benefits of a strategic cost optimization program. For this, we will follow a process to adapt IT cost optimization to organization goals. This process can help CIOs prioritize cost optimization initiatives by considering the potential cost savings and other benefits such as:

  • Time requirements.
  • Degree of organizational and technical risk.
  • Impact on customers
  • Investment required.
The Definitive Guide to IT Cost Optimization

IT & Business Alignment

Although this article is directed mainly to IT Companies, the concept of IT & Business alignment is an important goal that is not always easy to achieve. The IT & Business alignment integrates IT to the strategy and goals of the organization. To achieve this alignment organizations need to meet some key characteristics:

  • The organization must value its own IT resources as an instrument to enhance the business.
  • Must hold customer service, both externally and internally, at the highest importance.
  • It’s also important to rotate both IT and not IT business professionals across different departments and job functions. 
  • The organization has to provide clear and specific objectives to both the IT and  not IT business sectors. 
  • The organization needs also to create an inclusive business culture to unify the company as a whole.

IT Investment Optimization is the base stone in which lays IT & Business alignment. The following are the most important key point to achieve IT Investment Optimization:

  • Avoid declining IT budgets. 
  • Define new IT investment optimization goals
  • Identify investment opportunities.
  • Prioritize investment portfolio.
  • Develops ongoing governance.

Opportunity Identification

To identify IT cost optimization opportunities, a company should make an IT cost assessment. This practice can help find solutions to the business challenges identified through the merger or acquisition. It can also help generate increased utilization of IT resources and assets.

Alternate sourcing 

This can be an excellent practice when a company looks for a way to optimize IT costs. Every company needs to think about how many people it requires at its offices and how many it can have as outsourced. When thinking about the best outsourcing method, Offshoring can help to optimize cost by relocating activities into another country.

Nevertheless, Nearshoring might be the best option for IT companies that demand the best-qualified employees abroad, and that are linguistically and technically focused. Nearshoring allows IT companies to improve business efficiency but reduce the barriers of traditional offshoring because they outsource their processes to nearby countries. 

Get the ultimate offshore software development guide for CEOs. Download my ebook.

Cutting costs by renegotiating

IT companies can also seek out ways to save money through renegotiation with their vendors. And it can be a very productive practice because many vendors are in the position to negotiate. But it may be not an easy task, so it’s better to follow some important steps to renegotiating with vendors:

  • Consider the market data to support what is requested.
  • Don’t forget that you are trying to rebuild a pre-existing relationship. 
  • Take care of its long-term viability as well as achieving a reduction in costs.
  • Transmit to the vendor that your better financial health will probably translate into higher future orders.
  • Exchange a more favorable rate for a longer contract term.
  • Also, find out how you can help your vendor for saving money.

Standardization 

According to Gartner, rationalizing and standardizing enterprise applications is one of the best techniques to help CIOs turn to strategic IT cost optimization. It can reduce the application portfolio that always represents a large part of an IT budget. CIOs who standardize and rationalize their application portfolios can reduce and control costs. Savings can range between 15% and 25% of the application budget.

To adopt a standardized infrastructure can help keep in control the cost and enhance working quality. But always take care of how you are investing your organization’s money. It is important to do it with cost optimization in mind, to be sure that you are spending your business capital in the right way. 

Integrating, updating, and modernizing devices and applications were usually the core of every IT-specific cost-cutting in the past. But today new Cloud infrastructure solutions can help reduce complexities and simplify software administration. 

Realization of Benefits

The Realization of Benefits process will let you identify and measure your company’s benefits, enabling your business projects to be implemented with a clear vision of the delivery of outputs. To obtain a proper IT cost optimization you need to apply Realization of Benefits in areas such as software, hosting, networks, end-user computing, and IT overhead management. The following practices can help you with this task:

 

 

 

 

 

 

 

Infrastructure Rationalization

Gartner recommends that it’s a better plan to first simplify your existing systems, before spending large amounts of money to replace all your existing systems. To achieve this you need to identify existing assets. It’s a good practice to make an inventory of all servers and hardware currently in use and maintain it monthly. Then, you need to identify assets from that inventory list to be rationalized and consolidated. You can get advantages of this knowledge and make Infrastructure rationalization with the following actions:

  • Remove unnecessary assets.
  • Define common processes and tools.
  • Consolidate the number of physical locations where infrastructure is deployed.
  • Adopt virtualization to better utilize infrastructure assets.
  • Rationalize the variety of items in the infrastructure.

You are practicing consolidation when you reduce the number of physical servers, while you are practicing rationalization when you reduce the variety of different server types. Both practices can help you simplify your business IT infrastructure, but rationalization is often overlooked, even when most IT systems have underutilized or inappropriate systems. Consequently, consolidating without rationalizing will only perpetuate unnecessary functions in your infrastructure.

Global Sourcing

Your business can make use of practices such as Global Sourcing to obtain the highest levels of efficiency possible in goods and services from the global market. Many foreign suppliers offer their services at a competitive price, especially in low-cost regions. The main goal of this kind of practice is to improve service costs while maintaining the exacting quality standards required. But don’t forget that Nearshoring might be the best option for IT companies to obtain the best-qualified workers abroad. 

Application Portfolio Rationalization

Another good practice in the search for Realization of Benefits is the Application Portfolio Rationalization according to Apptio. It is the process of cataloging and eliminating duplicate software applications used across an organization. This rationalization practice can help you to improve efficiency by simplifying portfolio complexity. It can also help you to lower the total cost of ownership (TCO) for your business application portfolio. 

When your business application portfolio is aligned to business outcomes, it is when Application rationalization initiatives tend to be more successful. You need to identify a defensible and repeatable process to get the best benefit from your Application Portfolio Rationalization. 

To execute the best plan of action, focus one by one on every activity to maximize success. You can create an application catalog, assign costs, create a point system to assign a score to each application. Last but not least, maintain this as a continuous process to sustain momentum.

 

About ZirconTech:
A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.

Data Managment

We can say undoubtedly that 2021 is the year when definitely companies have to work with data. Because it is the force that converts knowledge and insights into action. Companies need more than ever to understand its power, to identify the information that they have, and learn to make good use of it with solid practices of data management.

The use of the information has great benefits that companies need to use to achieve an advantage over their competitors. There is one important point that business managers need to have in mind about data management. And this point is that those who use it win and those who don’t suffer the consequences.

What is data management?

Data management depends more on the practices than the technologies that your business has. It combines certain practices like collecting, keeping, and using the information in ways that are secure, efficient, and cost-effective. The connection of different data sources like structured databases or unstructured information makes it possible to obtain the content and knowledge needed to make decisions and take actions that maximize the benefit to the organization. Today, a strong data management strategy is one of the most important practices that a company has to achieve. It’s an intangible asset that creates one of the organization’s major values.

How are you managing data in 2021?

In this modern economy, companies that don’t understand the importance of data management are less likely to survive because a company’s information is its most valuable asset. Data is the foundation of every modern business. Information and knowledge are the main tools to correct decisions and actions. I mean it when I say that data is the new oil. Certainly, information is today’s most powerful energy source for your business. But your company needs help to make effective usage of their data. 

First, you need to know exactly at which point of the data management process your business is. To know it, you first need to answer a series of questions. The industry has been talking about this for at least 5 years, but we are now in 2021, what are we waiting to take advantage of what we have and what we can achieve? Particularly in a pandemic time when the digital transformation only accelerates

Where is your business on the path to effective data usage?

Do you have data?

It seems obvious, but it is the first of all things to know when we talk about data management. Maybe your company needs certain information that it doesn’t have. So first, you have to prepare your company’s information systems to start collecting valuable data.

Cost optimization concept metaphore

There are certain practices that every CEO inside IT companies should have in mind when it comes time to deal with IT costs. In this article, I want to talk about 7 key points related to the best practices for IT cost optimization every CEO should follow.   

 

The 7 key points of IT Cost Optimization:  

  1. IT cost optimization is a continuous discipline
  2. The role of CIO
  3. Improve price and terms with your suppliers
  4. Consolidate shared services
  5. Achieve a standardized infrastructure
  6. Improve data management
  7. IT cost optimization budgeting best practices

  Let’s go now to the topics.     

 

IT cost optimization is a continuous discipline

 

There are common questions about cost optimization in IT like: How important is it? Is it the same as resource optimization? Is it just a budget exercise to meet numbers? Like any other problems in the field of cost optimization, we can face it from different angles. According to Gartner cost optimization is a business-focused continuous discipline to drive spending and cost reduction while maximizing business value.   

 

This includes:  

  • Obtaining the best pricing and terms for all business and IT purchases.
  • Standardizing, simplifying, and rationalizing platforms, applications, processes, and services.
  • Automating and digitizing IT and business operations.

 

The role of CIO

 

The role of the CIOs (Chief Information Officer) has changed tremendously in the last 10 years. In the past, they were in charge of bringing technological innovation to the company. But today, they have lost that prominence, and it seems that their main role is just to do the systems work and make operational IT spending as cheap as possible.    Now, more functional areas like CMO, CFO, or logistics are running projects of eCommerce or business intelligence within most IT companies. In these difficult times of COVID-19, It could be a good idea to remind them what the CIOs have to do.    They have to return to manage new projects in the functional areas. And for it, CIOs need to count on strategic partners with the best capabilities, at a reasonable cost, in the most convenient time zone.    

Improve price and terms with your suppliers

 

IT companies are frequently focused only on getting the best price for requested purchases. But they need also to keep an eye on some key items to improve the cost optimization:  

 

Key Items:   

  • Implementation support
  • On-site representation
  • Marketing cooperation
  • Training credits
  • Classes on-site
  • Less tangible benefits and compensation
  • Terms help optimize costs too

 This kind of practice makes that every dollar spent worth more for the organization. You need also to be careful with your vendor’s conditions. Try to always avoid this kind of practices:  

  • Being lock-in through contracts with high exit costs
  • Extremely long terms contracts
  • Incur in contract violations by working with a competitor 

These are important points that could limit your company’s ability to try new alternatives, move to new technologies, and achieve important innovations.  On the other hand, you need to implement good practices as a CEO to achieve the best results on cost optimization.

 

It will always be profitable to:  

  • Establish win-win relationships with suppliers
  • Improve speed and accuracy
  • Minimize the risk of new implementations

 

Consolidate shared services

 

It will be better for people in charge of the administration of Storage, System, and Network, to work under the same team. This way your organization will minimize rework, reduce duplication of efforts, and achieve consistency in operations.   Try to avoid pair application and production support services exclusively with the product groups they support. Because this can limit those resources from adding more value to the organization as a whole. Although these groups are part of the IT staff, their priorities have to be defined to the whole business benefit.   While still being part of their original business groups, the IT staff can provide knowledge, information, and the flow of ideas when they are engaged with other organization’s groups. This kind of practice can also improve the better balance and sharing of the business workloads.    

The Definitive Guide to IT Cost Optimization

 

Achieve a standardized infrastructure

 

To adopt a standardized infrastructure can help keep in control the cost and enhance working quality. Cloud infrastructure helps workers to check through the data and work in a much faster way. Cloud infrastructure can also save time, speed up the work, and help lower the cost of different processes and systems.    But it doesn’t mean that you can invest your organization’s money without any judgments. It is essential to do it with cost optimization in mind, to be sure that you are spending your business capital in the right way. Always be secure that you are getting the best return out of it.    Integrating, updating, and modernizing devices and applications were usually the core of every IT-specific cost-cutting in the past. But today new Cloud infrastructure solutions can help reduce complexities and simplify software administration.   If you are in the point of upgrading to a Cloud environment, the next point can be very useful for you:  

 

  • Adopting a hybrid, multi-cloud architecture is a superb idea to speed up processes.
  • The process of your organization will be very much agile and convergent within a cloud infrastructure.
  • To centralize control and administration it is better to unify diverse systems.
  • Implementing a Hyperconverged Infrastructure (HCI) can reduce the number of resources required to maintain all the elements of conventional “hardware-defined” systems by virtualizing them.
  • Although investing in HCI has high initial costs, it can significantly reduce overall data center footprint, maintenance, and support costs. 
  • HCI will add scalability, data efficiency, and faster deployment to your organization’s systems.

 

Improve data management

 

Data is undoubtedly a company’s most important asset. Therefore, it should be treated and managed accordingly. In addition to this, a survey by Harvard Business Review showed that cost efficiency is a significant benefit of a data-driven enterprise.   The important point is to give the right data to the right people at the right time. When organizations get strategic about data and analytics, they can introduce a data maturity framework that can save up to 25% of the company’s revenue.   The fact to achieve digitizing most of the repeatable internal processes can permit your organization to chase more business goals, maximize productivity, and improve ROI.   Gartner revealed that it is expected that two-thirds of customer experience projects will make use of IT by 2022, up from 50 percent in 2017. As most support questions are repeated, so these answers can be automated.    Customer support through chatbots, called virtual customer assistants (VCA), is becoming more common every day. Besides that, it is a more effective use of resources. This will make it possible that the support staff gives real attention to the customers with deeper issues.    Gartner’s study reported that organizations reduced up to 70% of call, chat, and email inquiries and a 33% cost-saving per voice engagement after implementing a VCA.      

 

IT cost optimization budgeting best practices

 

Budgets are a strategic tool: So it is better to spend to support certain goals and avoid spending in not essential areas.  

Manage your budget like it’s your money: Be responsible for what you want your team to accomplish. It’s a good practice to look at areas that you’ve fallen short in the past and analyze new strategies.   

Be transparent with your team: It is beneficial when your direct-reports know precisely what they can spend on new investing like new software or training. In the end, it will generate a more trusting relationship.  

Difference between cost optimization with cost-cutting: It is usual to confuse cost optimization with cost-cutting or reduction for some business managers, but they are very different concepts. Cost-cutting will aim to reduce the cost of every expense. On the other hand, cost optimization is more about spending the right cost at the right place.   

Regular Review and Monitoring: a regular audit of the entire system can help to understand the cost of the whole operation. It is a good practice to examine the methods used and the values they are adding to the workforce. This will serve to determine whether they are useful or not for the business.   

Nearshoring, Offshoring: You need a regular staff to manage your business offices. But hiring new employees requires a significant amount of investment. It is a good practice to think about how many people you require at your offices and how many you can have as outsourced. Then you have to think about the best outsourcing method.   With Offshoring, for example, the operating activities are relocated to another country. But Nearshoring might be the best option for IT companies that are linguistically and technically focused on highly qualified employees abroad.    With Nearshoring you outsource your business processes to companies in a nearby country. This method allows IT companies to maximize business efficiency but reduce the barriers of traditional offshoring. This way your regular staff will have easy communication with your outsource staff, due to the same spoken language, minor cultural differences, and within the same time zone.         

 

Final Words

 

To finalize let say that it is essential to get cost optimization, so you’ll know that you are spending the right amount at the right place, and getting a proper return out of it. Following the practices mentioned above can help make great IT cost optimization.    The global COVID-19 pandemic affected the economy remarkably. As a result, a growing number of businesses are looking into tactics that optimize IT costs. Be aware of the latest IT cost optimization initiatives with this guide: The Definitive Guide to IT Cost Optimization.

 

About ZirconTech:
A trusted partner that helps organizations thrive in their digital transformations. Mobility, Internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.

Notarization plays an integral role in any legal transaction and negotiations. Notarized documents are an indication that the parties involved are genuine and can be trusted. In other words, the notary public provides a security level that prevents us from becoming victims of fraud.

With the emergence of technology in the business landscape, blockchain entered the picture to automate notarizations. The blockchain serves as storage for notarized records and documents. In this way, any unauthorized user will not be able to edit nor delete portions of the document.

Notarization blockchain technology ensures the integrity of data as soon as it enters the chain. It provides functionalities, including tampering-resistance, non-repudiation, and traceability.

These tools automate notarization and streamline its typical process. Let’s discuss the benefits of the notarization service blockchain more thoroughly below.

What are the Benefits of Notarization with Blockchain?

Notarization service blockchains introduced a private, remote notary channel to address all your notary needs. This channel allows organizations to acquire notaries without having to step out of their homes or offices. Thus, companies like ZirconTech leverage notarization with blockchain to provide notary solutions to organizations across different industries. Notarization blockchain technology testifies to the documentation of proof of ownership to protect owners of their rights. Notarization via blockchain can also establish agreements across multiple parties. These documents can only be accessed and signed on the blockchain.

Notarization with blockchain has several benefits to organizations, but here are key points on how they helped businesses flourish:

Secured Storage of Notarized Documents

The primary goal of notarization is to certify the authenticity of any document. Notarization blockchain technology leverages various automated tools to carry out this goal seamlessly and quickly. On top of that, users can secure the storage of notarized documents on the blockchain. This organized and infinite storage process allows them to retrieve the agreement when needed and detect any changes made through the timestamps attached to every document.

Encrypted Documents Providing Users With Private Access

A majority of notary services require user information for creating an account and proof of ownership. This security measure happens on their system database for your notarization needs. The transaction ID and the user account information in the database often reside outside the blockchain. This measure gives security to the users considering that most authentication services happen on the blockchain system. They would only take a hash of the document to verify the proof of ownership of the user to notarize documents.

Moreover, the transaction ID integrates encryption to documents for easy retrieval. User account information helps perform cross-checks of the document’s ownership before its release.

Transfer Document Ownership Seamlessly

With notarization service blockchain, organizations can transfer ownership of documents seamlessly. The system would first verify the ownership of a specific form through the user account that acted. Blockchain technology locates the certificate authority system that confirms the blockchain’s bounded blocks’ data.

Users can quickly transfer document ownership by following these steps:

  • Like modifying any legal record, the system identifies the user through the previously recorded transactions used for verification.
  • The transaction identification verification will then create a signature for the user in the data field.
  • Notarization blockchain technology prompts the hash verification and signature storage on the duration of deploying the contract.

 

 

 

 

 

 

 

 

 

Offshoring Notarization Projects

For notarization needs in various parts of the world, some services by other providers can be limited. There are quite a few companies that perform offshoring notarization projects. Yet, ZirconTech has proven to be an expert in providing exceptional notarization service blockchain. This company’s blockchain professionals are pioneers in offshoring notarization projects for unavailable signers from all over the world.

Public blockchains allow data to be stored and retrieved for an unlimited time. This reliability offers trust and security to all involved parties. In case the need arises wherein you want to make some changes within the notarized document, you are required to create a transaction. These transactions combine into blocks. It gets before incorporating the modifications into the blockchain. Since the building blocks of a blockchain are interconnected, you can always monitor your data seamlessly. Every block receives a label with timestamps and block numbers arranged in chronological order for quick retrieval.

Get the ultimate offshore software development guide for CEOs. Download my ebook.

About ZirconTech:
A trusted partner that helps organizations thrive in their digital transformations. Mobility, internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.

Smart contracts with blockchain

Legal tech emerged throughout the years, along with smart contract technology. A majority of businesses began bringing their legal businesses to smart contract blockchains to expedite the processes. With the innovations surrounding offshore blockchain development, smart contracts appear to be on the rise.

As one of the leading blockchain legal contract companies, Clause introduced its smart contract blockchain platform. It is a dynamic tool that lets businesses convert legal agreements into automated documents. Clause aims to derive an advanced smart contracting technology using blockchain and natural language processing techniques. They introduced the platform to bridge legal compliance, security, and savings between businesses and their clients. From developing the clauses and provisions to leveraging the automatic payment, Clause brings smart contracting to a whole new level.

Smart Contracts

Smart contracts use automation to streamline provisions and clauses expressed in agreements via blockchain. With that in mind, smart contracts blockchain enforce the terms and conditions agreed upon by either party. They can proceed to memorialize these terms in smart contract code, stored in the blockchain database.

With smart contracts, businesses can also carry out dependable transactions without the help of third-party providers. In other words, smart contract technology makes it possible to eliminate the process of seeking intermediaries to manage business deals. It automates the execution of the predetermined terms and conditions of the smart contract. Therefore, the contract provisions involved controls what it’s programming.

The Role of Blockchain in Smart Contracts

Blockchain plays a fundamental role in sustaining a robust, decentralized network of smart contracts. Smart contracts blockchain verifies and enforces terms previously agreed upon across multiple parties.

Moreover, transactions get streamlined according to the provisions expressed in the agreement. Offshore blockchain development companies like Zircontech partnered with Clause to carry out these transactions in full transparency. In this way, they can carry out payments without a central entity, external enforcement, or legal system. Smart contract Ethereum provides maximum security when it comes to such transactions that are both irreversible and traceable.

Lastly, smart contracts blockchain innovated ample data storage that is both secure and retrievable. It provides businesses with peace of mind since all smart contracts get encrypted in a ledger. This storage allows users to retrieve them as needed and make modifications when necessary.

How Clause Works

A clause is a smart contracts blockchain platform that decentralizes connected contract networks to reduce risks against legal compliance. More importantly, the platform’s goal is to unlock the full potential of your digital paperwork.

Clause works by connecting the contracts into their platform. The contracts can be accessed and modified by other members of your company along with your clients. Either Word or PDF format is importable into the database to start the data verification. Clause configures real-time validations to expedite the legal proceedings. Users can also readily utilize its built-in tools and software to automate specific actions.

These tools allow creators to incorporate functionalities to various provisions in the contract. For instance, they use Clause tools to provide a space for signature and buyer’s payment information. Once the payment details get fulfilled, it can automatically trigger a payment using channels like Stripe. Depending on the clauses in the agreement, a smart Clause stipulates the payment. This process indicates that you can also trigger the payment at a later date if needed.

The Bottom Line

Smart contracts blockchain aims to simplify the tedious process of legal agreements. With the use of Clause, businesses can skip the intermediaries and go straight to smart contracts. A clause has also partnered with the leading firms and blockchain companies like ZirconTech to make innovations and keep up with smart contract technology. As one of the blockchain pioneers in Latin America, ZirconTech continuously finds ways to leverage offshore blockchain development on legal tech. They make it their mission to contribute to blockchain-based legal technology to establish their products and services.

This collaboration paved the way for Clause to improve its smart contract platform. They have their data stored on a blockchain to manage its provisions and transactions. This platform allows businesses and clients to quickly make an agreement and payment based on the agreed terms. Therefore, the business operations are almost always automatic considering that every transaction gets recorded in real-time to a blockchain. These are also shared among participants to verify at any time.

Get the ultimate offshore software development guide for CEOs. Download my ebook.

About ZirconTech:
A trusted partner that helps organizations thrive in their digital transformations. Mobility, internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.

Smart contracts with blockchain

Monax, the leading digital legal infrastructure company, established a smart contract blockchain platform to automate contractual obligations further. In partnership with the Agreements Network, they employ blockchain technology to streamline the legal proceedings and monitor the process in real-time. Along with legal firms and blockchain firms, including ZirconTech, Monax advanced to offshore blockchain development to sustain legal compliance. More importantly, the aim is to create compliance agreements and contracts from automated templates with only a few clicks.

The smart contracts blockchain framework can link precise off-chain computational knowledge with legal operations and products. With the use of scientific, financial, and environmental sources, it computes data streams to refine the procurement of legal obligations.

Smart Contract Blockchain in Business

One of the leading companies in legal tech initiated offshore blockchain development and a network of law firms and blockchain startups. Monax developed the legal services platform called the Agreements Network in April 2018. The system leverages smart contracts blockchain to perform legal tasks.

These tasks range from managing agreements and leasing contracts to developing governance documents. With the Agreements Network, these legal obligations are made compatible with the public smart contract Ethereum.

The hefty costs of obtaining a lawyer to develop contracts have been a common predicament for many. More often than not, lawyers charge a large sum of money to establish a contract from a slightly tweaked template. Although there are some templates available online, they are often insufficient and ineffective. Thus, you often need expensive legal input to legitimize the contract.

For this reason, Monax leveraged the conjugation of blockchain and Artificial Intelligence to streamline such legal proceedings. Businesses are now able to keep up with the fast-paced industries with automated smart contracts blockchain. Tasks that previously took days to become completed reduce to just a few minutes. After all, businesses can accelerate by streamlining their business needs through automation.

Agreements Network is a decentralized platform for both businesses and lawyers. This network allows lawyers to market their services and offerings. They can promote their agreement templates across business sectors and get paid for it. In contrast, businesses seek contract templates in this platform to avoid litigation over contracts. Agreements Network provides third-party proof of the existence of such documentation to prevent any form of dispute. On top of that, they store contracts in a database so you can quickly retrieve them after many years.

How does the Agreement Network work?

The architecture of the Agreement Network eliminates operational costs leveraging the decentralized, interconnected systems. It optimizes legal obligations through smart contract Ethereum. Working within the Ethereum blockchain prevents them from backlog exposures or the risks to attacks in transactional processes. They utilize Archetypes to refer to the contract templates and generic agreements. These can support a variety of business operations, from establishing shareholder agreements to software development contracts.

You can access the ‘factories’ within the Archetypes to make some modifications in the templates. Users can personalize the contracts by adding names, specific amounts, and dates based on their clauses. You can make these changes that apply to your situation, but you cannot add or remove paragraphs in the contract.

After curating the contract, you have to keep it updated soon after it goes live. The developer should update the project’s progress and have their client confirm through the agreement. Upon completion, the process engine will automatically display the payment calculation to the client. In case the project is finished at an earlier or later date, the price adjusts accordingly. Smart contracts often configure these transactions through Ethereum. However, you can also produce invoices through other channels like Quickbooks and Xero.

Zircon Tech in the Works with Monax

Since Monax introduced the Agreements Network in 2018, Zircon Tech has contributed to offshore blockchain development. The establishment of the robust distributed contract management system for small businesses leveraged smart contract technology to automate business processes. Along with Zircon Tech, they also developed Hyperledger Burrow to address leasing and contracting issues over the years.

Hyperledger Burrow is an open-source platform hosted by Linux Foundation to provide enterprise blockchain solutions. It aims to provide a modular blockchain client with a permission smart contract interpreter by the Ethereum Virtual Machine (EVM) standards.

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About ZirconTech:
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Gartner, Inc. has recently introduced the Top Strategic Technology Trends for 2021 during their virtual IT symposium. Strategic IT analysts and experts made projections based on their findings on how the COVID-19 pandemic shaped technology. In light of the global health crisis, tech companies, big and small, adapted and reshaped their approach to the extent of molding tech trends for the following year.

Gartner elucidated on a comprehensive list of trends that executives and leaders should expect for 2021. A majority of these trends are focused on embracing the pandemic’s impact and how it molds the IT landscape. We will focus on the Gartner trends surrounding Cloud tech, Blockchain, Internet of Things, and Artificial Intelligence in this article.

Cloud Trends

When it comes to setting the cloud tech expectations next year, Gartner highlighted the distributed cloud’s importance. A distributed cloud allows businesses to relay responsibilities and cloud services across different IT functions. Regardless of the location, business operations become manageable with the use of a public cloud provider.

Analysts found that remote work arrangements and freelancing opportunities are here to stay even during post-pandemic. Not only it promotes convenience, but it can also streamline the workflow and deployment of the product. With the help of a reliable cloud, organizations can withstand low-latency scenarios while reducing data costs. Simultaneously, distributed cloud accommodates laws that dictate data must remain in a specific geographical area.

Blockchain Trends

Blockchain continues to pick up its pace in the wake of the current business climate and beyond. Gartner trends inform us that blockchain technology to secure data and devices will continue for 2021. According to their findings, three technologies will emerge to improve privacy-enhancing features and protect data. These are new methods that facilitate differential privacy, refines homomorphic encryption, and a reliable environment to process and analyze data.

Over the years, the issue surrounding privacy continues to grow. Therefore, businesses perform strategies that encrypt data when outsourced vendors or partners utilize them. This safety net allows organizations to collaborate across regions without compromising security, data privacy, and confidentiality. Businesses must perform extra precautions before sharing, processing, and accessing any form of data.

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Internet of Things

As one of the most prominent aspects of technology over the years, the Internet-of-Things plays a fundamental role in the coming years. IoT aims to leverage data for wide-scale networks to bridge a gap between information and technology. Gartner emphasized an extension to IoT, the Internet-of-Behaviors to flourish in 2021. IoB interconnects devices to gather data sources that impact a change in consumer behavior. The IoB integrates data to the customers to influence their actions with the use of feedback loops.

Experts noticed how a majority of auto companies make use of telematics to monitor consumers’ driving behaviors. With that in mind, it helps them shape their product that targets driver performance, routing, and safety. Another example can be found in employees’ transition to remote work arrangements when the pandemic hit the world. The introduction of automated tools and applications to adapt to the current situation eased this shift’s burden. From videoconferencing tools, AI-powered assistants to virtual meeting technology, these approaches leverage employee engagement and improve workflow. The increasing advancements and sophistication of technology that processes data opened doors of opportunities for this trend to remain.

Artificial Intelligence

Gartner trends for 2021 highlighted AI engineering’s role in facilitating scalability, advancement, and AI model innovation. Although a handful of AI projects can face maintenance and governance issues, this challenge can be possible to overcome. Analysts from Gartner have found that 53% of AI  models can make it from prototype to production. It may not be a huge percentage, but it shows a significant improvement in streamlining dynamic AI development.

Gartner sees the importance of designating an AI engineering function as part of the DevOps team to increase success chances. Pushing for collaboration across multiple disciplines paves the way for creating sustainable AI operations at scale. With CIOs, executives, and stakeholders taking part in these projects’ design and governance, there can be a tremendous improvement in AI models.

The Bottom Line

The conjugation of Gartner’s trends aims to reinforce the role of data and technology in the business landscape. These trends are worth exploring to improve the value of products while imposing authority over IT technology usage.

As one of the main trends in the IT market throughout the years, offshoring software development seems to be the most practical way to adapt to the latest trends. After experiencing the global pandemic, it becomes imperative to decide on strategies to sustain software development regardless of a significant crisis. Additionally,  businesses big and small made a crucial decision to take this opportunity to reduce development costs.

Offshoring software development teams in countries like Argentina and Uruguay can further your business goals. They take pride in high-quality IT services, real-time collaboration, travel proximity, and cultural similarity to fulfill your needs. If you are looking into offshoring the leading tech experts to Argentina and Uruguay, contact us at ZirconTech today!

About ZirconTech:
A trusted partner that helps organizations thrive in their digital transformations. Mobility, internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.

South America map

Offshoring software development has been the staple for business from startup, small business, and medium-sized enterprises. Even giant corporations like Google, WhatsApp, Slack, Alibaba, and GitHub offshored their back-end operations from the ground up. There are a variety of reasons behind this decision, but the most one of the most crucial one is to reduce operational costs.

Ever since the offshore software development industry emerged in the tech market, the interest shifted across Asian countries. From India and China to Vietnam, companies in the US availed their services to take advantage of the lower charges.

South America has managed to gradually make its name along with the roster of offshoring destinations. It has recently been preferred by a growing number of businesses when it comes to software development. North American enterprises opt for Latin American developers instead of their in-house teams for projects and several upgrades.

Also on the IT industry’s radar are South American countries such as Mexico, Chile, Argentina, Colombia, Brazil, Uruguay, and Costa Rica. These countries gained a significant role in the software development industry for providing quality work at a low price. Latin Americans’ competitive edge involves real-time collaboration, travel proximity, and cultural similarity, making working relationships easier.

In this article, we shall further discuss the reason behind South America’s popularity for offshoring software development.

 

What Puts South America in the Eye of Offshoring Software Development?

Asian countries, including India and China, have been the leading countries for offshoring developers for a while now. They have contributed to transforming the business landscape, helping establish some of today’s biggest corporations. They provide lower labor costs and a limitless supply of seasoned software developers.

However, South American has begun to catch up. They were given the spotlight with an increasing number of companies that offer projects to Latin American developers.

Let’s take a look at why South America is a favorite of the job market of today.

 

Fewer Problems With Time Zone Alignment and Communication

South America offers convenience with its minimal time zone differences. Both parties don’t need to make significant adjustments to be able to work efficiently. For instance, Uruguay and Argentina are only five hours ahead of California. It is in comparison with China and India that have approximately a 13-hour difference from companies around the US.

Consistent communication is crucial, especially during project development and earlier stages of tasks. When teams can communicate with no interruptions, delegation is efficient. The minimal time zone difference fosters effective communication across the software development team.

Even though both parties are miles apart, you can always guarantee to receive a quick response from your offshore developers. This assurance allows you to detect and resolve any conflict that arises with no delay. On top of that, you can also travel to your offshoring team when necessary. Business travels are more cost-effective even if you come from cities like New York, California, and Seattle.

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English Proficiency

The latest studies have found that Latin Americans surpassed the years of stagnation in English proficiency. South American countries like Peru, Uruguay, Argentina, Ecuador, Chile, Brazil, and Mexico drastically improved and recognized the importance of learning English.

With more people invested in English proficiency, there are more job opportunities for Latin American developers. The growing number of fluent English speakers in the region have provided them with more high-paying jobs and opportunities. For this reason, they have established diverse educational programs and initiatives to encourage more people.

Moreover, one of the drawbacks to offshoring rotates around the cultural differences. Latin America and North America are near each other, so it should not be an issue. They share a long history of trade and interaction in comparison to Asian countries and European regions.

Therefore, misunderstandings are less likely to happen. You can expect an Uruguayan software developer to be more proactive than an Indian developer. They have a better understanding of American culture and work ethic, so they understand what’s at stake. Offshoring Asian developers might expect you to guide them throughout the project instead. They also tend to perform beyond your expectations because they assume it’s not what you want.

What is the Hourly Software Development Rate in South America?

The average hourly rate for a majority of South American countries starts at $45. In the leading offshoring software development destination, Brazil, you can expect developers to charge you around $40/hour. It may cost a little more than what Asian software developers offer, but if you are looking for better coordination, project delegation and quality, the price could be worth it.

About ZirconTech:
A trusted partner that helps organizations thrive in their digital transformations. Mobility, internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.

Software developers programming on computer with script

The foundation of every successful business is an adequate workforce. When companies prioritize innovation, growth, and brilliance when forming their team, there are more benefits to it than they realize.

However, building an excellent in-house software development team requires a substantial investment. Hiring software developers internally results in more expenses, including labor cost, renting office space, insurance, furniture, utilities, and so much more. They have to be able to match according to the industry standards, and it’s not cheap.

For small and medium-sized enterprises, software development offshoring is a feasible alternative. They can afford competitive rates without compromising the project quality. To further give you an idea about offshore software development, here are the pros and cons of this business model.

Pros of Offshore Software Development

Knowing the pros of offshore software development can help you decide if this can work for your business.

Reduce Your Development Costs

It is imperative for businesses that have only been starting to reduce their costs as much as possible. Whether you are forming a startup or small enterprise, you have to allocate your budget accordingly. Otherwise, your venture can likely fail.

To focus on the core of our business, it’s best to offshore software development. Hiring software developers outside the US tend to be cheaper than the local market rate. You can find those with the same skill-set and experience to fulfill your business requirements at a lower cost. This option allows you to acquire the best talent without sacrificing the quality of work.

You can utilize the savings to invest in market research, marketing, and performing advancements to improve your products and services’ functionality.

Access to a Diverse Talent Pool

Expanding your horizon allows you to discover a diverse pool of skilled software developers. When you don’t put geographical restrictions to sustain your business, you can explore endless opportunities. You can select a country that has a reputation in tech and find people suitable for your team. For instance, Microsoft and Hewlett-Packard recently started an educational program in Latin America to further develop their skill set in the IT industry. This will lead to a major influx in IT talent throughout Latin America including Argentina and Uruguay.

Ultimately, gaining access to a global talent pool is way cheaper than the latter.

Offers Flexibility

Hiring internally means that you are bound to keep them for the long haul. However, you may find your in-house team struggling to complete piling tasks on the intended timeframe. To strengthen your workforce without spending much, hire offshore developers. You can always halt the contract when you don’t feel like you need them anymore. There’s less commitment involved, and it streamlines the workflow.  Accordingly, you can always opt for offshore developers, especially for short-term and seasonal projects.

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Cons of Offshore Software Development

Despite the numerous advantages of offshore software development, you cannot go down this path without considering its potential disadvantages.

Security Risks

There are security risks involved when offshoring your software development team. Working with them consists of sharing confidential ideas about your project. There can be situations when they potentially steal parts of your concept to earn or establish it as their own. They are geographically distant from you, so making disputes can be complicated. However, you can prevent this in the first place if you have them sign an NDA.

A non-disclosure agreement can protect you if the other party compromises the data you have shared on the duration of the project. It protects your confidential information during the development of the product or software.

Poor Project Quality

Although this only happens occasionally, you cannot always guarantee that they can produce high-quality work. This issue is why you need to communicate to check your offshore worker’s progress and consistently provide valuable feedback.

Often, companies test the offshore team before deciding whether they will take them to finish the rest of the process. It is also an opportunity for you to see their strengths and weaknesses. This testing stage prevents you from wasting your time working with an offshore team that is bound to fail.

Communication-Barrier

Similar to any remote work arrangements, this setting can sometimes result in miscommunications and misunderstandings. More often than not, English is not their first language, so they may not understand some expressions and terms. They might also find it difficult to express themselves better when they struggle with the language.

Moreover, communication-barrier can also arise from time-zone differences. Emergency messages placed outside of the office hours may take a few hours to receive a response, considering they are only just waking up or about to sleep. For requests and approval for actions, it may take until the next day to get their response.

However, most offshoring teams adjust their working hours according to the American market, which allows them to communicate with clients efficiently. These issues are also nearly non-existent when outsourcing to Uruguay and Argentina due to their strong proficiency in English, cultural proximity to the United States, and similar time zones.

 

About ZirconTech:
A trusted partner that helps organizations thrive in their digital transformations. Mobility, internet of things, artificial intelligence, big data, cloud computing and blockchain technologies.