Software development outsourcing: Download free outsourcing e-book

A UK company partners with an IT service provider in Latvia that recruits and hires 10 software developers for the partner. The developers work directly with their UK management while being on the Latvian vendor’s payroll. How quickly software vendors react to the appearance of new technologies and upskill their personnel accordingly will affect the assessment of the vendor.

software development outsourcing trends

The software development industry has accepted this shift and embraced the new normal to increase work flexibility. And with remote working becoming the new work normal, it is expected that more industries will accept the remote culture in the coming years. Although there is nothing new about the remote working culture, its rapid adoption makes it a trend to watch. Worth around $152.02 billion as of 2020, and with the increased demands, it is expected to gross $274 billion by 2026.

Does Your Business Require Software Outsourcing?

Companies are looking for talented developers suited for their business needs. They emphasize the development process so Scrum and Agile will become more common. We’re currently seeing a trend in the number of small, boutique software startups that specialize in one or two specific industries or technologies. As more outsourcing companies narrow their focus and start to specialize, it won’t be unusual for companies to work with several specialist providers. With trends of business collaborations changing rapidly, enterprises will now adopt new norms of sharing responsibilities and risks with their service providers and partners.

  • The field of Machine Learning has shown massive potential across numerous industries including healthcare, high tech, and finance.
  • The Delloite did a great job and wrote two studies regarding the state of the outsourcing market.
  • As a software development leader, you can access low-cost development services while collaborating with more sophisticated vendors on specialized programming projects.
  • PWAs are designed to create a mobile application-like experience on websites.
  • Businesses appreciate the flexibility of project management and now want to use it in software development.
  • Almost everybody can name examples of such successful applications – Instagram, Uber, Snapchat and Tinder, just to mention a few.

Companies that don’t want to fall behind are already investing their time and money into digital transformation. While the market of AR and VR is still a bit uncertain, companies are looking for outsourcing services to implement interactive elements to boost their sales. Large companies like Mercedes or Apple have already been employing these technologies. While a few years ago, the demand for outsourcing services was greatly influenced by the need to cut costs, in 2021, companies will keep on focusing on quality rather than lower prices.

Top Phishing Trends and How to Stop Phishing Attacks

Outsourcing UI and UX design services will improve your application’s look and feel, ease of use, and overall experience. Because their own resources are already being used up, many organizations find it hard to build and grow security teams that can fully protect their most critical assets. This year’s survey shows a sharp rise in companies prioritizing cost reduction. With a global recession caused by the pandemic, this outsourcing trend will only continue to accelerate. Even with the pandemic, more companies are focusing on developing initiatives to improve their businesses’ innovation, resilience, and competitiveness.

software development outsourcing trends

Additionally, most of the organizations plan to either carry on with or grow their outsourcing HR workload. Outsourcing HR not only enables companies to reduce costs but also redirect their internal resources towards the core tasks. Companies are highly probable to outsource not only HR projects but also the establishment of an HR platform for enabling the company to manage contracted team members. Although the time is tough, innovative approaches are in place to further empower outsourced software development teams, and improve their job nature and flexibility. Cybersecurity is one of the chief specializations organizations look for when outsourcing their software development projects.

Software development outsourcing is about survival.

The dedicated team model allows clients to be directly involved in the hiring process and find perfect candidates for long-term cooperation. These contract changes make IT outsourcing more interpersonal and value-driven. It means this approach will help clients select a suitable vendor for their project.

Some details of instructions may be lost in translation, especially if English is not a native language both for the company and the service provider. Both sides should take into account the language and cultural differences while setting up the cooperation. Working with service providers is based on and regulated by official agreements signed which makes the whole cooperation simpler and less risky.

Why Do Businesses Outsource Software Development?

/06 DevopsLearn moreCode&Care offers DevOps services to automate the development workflow to improve the quality of digital products. Achieve development productivity with DevOps with a top-notch Code&Care team. In 2023, outsourcing companies offering application, network, cloud, and infrastructure security services will skyrocket their capital.

software development outsourcing trends

In order to prevent malicious attacks on systems, organizations are outsourcing projects to white-hat or ethical hackers, who identify vulnerabilities and help organizations address them. 42% of people are satisfied with the quality of the network security services they receive and get the best return from their network outsourcing software development spending. Nowadays, companies are actually forced to work remotely and lack proper cybersecurity expertise. Two years later, the global cloud computing market will reach 623.3 billion US dollars. Before the cooperation started, companies should review the way IT outsourcing companies manage data and make it secure.

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We see that cost reduction became increasingly critical again with over half of interviewees indicating that cost reduction is a primary reason for outsourcing. IT outsourcing is the practice of working with external vendors to handle some information technology functions. The outsourcing industry’s total value is estimated to hit $405.6 billion by 2027.

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