In 2020 the world experienced a modern pandemic. With the Covid-19 still affecting us all in every aspect of our lives, every industry was concerned. Primarily the software development and IT industry. The world went through a fast lane for new demands in digitization, and remote working possibilities therefore global software outsourcing had a higher than expected growth.
With everything going on worldwide, the software outsourcing growth and trends will not slow down. Hence, keeping up with the trends and adapting to the new, more digitalized world can be challenging. This post will talk about global software outsourcing trends and priorities and will try to help you with a road map to adapt to them.
The Importance of Software Outsourcing
The need for software development increased faster than expected in 2020 and will continue to 2021 and beyond.
With restrictions in place worldwide, software outsourcing plays a massive role in satisfying the needs for fast, high-quality development and support. Also, with the new appetite, so many new areas opened up to digitalization with the help of software outsourcing, and many new companies raised and started off with their new business.
Outsourcing is the answer to the global developer shortage and limitless innovation pace. CIOs can have the workforce they need in the most effective and innovative way.
But because of the growth of software development, according to the World Economic Forum, 70% of the workforce is moving toward emerging fields like product development, data, and Artificial Intelligence jobs.
With the pandemic, restrictions, remote work, and dedicated instruments have also caused changes in software development. The Outsourcing market will not stop growing any time soon. But it’s also a good opportunity for CIOs and independent businesses to make use of this growth. This will be the opportunity for dynamic development.
Global Software Outsourcing Trends for 2021 and Beyond
Here are the top trends in software development outsourcing for 2021 and beyond:
Artificial Intelligence:
AI is developing and improving at a fast pace. For different businesses, AI has various benefits. For example:
Cybersecurity: The most prominent usage of AI is in cybersecurity. With the help of AI, the identification of malicious software activity patterns has become more accessible. AI efficiently can detect data breaches and questionable IP addresses. Many firms are using AI to help with their assured,secure, and safe outsourcing.
Automation: Anything automatable should get automated. AI is beneficial for hyper-automation, communication, consumer products, and service industries. Automation helps with increasing production rates and productivity in an efficient way. Automation usage of the raw material and resources becomes more efficient, and the product quality can improve with superior safety, and lead time will get reduced.
Increase in business efficiency: Artificial intelligence allows a 24-hour service with the same performance and consistency. With the help of AI, repetitive tasks get done tirelessly. At the same time, the stress level of employees is reduced, and their focus is re-assigned to perform complex tasks with manual intervention.
Error minimization: With the help of AI, the chance for manual errors is reduced. For example, Robotic Process Automation will take care of entry and job processes without data processing mistakes.
Research and data analysis: The analysis of data and building models and algorithms to understand the potential outcome of different trends and scenarios become more accessible and more efficient with AI. Hence, the businesses can offer better and more adequate solutions to the challenges. The result is an increase in productivity and reduction of expenses.
Low-code/no-code:
Non-programmers can become software developers. With the rise of low code applications, creating software has become more accessible and more manageable. Drag-and-drop editors such as Appy Pie and Quixy have also become popular.
With these applications, people with minimum knowledge of programming can build large projects. The low-code/no-code platforms will keep on growing, and it is estimated that by 2025 the industry will reach a 45.5 billion USD worth.
With the help of low-code/no-code platforms, companies can save a lot of money and resources in building not-too-complicated apps.
Native and progressive apps:
To increase the quality of service, the app development companies will focus more on native apps for a particular platform. With the help of native apps, the app performance and user experience will get approved.
Another kind of app that is on the rise is the progressive web app. These apps are built upon the latest APIs to enhance user experience. They load much faster, lowering the bounce rate and working as a standalone window on a device. The companies providing these apps also have a downloadable version for different devices with more compatibility and more possibilities. An excellent example of such an app is Grammarly.
Cloud computing:
With the pandemic still ongoing, cloud computing became even more necessary than expected. The demand for advancement in cloud computing is growing day by day, with Amazon, Microsoft and Google on the lead. As the companies adapt to digital transformation and software modernization, they try to adapt to cloud computing more and more. Cloud computing methods are the most efficient methods in data sorting. The demand for cloud services will increase, and the new technologies should rise to keep them secure and efficient.
How to Adapt to Global Software Outsourcing Future
Outsourcing is indeed on the rise, but still, some reasons cause software outsourcing failure.
For example, insufficient technical expertise, unclear expectations and objectives, ambitious project estimation, Improper planning, and lack of communication are reasons for outsourcing failure.
Read more on WINaTALENT’s five tips for successful software outsourcing.
But besides tips and consideration of global software outsourcing rates, there are other aspects to consider and adopt in moving towards a software outsourcing future.
Understanding of New Emerging Technologies and the Way to Use Them
The whole software industry goes through rapid updates, changes, and constant shifts through newer advancements and updates. Keeping up with these rapid shifts is a full-time job for a CIO. Also, with the help of technology, every enterprise can cause distribution in the global marketplace with the unique software solution and intuitive development they provide. It’s also worth mentioning that the international online business is very competitive, and everyone will try their best to find their share of customers. A great way to keep up is to build a cooperative working environment between the CIO and the workforce. The result will be a dynamic and optimum enterprise.
Building a More Diverse Workforce to Overcome the In-House Skills Gap
To keep up with the emerging technologies, the in-house approach to software development had become more and more unreliable. With advancement technology growing, it is natural not to have enough professional resources in a particular location. To stop setbacks, outsourcing is a great option to consider. The outsourced developers have become the new practical workforce for CIOs to keep up with advanced development techniques.
Using Data to Build New Services
Collecting data from multiple sources has become a notable driving force for businesses. The new technologies such as ML, AI, Big Data, IoT and others emerged from collecting, analyzing, understanding, and leveraging them for business growth. The amount of data has been rising sky high in the last decades, and it has become more challenging for enterprises to keep track and make data-driven decisions for their businesses. One of the challenges that enterprises face is ensuring the safety and security of their data. The key to solving this problem for CIOs and enterprises is to use software development to build newer, effective and enhanced software to ensure security and functionality.
Find Skillful Developers Due to Automation Rise
The demand for software developers professional in automation technology is on the rise as well. The reason behind that is the growth in the e-Commerce sector. As a business owner, you need to keep up with an online marketplace to offer services. Digital transformation of the business is the key to finding footing in this speedy environment. A great solution is to choose outsourcing companies with a drive to innovate the best-automated routes.
Embrace Outsourcing Over In-House Team Development
Building a solid team of software developers is necessary for project delivery with a customized solution. Therefore, the software outsourcing companies that can provide innovative and trustworthy results are becoming more and more popular. These companies also have their eyes open for new technological advancements. CIOs can not afford to miss out on these advancements; therefore, it is beneficial for them to outsource and find a reliable team of developers outside of their in-house company.
As an outsourcing company, WINaTALENT will monitor and adapt to the trends and the changes of the global software development.
As we mentioned above, a well-organized team of professionals is your way to make a better, more efficient and innovative road to the future.
Nice work. Thank you.
Was going through this and was curious about what will happen finally for software developers. This article answred my concerns to some levels. But there is a question here, what if everyone rushes into Software dev market and it get saturated?