From improving productivity to meeting deadlines to saving overheads, offshore software development has many benefits to offer. Enterprises tend to leverage these benefits simply by opting for software outsourcing or IT outsourcing. Talking about the trends of IT outsourcing, they keep on changing with advancing technologies and intensifying competition. Today, we are struggling to bring our businesses back on track, and outsourcing can play a crucial role in it.
Entrepreneurs can focus on core competencies and productive business activities while assigning the IT projects to a trusted offshore software development company. As a result, enterprises can address challenges and meet project deadlines more effectively. This is a major reason why the revenue in IT outsourcing is expected to grow at a CAGR of 8.93% in the five years from 2021 to 2026 to reach a market volume of over USD 551,000 million.
In this blog, we are going to discuss key software outsourcing trends that will rule the corporate world in the year 2022 and beyond.
Key Trends to Watch in Software Outsourcing
Blockchain and Cloud
Thriving blockchain technology is not limited to the BFSI sector. In the coming years, its scope will be expanded to the core industry sectors. In the software development outsourcing domain, blockchain enables developers to create highly secure applications that can store data across decentralized networks of computers. Enterprises that want to leverage the benefits of cloud-based storage find this technology highly useful because it assists them to derive value from data in the form of BI (Business Intelligence).
As per the research report of Markets and Markets, the cloud computing market is expected to reach $246.8 billion by 2023. As more enterprises tend to prefer the cloud for storing their corporate data, this prediction seems achievable. The cloud will combine with blockchain technology in the coming time to offer an additional layer of security to confidential data.
Machine Learning and Cybersecurity
Machine Learning (ML) is one of the most promising software outsourcing trends to watch out for in 2022. ML technology has a vast scope and a wide range of applications for almost every industry sector. It helps outsourcing service providers optimize their processes while improving service quality. It can also play a crucial role in identifying and responding to the client’s IT-related issues more quickly.
Another major offshore software development trend is cybersecurity. As most companies will embrace automation and digital transformation over the period, the outsourcing providers need to provide cybersecurity services to prevent any cyberattacks. Many outsourcing partners offer security solutions to protect their clients’ businesses from the risks associated with people, processes, and technology.
With the help of AI, it is easy to complete many tasks that require human intelligence. It is the reason why AI applications are becoming popular across various industries. Digital personal assistants, chatbots, and other applications will rule the online world in the coming years. Various industries including manufacturing, hospitality, retail, and finance integrate AI in their processes and services to improve the quality and customer experiences.
The demand for AI services will certainly increase in upcoming years and software outsourcing companies need to include these services along with traditional IT services.
Internet of Things
The increasing use of wearables and connected devices has triggered the growth of the Internet of Things (IoT). These days, manufacturing and other core sectors tend to gain the advantage of Industry 4.0 through IIoT (Industrial IoT) concept. Entrepreneurs have started to consider IoT as a game-changer for their business processes.
As per Statista prediction, the number of connected devices across the world will cross 25 billion by the year 2030. It clearly indicates the increasing importance of IoT in all industries. There is no exaggeration in mentioning that the IoT will be one of the biggest trends of the next decade.
Remote Working
Remote working is here to stay in the post-pandemic period. Many companies want to give this facility to their workers or employees on a permanent basis. Here, mobility solutions and connectivity software will play a major role in ensuring the success of a remote working model. It is necessary to communicate with coworkers, customers, and stakeholders as and when necessary.
Also, proper communication leads to better coordination and collaboration. Here, outsourcing service providers can come up with customized software that can manage tasks and keep all the team members on a single page for timely project completion. Be it real-time communication or task allotment, companies can leverage the benefits of advanced and feature-rich software through outsourcing the project.
Robotics and Automation
Robotics is about using machines that are programmed to carry out particular tasks. Manufacturing and other industry sectors can use this technology to bring automation in the process and improve the safety of their employees. Another benefit of robotics is it can provide a cost-effective option to human labor. Another application of robotics is RPA (Robotic Process Automation) which can automate mundane tasks and increase the efficiency of employees. It is possible to automate tasks based on data entry and transcription to give employees more time to focus on value-added tasks. Here, offshore software development companies can lend a helping hand with developing customized software for process automation.
As businesses will strive to find ways to reduce costs and improve productivity, we can expect that the trend of robotics will remain prominent in the outsourcing industry along with RPA.
Wrapping Up
IT outsourcing or software outsourcing has a bright future with evolving technologies. More companies will tend to count upon offshore software development companies to meet the ever-changing needs of their customers and increasing competition. Also, all these abovementioned trends will remain important in the year 2022 and beyond. All you need to find a trusted and experienced IT outsourcing partner to stay ahead of the curve.
These days, many companies offer software outsourcing services, and therefore, it is increasingly different to choose the most suitable partner. You can select the partner based on project requirements, budget, deadlines, and other necessary factors.
Leave Comment