7 Software Development Outsourcing Trends that will Rule in 2021

Friday 28/05/2021 - 5:35

Outsourcing software development has become increasingly common nowadays. More and more companies are now turning to third-party vendors so that they can deliver fundamental solutions and ease the pressure from their in-house staff.

The global outsourcing market stands at a whopping amount of $92.5 billion, and this figure will only grow as an increased number of companies leverage external teams’ capabilities. There are several reasons due to which companies turn to third-parties to get their work done.

Businesses successfully cut down their development costs up to almost 50-60% when choosing to turn up to outsourcing companies. Also, they can focus on core and vital business goals.

2021 has brought in software development outsourcing trends that can help your business become further competitive in the new age. Let’s go through all trends that will influence the development services.

Enhanced Experience with AI and IoT

Online shopping is not new. After the pandemic outbreak, it has now taken up a considerable market share, and people over 65 years of age are also saying they prefer buying things online. The increase in online shopping is making businesses invest more in the enhanced consumer experience. AI and IoT capabilities will help eCommerce businesses soar high since they can offer more personalised shopping experiences to their users. It is one of the software development trends that will stay. As per the report, almost 80% of consumers prefer shopping from companies that offer customised experiences over those who don’t.

Cloud as a Must-have

The worldwide public cloud computing market continues to grow and is expected to reach an estimated $362 billion in 2022. With these figures, you can clearly understand that cloud technology is here to stay. Small companies to multinational corporations and even government organisations are all turning to the cloud for data storage. It offers scalability, security and flexibility. Also, organisations are taking all necessary steps to protect their sensitive data from all kinds of security breaches. That said, the cloud doesn’t let them compromise the privacy of data.

Increased Cybersecurity Needs

With the rise of cybercrime, companies have now started to invest their money to become compliant with the General Data Protection Regulation. That said, the desire is to secure all available data. No matter if it is a small-sized business or a large scale business, owners are only reaching out to such a software development outsourcing company that offers cybersecurity services. It helps them guard their business data and eliminate all security-related issues.

Demand for Blockchain Service

As per Statista, blockchain solutions are expected to reach over almost 18 billion U.S. dollars by 2024. Blockchain technology enhances transparency, security and also offers numerous solutions for startups to raise money. They enable the development of smart contracts, as well as immediate microtransactions. With the increase in demand for the knowledge of blockchain technology, the need for professionals is increasing. However, adequate blockchain professionals are not available. Hence, businesses are looking to outsource their software development needs to companies that have blockchain experts.

Native Apps and the Development of Progressive Web Apps are always on the Top

The number of smartphone users who make a purchase, initiate bank transfers, communicate, etc., are growing, so the demand for applications is growing dynamically. Native apps are highly efficient and faster, with superior support built-in functions. They also use languages such as Kotlin or Swift, which makes the development process easy. On the contrary, progressive web app development uses a highly innovative network solution to provide a dedicated mobile application. It is one of the most crucial IT outsourcing trends to look for an outsourcing company that can develop such an application.

Hype Around Robotic Process Automation

The question in 2021 is not whether RPA is going to grow or not, instead, what we will be evaluating is how effective these RPA initiatives have been. – Alex Day, SVP of Americas at Signavio

Robotic Process Automation offers a host of benefits that include enhanced work coordination, reduction in operation costs, fewer manual mistakes, etc. In the ever-evolving digital environment, business automation has become a priority. Hence, businesses are investing their time in augmented analytics and business automation. With RPA, they can provide payment processing, enhanced personalised experiences, etc.

Security above all else

A United Nation report stated a 600% increase in malicious emails during the pandemic crisis with a cyber attack registered every 39 seconds around the world. With each passing year, the security of critical data and corporate networks is becoming increasingly popular. We live in an age where cyber crimes are costing a considerable amount of money that is much more than natural disasters. The need for restrictions and data security requirements increases as well. Hence, while hiring a software development outsourcing company, businesses are looking for companies who adapt to the most current software development condition.

Summing Up

Software development outsourcing is crucial for the growth of a business. Companies that don’t want to fall behind have already started to invest their money and time in the latest development trends. Though there are numerous challenges, companies cannot keep up with the pace and cannot adopt every digital shift because of the lack of resources hence, they choose to outsource.

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