Software outsourcing is the solution to the difficulties of a modern and evolving technological world. To keep up with the competition and gain a competitive advantage while optimizing costs, more and more companies opt for what has recently become a popular solution: building and managing infrastructure and software outside their structure.
Outsourcing software community is a great way to build your business applications without making and having developers, UX designers, IT departments, and project managers. All the predictions are that the software outsourcing market will not stop next year. On the contrary, it is evolving very dynamically.
Why are organizations outsourced?
According to a statement by Global Industry Analytics, the advantage of IT services outsourced by companies to external service providers could exceed $220 billion by the end of 2021.
The value of this market requires it to rise by around 5% per year between 2021 and 2024. What is the reason for the increasing outsourcing of software development to external providers? There are many reasons – the usual standard being efficiency (check out our services!). Finished software is produced and delivered according to all the client’s guidelines. Other reasons are:
- Lack of internal support and expertise to develop software in-house ;
- A desire to increase business flexibility
- Long process to set up internal structures
- The need to transfer key staff to more strategic business areas and the relatively high turnover in the IT sector
The advantages of software outsourcing are numerous. One of them is the possibility for a company to enter a global market – software development can be outsourced to a company on the other side of the world, allowing it to find a partner that is a technological fit and provides good value for money. It also makes it easier to diversify and, thanks to outsourcing, to move products into the digital world itself, which can start a digital transformation. In 2021, the most frequently outsourced software development tasks included application development and application management, IT security, and all system and R&D applications.
The year 2021 brought many surprises. Pandemics, constraints, telecommuting, and the development of specialized tools have brought changes to the world of software development. Therefore, it is likely that these will also affect what happens in the software outsourcing market next year. So what can we expect in 2021?
| The cloud, which is a must
This year, a record number of companies have moved their data to the cloud. According to a Gartner report, companies will spend around $1 trillion on cloud infrastructure by the end of the year. Data in the cloud means access to the most innovative technologies and data security and cost optimization – no need to build in-house resources, making IT much cheaper. 2021 was one of the critical years for many companies to develop and implement a cloud strategy. In 2021, the demand for providers of such solutions will be as high as this year, but companies will pay more attention to data privacy, data security, and identity. The most modern cloud solutions, such as AWS or Azure, already contribute a wide assortment of products and data analytics tools, including big data and data analytics tools, IoT integration, process automation, containerization, and data migration. Artificial intelligence and ML input services have also become essential services.
Future developments in Artificial Intelligence
2021 can undoubtedly be called “data-driven.” But let us prepare ourselves for the fact that the coming year will be “AI-driven” and that more and more entities will see the development of AI as a business success. The adoption of AI tools by outsourcing software development is already underway. Thanks in part to the cloud, AI has become something tangible for many companies as a set of concrete tools, and it will grow even faster in 2021.
PwC predicts that the influence of AI on the global economy could exceed $15 trillion by 2030, so we can foresee an increasing search for innovative IT solutions.
Companies that can provide the tools to automate processes will be the main outsourcers of software development. Artificial intelligence is used in more and more internal areas, so outsourcing providers who can implement and automate these processes are in exceptionally high demand. One example is the e-commerce sector – in 2021, the pandemic resulted in a significant increase in online sales transactions. It affected 65+ customers. Artificial intelligence combined with the Internet of Things (IoT) has entered the world of online shopping to personalize the shopping journey, from finding the correct goods to financing for the business.
As a supplement to AI, RPA, i.e., the automation of robotic processes, is playing an increasingly important role. Business process robotization, in short, is the use of software robots that can perform repetitive activities in numerous business areas fully automatically. RPA projects implemented by a growing number of companies, including the Stepwise SLS project.
On the IT side, the development of NLP or reinforcement learning cannot go unmentioned, nor that of open-source frameworks, which, unlike the big players and enterprises, are the absolute future and could multiply the scope of IT solutions in numerous business sectors.
| Native apps
Native apps are apps created for a specific mobile platform, i.e., iOS or Android. It means that each, i.e., for a particular operating system, must write the same application in a different programming language. For Android, this is usually Java and Kotlin, and for iOS Swift and Objective-C. Because we must develop a native app separately for each platform, the project usually requires a separate development team. Therefore, native apps outsource for development.
Given the rapid growth in the number of smartphone users for shopping, banking, communication, and all lifestyle-related activities, the demand for native applications is growing dynamically. The advantages of native apps over the web and hybrid apps are also influential – they are faster and more efficient, have better support for built-in functions (e.g., push notifications), a more personalized user experience, and a more transparent code structure. Moreover, they use modern languages such as Swift or Kotlin, which are very easy to develop.
| Progressive Web Applications
Progressive web applications, i.e., applications that use the most innovative web solutions to provide users with an almost identical experience to a specific mobile application, are playing an increasingly important role. Of the technologies that play the most significant role in creating applications for all mobile devices simultaneously, Google’s Flutter is at the top of the list.
Which programming languages are most anticipates?
When it happens to software outsourcing, 2021 will also bring changes to the most in-demand technologies. Interestingly, a growing number of experts predict immense popularity for Rust, a language that already attracted many giants in 2021, including Microsoft and Intel. Today, more and more companies are implementing Rust technologies in their solutions, often as part of outsourced software development. The IT community considers Rust to be a relatively simple, highly secure, and “nice to talk” language.
| Security above all
It is no astonishment that year on year, external services designed to ensure the security of corporate networks and critical data are becoming increasingly popular. At a time when cybercrime costs the world’s economies three times as much as natural disasters, data security demands and pressures continue to grow. In 2021, it will be no different. Software outsourcing is facing significant changes that focus on adapting software development to the most current requirements. Increasingly, there is talk of the new existence of a limited trust – zero trusts, i.e., yielding all access only to authorized users and data packages only after faith has been established and the level of risk avoidance has been set.
| IoT is no longer a technology of the distant future
The growth of the IoT market continues, and it looks like the upward trend will continue to accelerate. Especially since 5G technology is now available to almost everyone in Europe. Smart homes are nothing new anymore – entire intelligent buildings are emerging.
| Data engineering is the most sought-after profession in the coming years.
If a company wants to build a global business and continuously evolve, data engineering is crucial. The data engineers are responsible for creating the entire data pipelines and translating them into technologies. Then there are the compute engine virtual machines and data modeling and a big focus on the data itself – access to the best-prepared data, which is already proving to be a competitive advantage for companies because it allows them to draw conclusions in real-time and react immediately. If you are looking to outsource the business you can react totop software outsourcing companies in India .