Software Outsourcing Development Trends in 2022
Software Outsourcing is constantly evolving and introducing new approaches. This article will guide you through the leading Software Outsourcing Development Trends forecasted to dominate in 2022 as well as their possible implications for your business cases.
Though facing opposition when initially introduced, outsourcing has proven its revolutionary value as a full-fledged business methodology for software development. This technique not only helps cut down unnecessary costs in training and retaining IT specialists but also removes technological burdens on non-tech companies of any size. In fact, this beneficial business strategy has become a global trend due to its major advantages such as cost-effectiveness and access to top talents.
What is Software Outsourcing?
Software Outsourcing is a term referring to a practice of employing a third-party tech partner to handle software development on a company’s behalf. This common practice is on the rise since more and more businesses lack the necessary resources or skills to perform specific on-site IT requirements. This can vary greatly from such direct duties as planning or designing to more specialized tasks like software development.
The major reasons why businesses resort to this method are as below:
- To promote efficiency by hiring specialized experts with expertise or technology that are domestically unavailable;
- To cut down on expenses since employing a remote company makes it possible for easy scalability (up or down) in response to changing demands.
Learn more about What is Software Outsourcing?
What We Have Learned from the Covid-19 Pandemic
The Covid-19 pandemic took us by storm, leaving us in chaotic situations and long quarantine. Some industries especially tourism or air transportation suffered huge losses while most couldn’t help but remained downsized or even bankrupt. The whole world has faced the irrational apocalyptic fear due to the fast spreading of infection. This has caused a huge decline in consumer demand, supply chain disruption, and lockdowns; all of them have negatively affected the IT industry.
On the bright side of the pandemic, Covid-19 has taught us some important lessons. The first one is that we should invest in digital operations for all aspects of our life, which allows us to engage in remote work and management in future emergencies. What is more, the critical role of IT experts is recognized and appreciated more than never, leading to a high demand for related services.
What Will be the Software Outsourcing Development Trends in 2022?
Let’s dive into the details of what we predict to be leading Software Outsourcing Development Trends of 2022.
Global Software Outsourcing — A Dominant Trend of Software Outsourcing
As the 4.0 era is present and technologically affects all business sectors, the need for software development is on the unstoppable rise. That being said, the reasons behind such a practice are convincing. More often than not, on-site software developers seem incompetent and incapable of completing certain software development projects. Moreover, the costs for employing technological equipment and specialists for a specific project exceed the financial limits of many companies, especially small-scale ones.
Many experts have predicted the expenditure on software technology will witness a significant increase in 2022, following an upward trend since 2021. Such an increase in demand will give rise to outsourcing services. Also, pandemics such as the one caused by Covid-19 would accelerate this emerging business. In the next five years, platforms like cloud, mobile, social, and big data/analytics are expected to dominate in the development of technology while cost savings from cloud and automation lead to more spending on such new digital breakthroughs as AI and blockchain. In addition, these new technologies necessitate next-gen security to meet the high safety requirements.
Remote Work on the Rise
Admittedly, remote working has risen to major popularity in recent years and remained the new norm in various industries. Those which haven’t taken advantage of this engagement model will soon adopt it for sure. Since the Covid-19 outbreak, it is easy to see that companies around the world opt to hire remote employees to improve efficiency and productivity. The Initialism “WFH” (work from home) is somewhat ubiquitous right now and really is a crucial choice for both companies and individuals.
As remote working has become the new normal, more businesses are outsourcing a larger range of projects and seeking remote working collaborations to hire global talents while enjoying substantial reduction in costs. Even those who have objected to this trend before now are considering outsourcing certain functions of their business to third-party vendors. This paves the way for further development of offshore businesses.
High Demand for Cloud Services
Cloud computing services offer an extensive range of benefits and thus will continue to thrive. Upon utilizing these, companies will have no concerns about making an upfront investment in pricey hardware and will be able to make the best use of their resources to make other necessary investments.
Because of their flexibility and scalability as well as their low monthly costs and low overhead, the cloud services have grown rapidly since the introduction of cloud computing in 2006. Companies around the world greatly benefit from various investments worth billions of dollars in cloud computing infrastructure and services every year. Statista has predicted that the global cloud computing market will reach $482 billion worth in 2022.
Moreover, regarding the significant communication in the outsourcing process, cloud-based technology truly has what it takes to streamline the process. Also, in the event of a disaster, cloud-based technology is able to help in the fast recovery of files. This would keep prolonged downtimes at bay and allow businesses to operate as usual.
The final advantage of this technology is the safe communication of information among employees. More importantly, cloud-based technology allows development teams to perform and cooperate smoothly and remotely.
Increased Popularity of Artificial Intelligence (AI)
Machine learning (ML) and artificial intelligence (AI) have transformed the whole digital world in many aspects. Although they come with certain pitfalls such as the potential for partiality, exploitation, and other employment issues, they bring various possibilities and solutions to address every aspect of business and our everyday lives.
Undoubtedly, we can simplify multiple business operations as AI can greatly assist in handling large amounts of data and mining it for enhanced user experience. Another advantageous point is that AI can help reduce the average processing time for customer complaints and queries, which enables customer service agents to concentrate on more complicated issues and personalized services.
Companies and their manufacturing processes can reap great benefits from AI as well because they are able to increase effectiveness, optimize processes, and strengthen security thanks to the expertise and automation AI offers. AI also enables businesses to gain greater control over their data and processes, intelligently integrating all areas of business.
As AI is growing at a fast pace, companies are considering outsourcing AI-driven projects to incorporate AI technologies into their current business operations.
Higher Demand for Blockchain Services
Thanks to Bitcoin, blockchain, a decentralized ledger, has gained a significant reputation. Such technology can make data instantaneous, shareable, and entirely transparent as access to the mentioned data requires specified permissions. This offers enhanced confidence, better efficiency and endless possibilities. A blockchain-based application can monitor financial transactions (purchases, payments, and balances), production, and a variety of other things.
Blockchain brings about the possibility of smart contracts and instant micro transactions. Although there is the increased demand for blockchain mastery and application, qualified blockchain specialists are not abundant yet. As a result, those who wish to take advantage of this new tech are seeking trusted outsourcing partners for their software development needs.
Statista predicts that, by 2024, blockchain solutions are likely to be worth around 18 billion US dollars. Additionally, demand for such services as decentralized application development (dApps), exchanges, and software engineering for crypto projects will see a major increase.
Greater Needs for Cyber-security Specialists
One of the leading Software Outsourcing Development Trends is the higher demand for digital security experts.
Advanced technology is not, by and large, risk-free. The rise of cloud computing, mobile devices, and the Internet has yielded new opportunities. However, this has exposed businesses to unprecedented security threats. Although cyber-attacks show signs of decline during the Covid-19 pandemic, cybercrime has gone up sixfold. As a result, information and data necessitates more robust security technology.
In this day and age, cyberattacks as well as data breaches are ubiquitous. This ugly truth complicates the task of data protection and leads to a dire need for cybersecurity experts who are capable of promptly responding to any tech threats.
In the upcoming year, Software Outsourcing providers are expected to offer a broader range of services to handle data security as a growing number of businesses will be looking for software engineers, app developers, and IT security specialists who can help them maintain a leading position in this area.
Why Should You Choose HDWEBSOFT to Be Your Go-to Software Outsourcing Partner?
As one of the most reliable Software Outsourcing Partners from Vietnam, HDWEBSOFT has served a large number of worldwide customers for projects of all sizes and scopes. We guarantee to apply best-in-class Software Outsourcing Development Services to deliver the top value to our customers.
Upon collaborating with us, you can tap into our excellent software talents for your tech team augmentation and capacity in the long run. Your on-site team will work along with highly-skilled developers in various industries such as IoT, eCommerce, Marketing and Mobile Applications. What stands us out is our capacity to maintain a seamless transition of your hired offshore members to your main team for expected success.
To Cut a Long Story Short
Obviously, 2022 will come with more chances for post-pandemic recovery and development for businesses and Software Outsourcing Partners alike. The IT industry will enjoy several Software Outsourcing Development Trends as more companies will opt for AI, cloud computing, blockchain technology, or digital security outsourcing companies in the future. In a sense, it’s advisable to arrange for implementation of at least one of these in your business. The best viable way to achieve such is to establish an offshore software development team.