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What software outsourcing trends can we expect in 2021?

Trends of outsourcing

By Olivia CuthbertPublished 3 years ago 6 min read
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Software outsourcing is the answer to the challenges of a modern and technologically evolving world. To stay ahead of the competition and gain an advantage over rivals while optimizing costs, more and more companies are opting for the recently popular solution of creating and maintaining infrastructure and software outside their structures.

Outsourcing software development is a great way to create your enterprise applications without creating and maintaining developers, IT departments, UX designers, and project managers. All the signs are that the software outsourcing market will continue to grow next year. On the contrary, they will continue to grow at a very dynamic pace. What software outsourcing trends can we expect in 2021?

Why are companies outsourcing software development?

According to a report by Global Industry Analytics, the value of IT services outsourced by companies could exceed $220 billion by the end of 2020. The value of this market expects to grow by around 5% per year between 2020 and 2024. What is driving the growth in software development outsourcing? There are many reasons - the most common being efficiency (see our services). The finished software is designed and delivered according to all the client's specifications. Other reasons:

  • Lack of internal resources and expertise to develop your software;
  • The desire to increase business flexibility;
  • The long process of creating internal structures;

the need to move key staff to more strategic business areas; and relatively high staff turnover in the IT sector.

Outsourcing software has many advantages. Notable is the opportunity to enter global markets - can outsource software development to a company on the other side of the world, so you can find a partner that is a technological fit and guarantees value for money. It also makes it easier to diversify the business. By outsourcing, you can bring the products themselves into the digital world, which could start a digital transformation. In 2020, the most commonly outsourced software development tasks included application development and management, security, and all systems and R&D implementation.

What trends can we expect to see in software outsourcing in 2021?

The year 2020 will bring many surprises. Epidemics, restrictions, telecommuting, and the evolution of homegrown tools have also changed the world of software development. It is, therefore, likely that these factors will also influence the growth of the software outsourcing market next year. So what can we expect in 2021?

| The cloud is a necessity

A record number of businesses have moved their data to the cloud this year. Gartner reports that companies will spend around $1 billion on cloud infrastructure by the end of this year. Data stored in the cloud not only means access to the most innovative technology and security but also optimizes costs - no need to expand internal resources, making IT services much cheaper. 2020 has been one of the most critical years for many companies to build and implement a cloud strategy. In 2021, demand for these types of solutions will be as high from vendors this year, but businesses will be even more concerned about privacy, security, and identity. The most popular cloud solutions, such as AWS and Azure, already offer a wide range of products, including Big Data and data analytics, IoT integration, process automation, and container tracking, and data migration. Artificial intelligence and ML feed services have also become important.

| Further development of AI

The year 2020 will probably be called "data-driven." However, next year it will be 'AI-driven,' and we should prepare to see more and more entities achieve commercial success by developing artificial intelligence. We have already seen the introduction of AI tools by external companies as part of outsourcing software development. Artificial intelligence has become as tangible as a specific set of tools for many companies, primarily through the cloud.

Its growth will be even faster in 2021 PwC estimates that the impact of AI on the global economy could exceed $15 trillion by 2030

PwC estimates that the impact of AI on the worldwide economy could exceed $15 trillion by 2030, meaning that IT solutions will be frequently sought after and innovative.

Companies that can provide tools for process automation will be important in outsourcing software development. Artificial intelligence is increasing use in different areas of business. As such, outsourcing service providers who can implement and automate these processes will be particular sought after. One example is the e-commerce sector, which has seen a significant increase in online sales transactions in 2020, mainly due to the pandemic. With the Internet of Things (IoT), AI has entered the world of online shopping, personalizing the shopping journey from finding the right product to payment.

In addition to AI, robotic process automation (RPA) is also playing an increasingly important role. Robotic business process automation is simply using software robots that can perform repetitive activities in many business areas in a fully automated manner. RPA projects have already been implements in several countries. RPA projects are already being implements in many companies, including the Stepwise SLS project.

No discussion of IT would be complete without mentioning NLP, reinforcement learning, and the development of open-source frameworks. These frameworks are the absolute future as competitors to the big players and will increase the scale of IT solutions in many business areas.

The development of native and advanced web applications has never been more critical

A native app is an app created for a specific mobile platform, i.e., iOS or Android, which means that it must write the same application in different programming languages for each operating system. Because of the need to develop separate native applications for each platform, projects usually require an independent development team, with native applications being the most frequently commissioned.

Given the rapid increase in the number of people using smartphones for shopping, transferring money, communicating, and all other aspects of life, the demand for native apps expects to grow dynamically. Compared to web and hybrid apps, native apps have the advantage of being faster and more efficient, better support for built-in features (e.g., push notifications), a more tailored user experience, and a more transparent code structure. It is also fast and efficient. Besides, they are effortless to develop, thanks to modern languages such as Swift and Kotlin.

Progressive web applications play an increasingly important role, as they are applications that give the user almost the same impression as a dedicated mobile application, using the most innovative network solutions. Flutter, proposed by Google, is at the top of the list of technologies that will play the most crucial role in creating applications for all mobile devices simultaneously.

Which programming languages will receive the most attention?

When it comes to software outsourcing, there will be a shift in the most sought-after technologies in 2021. Interestingly, more and more experts predict that Rust will become more prevalent in 2020, which was already the goal of many large companies such as Microsoft and Intel. More and more companies are now implementing Rust technology in their solutions as part of outsourcing software development.

Summary

In 2021, top software outsourcing companies in India will continue the trends that have mainly started this year. They strive to learn as much as possible from them every day to offer our customers an even more competitive service and they are growing with the evolution of GCP, which allows to operate successfully in a market dominated by corporations and at the same time offer competitive services.

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