Software outsourcing or outsourcing software development is one of the most highly sought-after markets across the globe. With more and more software development outsourcing companies bruising up, businesses are no longer in favor of creating in-house development teams due to unwanted expenses and time consumption. 

1. Define Outsourcing Software Development

Imagine your business is looking for developing new mobile applications or web applications or any other software solutions, what will you do? 

In the first scenario, an in-house tech team of developers is something you may consider.     

In the Second Scenario, you could go the otherwise way by outsourcing the entire process of development.

I would personally prefer the second scenario, and much like me many of you might as well do the same. In fact, according to statistics, the Revenue of IT services companies are expected to grow by approximately 413.7 billion U.S. Dollars by 2021. Check this out! 

Trends for the global outsourcing industry will also remain the same in 2022.

IT-outsourcing market revenue in the world

Here’s the big question, Why?

2. Why is Software Outsourcing  Needed?

Well, there is no sure-shot reason to consider outsourcing. As for a few years, COVID-19 will be a big hit for all of us! The unexpected outburst of the planetary pandemic has taught us that sometimes planning can also backfire. However, here I would like to mention key factors that might convince you in outsourcing your next software development project right away. Outsourcing works at its best when it is considered a tool to downsize effectively. Not to mention when you have tech professionals at your service, you no longer can be distracted from your core purpose. Another interesting factor is you are no longer limited to your region, town, or even country. Yes, you have the world when it comes to seeking a reputable service provider. Creating any product is risky especially when you are a non-techie. Fortunately, we have a plethora of offshore software development service providers who don’t let you go through the tedious job of hiring experts or paying salaries, all you require to do is provide them with accurate requirements and that’s it let them do their job. Since we are talking about outsourcing here, time-zone difference can be considered as an advantage only if you choose a nearshore service provider.  

Overall, by using reputable outsourcing software development services you get cutting-edge transformative solutions that enable businesses to compete with their counterparts in this age of digital transformation.

Keeping people marooned in their lodgings, provoked several top trends in the global economy such as remote working solutions and software outsourcing services. Let’s take a look at why you should leverage an outsourced software development partnership.  

#1 Cost-Efficient

However, everyone says that they aren’t any longer interested in looking for the cheap option but trust me cost savings is something that has been in our roots for a long and it ain’t gonna change resulting in an unexpected outcome! 

By supporting the outsourcing team, you can save yourself tons of costs. For example, you no longer require attracting and recruiting new candidates or dealing with office-related overhead expenses, employee holidays, or sick days. In addition, you get to hire a top dedicated team of outsourced developers who can deliver services without having to worry about the costs and additional time-consuming issues when you prefer software outsourcing over in-house development. Outsourcing development not just ensures cost reduction but the use of cutting-edge technologies at the same time.

#2 Flexibility

Did we mention that not choosing outsourcing specialists can be a tricky venture? I mean scaling an entire software development team up and down can be insanely tricky. Here’s the time when businesses require to stay nimble and respond to the ever-changing business requirements. By hiring software development outsourcing providers,  business processes can be handled in the best way. 

Now, what happens if you do the same with your in-house team? Well, unlike outsourcing you may find this more time-consuming and high-cost generating. Additionally, scaling an in-house development team would also mean terminating workers (especially the non-working employees), which might demolish camaraderie and the organization’s reputation as a business.

#3 Right Skill Set

Here you won’t be facing any domestic shortages of tech talent. By choosing a software outsourcing company you are bound to get satisfactory results without having to sacrifice quality by settling for developers with less experience or expertise, after all, you will get easy access to well-qualified developers equipped with all the required knowledge and skills. As a result, your application is developed at a faster pace with minimum mistakes and receives a quality, tested product to your intended users in less time.

And since you are outsourcing tech, you might end up putting an extra effort into or experiencing the phase of knowing what your customer wants needs, and expectations, so that the end solution doesn’t fall short of success. 

Time to uncover some of the best and mindful outsourcing trends for 2022 as well as upcoming years down the line. 

3.1 Multiple Vendors

Gone are the days when you were supposed to deal with one outsourcing company –  jack of all. Slowly and steadily things are changing, today businesses are considering narrow specialized ones (master of one) instead. The reason is the fastest evolving tech area.

It is difficult to have an in-house team of developers who are ready to stay aware of all the advancements showing up consistently and possess all the required abilities. Subsequently, organizations are discovered searching for outsourcing software development companies who are sufficiently talented to bring the greatest quality do you think that the need to team up with something beyond one merchant is an issue? Probably not! As long as the ideal outcomes are achieved by the company. Notwithstanding, if a huge re-appropriating organization offers a full-cycle development with an assorted group of talented experts, it will too have an extreme bit of leeway of being an extraordinary vendor to make solid straightforward connections. So you see, outsourcing does offer advantages in several ways. 

3.2 Demand for Cloud Technology Services

Our next crucial outsourcing trend is the increasing demand for cloud services and effective cloud platforms. To be precise enough, the outsourcing trends suggest that at present cloud computing technology seems to have reached a high mark of $180 billion worldwide, SaaS alone is expected to earn $113.1 billion in 2021. 

And with such a rate, the cloud market is expected to reach $623.3 billion.

Right from better data protection to conducting operations at a faster pace, and automating business procedures the technology covers it all! So now you might know what companies like Alibaba and Samsung experience when implementing their quantum-computer theories in real life. 

Key technologies driving innovation in outsourcing

3.3 Software Development Services Providers

There is no denying the fact that offshore software development will become indispensable, especially for those who rely on its expertise. Considering today’s ever-changing digital landscape, organizations will undoubtedly develop and enhance to remain in front of their rivals. What’s more, it is additionally accepted that outsourcing software development companies or supporting outsourcing teams across the globe will assume an undeniably significant part in assisting ambitious ones with accomplishing their objectives.

Also, software outsourcing companies won’t be limited to just being your techie at bay. They are certainly going to interfere in the forefront of your business models and it’s high time you must start considering a leading tech organization as your business partners and offer them unlimited access so that they can come with nothing but the best possible outcomes for you, especially in regards to the tech. 

Overall, what your chosen software development company can achieve, is what matters the most. Also, this will change its wider perception in the business landscape. 

3.4 Global Cybersecurity Awareness

Can you tell what is the more important asset for an online business? Is it the money? No! The product? No! It’s the Data! Anybody having access to it in any manner can change the fortune of your online business within seconds. We have already experienced how cybercriminals are updating themselves with technology and finding new ways to peep into our space and steal some easy bucks. So you must be thinking, what is this point doing the software outsourcing trends? 

Today more and more companies are found becoming compliant with the General Data Protection Regulation. The need for cyber security services will come along with the new technologies and all the digital changes. Here outsourcing does play a crucial role. 

3.5 Robotic Process Automation Outsourcing Services

Percente of Users Who Have Adopted Robotic Process Automation Software

Last but not least is Robot Process Automation. Fortunately, all the repetitive, time-intensive, and error-sensitive tasks have been automated enabling us to focus on expanding our strategic and creative thinking sides. Outsourcing partners consider business automation to bring better results for the clients.

By incorporating RPaaS, round-the-clock efficiency can be increased, whereas all the potential risks and errors can be reduced, employee engagement can be improved, and above all, the production output of recurring tasks such as audits, legal consultations, and tax preparation can be increased. 

So what could be the possibility?

  • Improve financial and compliance-related  accuracy and audit trails
  • Increase efficiency for repetitive, process-driven tasks
  • Employees get to focus on more critical tasks since they are free from disruptive technologies such as IoT, ai, VR, blockchain, etc
  • Business scenarios can be the experience
  • One can easily manage unexpected business situations

3.6 Blockchain Technology Services

Another emerging outsourcing trend that everybody’s gushing about is Blockchain services. No wonder this one is supposed to cross $16,000,000,000 in a short span of time. Have you ever heard about Napster? Yes, the music app features peer-to-peer technology. Blockchain is no different. 

Why is this one becoming one of the leading IT trends, you may ask? Well, with the help of distributed ledger technology the concept of robustness, scalability, and transparency has gained momentum. Whether it’s logistics or banking or any other govt/non-govt sector, the use of smart contracts is increasing on a daily basis. It is safe to say that automation in tracking deliveries and resolving issues has increased to a great extent at the same time human intervention has decreased.   

In addition, there are reliable software development outsourcing companies who have already started clubbing these modern technologies with their peers such as IoT, AI, ML, etc. After all, creating a money-making solution requires innovation. So don’t consider obvious options.   

3.7 Progressive Web Apps

Lastly, we have progressive web apps. Initially invented by Google Chrome, today the term PWA has gained worldwide recognition at a breathtaking speed. PWAs are apps that can be used both online and offline. Plus, they are compatible with smartphones, PCs tablets, laptops, and several other computing devices. Unlike other apps, one doesn’t require to download it by logging in to an app store. Yes, just open your web browser and you can download it without any hassle. And here comes the best part, these apps do not require to be updated. Yes, you read it right! They automatically get updated. Many companies are considering PWAs in comparison to native apps.

Not to mention, this one offers a refreshing user experience. 

4. Conclusion

 Nobody likes to lag. Businesses, as well as tech companies, are found keeping up with all the emerging trends (this includes both outsourcing and software development trends), ensuring to meet the ever-changing quality standards. 

In the upcoming years, software outsourcing companies will grow in demand, especially the ones which are ready to share risks and together create better solutions. Virtual assistants and strategic partnerships are some of the trends which are also gaining popularity.

Here at TatvaSoft,- an outsourcing service provider, we end up empowering our valued clients by delivering nothing less than a cutting-edge transformative solution. So are you willing to get the most out of everything? Feel free to get in touch with the software outsourcing company today!   

Itesh Sharma

Itesh Sharma is core member of Sales Department at TatvaSoft. He has got more than 6 years of experience in handling the task related to Customer Management and Project Management. Apart from his profession he also has keen interest in sharing the insight on different methodologies of software development.


  • Leave a message...

    1. Charlie Bathom

      Businesses will absolutely keep on outsourcing software development in upcoming years to reduce operating cost , hire high quality developers.It will help businesses to build competitively advantageous software solutions at a faster pace.The trends identified in this article will continue to shape software development outsourcing in upcoming years.Evolution of robotic process automation and AI powered solution will impact software outsourcing.

    2. Atul Vardhman

      This extensive blog has shown how the upcoming years will see many technological innovations and new methods to use technology to achieve satisfactory business results. Hence if anyone wants to compete in this global market then they have to outsource and partner with new technology talent. Fintech, telecoms, and healthcare- all of these are getting benefitted from outsourcing of AI and AR/VR technology.