Software Outsourcing Trends In 2021

Software development outsourcing or Outsourcing software companies is one of the most of today’s highly sought after markets across the globe. As outsourcing providers equipped with skilled software engineers having knowledge of various programming languages and emerging technologies providing cutting edge transformative solutions at reduced development costs,businesses are no longer in favor of creating in-house development teams due to unwanted expenses, operation costs and time-consumption. Outsourcing industry is currently changing very rapidly with every passing day.

Table of Content

  1. Define Outsourcing Software Development
  2. Why outsource?
  3. Let’s Scrutinize the market of Software Development Outsourcing Trends for 2021
  4. Conclusion

1. Define Outsourcing Software Development

Imagine your business is looking for developing new mobile applications or web application or any other 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, IT services companies are expected to experience approximately 413.7 billion U.S. Dollars by 2021. Check this out! 

IT-outsourcing market revenue in the world

Here’s the big question, Why?

2. Why outsource?

Well, there is no sure-shot reason to consider outsourcing. As for now, COVID-19 is a big hit among all! The unexpected outburst of the planetary pandemic has definitely taught us sometimes planning can backfire. More than any other aspect, developers seem to have experience or started retrospecting approaches in their both professional and personal lives.

Keeping people marooned in their lodgings, it provoked several top trends in the global economy such as remote working solutions and software outsourcing services. Let’s take a look at why should you 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 time and it ain’t gonna change resulting in an unexpected outcome!

By choosing the right outsourcing company, you can save yourself from tons of costs. For example, you no longer require attracting and recruiting new candidates or deal with office-related overhead expenses, employee holidays, or sick days. In addition, you get to hire a top dedicated outsourcing team of 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.

#2 Flexibility

Did we mention that not outsourcing a company 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 outsourcing services and solutions things 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 in-house development teams would also mean terminating workers (especially the non-working employees). Outsourcing  services from the global market will free up company resources. Which might actually demolish camaraderie and the organization’s reputation as a business.

#3 Right Skill Set

Here you won’t be facing any domestic shortages. By outsourcing a software development 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 a well-qualified talent pool. 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 extra effort into it. Or else experience the phase of knowing what your customer 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 2021 as well as upcoming years down the line.

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 being 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 advancement 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 and 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. 

2. Heading Towards Cloud Services – An Experience Like Never Before

Our next crucial outsourcing trend is cloud services. According to Statista, around 80% of organizations globally leveraged cloud-based services (notably SaaS). And these numbers are never going to slow down especially in the upcoming years. Outsourcing of cloud technology is increasing very rapidly. 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, the SaaS alone is expected to earn $113.1 billion in 2021.

And with such a rate, the global outsourcing market of cloud technology is expected to reach $623.3 billion. Being one of the most costly and demanding processes, businesses are seen planning to switch from on-premise to cloud-based data storing.

Right from better data protection to faster data operations, and the ability to modernize business processes, 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. Software Development Services Providers or Tech-Partners

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 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 its 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.

4. Global Cybersecurity Awareness

Can you tell me 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 a span of seconds. Digital transformation in various business sectors also increases concern of business data security. We have already experience how cybercriminals are penetrating the software of different companies, businesses and governments to make some easy cash. So you must be thinking what is this point doing the software outsourcing trends?

Organizations are found running after tightening their software security measures and more than half of them employ outside parties to provide security services and solutions for them.  Also, more and more companies will seek to become compliant with the General Data Protection Regulation, and outsourcers will lend a helping hand in it.

5. Robotic Process Automation Outsourcing Services

Percente of Users Who Have Adopted Robotic Process Automation Software

Last but not least one is Robot Process Automation. According to statistics, It has been assumed that more than 2.14 billion people will be found purchasing services and goods online in 2021. In the ever-evolving digital environment, business automation has become a priority. 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.

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 Progressive web apps, IoT, AI, VR, blockchain, etc
  • Business scenarios can be the experience
  • One can easily manage unexpected business situations

4. Conclusion

Obviously, nobody likes to lag behind. Businesses, as well as tech companies, are found keeping up with all the latest development 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.

Here at TatvaSoft- an outsourcing service provider, we end up empowering our valued clienteles 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.


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    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.