How Offshore Software Development is Changing with Recent Trends

Robby Gupta

IT companies are rapidly expanding their operations in countries all over the world. They are on the lookout for growing their business in new territories and are constantly exploring options for making a global presence. To increase their business footsteps, these companies are moving to offshore software development for maximizing their operating capabilities.

While outsourcing was considered as a method of cost reduction for operations, it has now become a driving force in improving the overall productivity of the organization. Because of this, the outsourcing industry has reached new heights with the mark nearly touching $88.2 billion, according to a 2017 report by statista.

Outsourcing trends that determine the future

More and more companies are switching to outsourcing for maximizing their operational efficiency. The future of outsourcing, thus, seems bright as companies understand the need to outsource tasks that consume more resources than the revenue they generate.

Companies are also building better relationships with their outsourcing partner and the line between them is likely to fade in the coming years.

External service partners have become a primary venture for IT companies for offshore software development. These partners maximize their capabilities by allowing them time to focus on innovation and productivity.

With this, let’s look at some of the trends that will shape the outsourcing industry in the future.

  • Value > Cost

While outsourcing was considered as a primary source of cost-reduction for companies, recently they have started to look at it as an outlet for maximizing their value. They have started to look at their outsourcing partners as value addition to their business. Cost is not the decisive factor in determining which outsourcing provider to choose.

Companies now focus on selecting a service partner that can provide them with the best quality services, even if the price takes a hike in the budget. They share the risks of the business with their outsourcing partners and work as the right software development provider.

  • Increased outsourcing locations

India and China have been popular outsourcing locations for companies all over the world. They have an outsourcing market of nearly $150 billion but are now facing tight competition from eastern European countries. Poland, Ukraine, Belarus, and Romania are some of the emerging locations where companies are looking to outsource their business.

With over 150,000 software developers, Ukraine is now becoming one of the primary locations for outsourcing. These locations are preferred because the quality of work companies get from these locations goes beyond expectations, even though the cost is high.

  • Improved security of data

Data security has been a major concern for companies that want to outsource their services. With offshore software development, companies are skeptical about data breaches of confidential information. They want to ensure that their data is safe from cyber attacks and viruses which can seriously harm their operations.

Since outsourcing partners now understand this high need for data security, they have maximized their protocols for operating in a safer environment.

They are becoming more responsible for the security of data and are deploying advanced tools like secure booting, firewalls, and restricted authentication methods for safeguarding the data. A secure server for data exchange and communication is now becoming a top-notch value added service from the outsourcing partners.

  • Cloud computing

IT companies are migrating towards cloud platforms for maximizing their operating efficiency. The demand for cloud storage is multiplying every day as companies accumulate a huge amount of data which possess the concern for storage. Online data centers will, thus, become a necessity for companies to manage this vast consolidation of data.

However, public cloud networks possess threats to the security of data but they can be mitigated by outsourcing the security services to third parties. They have the knowledge and skill to handle and manage huge chunks of data for further use.

  • Diverse development services

Today, offshore software development isn’t just limited to a particular niche but has extended its arms in providing value-added services to the companies. These outsourcing partners provide a wide range of developmental services include mobile app development, software app development, WordPress, PHP, and so on. All these services can be utilized as a bundle by companies that have a need for them.

Web application development is gaining wide popularity as companies look to take their businesses online and provide a better experience to their customers. These applications are made for different devices and operating systems for providing a seamless experience to the users. This has enabled outsourcing partners to focus on providing services that are not in their portfolio but are in high demand.

  • Developing a virtual workforce

Recently, virtual work has become the norm as more and more employees seek companies that allow them the freedom to work from a remote location.

With the help of modern communication tools like Skype and Slack, companies can stay connected to their employees in different locations. This has turned outsourcing partners into employee partners where communication can take place freely anytime and at any place. This has led to a huge reduction in the cost of companies that they have to spend on managing human resources at their office.

Now, software developers in different countries don’t have to deal with visa and immigration limitations and can easily work for multinational companies from their home country.

Bottomline

Outsourcing is changing how companies operate in the business world. Today, more companies have remote employees than ever, the costs are reduced twofold, and outsourcing partners have become a major contributor to a company’s revenue. They have enabled IT companies to grow and evolve into multinational giants at an extremely low investment of time, cost, and effort.

These emerging trends will maximize the potential of IT companies and equip them with capabilities that will determine their future, which shows signs of growth for both software developers and companies.

Companies now not only look for outsourcing service providers that cut costs but those that are equipped with cutting-edge skills and technology to take their business to stellar heights.

TechJini is a leading software development company that enables you to leverage your outsourcing potential with world-class technological solutions. Get in touch with us today and explore a world of quality services which maximize your growth.

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about the author

Robby Gupta

Robby Gupta is the head of US operations for TechJini, Inc. He has had varied experiences working in New York, Cupertino, and Bangalore with packaged & amp; custom web and mobile app development for an assortment of industries. His current focus is Immersive Technologies, IoT, AI bots and their applications in the digital enterprise.