The outsourcing of software development is evolving and growing every year. As of the end of 2021, the global market is valued at more than $968.25 billion. This is expected to grow by 4-5 percent between 2022 and 2024. There is no stopping software outsourcing. It is expected to keep growing as more and more businesses realize its many benefits. Businesses are leveraging this to access the best skills, achieve higher product quality, and reduce costs which will make them more competitive in the market.
Here are some of the latest trends that you should look out for in 2022 –
1. Cloud Services Are In High Demand
Many reports have indicated that 80% or even more of the workload is going to move to the cloud by the end of 2022. This is likely to go up even higher within 2024. The main reason for this change is flexibility in responding to the requirements of the customer.
The management consulting group Gartner has analyzed how the businesses are spending on cloud serving after the Covid-19 pandemic and discovered that they are now spending three times more than what was previously forecasted. Gartner had earlier predicted that by the end of 2021, the businesses would be spending above 1 billion dollars, which is likely to go up considerably by the end of 2022.
2. More Importance On Product Quality
The #1 reason why businesses selected from the list of the best countries to outsource software development was to save money. But that is not the main priority anymore. More and more businesses are now focusing on product quality, which is quickly becoming the #1 critical factor in helping them decide whether to outsource or not.
This is a good development because the vendors are going to focus more on providing quality.
3. Focus on Cyber Security
2021 saw a huge focus on cyber security, which is continuing this year too. And logically so, because data is the most important resource that a business will certainly want to protect. With increased vulnerabilities and breaches, many organizations are now demanding the best cyber security features in the applications or the developed software products.
Be careful when you select your outsourcing partner. Select a vendor with the capability and expertise of tightening the security and guarding the date of your business. Make sure that there is a security expert on the team.
4. Huge Demand For Analytics And Data Science
In the last 20 years, many businesses have shifted their focus to automated systems from offline business processes. This means they are sitting on huge data that needs to be processed and evaluated. But many businesses don’t know how to handle this data and use it to their advantage. There is thus a huge demand for data management and interpretation.
5. Big Demand For Blockchain
Distributed Ledger Technology (DLT) and blockchain store data electronically. It helps in securing transaction records in Bitcoin and other cryptocurrencies. It secures the data and also builds trust without involving any third party. The German company Statista has predicted that by 2024 blockchain technology will be valued at $19 billion and it will keep rising in the next few years as well.
6. Artificial Intelligence And Machine Learning
AI and ML or Machine Learning are both playing significant roles in evolving the world. They both still have their drawbacks. For example, there is the scope of exploitation, misemployment, and partiality. However, they have still managed to open up many possibilities for managing business and are also affecting various aspects of our lives.
AI-assisted research played a key role during the covid-19 pandemic to bring out vaccines and remedies. It is also helping treat strokes and other diseases. Artificial intelligence is also providing firefighters with key data so that they can fight wildfires that can cause so much damage.
Businesses are employing both AI and ML to improve efficiency, security, and optimize processes. A lot of developers are now integrating the components of AI, such as machine learning, deep learning, data analysis, robotics, and natural language processes to make their applications smarter, which means we are likely to see smarter applications as well.
7. Better Collaborations And Partnerships
Improving collaboration and communication is a huge outsourcing trend this year. The traditional systems are rigid, especially for streamlining collaborations between the teams. The cloud is very useful here. According to many reports, better and more efficient collaboration will both improve the product quality and lower the cost.
Software development and the IT industry see major changes every few years. The changes are likely to continue. After 10 years, we may see trends that we cannot even think of today.