2024 Key Trends: Software Development Outsourcing Services

A Lighting Speed Overview

Software development outsourcing has been the talk of the town recently & it is the top priority of many IT organizations. A major amount of companies are opting for outsourcing software development services rather than investing their money in hiring & managing an in-house team of developers.

Despite the changing market needs at a global level, the changes are always prevailing in the software outsourcing trends. In this content piece, we’ll learn about the software development outsourcing trends that you should focus on in 2024. Also, we’ll cover a few services that are widely in demand.

Introduction

Outsourcing software development projects is very popular & common in recent times. A large majority of startup & business verticals prefer this method to build an instant & affordable application development. But, as time passes we are seeing a lot of changes in the software outsourcing trends. In this article, we’ll learn a few of them.

Are you ready to uncover them all? Then let’s get started,

Before, heading into the main details, let’s understand why is the trend getting a lot of buzz & Recognition

Why is the Software Development Outsourcing trend increasing?

Today, every organization is seeking a business solution & a tech team to manage these solutions. But there are a few loopholes where they are facing a lot of challenges, a few of them are mentioned below:

• Zero availability of tech teams

• The company is unable to invest a lot of money in hiring an in-house expert

• The IT infrastructure needs updates which are quite costlier.

The above scenarios are just a few of the challenges the companies face, but these scenarios can vary from company to company. However, partnering with an outsourcing software development company can help you minimize these shortfalls.

That’s when Software development outsourcing services provides a few advantages to the companies. Let’s identify a few of them:

• You get a chance to work with the industry experts

• Your application would get developed within the cost & timeline

• Easy switching to other technology partners

• You can eliminate the burden of managing the payroll

Now, let’s understand the 6 Software Development Outsourcing Trends to watch in 2024

5 Software Development Outsourcing Trends to Watch in 2024

Trend #1: Artificial Intelligence & Industrial Process Automation

AI i.e., our favorite artificial intelligence & its subset ML i.e., Machine Learning are grabbing attention from some industry verticals as adopting it will lead them to learn & grow in some ways.

Outsourcing providers who possess AI knowledge can help you achieve a competitive edge in some ways.

First, if a software development team uses AI to help with their work, they can usually work faster and get your products ready for sale more quickly. Using AI can also help lower the cost of hiring outside help for software development.

Second, apart from using AI in developing software, it's a good idea to use AI in different parts of your business too. If a software development company also provides AI advice and development services, it can offer extra benefits to its clients. A few of the benefits are mentioned in the below section.

Superior data analytics

Organizations are leveraging AI to collect data & process a larger volume of data to understand the customer & market trends.

Personalization

AI is enabling e-commerce brands & other industries to send personalized ads & offers to their customers & targeted prospects.

Supply Chain Management

A supreme retailer like Walmart has embraced technologies like AI & IoT to mold its supply chain management, thus creating a more efficient, accurate & cost-effective system to manage its inventory & shipment.

Customer Service & automation

An AI chatbot is driving businesses to find answers to their queries which was once solved by a human being

Automation

With the use of AI, organizations are able to automate the repetitive tasks of their business.

AI is a great tool that can make customers happier, help build good software, save a lot of money, and increase profits

Trend #2: Data Analysis Services

Data science and big data have been big news topics for years, especially when talking about privacy issues like the big problem between Cambridge Analytica and Facebook. But why are we still discussing it?

It's because there's been a lot of growth in digital upgrades, modernizing apps, AI, and using the cloud, which makes analyzing data better than ever.

Nowadays, modern apps in the cloud can share data and handle lots of it. AI tools, like those that understand people's opinions, help quickly identify trends in what customers want and what's happening in the market.

Here are some ways that analyzing data is helping companies succeed.

Better data means better services

Modern day data and analytics helps organizations draw from a large sample size, that increases a signifcant of data & also allows the organizations in taking informed decisions.

Improvement in operational efficiency

Organizations can see inwardly and leverage theri data analytics to analyze the operational processes to improve their operational efficiency.

Risk Management

A large data set can help you spot the challenges to address them with immediate strategies to thrive the business growth.

Here are some reasons why software that can analyze data well can help your business do better. That's why you should choose software outsourcing companies that know a lot about data analysis and include it in their software products.

Trend #3 Cybersecurity & Data Security

Though Cybersecurity & Data Security aren’t that much of a new trend, but it still deserves to make the list. The Harvard Business Review says that cybersecurity dangers are increasing quickly. Not only are there more threats, but there are also more ways that hackers can trick your employees and get into your data.

This problem is partly due to new AI technology and the huge rise in connected devices. By 2025, it's expected there will be 41.6 billion devices like these in use.

Moreover, everyday devices contain software that hackers could break into. For example, while the original space shuttle had 400,000 lines of software, today's cars have around 100 million lines.

Here's a look at some of the cybersecurity risks that are becoming more common.

AI-driven attacks

AI can make more tries to break into a system. It can also do a better job pretending to be a real person or someone who fluently speaks the language it's using.

Supply chain attacks

Major businesses rely on its supply chian in thi modern era, one cyber attack in your supply chain can cause your business to face a huge setback.

Cyber attacks to your IoT devices

IoT devices are connected to the internet, which can lead to great improvements. However, this connection also makes companies more open to attacks from hackers.

A data security & cybersecurity are more important right now then ever make sure you are using the right technologies to prevent the security of your data.

Trend #4: Cloud-Native Development

A cloud native app is designed to perform in a cloud driven environment by using microservices,headless architectures for its flexibility & scalability, Cloud computing system makes it easier to make the best use of all the trends that we have mentioned above.

Apart from the above benefits, Cloud Native development offers a bunch of other benefits like:

Flexibility

Cloud-native apps are designed in a way that makes it easy to add new features. Also, you can change the front part (what users see) or the back part (how the app works) to use them for different things.

Greater reliability

As they are build to work in a cloud, all the cloud-native apps tends to be more reliable on legacy applications.

Quicker Deployment

Cloud environments are very flexible, which lets them support continuous delivery and integration. This speeds up the process of developing and updating software.

Cost Savings

The pay-as-you-go system used by cloud services like AWS lets an app adjust its size based on how many people are using it or how much it's needed. This method usually saves more money compared to older ways of running apps.

Cloud computing is the future of the tech world. While selecting your offshore, nearshore or onshore partner, make sure you find the best one having the right experience in developing the cloud-native apps.

Trend #5: App Modernization

App modernization is all about updating old apps and systems to make use of new technology that can help businesses stay ahead in the competition. It's a big task, especially for large companies, and requires a lot of planning and deciding which apps to update first.

While some apps might need to be completely redone or significantly changed right away, others can be kept as they are for a bit longer. There are many ways to update apps, and to help businesses figure out the best approach, Gartner came up with a model called the 7R model of app modernization. 

This model outlines seven different strategies for updating apps.

Rehosting

This is also known as life & shift, i.e. by using this strategy you can data and applications to the cloud without making any major changes in the existing architecture.

Refactoring

Refactoring or rearchitecting is like renovating a house's foundation without changing how it looks from the outside. It involves changing the internal code of an app to improve it without altering its external functions or features.

Replatforming

At times this is known as lift-and-reshpae, i.e. it involves low-touch upgrades.

Rebuilding

As the name itself suggests, rebuilding is all about creating an entirely new application from the scratch.

Replacing

As the name itself says, this strategy involves the process of eliminating the old application by purchasing an entirely new one to serve the similar business processes.

Retaining

Keeping an old software program means you don't move it to online storage. Instead, you create a special communication layer for it, letting it work with your new software systems.

Retiring

Stopping to use an app means removing it from your system when you don't need it anymore by retiring it from your ecosystem.

App modernization is vital to any digital optimization but only when it is done right. If not executed properly you might face a lot of security issues, data loss or a downtime.

The fact that a lot of in-house team members doesn’t have an experience with app modernization has led companies rely on the outsourcing partners & external software development services to put the right efforts.

Now, let’s understand what should you look forward to when outsourcing a software development project?

Outsourcing Software Development Projects: What should you look for in the Company

In this earth there are thousands of companies worldwise that are providing software development outsourcing services. But only a few of them are able to fulfill the requirements & provide the asked service. 

Finding the right partner can be a challenging task, follow the below-mentioned steps to find the most reliable outsourcing partner for your software development project.

Step 1: List your requirements to find a the right company that can help you fulfill your requirements.

Step 2: Reach out to leading software development company & get their costing & also ask the estimated time for getting the work done. Moreover, check out for different pricing models available.

Step 3: The next step is to compare their cost, hiring models as well as their customers feedbacks, proficiency & team skills of the prospected outsourcing software development company.

Step 4: Close the deal with the company that wins the comparison battle.

Now, let’s understand how does the future hold for Software Development outsourcing.

Software Development Outsourcing: A future worth-noting

Software outsourcing is expected to attract a high demand in the coming years as predicted by some studies it is going to observe an annual growth of 9.4% due to a number of reasons.

There are a number of advantages the company receives when working with a software development outsourcing company

Want to take the benefit of Software Development Outsouricng to generate 2x ROI then read Generate 2x ROI by using Software Development Outsourcing where you can learn everything related to Software development outsourcing services.

Now, let’s understand how I can help you in building a Software by using my Software development outsourcing services.

How Can I help you in Building Custom Software for your Business?

Benig a LinkedIn certified Top Voice for IT outsourcing I am on a mission to help companies build a Custom Software that meet their business needs. I am the owner of Acquaint Softtech, an IT staff augmentation & software outsourcing company.

We help clients from various business industries like E-commerce, FinTech, Real Estate, EdTech, etc. hire remote developers that meets their needs & wants. Moreover, my team & I also help them build a custom software for meeting their business requirements.

Closing Notes!

Companies are preferring to partner with an outsourcing software development company instead of hiring an in-house team. Implementing this practice has helped save money & develop a business application with ease.

This year, companies are more focused towards outsourcing services like data security, AI & ML development, software maintenance, etc. The above mentioned outsourcing services are trending because it gives the entreprises an opportunity to:

• Save overhead expenses

• Updating systems with AI & ML

• Maintaining solutions to align with industry standards

• Retaining the data integrity & confidentiality