Offshore Development Outsourcing: Emerging Trends & Why Businesses Opt For It


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Outsourcing mobile app development and software development has been a practice that has become a norm for enterprises and businesses nowadays. In the past few years. The main objective of cost reduction in the development process has been achieved by outsourcing it to competent development companies. The global IT outsourcing market is expected to grow by over $98 billion by 2025!

With this significant change in the industry, enterprises and businesses have been on a continual lookout for an app development company or a software development company that can add value to their goals by developing the most efficient tool for them.

There are many reasons why businesses outsource their development projects, the most prominent of which are as follows:

1. Optimizing Costs: Cutting down costs on development projects is no longer the primary objective for many businesses. Instead, how to smartly optimize the cost of the process has become a much more prevalent objective. Through development outsourcing, businesses are able to optimize the overall development cost by engaging with the development company on a long-term basis.

2. Gaining Competitive Edge: The use of innovative technologies has become more and more important for businesses to stay ahead of the curve in their domain. Technologies like BI, AI, ML, RPA, Blockchain, and many more have become a primary source of streamlining operations for businesses across the globe. However, the implementation of these technologies can be a tough nut to crack, which is why businesses often look for outsourcing their development projects to companies with expertise in these technologies, and gaining a competitive edge in their domain.

Why Businesses Opt For Offshore Development Outsourcing?

Organizations have started to look for development outsourcing in offshore countries due to the multitude of options available, the sheer amount of talent in other countries, and cost-effective options available. In 2017, the offshore outsourcing market generated a staggering $88.9 billion!

Emerging Trends In Offshore Outsourcing For Development

The dynamic growth of the offshore development outsourcing industry has urged organizations to opt for offshore outsourcing, and it continues to grow on an exponential rate. But why is this growth so fast? Here are some of the trends in offshore development outsourcing that can help in figuring this out:

1. Growth In The Demand For Cloud Computing: For two decades now, cloud computing has been a constantly evolving technology. However, it has gained some serious momentum in demand in the past few years. In a recent study, it was found that over 69% of businesses in some capacity used cloud computing technology, and another 18% were looking to implement cloud computing solutions for enhancing their services. Moreover, investing in cloud technology can boost organizations’ revenue growth 53% faster compared to their competitors.

Offshore development companies implementing cloud computing have become very popular amongst businesses. This technology not only makes development companies reliable, but also helps them in maintaining uptime of a compelling 99.9%. This means that services are available 24×7, and the applications or software development projects can be conveniently launched from any location.

2. Collaborative Tools: Convenience Taken To A Whole New Level: One other trend that has taken off for offshore development outsourcing is the use of collaborative tools. These tools are definitely helpful in not only collaborating with development companies but also in providing immediate support during the development process. The sheer increase in offshore outsourcing has made collaborative tools a bridge that connects the development company and businesses in creating a streamlined process of top-tier collaboration for the best software development.

Businesses are no longer worried about any potential miscommunication when they choose to outsource their development projects to an offshore company that employs these tools. Time management, testing, feedback, and much more have become much more organized and seamless because of collaborative tools. Here are some of the most popular collaborative tools used by offshore development companies.

Trello: This project management tool is the perfect collaborative tool for businesses and development companies to collaborate. It possesses an intuitive UI, which helps all the team members in seamlessly collaborating by sharing task updates, attachments, to-do lists, setting meetings, organizing tests, and much more.

JIRA: This collaborative tool provides much-needed support to the software development teams. It helps them in customizing scrum boards, tracking bugs, checking projects’ status, communicating progress, modifying scrum boards, and much more.

Yammer: This collaborative platform can be described as a social networking platform for enterprises, which opens the gates for an open collaborative environment. Team members and collaborators can upload blogs, files, posts about progress in projects, create discussion chains, and much more. It is a very helpful tool for businesses in establishing an open communication channel with the offshore development company for being up to date about the development process.

3. Rise In The Implementation Of Blockchain Technology: Organizations have started adapting Blockchain technology with its ever-increasing need, as it has helped them in enhancing their business models, along with streamlining their operations. This has caused a ripple effect in the demand for software developers, who have expertise in this technology. Incorporation of Blockchain principles has become the primary objective for many organizations, and offshore development companies have thus seen the eyes turned to them for projects involving this technology.

Challenges That Lie Ahead

Businesses across the globe are becoming increasingly dependent on offshore outsourcing, which when coupled with the drastically changing landscape and unexpected trends can create a lot of challenges for them. Higher-ups have to continually create fresher strategies based on the dynamic of industry trends, and make the most out of their limited or long-term partnerships with the offshore development companies.

Carefully identifying and assessing an offshore outsourcing partner will become the most important stage for organizations to achieve optimum growth in the future. That being said, the trends that are here will stay for at least 5 years and impact the businesses as the time goes on, until some better alternative trends come out. Careful identification and selection of an offshore outsourcing partner are critical to project success and every company should make a well-informed decision about it.


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