Top 8 Software Development Outsourcing Trends for 2022

Software development outsourcing trends

Software Is a Great Combination Between Artistry and Engineering.

                                                                                                      -Bill Gates

The outsourcing industry has grown significantly over the past two decades, and the pandemic has given special momentum to it. The outsourcing market has grown from $45.6 billion to $92.5 billion in the past two decades. By 2025, it will reach $397.6 billion. 

Indeed, the software industry’s future is bright ahead, and there’ll be tough competition ahead. To compete in it, you have to power up yourself with the best strategies and the primary software outsourcing trends that will lead the market in the coming days. 

So, what’s your strategy for 2022? If you are still thinking about it, then consider reading this blog. Because here, I’ve listed out some of the top software development outsourcing trends that will help you out plus save your precious time. 

Let’s get started.

Top Software Development Outsourcing Trends 2022

1. IT Spending Will Increase Globally

The rise of emerging economies, such as China and India, has given a new direction to IT spending. Nowadays, multinational corporations are willing to spend more on software development outsourcing services. In fact, global IT spending will reach $4.58 trillion in 2002 compared to today’s $3.31 trillion.

Specifically, there’ll be an increased investment from organizations to make a strategic transformation to drive their business growth and digitalization. In addition, it is expected that CIOs will hire more resources and leverage new technologies such as artificial intelligence (AI) and blockchain to provide business agility.

2. Expansion of Remote Work

The continued rise of flexible work is defined by the ability to work remotely, including working from home or any location other than the company office. According to a survey, over one-third of the US workforce is working remotely, and it’s increasing.

This trend is spurred by millennials who want to get more flexibility in their work, while they also give preference for remote locations that will save commuting time and cost. It also creates a healthier work-life balance.

3. Increase in Cloud Services

The cloud is changing the way organizations are operating because 80% of business firms are adopting it. Cloud adoption rates will further increase to 90% by 2022, with most market growth coming from hybrid IT deployments.

Software Development Outsourcing Trends

Moreover, according to IDC, public cloud services have grown from $178.9 billion in 2017 to $195 billion in 2018. It will continue to grow to $283 billion by 2022, representing a Compound Annual Growth Rate (CAGR) of 8.5%. For the sake of comparison, business cloud services are expected to grow at a faster rate than public cloud services. Also, the CAGR for business cloud will be 12.5% through 2022.

4. Python will gain popularity

Python has been a popular and influential programming language for web and app development. According to the latest TIOBE Index, Python is now at 4th position with a rating of 12%.

Software Development Outsourcing Trends

According to the latest TIOBE index, it has gained popularity among developers and end-users due to its easy syntax and readability. Enterprises are also using it to develop web services, apps, machine learning models, etc. So in the next five years, it will be even more popular with an increased search volume.

5. Artificial Intelligence Will Boost Software Development Outsourcing

Artificial intelligence (AI) is increasing, and it will change the way businesses operate in the coming days. Small and medium-sized companies will adopt AI with a competitive advantage over others. In fact, about 75% of companies are investing in AI tech to accelerate their business growth.

Software Development Outsourcing Trends

According to the Forrester Consulting report, there will be a demand for around 56 million AI developers by 2025. They will become an integral part of the success of any business in the coming days. So, it is one of the hottest software development outsourcing trends that will lead companies towards success.

6. High Demand For Full-Stack Developers

As the role of a full-stack developer gains popularity and demand, there is increased pressure on traditional software developers to learn new skills. It doesn’t mean they should master all layers of an app or website but be familiar with each part such as backend, frontend, etc.

A full-stack developer can work on multiple technologies at once, i.e., frontend, backend, DevOps, etc., which helps in delivering projects and lower project costs.

With them, companies can improve their market position and attract more customers. As mentioned by a Forrester report, this trend will continue to grow in the next five years.

7. Security Is Being Given Increased Attention

Software Development Outsourcing Trends

According to a report, more than half the world’s data has been created in just the last two years, around 33 zettabytes. Unfortunately, this data is being undermined by security attacks at an alarming rate of 40%, growing approximately 60% per year. This makes it critical for organizations to prioritize security, increasing the demand for security testers.

To reduce security-related risks, it is essential to deploy security tools and software development outsourcing services. Most organizations are moving towards cloud-managed security offerings.

8. E-commerce Sales Will Increase Exponentially

Global e-commerce revenue has grown to $4.921 trillion in 2021 and expecting to reach $7.61 trillion by 2022, according to a recent report of Forrester Consulting on the retail and e-commerce industry.

The business of e-commerce software is multiplying due to the ability of e-commerce companies to deliver goods across the world. It has also helped small businesses to become successful without having their own logistics service.

With this, there will be an increased demand for e-commerce developers with knowledge of building complex websites, especially regarding the security and management of servers that run those applications.

Closing Thoughts

Outsourcing software development has become a trend and an opportunity for small and medium-sized enterprises to benefit from cost-effective services. In the next five years, businesses will put more effort into this area due to the growing trends of AI, cloud services, etc., which will further increase the demand for software developers.

You can also hire a top software development company in India for better assistance. They’ll help you out best and bring a positive change to your business.

So, you can say that you have complete knowledge of the software development outsourcing trends in the next 5 years. Let me also know your views and opinions about this article in the comment section below.

Go Ahead & Good Luck!


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