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5 Trends Shaping the Future of Software Development Outsourcing

insight software development

By Rachna Gaba 

As the digital revolution accelerates, the demand for innovative software solutions is skyrocketing. If your company is in the Software Development space and you want to stay ahead in this extremely competitive landscape, it’s high time you considered software development outsourcing for better efficiency and cost-effectiveness. Recent statistics show that about one in every four companies are outsourcing their software development projects to save costs. Easy access to tools and talent, flexibility, and speed to market are also major considerations. Software companies therefore need to find new ways to stay ahead of the curve by outsourcing. The future of software development outsourcing looks brighter than ever, and here are five exciting trends that will shape the industry in the coming years.

  1. Remote and Distributed Teams. Nowadays, attracting and retaining top talent have become major roadblocks for software development companies. They, therefore, need to find new ways to overcome the talent gap and tap the best software developers for their projects to stay in the game. One way to do this is by having remote and distributed teams. Remote teams may be a blend of team members working individually or together onsite or offsite, while distributed teams are composed of members working from separate locations. As advanced communication and collaboration tools have bridged the physical gap, interaction becomes seamless, updates are real-time, and project tracking is efficient, bolstering team cohesion and productivity of remote and distributed teams.These work models, ideally adopted through outsourcing and managed services, have ushered in a transformative era for software development, enabling organizations to tap into a global talent pool, transcending geographical constraints. These are revolutionizing the way projects are executed and the expansive reach for highly skilled professionals from diverse backgrounds offers a host of benefits, as it:–  Fosters a rich exchange of ideas and innovative solutions, often leading to faster problem-solving;–  Fosters a culture of continuous learning, as developers learn from each other’s experiences and stay attuned to evolving industry trends;–  Enhances adaptability and scalability, as teams can be swiftly formed and disbanded based on project requirements;–  Empowers developers to work in environments where they are most comfortable and productive, enhancing job satisfaction and potentially leading to heightened creativity;–  Offers the flexibility that supports work-life balance, contributing to higher levels of employee retention and engagement; and–  Optimizes resource utilization and allows organizations to tackle projects of varying scopes and complexities.
  2. Artificial Intelligence (AI) and Robotic Process Automation (RPA).Companies are now becoming increasingly reliant on data science for decision-making, increasing the use of AI and RPA to facilitate processes.  AI and RPA allow companies to leverage machine learning, natural language processing, and predictive analytics to automate routine tasks, streamline repetitive processes, reduce errors, and enhance productivity. However, as most companies do not have the resources or expertise to develop AI-based software or implement RPA solutions on their own, many are turning to software development outsourcing or managed services to meet their AI and RPA needs. Thus, providers who demonstrate expertise in data science, machine learning, AI, and RPA will be in high demand and are expected to grow their portfolios.
  3. Cloud-Native Development. As businesses recognize the benefits of cloud-native applications such as enhanced performance, cost-efficiency, and scalability, a shift toward cloud-native development is seen to be imminent. Outsourcing providers are responding by aligning their offerings with cloud-native development to help clients build and run applications that will take advantage of the cloud delivery model’s distributed computing.
  4. Security and Compliance. With increasing digitization, especially with the growing use of cloud-based services, come the risks of outsourcing software development. IBM revealed that a security breach costs an average of $4.24 million. Thus, outsourcing partners must ensure everyone is on the same page regarding security and data protection through close collaboration, ongoing communication, and transparency. It is critical that outsourcing providers ensure continuous security throughout the development lifecycle by enhancing their security measures, implementing robust data protection protocols and secure DevOps practices, and adhering to international standards and laws such as the GDPR, CCPA, and HIPAA.
  5. Inclusive User Experience (UX) Design. As businesses recognize the impact of a seamless user experience on customer satisfaction and loyalty and eventually on business outcomes, user-centric design is taking center stage in software development outsourcing. The demand for software products that cater to users of diverse backgrounds, abilities, and devices will continue to rise. Thus, outsourcing providers, especially those offering managed services, who demonstrate expertise in user experience design and development (including user interface design, usability testing, and accessibility), and can ensure that the user experience aligns with their clients’ brands, values, and goals, are expected to get ahead in the highly competitive software development industry.

As software requirements evolve, outsourcing and managed services remain strategic choices for organizations seeking to navigate the challenges of talent acquisition, cost optimization, and technology adoption. Software development projects that may be outsourced on the managed services model include:

  • Front-end
  • Back-end
  • Desktop Application Development
  • Website and Web Application Development
  • Database Development
  • Mobile App Development
  • Infrastructure as a Service (IaaS)
  • Software as a Service (SaaS)
  • ERP System

The future of businesses and the world will be shaped by the software development industry. To stay at the forefront of the digital revolution, software development companies must capitalize on the emerging trends in the industry by forging strong partnerships with outsourcing and managed services providers who not only possess technical expertise but also embrace a culture of collaboration, innovation, and excellence to cope with the technological advances coming our way.

Rachna is the Head of Business Development at Eastvantage. She holds a successful track record in helping businesses in organizational expansion, business development, financial growth, and corporate governance. Rachna has extensive experience in building and promoting strong and long-lasting partnerships, especially in the software development, education, and real estate industries. Connect with Rachna via email or on LinkedIn to learn more about how managed services and outsourcing can help your business grow.


Are you looking for a cost-efficient way to deliver high-quality software? If so, then you should consider outsourcing and managed services for your software development needs to us. We have a team of experienced developers who are experts in a variety of technologies for Front-end, Back-end, Desktop Application, Website and Web Application, Database, and Mobile App, IaaS, SaaS, and ERP System development.

Check out our Software Development solutions for further information on how we can help you with everything from customization of SAP, Odoo, and other ERP and apps to innovating software for your specific needs.