Each industry has different organizations. Some are capable of hiring an in-house team for software development, and some collaborate with a software outsourcing company.

In recent years, the demand for software development outsourcing has been consistently rising, as each company wants to align with ongoing trends. In addition, it also provides additional advantages, such as saving costs on overall development and app maintenance.

Experts have predicted that there will be a 70% growth in software development outsourcing in the upcoming year.

And to discover the reasons behind such an exponential increase, you must read further.

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The Reason Behind Booming of Software Development Outsourcing

There are multiple reasons for boosting software development outsourcing demand. And some of them are directly associated with the viewpoint of the organization’s higher authorities.

So, let’s find out the views of a CTO and HR Manager under partnering with a software outsourcing company.

CTO Perspective

From the standpoint of a CTO, quick and effortless scaling up of a team is an essential business operation. It helps to cover the dynamic user requirements and develop the application in a shorter time-to-market.

If the company only has in-house teams, it becomes time-consuming and complex to find a relevant resources and assign duties.

However, if the organization partners with a software outsourcing company, it can effortlessly scale up the team in no time under a relevant engagement model. Moreover, up to 40% of the CTOs think that software development outsourcing can lead to precisely managing work in a fast-paced environment.

Hence, for quick team scaling within cost and time constraints, outsourcing is the first choice of a CTO, making its demand accelerate in 2023.

Human Resource Manager Perspective

Hiring a new employee has always been a time-consuming task, and it also involves some additional costs, affecting the company’s budget.

However, by joining forces with a software outsourcing company, HR Managers are analyzing a reduction in additional hiring expenses. With the traditional hiring approach, companies have to spend costs and time displaying hiring ads, screening candidates, and providing training.

So, to eliminate all the extra operations and streamline the IT resource onboarding process, HRs consider outsourcing services. It helps them complete the overall hiring process in less than a week, as engineers get verified by the third party and are primarily on their payroll.

A Look Upon Software Development Outsourcing Statistics

With the increasing demand for Software Development Outsourcing Services, many online sources are conducting surveys to forecast its growth. Let’s look at the most reliable statistics among them for understanding the growth metrics.

Statistics #1

According to Statista, the global Outsourcing market has valued at 92.5 US Billion Dollars. And the IT outsourcing service has the highest contribution, with 66.5 US Billion Dollars.

More than 50% of the global outsourcing value gets generated from software outsourcing companies.

IT Outsourcing

Statistics #2

According to Krusche Company, IT or software outsourcing only held a 22% share in the global market in 2020. And its share is going to reach 25% by 2025.

Hence, the outsourcing industry will consistently rise in 2023, earning a considerable profit and market value.

IT Service Market

Statistics #3

The App development through outsourcing companies will increase, as 34% of organizations are modifying their strategies to avail software outsourcing services. Only 9% are thinking of employing an in-house team for software development.

Outsourcing Trend

The above statistics confirmed that software development outsourcing will surely grow to 70% in 2023. Its contribution to the global market is more than 50%, which will also increase in the upcoming year.

Further, let’s explore the trending outsourcing web development trends that will become a top contributor to its heightening.

The Software Development Domains are going to be in demand in 2023

We have identified the top four outsourcing services that are high in demand and are acting as primary actors in accelerating the industry magnification.

AI and ML-Based Software Development

Artificial Intelligence and Machine Learning

Artificial Intelligence and Machine Learning technology are currently leading the web development trend charts.

Very few companies are providing AI and ML-based solutions to their clients. From frontend to backend, both technologies help to optimize the overall software. In addition, you can embed AI virtual assistants to enhance customer relationships.

Furthermore, Machine Learning modules aids eCommerce companies in evaluating customer behavior, predicting market trend, and making relevant decisions.

For leveraging the enormous advantages of AI and ML, their demand is increasing, and enterprises are paying a hefty amount for it.

Platform Independent App Development

Cross Platform App Development

Each industry requires a cross-platform application to reach the target audience, whether it’s a desktop or mobile application.

In 2022, the demand for cross-platform app development is immensely increasing, and demand will continue until the third quarter of 2023. And for achieving the target for the platform-independent app, .NET has become the first choice. You can build multiple hybrid applications with .NET and even integrate AI, ML, Cloud, and custom APIs.

Hence, enterprises are looking to hire software developers from outsourcing companies having expertise in .NET development.

Cyber-Security

Cyber Security

With the rapid surge in cyber-attacks across small, medium, and large-scale organizations, businesses are moving to update their infrastructure and digital security.

In addition, the companies are also expanding their cyber-security budget to partner with an authentic and robust security firm. Besides hiring an in-house team, organizations are looking for outsourcing companies for website security services that cover everything, from configuring an SSL certificate to mitigating DDoS and malware attacks.

In 2023, outsourcing companies offering application, network, cloud, and infrastructure security services will skyrocket their capital.

Wrapping Up

Software outsourcing is a growing industry that has seen exponential growth in recent years. And it will not stop, as the organizations are analyzing the elimination of additional expenses by collaborating with an IT firm.

From CTOs to Human Resource managers, each professional praises the decision to select a software outsourcing company. It helps them quickly scale up the teams and hire new engineers in a shorter time, within the budget.

Moreover, IT institutions contribute more than 50% of the overall outsourcing sector, expecting to grow more by 2025. Furthermore, the demand for AI, ML, and Platform independent and secure applications is rising, which is considered the most practical reason for outsourcing growth.

There are very few companies providing all these services. However, Positiwise Software Pvt Ltd holds the expertise in these development domains. From creating high-performing cross-platform applications to assuring data integrity, Positiwise offers each outsourcing service with utmost quality.

Trusted Software Development Outsourcing Company

Collaborate with Positiwise for availing the best-in-class software development & outsourcing services, assuring innovative and beyond imagination robust business solutions. We have a vast resource pool, employing experts for handling every minor and major operation, shortening the time-to-market, increasing scalability, and collaborating in your time zone.

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