Quick Overview:
IT and software outsourcing is one of the fastest-growing industries around the globe. It provides you with several benefits such as reducing overhead & operational costs, increased efficiency, a greater focus on core business, improved quality, availability of a global expert workforce, and many others.

The COVID crisis and Pandemic have further fueled the industry’s growth. As per Grand View Research, the global software IT outsourcing (ITO) services will witness the fastest CAGR of 12% during the 2022-30 period. Another report by Deloitte states that the global ITO will hit 519 billion USD in 2023.

software outsourcing trends

As you can see, IT software outsourcing will keep on reaching new heights year on year. And several software outsourcing trends will help take the market a notch above. Here we present some of the top outsourcing trends to follow in 2022.

Top 5 Software Outsourcing Trends of 2022

1. The Talent Gap Gives a Stronghold to Outsourcing

The tech industry continues to be driven by digital transformation, and it’s not slowing down. However, it’s experiencing a never-ending shortage of tech talent. As of 2021, there are over 40M global tech talent positions vacant, which is likely to increase to 85 million in the next 10 years.

The biggest challenge for recruiters was hiring developers, which is often long, difficult, and costly. Due to this mismatch in supply and demand, the average salary of developers increased to $110,140.

The alternative to this is software development outsourcing. The increased talent gap has enabled the IT industry to try flexible work arrangements. Today, software outsourcing development teams are becoming more popular because of the global resource need.

By tapping into the global expert workforce, IT leaders can reduce software development costs effectively. They can enroll for a cheaper software outsourcing development rate, starting at $25 to $50 per hour, which is a fraction of the cost of hiring onshore.

2. Shift to Employee Approach

Third-party vendors and outsourcing companies are no longer seen as a substitute, albeit as long-term partners. They are now seen as team members who can contribute to the company’s liabilities. Further, the intensive research and statistical analysis showcased why you should hire software outsourcing providers.

The first and main reason is the cost reduction when outsourcing. And many studies from various sources verified that organizations primarily outsource to reduce costs. If not cost reduction, many companies do it simply because of the flexibility, speed to market, ease of access, and agility outsourcing providers enable them with.

Another reason for this software outsourcing trend is involving outsourcing providers in strategic planning, decision-making, risk prevention system, and architecture design. This effectively signifies that outsourcing providers are treated as virtual employees.

3. Accelerated Digital Transformation

Digital transformation is gaining momentum like never before. Even with the pandemic, more companies are focusing on developing initiatives to improve their businesses’ innovation, resilience, and competitiveness.

Digital transformation has become vital for their long-term survivability. And as we progress further on the digital maturity curve, tech staffing becomes a bigger challenge. Since each stage will need specialists, it becomes vital to scale qualified development teams quickly. However, most organizations aren’t agile and won’t be able to keep up.

Thus, most IT executives believe their organization needs outside expertise for digital transformation projects like cloud computing, robotic process automation, AI, etc. This makes them open to hiring on-demand software outsourcing talent and enables them to bring innovation into their IT software products quickly.

A reliable and trustworthy partner at an affordable software outsourcing rate in 2022 can help you move closer to releasing your digital transformation projects.

4. Remote Work Will Shape the Outsourcing Reality

After the pandemic, remote work culture has been normalized as most large companies settled on the hybrid work approach. The IT industry is willing to embrace this work model for increased comfort in managing such teams. Such acceptance also sets the stage for software outsourcing.

The best thing is that most outsourcing service providers are already remote work experts. They are already apt at rendering stability, employee capacity, and compliance to serve their clients best. Plus, they will offer cost-effective software outsourcing development rates in 2022.

The benefit of this rfp software development and software outsourcing trend is that your team won’t feel stressed or burdened with load and can work more creatively to be productive. This trend alone will drive the outsourcing market to more rewarding destinations as we advance.

5. Cyber Defense With Outsourcing

Cyberattacks like ransomware can cause severe disruption for the lively IT software industry. Also, world governments and companies agreed that the evolving cybersecurity threat needs to be tamed with appropriate steps.

The tougher cybersecurity legislation to greater compliance from governments and organizations has become necessary. Further, there’s an acute shortage of required talents with strong skills to fight against cyber threats.

This has pushed companies to lean toward finding experienced software outsourcing providers to stay active in the cyber landscape. The highly-experienced team will help you build and enhance your current security infrastructure by finding gaps and mitigating them with appropriate benchmarking.

That said, a record number of organizations are looking for outsourcing partners with exact specialists for their cybersecurity needs. Thus, this software outsourcing trend will see greater demand from enterprises such as banks, eCommerce stores, and payment gateway providers.

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Wrapping Up

Driven by the Pandemic, software outsourcing is going to take a bold leap forward thanks to all the mentioned software outsourcing trends of 2022. These trends will elevate the stature of the IT outsourcing industry. They’ll play a major role in the coming future as organizations will take on more digital initiatives and transformation projects.

Moreover, the software outsourcing engagement will become more streamlined as a slew of higher degree specializations will become available. That said, keeping your feet matched with the above-mentioned software outsourcing trends is no easy task.

However, the trusted partner by your side can help you navigate through complex technological needs to accelerate your digital transformation.

Parag Mehta

Verified Expert in Software & Web App Engineering

Parag Mehta, the CEO and Founder of Positiwise Software Pvt Ltd has extensive knowledge of the development niche. He is implementing custom strategies to craft highly-appealing and robust applications for its clients and supporting employees to grow and ace the tasks. He is a consistent learner and always provides the best-in-quality solutions, accelerating productivity.

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