Outsourcing Software Development Trends 2023
9 Outsourcing Software Development Trends in 2023
Increasing numbers of organizations are recognizing the benefits of outsourcing some or all of their software development requirements. There are extensive benefits to be gained from finding a software development partner outside your business that can deliver this specialized assistance.
Software development outsourcing enables you to maintain your focus on your core business activity; an external team of experts can bring their expertise to bear much more quickly than an in-house function that needs to be recruited and trained; that in turn enables your business to remain at the cutting edge of innovation, and highly competitive in your field.
As a result of this growing acceptance, the market in outsourcing software development is expanding at an impressive rate. It has been estimated that worldwide revenue in IT outsourcing will reach $430billion in 2023, and could reach nearly $590billion by 2027.
A significant proportion of those figures will relate to software development outsourcing. ZirconTech brings exceptional experience to this field, having acted as a provider of software development services to enterprises in a host of industries and locations over the last two decades.
Come with us now as we look forward and identify 10 of the outsourcing software development trends we expect to see in 2023.
Nine Software Outsourcing Trends to Watch for in 2023
1. Impact of the Tech Talent Shortage
One key factor driving the need for software development outsourcing is the continuing shortage of trained operatives in this area.
It has been reported that there are approximately one million software development roles unfilled in the United States alone. That makes it much harder for companies looking for this type of expertise to bring on board the people they need.
Recruiting developers has become time-consuming and expensive. Salaries in the IT sector are rising fast, and you also have to factor in the cost of training and development.
One of the IT outsourcing trends 2023 is set to bring is a continuing realization that the best way to enhance your organization’s software development capability is to outsource it rather than recruit it.
The appetite for digital transformation shows no sign of slowing down, particularly as the business world in general understands the potential benefits of innovations such as AI, AR, and automation.
Enterprises need to stay competitive, and to upgrade their customer proposition at pace. In circumstances like this, it makes perfect sense to seek the assistance of a software development partner, and outsource digital projects to them, rather than join the scramble for tech talent that will cost valuable time and money to onboard and train.
2. Normalization of Remote Working
One of the most significant changes wrought by the Covid-19 pandemic on the global workplace is an understanding – and greater acceptance – that work previously conducted on-site can be just as effectively delivered by teams and individuals based in disparate locations.
Organizations of all sizes now have clear evidence that the hybrid model works, and as such have built it into the way they function.
This trend is not going to change. As time goes by, and the hybrid model continues to work efficiently, companies are unlikely to insist that their teams revert to in-person work.
That in turn means there will be even greater acceptance of the viability of software development outsourcing. By definition, a software development partner will be located away from your business premises.
This will be one of the strongest, and yet relatively unstated, software outsourcing trends now and in the near future. An underlying acceptance that this represents a perfectly normal way for a business to operate will make it easier to outsource software development requirements to trusted and expert service providers.
3. Outsourcing Cyber Security Requirements
Cyber security has become one of the most important topics across the digital space. The ever-increasing sophistication of malware and ransomware attacks means organizations across the world need to respond with robust systems that can repel the threat – and protect themselves against serious commercial consequences.
The shortage of tech talent we referenced earlier is particularly acute in the cyber security space. The shift to remote and hybrid working also has obvious implications around the heightened security risks related to more geographically disparate networks.
With companies struggling to fill roles relating to their cyber security, and the hackers moving at a menacing pace to present ever more potent threats, the idea of outsourcing to a software development partner is compelling.
The speed with which an expert supplier can upgrade your cyber security, at a time when bringing your own recruits on board is challenging, makes this the ideal solution. As a result, we expect this to be one of the strongest outsourcing IT trends of the near future.
4. Acceleration of Digital Transformation
Not only do businesses want to transform their digital capabilities, they want to do it at a greater pace than ever. The need to remain competitive and at the cutting edge will continue to inspire organizations – and that, in turn, will lead to the need to outsource that work to a software development partner.
As we have seen, the speed and agility with which an expert supplier can apply their skills to a business in need makes software development outsourcing an attractive solution to companies in need of assistance.
But in an era when the world is switching on to the potential benefits of Web 3.0, artificial intelligence and advanced automation, it is particularly acute.
We can expect digital transformation to proceed at an impressive pace – and for the demand for software development outsourcing to increase to match that pace.
5. Enhanced Administration of Partnerships
One of the most intriguing outsourcing software development trends is the changing and maturing nature of the relationships between a company requiring technical assistance and the software development partner that provides it.
While the need for speed will remain, greater care will be taken over the selection of an appropriate provider. The possibility that this might have the potential to be a partner that could help with multiple projects makes it important to get the choice right.
That will lead to a focus on due diligence, and on ensuring that software development outsourcing contracts are meticulously prepared.
The increasing familiarity of enterprises with the systems and processes associated with software development outsourcing will inevitably lead to a more mature and sophisticated type of relationship with this marketplace.
6. Heightened Profile of AI and Cloud Technology
Many outsourcing IT trends in 2023 could relate to the ever-rising prominence of artificial intelligence in the corporate space. Different fields such as finance, healthcare, and manufacturing are beginning to feel the influence of AI and the benefits it can deliver.
The ChatGPT chatbot, for instance, has entered mainstream conversation given its potential to provide content in a host of communication contexts.
The increasing acceptance of AI and its associated field of machine learning will be one of the main outsourcing software development trends of 2023 simply because of the demand it will drive.
Agencies, like ZirconTech, with experience in AI can expect to be busy with AI-related projects as companies in a host of locations and industries seek to move swiftly to embrace the enhancements artificial intelligence brings in its wake.
At the same time, many companies will look to embrace the positive changes that Cloud technology can make to their business.
7. Increasing interest in RPA
One of the most intriguing IT outsourcing trends 2023 will bring is an enhanced focus on the potential benefits that might be delivered by Robotic Process Automation (RPA).
There are several ways in which the automation of processes might help your company – and the software development partner you choose.
The combination of factors such as the tech talent shortage, the need for companies to implement digital transformation projects at top speed, and an uncertain global situation influenced by factors such as Covid-19 and the war in Ukraine, will increase the uncertainty felt by companies requiring assistance.
As a result, software development outsourcing providers will use their expertise to introduce automations that enable them to deliver a more effective service, while still ensuring their solutions are tailored to a particular partner.
8. Growth in VR
The increasing prominence of virtual reality (VR) means we can expect one of the software outsourcing trends to be a growing focus on providing VR solutions.
VR enables people to interact with digitally generated – and increasingly realistic – environments.
This has led to a strong interest in VR from the gaming sector –but it also has commercial applications. For instance, it enables people in disparate locations to “meet” as if they are all in the same room.
You may need a software development partner to which you can outsource your requirements in terms of VR. Additionally, VR can also enhance the way in which you communicate and collaborate with that partner when they are working from a different location.
9. Growth in numbers of software development outsourcing companies
Given the clear message that software development outsourcing is on the increase, it should come as no surprise that the number of companies offering this type of service is on the rise too.
ZirconTech is aware of this trend, which has been noticeable over recent years. However, we believe our extensive experience of more than 20 years as an outsourcing software development partner, along with our evergreen focus on excellence and innovation, ensures we will always retain an advantage over the new arrivals.
The increasing complexity of digital innovation, the need to remain competitive, and the desire to move at pace, have all contributed to the growth in the number of providers on the market. This is set to be one of the most significant ongoing outsourcing IT trends in the near future.
There may be occasions when a project comprises so many separate areas that a company may engage multiple providers to cover different parts of the work to be completed.
This is not, however, a trend we experience when ZirconTech is engaged as a software development partner. Our broad expertise ensures we can deliver all aspects of a project – which in turn provides a less complicated experience for our client.
Why ZirconTech is your ideal outsourcing software development partner
There are several reasons why ZirconTech is the perfect choice when you are looking to outsource a software development project:
- We have more than 20 years’ experience in the delivery of outstanding software development projects.
- Over that time, we have built a reputation as a trusted and highly respected source of outsourced software development services.
- We endeavor at all times to deliver practical solutions that can be implemented swiftly, even for the most complex projects.
- We are ardent advocates of agile methodology, and pride ourselves on our ability to select the best agile system for any project to ensure a top-quality delivery.
- Our focus is on creating strong, lasting, and productive partnerships that deliver the digital solutions our clients need.
We are particularly strongly placed to work as a software development partner for businesses in the United States that are contemplating outsourcing digital transformation projects.
- Our location in Montevideo, Uruguay, means we are time-zone compatible with enterprises in the USA – while also having access to a global talent pool.
- That location also ensures a cultural and linguistic fit between us and American organizations.
- Working with ZirconTech will reduce the cost of software development, while simultaneously delivering the improved code quality you seek.
Ultimately, outsourcing your software development requirements to ZirconTech brings a host of benefits. We will be delighted to discuss the particular requirements your business is currently facing – please contact us today!