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9 Software Outsourcing Trends for 2022

The term “software outsourcing” refers to situations in which a business needs software it is unable (or unwilling) to create on its own, so it engages another firm to create the software instead. This, of course, includes IT consulting services.

The possible reasons for outsourcing can be multifold. A business might either lack the resources (in terms of money, time, talent, etc.), or it wants to invest in quality and delegate the job to high-end professionals. 

Software outsourcing companies make apps and programs, but they usually offer many other services other than the development itself. They can also improve existing systems in terms of design or safety for example, or provide support for software maintenance.

Thus, outsourcing also means access to experts’ advice and know-how, otherwise unavailable to the company using the app. 

Considering the general trend of going digital due to the COVID-19 crisis, it is reasonable to expect a further increase in demand for IT services in 2022. Here are top software outsourcing trends we expect in the following year.

#1 The World Will Need More Engineers

Currently, there are more vacancies in the IT industry than there are skilled engineers. And almost every part of the developing world faces the same shortage in expertise.

This means software outsourcing companies, being engineer talent pools, are expected to thrive in the following year. As they are experts in networking and locating the best talents, outsourcing will be able to fill a significant gap in one of the most rapidly developing industries. 

This is a great opportunity for developing parts of the world. The word software outsourcing usually brings to mind countries like India and Romania. This is because these countries provide excellent experts at very competitive prices. 

Software outsourcing in Latin America, for example, experienced significant growth in recent years. High-level expertise, cultural and geographical closeness, as well as same time zones, are what makes companies from Latin America perfect nearshore software company partners for clients from the north.

#2 Data Science and Analytics Are Gaining Momentum

Data science and analytics might be one of the heftiest niches for outsourcing for the years to come, 2022 included. Big data is becoming increasingly important. Developing software for gathering and analyzing data will be essential for optimizing business performances in the future.

Some have foreseen the trend, and there is an increasing number of outsourcing companies that have specialized in developing data analytics platforms.

Data science is irreplaceable in project management and marketing, for example. There is an ongoing debate on internal marketing vs external marketing benefits, but guess what – in both cases, the campaigns are based on data analytics results. 

At the same time, the outsourcing companies also have an increasing demand for data science software. Simply put, developing this kind of platforms could be a golden opportunity to seize at the moment.

#3 Smart Machines: Artificial Intelligence Is Here To Stay

AI is a buzzword for a reason. While there could be issues around its efficacy and implications, it most certainly has great potential. It doesn’t only offer amazing solutions for many social problems at the moment. Businesses are also on the way to realizing its vast potential for their needs as well.

Another good news about AI is that it is a new technology. In the context of rapidly growing demand, AI know-how is going to be a rare and extremely valuable commodity in the future. More and more companies will be in need of AI but will have to outsource developing and implementing it in their software due to a lack of expertise.

During and after the pandemics, less human involvement proved to make processes more resilient, effective, and faster. As artificial intelligence is mostly employed in automating repetitive processes, you can imagine the need for it in the future.

#4 Flexibility of Workforce 

The lockdown has shown another thing to all of us: how easy and convenient it can be to work from home. During the lockdown(s), we were pretty much forced to do it. But now that we experience openings, and there is something to do outside, the convenience of it becomes even more relevant.

If we speak of it from the perspective of software development and outsourcing, we have to remember how teams function if employees are on their couches. They communicate, manage projects, execute tasks – all that through some kind of software.

At the same time, as online communication and remote work become more or less a normal thing, it is getting increasingly easier for businesses to reach and employ outsourcing companies from far away. 

Offering remote work to your employees should be adopted as a regular practice. But also, there are ways to offer your employee’s expertise to your clients as well, and not only apps and software. This can be done through quick and easy staff augmentation procedures, which are expected to further develop throughout next year.

#5 Cloud-based Services

We already mentioned the importance of data. With so much data available, it is simply impossible to store all that on hardware. Hence the rise of cloud-based services in previous years, and this trend doesn’t indicate any signs of decline in 2022.

Many businesses and companies already use cloud apps, there’s nothing new about that. However, these apps are often very demanding and mostly need a desktop platform to work. 

In the age of cross-channel communication, we need these apps to work on mobiles and other devices as well.

This is a great challenge for companies, but a great opportunity as well. The demand for cloud-based services is only going to grow in the future because they allow significant cost reductions. If cloud is employed, there is no need to buy and maintain large systems of hardware, and at the same time, it enables developers to be much more efficient.

The transition to cloud computing will result in rising needs for cloud-based software tools for development, like object storage, containers, and databases that enable these.

#6 Agile Practices and DevOps 

In 2022, a successfully implemented DevOps will become a serious competitiveness advantage in the market. 

The IT industry is rapidly growing, but so is competition. How fast we are in developing software and platforms is going to be crucial. DevOps basically requires a closer collaboration between different teams working on app development. This primarily refers to development and operations teams, but can (and should) also include QA and security teams as well.

These teams should work as closely as possible, develop highly efficient communication, in order to deliver as fast as possible, without any repercussions for the quality of the output. This level of efficiency is of course not an easy task, but it would be good to think about it in order to keep up the pace. So, it would be a good idea to create project roadmaps to successfully achieve your DevOps objectives in 2022.

#7 Security Comes First

The public has been alarmed about serious online security issues for quite some time now. Increased online presence leaves lots of personal data online, and many people are consciously trying to clean up their digital footprints. 

Thus, data security and resilience to security breaches and viruses are some of the most important trust factors for users worldwide. Security comes first in every domain, from email signature management, to safeguard protocols protecting online purchases.

Therefore, the ability to guarantee the safety of software comes to the forefront. Any issues in this domain can be very costly, for both your client and your reputation. That being said, it could be a good idea to find a partner knowledgeable in ISO27001 certification to improve the safety and resistance of your products.

The security of an app directly correlates with overall business performance. Various ROI of pentesting calculators could help you find out how valuable it can be to invest in safety in 2022.

#8 Talent First, Cost Second

Skill, experience, and knowledge create value. Businesses are very well aware of that. Skillful people in the domain of IT are still scarce, and you should be prepared to offer the best possible conditions to them. This shouldn’t be hard to do, as your clients will most probably be more concerned with the expertise of your team than the price of your services. 

This of course doesn’t mean the price doesn’t matter. The thing is that it comes second. The market has a very high demand for software. Businesses will ask for anything from e-commerce platforms, entertaining augmented reality apps to the best webinar software. Your clients will want to have a full package of services, guaranteed security, etc. To be able to provide this, you need experienced people working in teams. 

Therefore, make sure you have the best possible experts working for you, and don’t be afraid to ask for a bit higher prices. Companies will be more than happy to pay more for outstanding and fast delivery.

#9 Specialize And Multitask

Life is getting increasingly fast, and so are businesses. Expect your clients to be in a hurry, which means they won’t have much time to waste finding multiple partners for different services.

On the one hand, if you choose a specific niche, you will operate within a bound market. It is going to be easier to find new clients after you’re in the game for some time and the word spreads out. 

At the same time, your employees will hone their skills to perfection if dedicated to only one particular kind of software. Although programming is essentially the same for any kind of app, staying within a niche implies better knowledge of the market, particular needs, and procedures.

On the other hand, the more services you can provide within your chosen niche, the more attractive partner you will be. Design, QA, deployment support, testing – all these should be on your menu. 

Final Thoughts

Whichever niche you choose – data analytics, B2B marketing platforms, or video editing software – you can rest assured that outsourcing will continue to thrive in 2022. 

The basic reason for this lies in the fact that outsourcing substantially reduces the costs of software development, and this will continue to be true in the future as well.

Latest technologies, as well as enhanced security and elaborated project management, are what should be on your mind in order to fully benefit from 2022. Whatever it brings, the demand for talented and experienced engineers will only grow. 

As the business environment increasingly becomes digital, tech know-how will be necessary for the world to keep running.  E-commerces develop and new technologies continue to find new purposes in businesses, which are all good signs for outsourcing, especially for developing countries.

At the same time, multitasking and fast delivery are going to help you stand out and attract the best customers. Time becomes more valuable than money itself, so make sure to focus on improving your team management.

Author: Nina Petrov is a content marketing specialist, passionate about graphic design, content marketing, and the new generation of green and social businesses. She starts the day scrolling her digest on new digital trends while sipping a cup of coffee with milk and sugar. Her white little bunny tends to reply to your emails when she is on vacation.