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Six Software Outsourcing Trends what would Change Business and IT in 2019

Offshore software development continues to be much hyped these days. One of the most preferred destinations when it comes to offshore software development is of course India. As the IT hub in the world, organizations of all sizes and types flock to India to get their software solutions done.

Offshore software development has taken the center stage by successful development and implementation of enterprise level apps. The information technology industry is growing by 40 percent each year because of the tremendous growth in the demand for offshore software services. India plays an important role in the boom of software development. By providing a huge pool of highly skilled resources, low costs and IT infrastructure, outsourcing in India has taken around 20 percent of the market share in the world for the software development service field. Companies in the country are successful in meeting the work time zone, language, cultural and understanding barriers while communicating with business organizations in other countries.

Nowadays, there are a lot of available standards for the software industry. A software project or company could choose the one that best fits the needs and requirements for success. Modern software solutions and products are faster, accurate and cost effective. They have a lot of other synonyms since they are engineered under the chosen formal techniques for boosting the product quality of a software development effort.


Outsourcing software development in India is a huge market. Services providers in the country are proficient in giving the IT, physical, HR and legal infrastructure with cost benefits. An outsourcer could reap the highest benefit since they are saved from investing in infrastructure and could hire highly experienced outsourcing software development companies at cost effective rates. A good software development company offshore provides on demand staff augmentation, providing surety that the company is process drive and is able to fulfill urgent requirements. These facilities or factors are responsible in making offshore software development in India more favorable and more customer-centered.


Software outsourcing services are based on remote operations as well as highly depends on communication. Indian service providers make sure that communication remains continuous via a robust IT infrastructure. India is recognized as the best country that’s equipped with high end IT outsourcing organizations. It is exporting IT services to nearly 95 countries all over the world, voted as the most preferred and best IT outsourcing destination all over the world.


Changes in the global technology landscape would bring new levels of support and expectations for enterprises and outsourcing organizations. Amid a technology talent gap, a lot of organizations have turned to outsourcing IT to accomplish tasks, like big data presentation and cyber-security to save on costs and free up current employees to accomplish other tasks. The global IT outsourcing market in 2017 amounted to $88.9 billion and set to hold steady this year, especially for business services, healthcare and energy.

The following are six predictions of software outsourcing in 2018:

1. Traditional captive centers would decrease. Businesses could expect a decline in captive centers, as the labor costs difference starts to vanish, and worldwide companies could not provide salary increases and growth to the workers, which could lead to low productivity and high turnover. Rather, organizations should turn to an outsourcing partner that could take the form of a joint venture with an existing IT offshore company, or partnership with more delivery options control. An offshore partner could manage growth in career and salary expectations, while the business itself gets more control on security and delivery.

2. Growth of emerging technology would rise. As more and more companies look to adopt technologies, such as IoT and blockchain and the need for skilled developers grows, they could turn to offshore providers, who would have to find a scalable solution for creating development teams, with skillsets that are in demand. The providers would have to invest in employees with skills around cloud deployment, as well as big data.

3. Partnerships would be more critical. Companies look for technical support abroad because of lack of budget or skills to find a partner who could understand the current requirements and anticipate what they may need later on to meet business objectives. This requires the offshore service provider to not only have staff with technical skills, but act transparently and work with the organization to meet business goals as well, something that is not considered before.

4. IT skill shortage would intensify. As more and more businesses are driven by technology, the demand for skilled IT workers would continue to grow this year. This drives companies to turn to outsourcing software services. This could result in heavy demand for key skills such as open source, mobile and Microsoft software development skills for offshore partners. Programmers and developers with specialized skills in newer technologies would even be harder to find and network resources/infrastructure would be high in demand as well.

5. Organizations would focus more on value and less on the cost. Although most businesses outsource IT talent because of costs, they are more and more focusing on the value of services provided by the firms. The customers today are fully aware and highly educated of any failures related with outsourcing. This, along with the need to deliver timely IT solutions, would boost the need to provide better value to clients with transparency. Business organizations would have to pay more for high-quality service providers, but they would see value in doing so.

6. The rise in the demand for soft skills. While hard IT skills would continue to be in demand, soft skills would also be more important this year. These include teamwork, communication and leadership, which all contribute to the success of software projects. In the lean scenarios of future engagements, there’s no place to hide. Developers should be prepared to fully acquire the skills, hard and soft, required to compete in the marketplace of tomorrow, which is what client would demand.

Outsourcing software development would only grow this year, as organizations continue to find cost effective but highly effective software solutions, which they could find in offshore service providers.

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