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Evolution is an inevitable process in Universe, same is the case with technology whether software or hardware. In today’s era science and technology are evolving at a rate which cannot be described in words. Everyday a new inference and emergence of new technology to further improve human life. Software is one human discovery which has shaped the way business runs.

Software has helped companies and government organizations to scale up the work efficiently and effectively and – if implemented properly - increase security as well as reliability. For example, a manager wanting to refer to some case file of a previous client he need not to search physically within the huge stack of files, instead he nowadays gets access with a few clicks.

Within the IT domain, outsourcing – implemented properly - has become one proven path for high quality software development and to boost innovation. A Deloitte report “2016 Global Outsourcing Survey” states “the market for outsourced services will likely continue its rapid adaption to meet—and in many cases to anticipate—the demands of the customer”. 2016 was a year with a lot of transformation and development in software outsourcing industry. There was some misconception that outsourcing does not work anymore due to shift of technology and emergence of new technologies like Internet Of Things, Artificial Intelligence, Machine Learning etc. If one focuses on a static, old way of outsourcing and does not adapt to change, one is bound to become obsolete. Similarly one has to keep pace with the changing environment to ensure the resulting software is delivering its full value.

Benefits of Outsourcing by Deloitte
Fig 1: Benefits of Outsourcing beyond cost cuttings by Deloitte

Some of the important software development trends to watch out for in 2017 are:

  1. Innovation in IT Outsourcing:
    Those days are gone when outsourcing was only a way to reduce operational costs. Customers are ready for new deals if the software service providers offer innovative services. It is perhaps one of the most important and decisive factor for outsourcing of software development. Customers have become more demanding and do not wish to outsource if they do not get value added services for their money spent. Companies will choose qualified software service providers who can help them to have an edge over competitor’s business through their innovative services. Several Start-ups have come up offering quality services to their clients helping them to increase productivity and efficiency through software outsourcing.

  2. Centralization of IT Solutions:
    Outsourcing undoubtedly provides companies the most ideal option to develop software that optimize their competitive edge and increase productivity. Naturally to get the most out of outsourcing customers have started to focus more on the knowledge of software Service providers in terms of latest technologies, languages and framework. Consequently, instead of hiring several service providers and managing them separately, customers are likely to either build on one service provider with all the solutions at one place or to build on sophisticated partners to orchestrate all their services. This shall be effective and offer high transparency. In short the market is becoming more customers centric and software service providers will face the test of their time on the basis of standardization, lowering cost, efficiency and productivity in offshore/nearshore contracts.

  3. Security is the biggest concern:
    In 2017 more than half of the world population has become aware of cyber-attacks. Service providers will have to prove that they are capable to provide customers with data security services and comply with the latest technology, methodologies and policies pertaining to cyber security. It is a priority in almost every industry. A high level cyber security system will be preferable by all customers. The more there is development in technology, the more risky it will become, hence more effort will be required to safeguard the customer’s objective at any phase of software development life cycle.

  4. Automation:
    Automation is not a new word in IT, but the platform is set to witness huge transformation in how IT Automation will be implemented. The outsourcing industry is moving towards providing a more comprehensive and efficient services supported by automation in software development from planning to execution. Despite the fact that software development or application maintenance is a creative process requiring manual interaction, major parts of the overall process can be industrialized. In addition there are many platforms which provide authentic information on software outsourcing, along with the opportunity to connect with some of the best software service providers around the globe. For example pliXos, set of SaaS tools to automate global software and application development outsourcing has a marketplace which is a popular B2B platform that connects customers and service providers in early stages of an outsourcing process. Accompanied with the SaaS tools pliXos provides an edge to its customers and prevents their contracts to go out of track. Thus, these automations in IT Outsourcing domain especially in the software development will be a great benefit for the customers.

  5. Machine Learning:
    Machine learning will play a major role in future IT Outsourcing processes. As a part of artificial intelligence machine learning is the branch of computer science which gives computers the power and ability to learn without being programmed for each function. Machine Learning is primarily based on prediction making through the use of computers. Many people including the software developers who have not yet placed their hands-on Machine Learning must have experienced it without knowing. For example, in an online shopping portal like Amazon, Flipkart etc. whenever we perform the “add to kart” operation we also get some recommendations on similar products which we might like to add to our purchase. This is a new field and customers in many countries are already fascinated about this discovery. The demand for machine learning will increase and prevail for long in coming years. Few advantages given by machine learning are direct cost reduction, speed, efficiency in operating processes, thereby increasing overall productivity. For example, in an online shopping portal like Amazon, Flipkart etc. whenever we perform the “add to kart” operation we also get some recommendations on similar products which we might like to add to our purchase. We are convinced, machine learning will also change the way governance of IT services is achieved.

  6. Internet Of Things:
    The most talked about technology of today is IoT i.e. Internet of Things. This is a fantastic way to implement the power of software technology for the inter-connection of physical devices, vehicles, buildings, offices, etc. The IoT enables objects to be sensed or controlled remotely across present network infrastructure, creating opportunities for direct integration of the physical world into computer-based systems, and resulting in improved efficiency, accuracy and economic benefit, in addition to reduced human intervention. According to reports from Boston Consulting Group & MarketsAndMarkets the Internet of Things market size is estimated to grow from USD 157.05 Billion in 2016 to USD 661.74 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 33.3% from 2016 to 2021. The report from BCG specifies that “Companies will likely spend some €250 billion on IoT, but they need to know which IoT applications have the potential to deliver the most value.” The best examples IoT are Smart Refrigerators, wearables like Apple Watch and the most awaited Smart Homes

    IoT market forecast by Boston Consulting Group
    Fig 2: IoT (Internet of Things) market forecast by Boston Consulting Group

  7. Agile Methodologies:
    Applying some form of agile methodology in software development is already a popular norm in IT industry. Agile will continue to be visible in software and application development process. According to an article Agile demand and Supplier Management “The basic principles of an agile approach deal with enhanced interaction and communication in smaller teams, also allowing the adoption of the development to changes in the business environment“. By proper scaling the agile approach, also large scale initiatives can provide the expected advantages.

  8. Mobile:
    There is no denying of the fact that there is an immense increase in the use of mobile technology. People spend more than 80% of the time on mobile. According to sources 70% of smartphone users check their mobile phones in morning within the first hour of getting up and 56% check their phones before going to bed. This perhaps has made mobile the most important tool for increasing productivity effectively.

To sum up, along with these emerging trends in software development, there will also be a change in customer’s demands towards the service providers. Hence it goes without saying, a provider who understands that each customer is unique and has to be provided with technologically up to date and all-round services and solutions which fit every need will win over the rest.

Are you preparing for your new software/application? Need expert advice on your outsourcing strategy? We will connect you with some of the best known service providers and take care of your project completely. Register at pliXos marketplace. Start early to finish better.

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1. Deloitte’s report on “2016 Global Outsourcing Survey”

2. Boston Consulting Group


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