In the current arena of globalization, offshore software development has become popular. The only driving force is not just cost reduction but the flexible services and innovation forms the basis of implementation of offshore development services. It is adopted for enhancing the quality of operations, scalability, space management and effective risk management.
The Grant Thornton International Business Report (2014) results have confirmed that outsourcing is an emerging trend for businesses, with 40% of business leaders globally and 43% of larger businesses either currently outsourcing or planning to go for it.
The image below shows the service transactions of some regional markets:
- Spain is leading the chart with 70% while 64% of businesses in southern Europe are likely to outsource.
- 51% of business in Latin America
- 48% of business in South Africa and 68% Botswana
- On contrary, only 26% of businesses in Southeast Asia are keen on outsourcing with businesses in the Philippines (4%) and Vietnam (12%) amongst the least likely to be looking at this option globally.
Let’s check out the top trends in offshore software development services.
- Enhanced data security
An obvious concern of business organizations that avail offshore software development services is data security. These organizations believe that outsourcing creates a risk of data theft as security of intellectual property is not certain leading to the threat to company’s important data. This concern has led to World Wide Web to intensify the security risks for businesses emphasizing on the need for data integrity certifications. The security solutions are evolving increasingly to help Offshore Software Development Companies for addressing their client’s security issues and concerns.
- Multiple outsourcing partners
Businesses these days are in very much need of outsourcing their services to various offshore software development companies to run their business operations efficiently. The evolving technology demands the wide range of skills and talents to ease your work in cost effective manner which is impossible without offshore outsourcing.
- Artificial Intelligence and Robotic Process Automation
AI and RPA are definitely going to dominate the IT industries and outsourcing services in coming years. They will help industries to cut down the cost utilized for manpower. Several organizations use AI for serving clients reducing dependency on the manpower improving efficiency and performance.
- New Offshore locations
India and China are leading as the top outsourcing destinations. Various market studies show that 80% of the world’s 500 largest companies rely on offshore teams for their critical operations. With increasing outsourcing demand, more and more responsibilities are shifting to new offshore locations such as Latin America and Asia. However, India offers price flexibility and exceptional quality of services. Therefore it will continue to maintain a top position for recruiting offshore software development teams.
A study by PwC states reveals that India has widest range of options in terms of global outsourcing. India’s IT/ITeS industry has strongly established itself in North America, Latin America and Europe by offering better development and other services. India has maintained its leadership in global outsourcing market despite all challenges with share in global offshore revenue being over 50% since 2009. As per Deloitte’s recent survey, 59% of businesses are already outsourcing to India with an additional 22% planning to go or would consider it.
Evolving IT outsourcing trends will give an enormous boost to the IT industry conveying transparency and reliance to the clients. If you are looking for offshore software development companies for cutting edge-skills and expertise, VGlobal Inc has edge over other Offshore Software Development Companies We provide skilled and cost-effective manpower to outshine your business.
