The Popularity of Offshore Software Development Worldwide

The Popularity of Offshore Software Development Worldwide

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Revolving around the issue of outsourcing work/projects to software engineers at a partner company, there will be a lot of related issues. Mobile app development, web app development, UI/UX design, etc., are just a few of the many tech-related services that may be outsourced.

Among them, probably the most noticeable is the "trending" element, or the fashion of techniques, approaches, applications, and so on employed during the project process. Refreshing oneself by staying up to date on the newest software development trends is also an effective technique for software professionals to learn. In this essay, we will look at the popularity of offshore software development worldwide. Let us explore!


The Rapid Increase in Demands of Utilizing Offshore Software Development

As more software outsourcing businesses sprung up in small nations with low labor costs and low living conditions, the notion of “offshore development” gradually became a reality. These businesses progressively expand and flourish in a good direction, sublimating in terms of service pricing, engineering skill, and a variety of other "popular" characteristics. Their success now serves as a springboard for developing and molding offshore software development services to a new level, something that is more professional and cutting-edge in order to keep up with the times' lifestyles and demands.

However, the success of such outsourcing firms provides an indirect solution to the question of why the technological powers have such a scarcity of human resources. Indeed, low birth rates for decades are seen as the main reason for this. Mr. Thanh Pham – CEO of Saigon Technology, shared “: We can readily predict that the shortage of developers has occurred owing to the rapid growth of the IT sector, the number of software engineers who can assist handling workloads and new technologies and ways of working would be restricted.” CNBC News reported in November 2019 that there are around 920,000 vacant IT vacancies. According to the research, the number of vacant positions in the sector is compared to the number of candidates in the field, including alumni from coding training centers and computer science schools each year.

The offshoring model, which became popular in the early 2000s, has altered several global sectors since then. Businesses may now acquire specialist talents and grow quickly, when before it was viewed as a cost-cutting measure. These IT outsourcing trends to watch over the next few years are a result of the rapid increase in the number of companies that operate with offshore teams.


Insights on Global Software Development Trends

1.     The higher priority of Data security

Business owners that outsource their software development requirements to nations throughout the world have been concerned about data security for a long time. Data security is a concern for many companies when they outsource to a foreign jurisdiction.

This doesn't imply, however, that all 3rd party firms are trustworthy, and falling into the traps of a fraud company might result in the disclosure of trade secrets. With the advancement of technology, we now have a more thorough understanding of the security concerns that organizations face today.

2.     A growing need for skilled Software developers

A lack of in-house knowledge, on the other hand, has existed. However, this can be mitigated by outsourcing the needs to nations outside of our boundaries. Certain skills are needed now and then in anything from cybersecurity, cloud computing to AI to blockchain and cryptocurrency. This is due to the rapid development of new technology and the scarcity of trained workers.

3.     Growth in the use & adoption of Collaborative software

May we all know that communication plays an important role in the whole project. As of late, collaborative technologies have helped many teams achieve shared goals. Due to a growth in offshore development projects, various collaboration technologies have emerged for offshore and onshore teams to use. To bridge local and offshore teams, digital solutions are becoming increasingly popular. Businesses who operate with an offshore workforce no longer have to worry about misunderstanding, time management, and expenses thanks to the use of contemporary collaboration technologies.

4.     Virtual business environment

Software developers are now able to work for a firm as workers because of the advancements in technology and applications. Project management tools and efficient programming have made the method of real-time monitoring very simple and straightforward to use. Aside from increasing a company's overall efficiency, outsourcing reduces capital expenses, improves competitiveness, and allows for greater flexibility.

There has also been a shift in the IT outsourcing industry towards automated business operations. For offshore software development in 2021, business process automation ranks third after Artificial Intelligence and Robotic Process Automation (RPA). CMC Global foresaw this growth in global workplace automation a few years ago. The usage of bots or virtual assistants may now be successfully included in the working routine thanks to the engagement of big and reputable outsourcing service providers.

5.     A wider range of Outsourcing options

As IT expenditure increases, more and more firms are outsourcing software development. As a result, outsourcing has made it easier than ever to find the right person for your project, whether it's a project manager, an IT expert, a designer, or a project leader. In the software business, new technologies such as augmented reality, virtual reality, and blockchain are just a handful. AI, blockchain, machine learning, and cybersecurity are some of the other technologies. Development of computer programs These technologies must be familiarized with by personnel hired by outsourcing businesses.

6.     Cloud computing leveraged

While cloud computing has been around for a long time, it has only lately acquired appeal among organizations that outsource their IT project requirements. According to research performed by the International Data Group (TDG), about 69 percent of firms utilize this technology in some form. Also, firms that employ cloud computing tend to expand their revenue 53 percent quicker than their competitors.

7.     Cryptocurrency

It was in 2017 that blockchain technology became a major force in the digital realm. Health care institutions, the telecom sector, and media organizations are just a few of the places where this movement is gaining traction. Blockchain has played a unique role in the IT outsourcing business, no doubt about it. The adoption of blockchain technology has been anticipated by a wide range of industries, from healthcare to journalism.

Blockchain has certainly piqued the interest of financial institutions and banks, but it has also caused quite a stir in today's IT sector. There are several advantages to using blockchain technology, including decreased costs and complexity, improved flexibility and speedy digital transactions, as well as reduced risk of data duplicating.

8.     Robotics

Human involvement and reliance on the unpredictable nature of personnel availability may be decreased by effectively utilizing automation technologies and robotic operations. A growing number of businesses are turning to technological resources deliberately and diligently in order to leapfrog their whole operational workflow into something that has the ability to speak, interact and effectively execute their own decisions. Automated processes may now be carried out with ease thanks to Artificial Intelligence and the Internet of Things (IoT).


Bottom Lines

Following well-planned strategies and staying aware of developing IT offshore trends, businesses will have the necessary ingredients for success, regardless of any obstacles that may occur. If you are planning to build a professional offshore software development team in Vietnam, then, Saigon Technology is the one!

  • Contact us right today to get a free quote & consultation!

It has taken Saigon Technology around ten years to establish itself as one of the most well-known software outsourcing businesses in Southeast Asia, specifically Vietnam. Since its founding in 2007, the company has hired more than 400 highly skilled programmers with experience in Ruby on Rails, Java, PHP, .NETCore, ASP.NET and AngularJS, ReactJS. Numerous organizations of ours are from major nations such as the United States, Canada, France, Australia, the Netherlands, Germany, Ukraine... and have adopted offshore software development as the most cost-effective and scientifically proficient development alternative for them...


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