6 Emerging offshore software development trends (Part 1)

Top #6 Offshore Development Trend

Offshore Development Trend #1: New Offshore Locations

India enjoys the position of being one of the world’s top offshoring destinations. According to market studies, roughly 80% of the world’s 500 largest companies depend on offshore teams for their operations. As demand for outsourcing continues to grow, more and more tasks are moving to new offshore locations in Latin America and Asia. For example, the Philippines is expected to turn into a popular choice for offshoring. It is already famous for its BPO services, thus recruiting offshore development teams from the country would help foreign organizations jump-start their business. However, India continues to remain a premier destination for recruiting offshore software development teams due to significant advantages such as price flexibility, an attractive array of IT policies, exceptional quality of services, and technological availability.

Offshore Development Trend #2:  Enhanced Data Security

A longtime concern for businesses that recruit offshore development teams is data security. A lot of organizations see outsourcing as opening itself up to the risk of data theft as protection of intellectual property is not guaranteed which, in turn, could lead to the compromise of their trade secrets. The evolution of the World Wide Web has further intensified security risks for businesses, both in-house and otherwise. The DSCI (Data Security Council India) Annual Information Security Summit held in December 2017 brought to light the growing need to address the security issues. This summit led to companies, specifically in India, stressing on the need for data integrity certifications. With the dependency on offshore increasing, security solutions are rapidly evolving to address customer concerns.

Offshore Development Trend #3: Cloud-Computing Technology

Though Cloud Computing has been around for a little over two decades, it has begun to gain popularity only in the recent past.

A study that was conducted by International Data Group (IDG) stated that 69% of businesses use cloud-computing technology in some capacity. Another 18% of businesses are looking at implementing cloud-computing solutions to enhance the quality of services provided. It is said that organizations that invest in cloud technology enjoy 53% faster revenue growth as compared with their competitors.

Cloud computing ensures a dramatic and significant increase in overall profit and customer satisfaction. Incorporating cloud computing automatically makes the business reliable, with most services maintaining an uptime of 99.9% on an average. This leads to the services being available 24×7 and cloud-based applications can be launched anywhere, at any point in time. Cloud also offers flexible facilities which can be tweaked depending on the circumstances of a user. This would mean that the capacity of a cloud-based service can be shrunk depending on the needs of a user, which in turn leads to a reduction of costs for the business.

Other advantages of migrating to cloud computing include automated updates, enhanced security and collaboration. It is expected that cloud technology will become one of the dominant trends in outsourcing over the next few years, with offshore development teams focusing on increasing productivity using cloud technologies.