What are the Top Software Development Outsourcing Trends for 2021

What are the Top Software Development Outsourcing Trends for 2021

2020 was the year that has forced humankind for the 180-degree adaption. Things that were unfamiliar to us suddenly become routine in the new normal. With offices closed, travel halted, businesses operated online, 2020 had changed the perspective. With this trend, outsourcing achieved new heights. We expect that the new normal will soon not be going anywhere. We know outsourcing is not an alien concept, but there are certain changes in its trend after 2020 that you must know. If you are an entrepreneur or decision-maker, then you must go through this piece of writing as we here take you through the top software development outsourcing trends.

What is software outsourcing?

Software outsourcing is a setup where the organization hires a third party vendor who is capable to carry out different software development work efficiently. It helps the organization to cut down several costs including the cost of managing resources, maintenance cost, and several other costs.

Checkout some important statistics

  • It is expected that by 2027, the outsourcing industry will reach $405.6 billion.
  • Outsourcing helps to reduce the average 15% cost of a company.

Let’s get ready to delve more into top promising trends for outsourcing software 2021:

1. Boost in blockchain services

Blockchain technology is one of the emerging technologies in the world, with predicted spending of $16 billion annually by 2023. With the more digitalization of the world, the risk of data theft, data manipulation is getting high, and to solve this problem, a blockchain is a viable option.
Boost in blockchain services
So basically it is a digital ledger that records information in a way that it is difficult(almost impossible) to hack, steal, or cheat the system. Its decentralized database is maintained by multiple participants known as Distributed Ledger Technology (DLT).
Benefits of blockchain
  • Without third party involvement, it does directly all transactions;
  • With its decentralized network, it offers better system’s transparency;
  • Entered data can not be reversible;
  • Without human interference in verification, accuracy stake gets higher;
  • Decentralization makes it difficult to tamper with data.
With the increased usage of blockchain technology, it becomes difficult to meet blockchain talent. Companies are now competing to hire the best talent of the field with a high package and additional perks.

Contact us for develop trending outsourcing software 2021

2. Specialized Boutique Software Companies

With the changing demand for IT services, it becomes difficult to hire all talents in the company. Some prefer to deal with a single outsource company, while few prefer multi vendors for their project. But there is no denying as clients prefer or need narrow specialization companies.
Instead of searching for the jack of all trades, now companies are focusing on niche specialists who can deliver quality service. The demand for niche specialists will remain high even in the coming years since specialized one brings quality to the assigned project.

3. Global cloud computing market

The size of the global cloud computing market from 371.4 billion in 2020 is expected to reach USD 832.1 billion in 2025. With the increased work from the home model in 2020, the demand for Software-as-a-Service, for instance, Microsoft Team platform users increased to 44 million worldwide due to a hike in collaboration solutions. Even the growth of PaaS, SaaS, and IaaS markets is 24% annually.
Global cloud computing market
Cloud computing ensures faster data operation, data protection, the capability to modernize business processes in different business models and apps. With an ever-increasing size of the data, the need for outsourcing cloud computing services also increases. Leading companies like Alibaba Cloud, IBM, Cisco are investing in spreading awareness about cloud computing.

4. AI is a new lifeline

AI is a new lifeline
Artificial Intelligence is already making noise for some time. According to IDC, global spending on AI in 2021 will reach $57.6 billion. AI will generate revenue of $126 billion a year by 2025. AI is already thriving in industries like financial services, automotive, retail, telecommunications, and internet services.
With it, the demand for AI talent is also on the rise, as the demand has doubled in the last two years.

5. Rise of cybersecurity

Rise of cybersecurity
Data, data, and data. It is the utmost important asset in today’s world. With the increased dependency on data, the threat related to its confidentiality is also on the rise. While cybercrime is rising, more and more companies will invest their money to become compliant with General Data Protection Regulation.
Rise of cybersecurity
Many giant companies are looking for the utmost cybersecurity services for their software. With each company moving towards digital dependencies, the threat for its security is rising each passing day.

6. Utilize the power of PWA

Utilize the power of PWA
When talking about the software development outsourcing trend, Progressive web application comes in recent development. Progressive web application(PWA) falls between a website and mobile application, it operates on the website browser, so you do not need to download the application and its demand is getting high. It can save data on the user’s device in the cache. Many leading brands like Twitter, Facebook have already introduced PWA for their company. With the rising demand for PWA, businesses are looking for outsourcing companies to employ PWA.

7. Growth of Augmented Reality

Growth of Augmented Reality
Augmented Reality in 2020 was valued at USD 1.98 billion and it is expected to register a CAGR of 151.93% over the forecast period (2021 - 2026). AR is very much in use in industries like gaming, healthcare, e-commerce, finance, tourism, and the list goes on. The demand for AR and VR companies is increasing day by day and software companies are in constant need of talent with AR and VR expertise.

8. IoT

With the growing digital age, IoT is no longer a future technology like smart homes, smart gadgets are no more an alien term. IoT is already making people’s life easy in various industries including healthcare, finance, game, e-commerce, security, etc. With the increased adoption of advanced technologies, the demand for IoT talent is increasing. Big brands like Google, Facebook, Cisco, Dell are investing heavily in IoT applications.
Governments of various countries are heavenly investing in developing smart buildings, cities and private players are trying to fulfill the demand. Cities like London, Copenhagen have already implemented IoT-driven applications and it is expected that the investment will be nearly 1.1 billion by 2022.

9. Expanding outsourcing zone

The demand for outsourcing software development is directly influenced by the cost, but in 2021 companies will mainly focus on quality instead of just low prices. Ukraine, Belarus, Poland are the favorite destination for the offshore development project joining Central & Eastern Europe.


To share risks and create better value for the organizations, outsourcing software development is an ideal solution. With the ever-changing technologies, it becomes difficult to meet all technological demands and to employ in-house teams. What is your take on outsourcing and what are different trends according to you are implementing the outsourcing industry?

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