The users nowadays access software applications on many devices and platforms. A software application needs to deliver optimal user experience across different browsers, platforms, and devices to remain relevant, popular, and profitable in the lone run. Most enterprises lack the in-house infrastructure and talented IT professionals required to build, test, and deploy complex software applications. Most enterprises opt for outsourced product development to build custom software applications in a fast, flexible, and convenient way.

Some enterprises opt for outsourced product development to reduce development cost, whereas others outsource software development to launch a high quality software application. But the landscape of outsourced product development also has been changing consistently. The landscape is also shaped by the existing as well as emerging trends in outsourced product development keep changing from time to time. Many enterprises nowadays look for a reliable outsourcing partner who will develop, test, deploy, maintain, and update the software efficiently. Also, the enterprises emphasises on a number of factors to accelerate outsourced product development.

Trends that Shape the Current Landscape of Outsourced Product Development

Emphasis on Outcome instead of Cost

In the initial years of globalization, many enterprises were opting for offshore software product development to save money. But most enterprises nowadays focus on a number of factors other than development cost while comparing outsourced product developers. The outsourcing strategy of many enterprises focus on improving quality of the software, availing superior scalability, deploy skilled professionals, and enhancing business flexibility. Most enterprises nowadays look for an outsourcing partner who will help them to build, maintain, and update the custom software over a period of time.

New Software Development and Delivery Processes

Many enterprises opt for outsourced product development to keep the software development process fast, flexible, and scalable. Many enterprises nowadays prefer IT companies that implement robust software development and delivery processes like agile and DevOps. While outsourcing software development, many enterprises want to take advantage of agile methodologies to get custom software applications tested throughout the development process. Also, many companies opt for IT companies implementing DevOps to build, test, and deploy the custom software application more efficiently.

Mobile Optimization

As highlighted by several studies, consumers nowadays spend most of their digital time on mobile devices. Hence, most enterprises nowadays opt for outsourced mobile app development to impress and engage modern customers. At the same time, many enterprises also hire offshore IT companies to optimize their existing software applications for varying mobile devices and platforms. Certain enterprises even opt for outsourced software development to extend their existing enterprise application and solutions to mobile devices. But each enterprise requires its outsourcing partner to test the software applications across various browsers, platforms, and devices.

Cloud Computing

The cloud platforms enable enterprises to carry on business activities and trading without creating and maintaining in-house infrastructure. A steady increase is being noted in the number of enterprises switching to cloud computing to reduce cost and improve scalability. Many enterprises even explore ways to build, test, and deploy custom software applications in the cloud. Most enterprises nowadays opt for outsourced software development to take advantage of cloud technologies. In addition to developing, testing, and deploying the software in the cloud, the outsourcing partner also needs to deliver custom cloud applications and solutions according precise needs of each client.

Data Analysis

Each enterprise nowadays explores ways to boost sales by improving and personalizing customer experience. It needs to collect customer data consistently from various sources, and analyze the data to identify the choices and preferences of individual customers. Businesses nowadays require software applications and solution with the capability to collect and analyze large amount of data. Many enterprises opt for outsourced software developers with expertise in creating big data solutions. Also, many businesses want their outsourcing partners to embed data analytics and business intelligence tools into various enterprise solutions to accelerate customer data collection and analysis.

Security

The disruptive cyber attacks recently compelled many large enterprises to take their websites and mobile app temporarily offline. Several studies even show that each web application and mobile is vulnerable to targeted malware attacks. Hence, most enterprises nowadays focus extensively on security while opting for outsourced software development. While evaluating the outsourced software developers, they check how the company is planning to keep the business and customer data secure. The enterprises even require their outsourcing partners to perform elaborate security and penetration testing to identify and eliminate all vulnerabilities in the software during the development process.

Multi Sourcing Technologies

The modern software applications need to interact with various third-party applications and services to deliver rich and personalized user experience. Hence, en enterprise has to integrate a variety of third-party applications and services with its software. The multi-sourcing of technologies make it difficult for enterprises to run and maintain their software. Many enterprises nowadays look for outsourcing partners who will handle emerging issues and challenges related to multi-sourcing technologies promptly. They also require the outsourced software developer to integrate the right services and applications in the software, and test each third-party solution thoroughly. Hence, outsourced product developers nowadays have to support and manage multiple sourcing technologies in addition to developing custom software applications.

Long Term Partnership

A steady increase is being noted in the number of large IT companies renewing their outsourcing contracts. The figure also depict that most enterprises nowadays prefer long-term outsourcing partnerships. Most enterprises want to select an outsourcing partner who will help them to maintain, manage, and update the software in the long run. While renewing outsourcing contracts, many enterprises switch from fixed price models to outcome-based models. The enterprises even expect the outsourcing partner to support and manage the software by deploying dedicated professionals.
However, the trends in outsourced product development keep changing frequently. Each enterprise nowadays looks for companies who build customer software with latest technologies. Also, the businesses perform initial research to choose a company who will build, maintain, and manage the software in the long run. Hence, the emerging technologies and trends will keep changing the landscape of outsourced product development in both short and long runs.