Blog | Software outsourcing information

Outsource Software Development Trends | Accelerance Blog

Written by Accelerance Research Team | Aug 2, 2023

When it comes to software development specifically, it's worth exploring some of the key challenges that will face the sector in the years ahead and some of the strategies businesses will employ to navigate them.

With Accelerance’s global network in 40+ countries, our trusted advisors have a direct line into the latest software outsourcing business trends. We distilled our experts’ observations down to six high-impact trends that will most shape the challenges and opportunities for software development and outsourcing in the coming year.

 

The six big software outsourcing business waves for 2023 are:

Cost and Right-Sizing Agility 

Even in this business contraction, we are continuing to see a focus on costs and the right sizing team. Outsourcing has returned to its roots as a cost savings and flexibility play. It’s a trend that started during the pandemic and has been holding strong. It’s why 89% of companies in a recent Boston Consulting Group study said they intend to strengthen existing relationships with IT service providers.

 

Developer Shortage Paradox

It’s no surprise recruiting and retaining developers with the right skills is IT leaders’ top business challenge. However even with the reduction in the labor force and lay offs in each sector, these workers are finding jobs quickly. The time-consuming, expensive recruiting process is taking a toll on the software development workforce. At least half of CIOs report that the lack of skilled talent makes it difficult for their companies to grow and compete, and poor retention certainly isn’t helping.

 

Hyper Specialized Tech Skills

IT leaders need help to keep all the skills they need on hand, within budget. Since it’s costly and time-consuming to build or upskill in-house, they’re turning to software development outsourcing. IT leaders can access function-specific domain expertise and cut costs by bringing in specialist offshore development teams at a more competitive price.

 

Hybrid Team Validation

Those who embraced remote work fared best in the abrupt, pandemic-driven shift. Most of our outsourcing partners in our global developer network have already mastered this proven model and are making it an even more integral part of their operation. 

 

Cybersecurity Sourcing Crisis

With internal resources taxed, many organizations are challenged to build and scale cybersecurity teams that fully protect their critical assets. The global cybersecurity workforce needs to grow by 65% to meet the cybersecurity challenge, according to the 2021 (ISC)² Cybersecurity Workforce Study. That’s not happening any time soon, so organizations vulnerable to an avalanche of ransomware, phishing, cloud attacks, and IoT breaches are seeking out trusted cybersecurity outsourcing partners skilled in the latest technologies and methodologies.

 

Multi-Partner Sourcing

Gone are the days of favoring a single partner relationship with development all under one roof in an offshore location. Savvy IT leaders are looking to spread the application portfolio globally, to mitigate against future risks that can upend businesses overnight. Multi-Partner Sourcing is an answer to a question our clients often ask: “How can I make outsourcing even better?” It’s a compelling option for those who have already tested the waters with outsourcing and are looking to take it to the next level. 

 

 

Intel to Help You Survive and Thrive in 2023

The trends reflect a new reality that is influencing industry dynamics toward a laser focus on cutting development costs, scaling resourcing, and securing scarce skills. Some trends are continuing, some are intensifying, and some are new. But all of them need to be taken into account for a future-forward, resilient tech sourcing strategy. Boosting efficiency is not only keeping businesses afloat but is allowing companies to thrive while constantly changing economic conditions. 

Accelerance can source the right software development talent that will future-proof your technology initiatives. You don't have to take on the Great Resignation alone.

Set a free appointment with an Accelerance trusted advisor for experienced advice from the premier global software outsourcing authority® delivering top-tier software development resources and providing professional consulting services.

 

To read more about these trends in detail, download our comprehensive 2024 Global Software Outsourcing Rates and Trends Guide. Our latest guide has the insights you need to manage IT resourcing and costs during a time when the only sure thing is volatility.