The Drivers of Offshore Software Development
The offshore Software development trend has been around for a while now. Many IT and non-IT companies worldwide are engaged in outsourcing their software development needs to offshore software development centers due to the various benefits provided by the outsourcing process. One of the leading drivers of this trend has been the reduced cost factor associated with the outsourcing process in general. During the credit crunch caused by the global financial crisis, companies were focused on reducing costs, and the offshoring process helped reduce overheads and improve the outsourcing company’s bottom line.
In other cases, non-IT firms with no or minimalist IT departments also outsource their software development requirements, as developing such in-house often tends to be cost-prohibitive. In addition, the lack of expertise of a company concerning the use of a specific set of software tools/platforms necessary for developing one or more applications is another driver commonly associated with such outsourcing. Such non-IT firms include industries from a wide range of sectors, including but not limited to transport and logistics, education, healthcare, and banking and financial services. However, these sectors and companies within the same industry require unique solutions suited to their needs. As a result, many organizations also follow a blended approach by mixing outsourcing with in-house expertise to develop the necessary solutions.
Leading Offshore Software Development Priorities
Many companies worldwide are developing new software products/applications according to client’s requirements; new software development is expected to account for a major portion of the software revenue in 2012 and beyond. A close second requirement requires companies to upgrade their existing software application by integrating new technologies/modules into their already deployed solutions. In 2012, the integration aspect was expected to gain more ground as new technologies/applications increase the benefits provided to organizations by the current solutions. The main advantages of such integration are the reduced deployment time for the company and the decreased cost of development compared to in-house development.
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The consumerism of IT (CoIT) trend is also beginning to affect the market as users demand a superior user experience delivered by these solutions. As the market for solutions beyond providing basic functionality expands in 2012 and beyond, the focus of many an offshore software development company is expected to shift towards using new technology to develop better User Interfaces (UI) and graphics for solutions deployed earlier in the enterprise. Such development is often classified as custom software development. It is also expected to witness robust growth among offshore development companies in 2012 and, shortly, driven by increased demand across multiple industries.