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Offshore Software Development Trends in 2012

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 software in-house often tends to 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, each of these sectors and even companies within the same sector require unique solutions suited to their own needs. As a result, many organizations also follow a blended approach by mixing outsourcing with in-house expertise to develop the necessary solutions.

Offshore Software Development Trends in 2012 1

Leading Offshore Software Development Priorities

Many companies worldwide are currently engaged in developing new software products/applications according to the requirements of clients. Therefore, 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 benefit of such integration is 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 that go beyond delivering 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 that were 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 the recent future driven by increased demand across multiple industries.

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