The outsourcing market on the whole is undergoing significant changes as companies are slowly beginning to value agility and quality of service over cost cutting. It remains to be explored what this implies for the outsourcing industry and specifically for offshore software development outsourcing in the forthcoming year.
Complexity of Software development offshore outsourcing
Software has evolved and is more complex than ever. Complete connectivity to the web is still a distant ideal. Until that level of connectivity of all devices is achieved the utility of cutting-edge software programs cannot be ignored. Growing popularity of cloud computing and SaaS (software as a service) will drive a further increase in the growth of number of outsourcers used by a single company. Core businesses in practically every industry are powered by some form of software. From the financial sector to the medical industry, there is a heavy use of apps for a range of functions from managing customer information, improving customer service and overall productivity. The Software development offshore outsourcing should focus on data driven decision, better data and cost transparency to understand optimization of services that cloud providers give.
As IT processes become standardized across organisations more companies will outsource run-of-the-mill IT processes or opt for cloud brokerage software. This will enable a better understanding of analytics and automation. Companies today expect a lot more insight from their outsourcing vendors in the form of in-depth analytics. There is also an expectation to get more value for their money spent.
Traditional development vs Coming Trends
Traditional development methods will have to be abandoned and new trends adapted that will shape the way business is done in the future. Design thinking is one such strategy that allows companies to develop software that is customer-centric and catered to their specific needs. The process displays a shift of focus from technologies to customer satisfaction. It involves several stages such as observation, idea gathering, prototypes, survey and testing. This is a holistic approach to software development where experts from diverse disciplines come together to cast their ideas in a single mould. Design thinking will be one of the key driving forces in 2015 that determines the development process. More and more software will be developed to serve the consumer.
Just as more companies lean towards cloud computing and virtualisation of operations, Big Data will also come to play a major role in the future. Large and complex data set requires a processing method that is beyond traditional analytics. Third party offshore vendors may have a much larger role to play in the capture, search, storage, transfer, privacy and security with increased levels of accountability to their clients. The transition to cloud computing will keep users busy as they strive to create software that can better track sales and revenue trends of products. Insight into processes, customers and competitors will play a major role as big data becomes more commercialised.
Software and app testing for quality assurance has already become a major part of the development lifecycle. The IT budget for this all important process is all set to increase this year. The market is flooded with apps and customers will only stick to those that are reliable and efficient. Testing methods will be made more agile through automation to stay competitive in a dynamic and volatile environment.
Open source development has made great headway in the past year and will continue its upward trend this year. Companies have begun to prefer it for its lower costs, agility and quality. There will be some serious consideration of the pros and cons of integrating open source code into their development initiative.
Overall, IT services and software development will be customised to suit individual companies despite standardising certain operational processes. The role of an Offshore software development company will be larger, more complex this year.
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