Do you remember the time when software engineers were perceived as strange geeks who never left the cave and did extremely strange stuff with their computers? These times have long been in the past, and now, software development is the biggest industry and the main technology driver in the world. Everyone who wants to run a business, conduct social activities, or just self-express sooner or later faces the need to build reliable software, be it a website, mobile application, or a complex enterprise system.
When you ask people nowadays what IT is, most of them will call Google, Meta, Apple, Tencent, and other tech conglomerates. That’s true, as these tech giants are the biggest companies in the world with the most significant capitalization and market influence. However, when you try to build your own website or application, Meta won’t be that useful, probably; you will certainly need your own development team in order to build the product of your dreams. In this case, hiring a house team, which is also associated with the human resources administrative burden, benefits and training systems, and other numerous routine problems, can be a questionable solution.
Here, in situations when you need developers but don’t want to start your own team from scratch, you think of outsourcing software development company that can help you build your product cheap and fast.
IT outsourcing market in 2024
In fact, outsourcing is a well-established industry with its own set of rules, not just a crutch. Let’s check some numbers. According to Gartner, the IT services market is estimated at $1.5 trillion, while according to Statista, the IT outsourcing market is estimated at more than $0.5 trillion in 2024. We can see that IT outsourcing services account for more than a third of the overall IT market numbers. And the ratio of these numbers has remained more or less the same for the last decade.
Key elements shaping IT outsourcing trends
A very short disclaimer. First of all, we need to name one thing, which can be called background rather than the trend of the market: AI. Here, we will neither delve into the role of AI in outsourcing development, nor promote AI development services, nor spout into the best tools that can change how services are provided. AI-driven solutions are a topic that definitely deserves a separate article, but it’s not for today. We should also ignore economic considerations and geographical constraints. Of course, such a factor as geopolitics influences IT outsourcing trends, but again, that’s another topic.
Game-changing IT outsourcing trends for 2024
New outsourcing areas
Although we don’t want to speak about AI in this article, there is still one indirect nuance to cover. Expansion into new areas of development services, particularly in artificial intelligence, machine learning, data analytics, more complex IoT systems, etc., is a notable IT outsourcing trend itself. Outsourcing firms with expertise in AI, ML, and data analytics are in prime positions to meet a growing demand. The range of solutions offered by outsourcing companies is quite broad, ranging from customer behavioral analysis to predictive maintenance, fraud detection, and personalized AI-driven customer experience, but we will return to Big Data a bit later.
Another growing outsourcing area is business process outsourcing (BPO), where companies delegate entire operational areas, such as customer service, HR, accounting, and even marketing, to external providers. This evolution marks a shift from traditional IT services to a more holistic approach, covering most development areas. BPO enables organizations seeking outsourcing partners to focus on their core competencies and strategic initiatives by offloading routine but critical processes to cost-effective external experts.
Further growth of cloud-native solutions
You can easily notice that the enthusiasm for cloud solutions is still here in 2024. This IT outsourcing trend has invariably been at the top for the last several years. The market of cloud-native technologies, designed to integrate with cloud computing more easily and even more seamlessly, grows like a weed. Same with cloud cost optimization tools, as companies are looking for ways to reduce operational costs. From relatively new things (even for the cloud), we would like to mark Platform-as-a-Service (PaaS) solutions that allow companies to develop, run, and manage applications without the complexity of building and maintaining the underlying infrastructure (we have previously written an article about FEaaS solutions, as a part of this trend), as well as vertical-specific cloud approach that simplifies the adoption of cloud technologies for businesses, as cloud is evolving to address specific industry needs.
DevOps toolchains, DevEx, and AI chatbots
The further integration of DevOps toolchains in IT outsourcing is a transformative trend, marking a shift from DevOps to DevEx (Development Experience) – an approach that prioritizes the efficiency and satisfaction of the development team. DevOps toolchains, a set of tools and technologies designed to automate and integrate the development processes, are central to this transition. The evolution of DevOps enables faster code deployment, improved operational efficiency, and higher quality software delivery, aligning closely with the agile and continuous improvement goals. This focus on DevEx through DevOps toolchains not only streamlines development workflows but also enhances collaboration within outsourced IT projects.
Simultaneously, the hype around chatbots didn’t go anywhere, but now they are AI-driven. Businesses are still seeking cost reduction through chatbots, but now they use AI to enhance customer service and support functions. The intelligent AI chatbots leverage natural language processing and ML to offer real-time, personalized user interactions, significantly enhancing customer experience while reducing the workload on human support teams.
Focus on delivery
Now, we will name one trend specific to companies looking for development partners. There’s a growing trend towards focusing on delivery. This means that business owners are looking for partners who can not only do the job but also deliver results on time and to the required standards. Considering that everyone has heard bad stories about irresponsible contractors, the emphasis now is on clear outcomes and deadlines. Obviously, businesses prefer to work with software development companies that understand their business requirements and deliver high-quality solutions.
Outsourcing providers, in turn, are also improving their communication tools and project management approaches in order to support this kind of focus on delivery. Such an approach helps in building trust and strategic partnerships with clients, showing that the provider is committed to the project outcomes. As a result, companies can rely on outsourcing partners for critical projects while IT outsourcing providers optimize their workflows.
Strong focus on cybersecurity
Despite advances in technology, businesses still struggle with software security vulnerabilities. More and more businesses go digital, and as a result, cybersecurity will become even more critical in 2024 than ever before. Organizations will need to take a more complex approach to address cybersecurity challenges. Traditional methods like anti-malware applications are no longer sufficient. Malicious attackers are working with more innovative techniques, requiring more robust cybersecurity. A shift towards proactive risk management, integrating cybersecurity measures into existing outsourcing strategies, and compliance with stringent data protection regulations are a direct consequence of continuous security improvement trends.
Robotic process automation
In simple terms, robotic process automation (RPA) is a process of creating software or bots to automate monotonous routine tasks traditionally performed by human employees. These tasks can vary from routine data entry and processing transactions to repetitive administrative functions. RPA allows business processes to be executed faster, more accurately, tirelessly, and consequently, more cost-efficiently, freeing up human resources to focus on more complex and strategic activities. As organizations seek to reduce operational costs and improve service quality, RPA is becoming more and more popular. Outsourcing service providers incorporate RPA in automation solutions for cost-effective and scalable operations. Of course, this trend is not new, but from practice, more and more businesses have been thinking about this lately.
Industry specialization
One of the IT outsourcing trends of recent years is industry specialization among development companies. Providers are focusing on specific industries like healthcare, finances & fintech, or retail, so they aren’t trying to be an outsourcing version of Swiss Knife. By specializing and providing their clients with really valuable insights, outsourcing firms can offer way more value to their clients, and business leaders know this, preferring companies with industry experience over firms with access to advanced technologies and state-of-the-art methodologies but without the industry-specific portfolio.
Low-code and no-code solutions
One of the loudest trends in IT outsourcing is specialized solutions that allow businesses to reduce the quantity of code they need to build an application. No-code platforms allow software creation to be made accessible to non-technical users. Outsourcing companies also integrate this kind of solution to speed up development processes and reduce costs, where applicable.
Low-code and no-code platforms offer flexible and agile solutions for both a business looking for development services and an outsourcing provider looking for efficiency. On the one hand, we have a tool that can help prototype, develop, and deploy applications quicker, while on the other, we have a tool that can reduce development expenditures or even cut the need for remote teams and external development capabilities. However, in both cases, this trend accelerates time-to-market and allows for easy updates. In cases of reduction of development efforts, adopting these platforms signifies a shift towards more inclusive and collaborative development processes, where business stakeholders can directly contribute to creating and refining applications.
Big data
Both businesses and development companies are increasingly embracing big data and recognizing its potential in decision-making. Companies are outsourcing big data projects to harness insights from vast amounts of data, ranging from customer behavior to operational efficiencies. These projects often involve data collection, storage analysis, and data visualization, requiring specialization in data science, analytics, and machine learning. Uncovering patterns, predicting trends, and delegating decisions are what you can do with big data, and businesses understand it.
Trends in Web App Development
We’d be lying if we said that websites aren’t the most frequent request for software development anymore. As an experienced development company, we have what to say about custom software development trends, especially regarding the web. So, here are software development outsourcing trends specific to web development:
- Progressive web apps (PWAs): PWAs are gaining traction as they combine the best features of native apps and websites. This makes them fast, reliable, engaging, and cheap opportunities to have their own digital presence for literally any business.
- Changes in programming languages: JavaScript is still the top 1, and it seems like nothing will change for a long time. PHP isn’t that popular anymore, while tools like Django make the comparison of Python vs. Node.js even more actual.
- Decoupled architectures: A shift towards a more decoupled front-end architecture soluitons is enhancing the flexibility and scalability of web applications, supporting agile development practices.
- API-first and GraphQL: The API-first design approach prioritizes the creation of robust and scalable APIs before web app development, while GraphQL is a relatively new language for API development, but it seems that it will completely dominate the market in 2024.
- SPAs are still one of the best solutions for most cases: Being among IT outsourcing trends for a while, single-page applications (SPAs) continue to be a Swiss knife due to their high effectiveness for dynamic platforms requiring frequent updates, such as social media, or interactive dashboards.
Demand for outsourcing will continue to increase
Although many low-code and no-code solutions have appeared recently, the demand for skilled software developers will only grow. After roaring twenty and twenty-one, the outsourcing industry slowed down the expansion temps, but the sector still grows with almost 10% annual rates. Outsourcing still seems to be the most cost-effective solution for both startups and well-established enterprises, offering significant cost savings and access to the global talent pool quickly and efficiently.
As businesses are looking for more and more sophisticated digital solutions, the scalability and flexibility of the outsourcing segment grow too. As soon as you see some kind of technological novelty, it is reflected in IT services outsourcing trends in just a few months. We saw the rise of cloud computing, IoT, Big Data, and AI in a very short period, and the outsourcing industry swiftly adapted to these innovations really quickly. This ability to quickly pivot and embrace new technological frontiers not only makes IT service providers valuable partners but also ensures the continuous expansion and diversification of the sphere itself. As a result, businesses can rely on outsourcing to access a wide range of specialized skills and innovative solutions. And nothing really can change this situation for now.
Hire a reliable IT partner to keep up with technology outsourcing trends
Technology, especially information technology, is a constantly evolving domain. For a human being, it’s almost impossible to keep abreast since the situation changes too fast. However, a trustworthy outsourcing software development provider can help with this. If you need advice regarding IT outsourcing trends or any other technology consulting services, don’t hesitate to contact ELITEX. As experienced strategic development partners for businesses in various industries across the globe, we don’t try to guess the future — we make it.
By choosing an IT partner with a proven track record and forward-thinking approach, you are making the first step toward a partnership that makes a difference. By choosing experienced software developers, you position your business to take full advantage of the latest digital advancements, optimizing operations and creating new opportunities for success. So, don’t hesitate to choose a custom software development service provider that really changes your business.
FAQs
What role do low-code and no-code solutions play in IT outsourcing trends?
Low-code and no-code solutions are reshaping IT outsourcing by enabling faster and more efficient application development. Especially when it comes to web and mobile, both service providers and businesses benefit significantly from the wise use of these solutions.
What are the main IT infrastructure outsourcing trends?
Key infrastructure trends include the increasing reliance on cloud services, the integration of cybersecurity as a core component of service offered, and the move towards green IT practices to ensure sustainability.
What are the main IT outsourcing future trends?
Although we are not prophets yet, just a software development company, we can try to predict global tech tendencies. First of all, AI. Many consequent tendencies will depend on AI’s growth, more data-driven solutions, and transformation in the development approaches.
What are the main web development trends in 2024?
In 2024, web development trends include PWAs, the use of AI and ML for personalized user experiences, decoupled architectures, and the growing importance of web accessibility and inclusive design practices.
What are the main factors that influence the formation of trends in IT outsourcing?
The main factors shaping IT trends include tech and hardware advancements, changing business objectives and approaches, the shift in global demand for digital services, and the ongoing digitalization of “petrified” offline industries.
Let’s talk about your project
Drop us a line! We would love to hear from you.