For many companies, whether as a thriving startup or as an established conglomerate, offshoring is a means to expand their products and services, as well as a smart way to save on staffing costs. Offshoring non-competency tasks helps businesses focus on their core competencies and vital business tasks.
Specialized skills, such as software or mobile app development, when outsourced to a leading offshore development company, can also help companies bring more value to their customers.
This trend has been ongoing for several years, with offshore development becoming a favored choice for businesses worldwide. The global offshore software development market is experiencing significant growth, and projections suggest that this trend will continue over the next decade. In 2019, the market size for global offshore outsourcing software development was valued at $900 billion, with expectations for it to reach $1300 billion by 2026.
However, as the world continues to evolve, so too does the landscape of offshore software development. In this article, we will explore the challenges and opportunities this industry will be facing in the future.
Offshore Software Development in Next Decade (With Challenges and Opportunities)
Offshore software development is a growing trend that is likely to continue in the next decade. As technology continues to advance and companies seek to leverage global talent, offshore software development is becoming increasingly important. Here are some potential trends in offshore software development in the future:
#1 Challenge: Communication
While effective communication comes naturally in a team that shares the same culture and location, offshore software development poses a significant challenge as team members from different companies, cultures, time zones, and languages need to overcome communication barriers both presently and in the future..
Pulse of the Profession report on the importance of effective communications uncovers that a startling 56 percent (US$75 million of that US$135 million) is at risk due to ineffective communications.
This makes communication an essential factor in ensuring the success of offshore software development.
Opportunity: Augmented, Virtual, and Mixed Reality
The use of AR, VR, and MR has enabled workers to envision and cooperate on concepts, resulting in improved communication. In the next ten years, Mixed Reality will allow an employee to participate in a 3D holographic video call and join their colleagues in the office from any location, including their home.
As software becomes increasingly accessible and the cost of hardware decreases, it will become necessary for you to incorporate both technologies into your everyday operations.
#2 Challenge: Delays in the deployment of digital products
Collaborating with an offshore development team can often limit your ability to oversee and manage the entire product development process. This lack of control may result in delays in product deployment due to multiple iterations, ultimately hindering your product roadmap.
Opportunity: Incremental Delivery with Agile
Agile methodologies, similar to the DevOps approach, enable teams to efficiently deliver value to their customers by streamlining the development process. Rather than focusing solely on a major launch to initiate the software’s lifecycle, Agile teams deliver work in small, functional increments. This allows them to promptly address changes as they arise, constantly evaluating client requirements, projections, and feedback.
#3 Challenge: Project Visibility
In offshore software development, it’s often difficult to see what’s happening in the partner company working on your project. This can make it hard to offer early feedback and identify small errors that can become larger problems over time. To avoid these issues, regular review meetings or calls can help ensure that code is accessible for review and that feedback is provided promptly.
Opportunity: Cloud Integration To Streamline Data Exchange
Offshore software development can benefit greatly from cloud-based computing resources, which can be easily integrated with minimal effort and expense. This allows for greater project visibility, as clients can access their private profiles and data remotely, while also providing flexibility and scalability for the offshore company.
In addition, the use of distributed cloud computing allows for increased data exchange and availability, making it possible for all companies to have their data stored and accessible online. By embracing these technologies, software companies can stay up-to-date and ensure their products are profitable in the long run, with minimal data loss and increased benefits.
#4 Challenge: Security Risks
Offshore software development involves sharing sensitive data and intellectual property with external teams, which can pose a security risk. It’s crucial to establish robust security measures and protocols to protect confidential data and prevent any data breaches or cyberattacks.
Opportunity: Security-focused Outsourcing
Outsourcing to countries with established security laws and regulations can mitigate the risks associated with offshore software development. Clients can also opt for offshore development partners that have specialized security teams, protocols, and certifications to ensure secure data handling and minimize the risk of breaches. Implementing security-focused outsourcing can increase the security of offshore software development and provide a competitive advantage in the market.
#5 Challenge: Quality Control
Maintaining quality standards can be a significant challenge in offshore software development. Without proper oversight, the quality of the final product can be compromised. Differences in development processes, cultural norms, and communication barriers can all impact the quality of the final product.
Opportunity: Next-level Quality Assurance and Testing
Effective quality assurance and testing can help ensure that the final product meets quality standards. Dedicated quality assurance and testing teams oversee the development process, identify and mitigate risks, and ensure that the final product is of high quality. This includes both manual testing and automated testing, with a focus on performance, usability, and security. By prioritizing quality assurance and testing, companies reduce the risk of quality issues and deliver high-quality software products.
Offshore software development continues to be a popular option for businesses worldwide, as it allows them to expand their products and services while saving on staffing costs. However, as the industry evolves, challenges such as communication barriers, delays in product deployment, and project visibility may arise.
To address these challenges, businesses can embrace opportunities such as using augmented, virtual, and mixed reality for better communication, adopting Agile methodologies for incremental delivery and integrating cloud-based computing resources to streamline data exchange.
By staying up-to-date with technology and partnering with a reliable software development company, businesses can continue to bring value to their customers and achieve long-term success.