Current State of Software Development
As competition increases and technology evolves rapidly, software development is becoming more and more popular. Companies of all shapes and sizes turn to outsourced partners to help them keep up with the pace of innovation, changing customer expectations, and a complex security landscape where a minor vulnerability can take down a business.
Below, we explore some of the key software development trends for 2021 and discuss their impact on the global software outsourcing market.
Outsourcing forecast
According to Statista, the value of global IT contracting is $66.5 billion, and this figure expects to grow in the coming months and years.
So what is driving the demand? Well, COVID is a factor.
The increase in remote working and the need to respond to changing customer needs/expectations have forced companies to look for new solutions to navigate the unknown, entirely virtual world.
The World Economic Forum predicts that the number of permanent remote workers will double by 2021. Many companies forces to innovate quickly to keep up with new demands and maintain their ambitious success.
At the same time, companies have some attention to the “new normal.” A CGS 2020 report, which examined the impact of the pandemic on IT and outsourcing investment, determined that:
- 47.6% of respondents increased their marketing strategy following the introduction of COVID
- 42.9% said that IT/technology issues prevented employees from working from home
- 41% said they experienced data security/privacy issues with employees working from home
Another Gartner study found that organizations redirect resources to new priorities, with 76% of CIOs reporting increased demand for new digital products/services and 83% saying they expect demand to continue to grow through 2021.
A recent Futurum report found the following three main barriers to digital transformation:
- Lack of technical knowledge or skills (42%)
- Lack of appropriate partnerships (36%)
- Procurement or budget issues (36%).
Companies are looking to outsourcing companies to overcome these barriers: Reduce costs, stay innovative and address ongoing IT and software development skills shortages.
At the same time, it’s essential to note that it’s not just COVID behind the increased demand for outsourcing providers. It’s also the convergence of technologies such as artificial intelligence, IoT, Big Data, cloud, countless others, the pressures of digital transformation, and customer expectations.
One of the reasons for the outsourcing trend is that companies are under intense pressure to do more in less time.
Octavio Islas has observed a similar pattern. “In recent years, I have seen software companies moving towards faster project delivery, with more and more customers adopting new methodologies such as CI/CD.”
For outsourcing teams, this means working closely with clients on an ongoing basis and focusing on delivering long-term business value instead of one-off services.
In the following sections, we’ll take a closer look at the trends contributing to this demand.
Software development trends: 2021
Today’s top trends in software development are primarily focused on streamlining both the development process and other work functions and maintaining systems and data security. Here are the fundamental movements that will shape the global software outsourcing market in 2021 and beyond.
| Cloud
Tiempo’s Javier Trevino says there are many things businesses can do to gain an aggressive edge. A big one is “modernizing relationships by implementing new technologies, languages, and frameworks.” These include: automating existing software solutions through QA and CI/CD; breaking monolithic applications into event-based and microservices architectures; and using data science and analytics to leverage big data.”
Today, moving to the cloud is a prerequisite for modernization. The cloud provides the access needed for remote working, allows teams to collaborate from anywhere, and guarantees that everyone operates from a single source of truth.
Cloud computing allows better data protection, flexibility, and resilience than on-premises hosting. It is also a sophisticated, expensive process that requires a high level of expertise. Companies are turning to outsource companies for cost-effective solutions that align with business objectives.
Some of the strategies we see more of these days:
Multi-cloud computing solutions are becoming increasingly popular. This approach spreads employment and information support across multiple clouds. It provides better connectivity and security than relying on a single vendor — although it does present some security and interoperability challenges.
Advantages of this model include fewer latency issues and the ability to ensure compliance with regional data protection regulations.
| Edge Computing
With the rise of IoT, smart devices, AI/ML, and the overall increase in online activity, side computing is emerging as one of the biggest trends for 2021 and beyond.
Edge computing brings cloud computing resources such as computing power, networks, and storage closer to devices, networks, and applications which means that data processors at the point of collection rather than being transported to a cloud or data center hundreds of miles away.
In cases where cloud computing cannot keep up (e.g., IoT applications that require continuous connectivity, such as autonomous vehicles or industrial equipment with embedded sensors), Edge plays a critical role — allowing users to capture actionable information in real-time.
Forrester predicts that once 5G prevails, the Edge will be essential for even more enterprises, as high speeds, scalability, and tight security are critical to the next generation of mobile services.
We are already seeing cloud providers offering Edge solutions as part of multi-cloud solutions, allowing companies to analyze time-critical data “at the edge” and send the rest to remote servers.
| AI
According to Statista, the US AI market expects to generate more than $22.5 billion in 2021. Considering the long-term perspective, analysts predict that the global market will reach $15 trillion within the next decade.
There is increasing demand for intelligent chatbots and virtual assistants that streamline processes and improve consumer practice, as well as the following AI applications:
- Ethical AI
- Artificial Intelligence (AI)
- Deep learning, NLP
- AI for human capital enhancement
- Robotic Process Automation (RPA)
- Supra-automation
While companies now have way a long list of user-friendly, often affordable AI tools that make their jobs more accessible, the AI talent shortage is far from over.
Customers now expect AI to be standard in software solutions, yet many struggles to properly implement embedded AI solutions. In part, new online (or newly online) businesses are testing many applications simultaneously, appearing in information; properly leverage these tools, organizations need to start with a data-savvy corporate culture and have experienced data scientists to guide the effort.
Tiempo’s Paul Estrada says that the AI talent gap “is becoming even harder to fix as it’s a field that has transitioned from academia to the commercial sector in a very short period of time. Knowledge sharing between the two worlds remains a major issue, as does keeping up the pace of innovation that helps companies stay competing.”
| Cybersecurity
Cybersecurity has extended been an afterthought for those outside the IT function. Unfortunately, the status quo no longer works.
Even before COVID, the rise of cloud, big data, and the Internet of Things (IoT) rapidly increased the size of the threat landscape, providing bad actors with more endpoints and vulnerabilities than ever before.
Now, due to the sharp shift to remote working in the early days of the pandemic, new concerns about cyber threats and data security have emerged, further complicating matters. Hackers have been able to take advantage of the pandemic.
Privacy and data protection
Organizations are stepping up their efforts to become genuinely data-oriented — it is now considered a critical factor for their expected survival.
They get their information from the programs they use. According to a new Deloitte report, 60% of Americans feel it is challenging to go about their daily lives without having data collected. About 80% of respondents believe the costs of data collection outweigh the benefits.
Data privacy is increasingly seen as an extension of the consumer experience by businesses. To keep things secure, they use consent management software and built-in safeguards.
| Blockchain
Blockchain’s buzz peaked a few years ago before the general public knew how it worked or why they should care, similar to big data. And, like big data, blockchain is once again gaining traction and being used for more “practical” purposes.
Progressive web applications (PWA)
PWAs are web applications that use CSS, HTML, JavaScript, React, and Angular to deliver content.
| Progressive Web Applications (PWA)
PWAs are a type of application delivered over the web using CSS, HTML, JavaScript, React, and Angular are all examples of web development languages.
Final thoughts
There is a willingness to change, but at the same time, companies are struggling to understand how things work after the change is implemented.
To put it another way, following the latest trends and updating the data infrastructure isn’t enough if you are looking for a software developer you can contact top software development companies in India.
