Top software development outsourcing trends to look out for in 2021

March 8, 2021
Latest Software development outsourcing trends

As technology is evolving rapidly and the need for competent software development increases every year, digital advancement continues to shape the pace of innovation. This increase in demand has led to companies increasing their utilization of software development outsourcing.

The unprecedented changes in the year 2020 reshaped the expected future and trends of the outsourcing of software development requirements. This blog sheds light on the expected software development outsourcing trends that are forecasted for the year 2021.

Software Development Outsourcing in 2020

Reportedly, the global market for software development outsourcing in 2019 was worth $92.5 billion. By 2027, it is forecasted to increase to $103 billion. The demand for software development has increased in recent years and there is an urgent need for the improvement of internal capacity. However, to keep pace with the competitors, they are more reliant on outsourcing development as a strategy. According to recent reports, the IT outsourcing market’s value is forecasted to grow by 5% on an annual basis in the coming years.

The pandemic has reshaped the factors that drive the need for software development outsourcing, including a company’s roadmap for digital adoption. The year also caused organizations to experience drastic shifts in their business models, workforce participation habits and internal operations. Companies had to adapt to remote working – which increased the dependency on digital tools.

While, it was already expected that the digital transformation will advance greatly in 2020, the speed of this change was quicker and on a large scale than predicted. The economy’s unexpected shifts put a great deal of pressure on the CTOs and other IT leaders to increase the adoption of digital technologies to cope up with the increased customer demand.

The higher focus on software development outsourcing has helped organizations in increasing the delivery of solutions that facilitated operations in 2020.

Top 4 software development outsourcing trends forecasted for 2021

As companies are shifting focus on improving strategies for outsourcing software development, here are the major 4 trends expected to rule 2021.

1.       Increased use of cloud services

Earlier it was predicted that around 83 percent of enterprise workloads would have moved to the cloud by 2020. This trend is bound to continue in 2021.

The use of cloud services helps organizations in maintaining agility as response to increased customer demands. In 2020, it was reported that the spending on cloud services was three times higher than expected. By the end of 2021, it is expected to grow tremendously.

2.       Higher emphasis on cybersecurity

The focus towards cybersecurity is expected to increase significantly. With the increase in the need for software development outsourcing, the need for enterprise data protection also increases. Companies are focused on protecting their data by bringing down internal and external vulnerabilities to cyberattacks so as to avoid the high cost of being hacked.

3.       Increased focus on product quality

Once the main reason a company would outsource software development was cost reduction. However, due to a shortage of skilled expertise available to hire for internal development needs, there has been a shift. Unlike before, product quality is now the main driving factor in software development outsourcing than cost reduction.

4.       Better collaborative partnerships

With the focus shifting towards product quality, it becomes imperative to focus on improving relationships and communication with vendors. This shift and the increase in the growth in the value of outsourcing are causing companies to asses their interaction with vendors.


The year gave more importance on software development and the need for companies to rapidly adapt to gain competitive advantages. The industry was pushed further into the future than was initially expected, as the changing challenges required immediate solutions.Software development outsourcing is facilitating organizations in building better solutions at a faster pace. The trends predicted in this blog are set to continue to shape the industry in 2021.

Article Categories:
Business · Technology

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