Ever since the early 2000s, the offshore model has shaken up global industries. It's not just a cost-cutting strategy anymore; it's also a gateway to specialised skills and quick scaling.
As organisations continue to explore offshoring, here are the key offshore software development trends worth keeping an eye on!
The growing demand for specialised skills
The global tech talent shortage has led to over 40 million unfilled jobs in 2020. Experts predict this number will reach 85.2 million within the next decade, potentially leading to €7.1 trillion in lost annual revenue.
Businesses in the West simply cannot find enough engineers skilled in cutting-edge technologies like machine learning, AI, and automation. Despite being the tech leader, the USA could lose over €136 million unless it finds more tech talent.
Offshore development: A viable solution
Offshore development offers a solution by providing access to massive talent pools in emerging tech nations. For instance, India is projected to have a surplus of over 1 million skilled tech workers by 2030, potentially becoming the next tech leader.
A top trend will be establishing dedicated offshore teams in countries like India to meet the growing demand for cutting-edge skills. While technical skills will remain the primary focus, soft skills like teamwork, communication, and leadership will also be in high demand.
Emerging offshore locations
While India leads in offshoring, growing demand is pushing companies to new locations in other countries, these include:
It’s important to note that, post-pandemic investments in Europe have led countries like Ukraine, Poland, Belarus, and Romania to emerge as preferred nearshoring destinations.
Improved data security
The ongoing concern over data security within distributed teams can be traced back to past outsourcing issues, which have heightened worries about intellectual property and data theft.
However, recent offshore development trends are implementing cybersecurity measures for distributed teams and diving into risk mitigation frameworks to safeguard sensitive data across the globe
Increase in collaboration tools
Collaboration tools have revolutionised the way teams come together to support their common goals. With the ongoing expansion of distributed teams, a crucial trend is the use of digital tools to bridge the gap between local and offshore teams. This offers solutions to challenges related to miscommunication, timing conflicts, and financial efficiency.
These top tools include:
Podio - organises tasks and projects by combining content, context, and conversations. Features like workflows, CRM connections, chat, data visualisation, and boards are included.
Trello - uses a simplified kanban card system for project management. Individuals and teams can create boards, track progress, attach files, and more.
Asana - helps organise work into shared projects and boards. All members can see tasks, share progress, design workflows, attach files, and streamline approvals.
Value over price
Outsourcing has grown since the 1980s, focused on hiring "cheap" labour to cut costs by 70-80%. This allowed short-term profits but wasn't sustainable long-term due to a lack of customer focus, substandard code, and mediocre products.
Offshoring has unlocked access to industry experts, moving beyond mere cost reduction. Businesses are now placing a greater emphasis on the value derived from their offshore teams.
Companies are increasingly partnering with offshore teams, particularly in emerging tech hubs such as India. What sets these teams apart? They're not outsourced; they are fully integrated into the company's structure. This close integration allows businesses to maintain a watchful eye on the quality of their products and services.
By staying in tune with the ever-evolving landscape of offshore software development trends and strategies, you can position your business for success in the face of the many challenges that come.
In light of recent events and emerging trends, consider building your dream team in the Silicon Valley of Asia. This isn't just a business decision; it's an opportunity to connect with the top tech skills and the wealth of talent that this region has to offer.
Want to learn more about how offshoring can transform your business? Reach out to us today!