Offshore Software Development Trends in 2012

The Drivers of Offshore Software Development

The trend towards offshore Software development has been going on for a while now and many IT and non-IT-related companies around the globe are outsourcing their software development needs to offshore software development centres due to the many benefits offered by the outsourcing process. One of the leading motives behind this trend has been the cost reductions that come with the outsourcing process in general. During the credit crunch caused by the financial crisis in the world, companies were focused on cutting costs, and offshoring process reduced expenses and increase the bottom line of outsourcing companies. Other times, companies with minimal or no IT departments also outsource software development requirements as developing the software internally is often deemed to be expensive. The lack of knowledge of a company with regard to use of a specific set of software tools/platforms necessary to create one or more applications is another reason that is often that is associated with outsourcing. Such non-IT firms include industries from a range of sectors including but not only transportation and logistics, healthcare; education as well banks and financial services. Each of these industries and even businesses within the same industry, however require solutions specific to the specific needs of each. Many companies follow a mixed approach, mixing outsourcing and internal skills to come up with the needed solutions.

Leading Offshore Software Development Priorities

Many companies across the world are currently engaged in developing new software products/applications according to the requirements of clients. New software development is predicted to account for a major amount of software revenues in 2012 and beyond. Another factor is the need for organizations to upgrade their Custom Software Development existing software by incorporating new technologies/modules into their already deployed solutions. In 2012, the integration aspect is expected to gain more ground as new technologies/applications increase the benefits provided to organizations by the current solutions. The major benefit of integration is the decreased time to deploy for the business and the lower cost of development as comparison to in-house development. The consumerism of IT (CoIT) movement is already affecting the market since users are demanding more user-friendly experiences offered by these solutions. As the market for solutions which go beyond providing basic functionality grows over the course of 2012 and beyond the focus of many an offshore software development company is likely to shift to the use of technology that can create superior User Interface (UI) and graphics for solutions, which were initially used within the enterprise. These kinds of projects are often described as custom software development and will also be expected to experience an increase in demand for offshore development companies in the year 2012 and in the current future, driven by the growth in demand across multiple industries.

Other areas of expertise that offshore software development operations can be found in include software development that is based on performance improvement as well as ongoing maintenance and support for current solutions. As more and more businesses implement software solutions to increase their competitive edge in a highly competitive industry and to improve their performance, the number of performance enhancement contracts between organizations with offshore software development companies is likely to grow. Another area of development for software that is predicted to witness rapid growth in 2012 is the development of mobile-specific apps. The development of mobile apps is expected to continue into the near future, driven by increasing corporate mobility requirements and the growing adoption of BYOD (bring the device you own) strategy by companies. A similar area forecast to grow during 2012 would be development of cloud-based apps that can be used by enterprises and also the development of security tools that are more advanced to guarantee superior data security and compliance with the existing regulations regarding data security.

Leading Deployment Areas for Software that is developed by Offshore Locations

The demand for software created by offshore centers is not restricted to just one specific sector so the potential application areas is quite extensive and is expected to expand in 2012 as technological advances open up new application areas. However, the development of data storage/management/Business Intelligence software is expected to be the leading business area for offshore software developers in 2012. These solutions are used by a wide range of industries to cope with the explosion of data in digital format and help in a well-informed decision-making procedure that is anticipated to propel continued growth for the Business Intelligence solutions market. Other key areas of deployment of software developed by top offshore locations include applications required by healthcare and financial sectors, as in addition to solutions used to manage processes and projects, and applications which are necessary to help in the facilitation of communications and networking across an enterprise. Other areas of interest for these companies in 2012 are applications that facilitate the implementation of CRM, e-commerce and documents (document) management platforms, online analytics, etc. Overall, throughout 2012 , and in the years to come the market is expected to witness robust growth as businesses increase their IT expenditure in the hope to gain an edge in the marketplace.

Development Platforms Preferred by Outsourcing Enterprises

Of the various software and application development platforms available at present, web-based or internet-based development platforms are predicted to dominate the offshore development market in 2012. However, enterprise application development platforms and cloud-based SaaS/Cloud platforms are likely to expand as more companies issue contracts to develop new solutions based on these emerging platforms. The advent of BYOD is expected to lead to the creation of various mobile platforms-based applications in the near future, whereas desktop applications as well as embedded systems are expected to witness only marginal growth in 2012 because of the perceived limitations inherent to these platforms.

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