Offshore Software Development: Global Popularity

Staying up to date on the latest software development trends is also an effective way for software professionals to learn. This article will examine the global popularity of offshore software development.

7 min readOct 21, 2021

The global software industry is expanding at a rapid rate. The demand for offshore software development of new and improved products has increased the need to find developers with specific skills.

While there are many reasons for outsourcing your software development, you must find an offshore provider with the required expertise to match and exceed what we offer onshore.

There will be numerous issues revolving around the issue of outsourcing work/projects to software engineers at a partner company. Mobile app development, web app development, UI/UX design, and other tech-related services are just a few examples of what can be outsourced.

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The rapid soar in the use of Offshore Software Development

The rapid increase in demands for utilizing offshore development is due to companies realizing its value. Offshoring allows them more accessibility, speedier turnaround times on projects, and improved customer satisfaction rates as there’s no longer any latency between an idea coming into your office then getting created on paper or across rows of computers someplace else around the world.

Offshore software development is on the rise, and demand for it has increased exponentially. Offshoring is an economical way of developing, testing, or maintaining applications in more cost-effective locations with less time commitment from workers due to shorter work weeks (or even no week).

It’s also beneficial because employees don’t need any specialized training, which saves money by general those costs across other aspects such as higher quality control via third party validation; geographically dispersing some tasks among various countries instead of concentrating everything at one location — this reduces exposure risks like natural disasters etc., impacts arising outages/scheduling issues.

The “offshore development” concept gradually became a reality as more software outsourcing businesses sprouted up in small nations with low labor costs and low living conditions. These businesses gradually grow and thrive positively, sublimating service pricing, engineering skill, and various other “popular” characteristics.

Their success now serves as a springboard for developing and molding offshore software development services to a new level, something more professional and cutting-edge to keep up with the lifestyles and demands of the times.

Learn more: Tips for effectively working with an IT offshore software development company

Increased competition for skillful IT labor

The success of such outsourcing firms, on the other hand, provides an indirect answer to the question of why technological powers have such a scarcity of human resources.

According to the Bureau of Labor Statistics (BLS), over the next 10 years, the U.S. labor market will add 316,000 software developer jobs, which is a phenomenal 22% growth rate, or an average of about 31,000 new jobs each year.

The number of vacant positions in the sector is compared to the number of candidates in the field, including alumni from coding training centers and computer science schools, each year, according to the research.

Trends in Global Software Development

With the recent trends in software development changing so quickly, companies need to stay on top of their game. With this said, some interesting insights are coming out about where things seem to be heading:

One trend is that more people want AI-powered solutions rather than humans because they feel computers have better judgment and problem-solving skills when selecting projects worth tackling or completing successfully without any errors and faster responding within tight deadlines given by management alike. This would probably lead to employers opting not only willing but eager hiring specialists who can work full time depending on what project needs doing until completion, which could free up resources elsewhere.

1. Data security is a higher priority

For a long time, business owners who outsource their software development needs to countries all over the world have been concerned about data security. Many businesses are concerned about data security when they outsource to a foreign jurisdiction.

This does not imply that all third-party firms are trustworthy, and falling into the traps of a fraudulent company may result in the disclosure of trade secrets. With technological advancement, we now have a better understanding of the security concerns that organizations face today.

2. Increasing demand for skilled software developers

On the other hand, there has been a lack of in-house knowledge. This can, however, be mitigated by outsourcing needs to nations outside of our borders. Specific skills are required from time to time in everything from cybersecurity, cloud computing, AI, Blockchain, and cryptocurrency. This is due to the rapid development of new technology as well as a scarcity of skilled workers.

3. Increased use and adoption of collaborative software

We should all be aware that communication is critical to the success of the project. Recently, collaborative technologies have aided many teams in achieving common goals. As offshore development projects have increased, new collaboration technologies for offshore and onshore teams have emerged. Digital solutions are becoming increasingly popular for bridging local and offshore teams. Because of modern collaboration technologies, businesses that use an offshore workforce no longer have to worry about misunderstandings, time management, or expenses.

4. Virtual business environment

Because of advancements in technology and applications, software developers can now work for a company as employees. Real-time monitoring has become straightforward to use thanks to projects management tools and efficient programming. In addition to increasing a company’s overall efficiency, outsourcing reduces capital expenses, improves competitiveness, and allows greater flexibility.

In the IT outsourcing industry, there has also been a shift toward automated business operations. Business process automation ranks third in offshore software development in 2021, after Artificial Intelligence and Robotic Process Automation (RPA). CMC Global predicted the rise of global workplace automation a few years ago.

5. A broader selection of Outsourcing options

As IT spending grows, an increasing number of businesses are outsourcing software development. As a result, finding the right person for your project, whether it’s a project manager, an IT expert, a designer, or a project leader, is now easier than ever. New technologies such as augmented reality, virtual reality, and blockchain are just a few examples in the software industry. Other technologies include artificial intelligence (AI), blockchain, machine learning, and cybersecurity. Computer program development Personnel hired by outsourcing companies must be familiar with these technologies.

6. Utilization of cloud computing

While cloud computing has been around for a long time, it has only recently gained popularity among organizations that outsource their IT project needs. According to International Data Group (TDG) research, approximately 69 percent of businesses use this technology in some form. Furthermore, firms that use cloud computing grow their revenue 53 percent faster than their competitors.

7. Digital currency

Blockchain technology became a significant force in the digital realm in 2017. This movement is gaining traction in various settings, including health care institutions, the telecom sector, and media organizations. Without a doubt, blockchain has played a unique role in the IT outsourcing industry. Blockchain technology’s adoption has been anticipated by a wide range of industries, from healthcare to journalism.

Blockchain has piqued the interest of financial institutions and banks, but it has also created quite a commotion in today’s IT sector. There are several advantages to using blockchain technology, including lower costs and complexity, increased flexibility and speed in digital transactions, and a lower risk of data duplication.

8. Robotics

Robotics can reduce human involvement and reliance on the unpredictability of personnel availability. A growing number of businesses are deliberately and diligently turning to technological resources to leapfrog their entire operational workflow into something that can speak, interact, and effectively execute their own decisions. Because of Artificial Intelligence and the Internet of Things, automated processes can now be easily carried out (IoT).

Offshore Software Development Center in Vietnam

The Vietnamese IT outsourcing market is still in its early stages, but it is rapidly expanding: Vietnam has already surpassed Japan as the country’s second-largest IT outsourcing partner. By 2020, TopDev, a famous IT recruitment platform in Vietnam, expects to have 300,000 developer profiles registered.

Vietnam ranks fifth in the GSLI due to its meager labor rates, which compete with India’s, and favorable IT tax regulations. English skills vary, but if you’re willing to put in the effort, you’ll find a vendor whose communication level corresponds to your requirements.

The average developer salaries in Vietnam are approximately 85% lower than those in the United States, resulting in significant savings on your part.

If you want to build a professional offshore software development team in Vietnam, look no further than InApps Technology! We’re proud to rank by Clutch as:

We provide offshore software development services to help clients increase their software development capacity and efficiently turn their ideas into working products. A dedicated Development Team of experienced engineers is to design and develop high-quality technical solutions of any level of complexity.

Reliability is one of the elements to make the best decision! Hence, we shall show you our reputation via Our Case Studies.