10 Software Trends for 2021–2022

The year 2021, which has had a significant impact on all areas of life, including software development, is finally coming to an end. Looking ahead, it is hard to say what surprises await us. However, we can analyze some of the key software development trends that have shaped the industry in 2021.

1| A predominantly digital world

The global COVID-19 pandemic has become a turning point for many companies. Unprecedentedly stringent rules imposing social distance and lock-in hit companies large and small: they were forced to rapidly reorganize work processes and develop new approaches, with many struggling to survive.

As businesses faced these unprecedented challenges, they quickly realized that they had to move into a predominantly digital world, where digital solutions would largely determine how they lived their lives.

Today, we see IT priorities and technology agendas accelerate across the enterprise.

In the Accelerated Strategies Group, Inc. survey, 63.3% of responding companies said they consider accelerated digital transformation a priority for their business. The focus is now:

• Contactless services (60.1%)
• Moving to the cloud (52.25%)
• DevOps activities (51.75%).

Digital solutions are helping to create sustainable and adaptive businesses. That’s why software developers and IT professionals have an essential role to play in rebuilding a post-pandemic world.

2| Growth of the IT sector

Although the IT sector was in a better position than other sectors during the pandemic, it could not avoid cost-cutting, project delays, and staff reductions.

Global IT spending will fall by 5.4% in 2020 (Gartner).

In 2021, global IT spending expects to grow by 4% but still below pre-pandemic levels.

According to IDC, global industry revenues will reach $4.8 trillion in 2020, well below the $5.2 trillion initially forecast.

IDC forecasts 4.2% growth by 2021, meaning that IT industry revenues could reach $5 trillion.

The enterprise software development segment will grow 7.2% in 2021, the most potent recovery compared to other details such as equipment, data center systems, and IT and communications services. (TechRepublic)

The IT sector is currently recovering and will return to growth in 2021. It is forecast to recover and surpass its pre-pandemic position by 2024 at an estimated annual growth rate of 5%.

Although the IT industry was in a better position than other industries during the pandemic, it could not avoid spending cuts, project delays, and staff reductions.

Global IT spending will fall by 5.4% in 2020 (Gartner).

In 2021, global IT spending expects to grow by 4% but still below pre-pandemic levels.

• According to IDC, global industry revenues will reach $4.8 trillion in 2020, well below the $5.2 trillion initially forecast.
• IDC forecasts 4.2% growth by 2021, meaning that IT industry revenues could reach $5 trillion.

The enterprise software development segment will grow 7.2% in 2021, the most potent recovery compared to other details such as equipment, data center systems, and IT and communications services.

The IT sector is currently recovering and will return to growth in 2021. It is forecast to recover and surpass its pre-pandemic position by 2024 at an estimated annual growth rate of 5%.

3| Teleworking

The future of telework software development looks promising. By spring 2020, IT companies worldwide will need to rapidly create new patterns of team management, communication, and collaboration so that employees can perform their tasks without having to come to a physical office.

For many, the transition from on-site to remote working was a daunting task. Today, it seems to have become the new normal, with many of these companies embracing teleworking. See the results of a study that shows how working from home has affected the productivity of a software team.

59% of respondents said their software teams increased their productivity by working remotely.

42.6% of respondents reported that meeting deadlines for tasks have become more accessible.

64% of respondents plan to telecommute 3+ days per week.

The trend of conducting business through online meetings, digital collaboration tools, and cloud applications will continue until 2021.

4| Cloud services gain momentum

To facilitate remote working, companies needed to place the proper infrastructure and support for employees to create a work-from-home environment. As a result, demand for cloud services and tools has grown.

According to Gartner, cloud spending increased by 6.3%, in contrast to global IT spending, which decreased in 2020, compared to global IT spending, which fell in 2020. Total revenues are close to $258 billion, $15 billion more than last year. The market for cloud computing expects to double over the next few years.

• 74% of respondents expect their cloud spending to increase in 2021 (Statista).
• SaaS solutions, which will take the largest share of the public cloud solutions market, are expected to be worth $120 billion, up to $15 billion from 2020. (information).
• IaaS solutions will grow from $50 billion in 2020 to $64 billion in 2021.
• By 2021, the platform as a service (PaaS) market expects to surpass 2020 estimates of $43.8 billion to $55 billion. (Statista)

An apparent trend is that software development companies are more actively using SaaS, IaaS, and PaaS solutions to build applications and manage teams and communications. These services can be easily deployed and used. Cloud solutions provide flexibility and improve productivity.

5| E-commerce software solutions on demand

Despite the global economic downturn in 2020, the e-commerce market has multiplied (accelerated by the pandemic).

Statista estimates that online sales will account for 14% of global retail sales, reaching 22% by 2023.

A wide range of retail software solutions and mobile e-commerce applications help improve the customer experience, automate business processes and provide secure delivery and payment options. As a result, demand for e-commerce software solutions to increase in 2021 and beyond.

The global e-commerce software market will value $6.2 billion in 2019. It expects to grow at a CAGR of 16.3% between 2020 and 2027

6| JavaScript dominates, but Python is catching up

By 2020, JavaScript will continue to dominate the list of the most used programming languages by developers worldwide. According to an estimate by Statista, almost 68% of software engineers use JavaScript.

At the same time, Python tops the list, with 44% of respondents saying they use it for their code. Python has even surpassed Java (by 40.2%).

Python’s growing popularity looks set to continue in 2021 and beyond as it becomes the language of choice for developers building applications with AI and ML-based features. Artificial intelligence and machine learning technologies are proudly at the top of the list of technology trends for 2021.

7| Containers and microservices on the rise

Another trend to watch in software development is the rise of containers and microservices powered by Kubernetes.

By 2020, 54% of companies will be using Kubernetes container technology in some way: running it in production, using it for development and testing, or just experimenting with it. (Statista)

Kubernetes is an excellent tool for managing containers and building microservices architecture. Its growing adoption is that there are more and more projects that require 24/7 scalability, security, and availability. Containerisation and cloud-based microservices architecture are perfect for such tasks.

The global cloud microservices market size expects to reach USD 744 million by 2020. It expects to reach USD 1.5 billion by 2026 and grow at a CAGR of 12.7% during this period.

8| Low-code development

Software engineering moves towards simplification, with a new approach to creating new applications known as low-code development.

Low-code platforms enable almost anyone to develop software without traditional coding but through graphical user interfaces and configuration. Such programming environments have great potential because they allow people to turn their ideas into digital solutions with limited or no specific development skills.

• About 50% of developers use low-code products or plan to do so in 2020; in 2019, this number was 37%.
• 80% of respondents believe that the low-code approach can free up developers to work on higher-level projects.
• 72% of low-code developers build apps twice as fast as those using traditional development.
• The global market value for low-code development platforms is estimated at $46.4 billion by 2026, with a CAGR of 25% during this period.

In summary, although many developers are skeptical of the approach to low-code development, it offers several benefits, including:

• Reducing manual labor
• Saving time and money in creating digital solutions
• Lower barrier to entry for software development.

9| Continuous integration, delivery, development

In the predominantly digital world, automation and continuous monitoring of the entire application life cycle have become vital.

To ensure end-to-end software quality and faster application delivery, companies are increasingly adopting the continuous integration, delivery, and development (CI/CD) software development method. As a result, the use of CI/CD tools expects to increase.

• Mabel’s “DevTestOps Landscape Survey 2019” shows that 53% of software testers use continuous integration tools, 38% use constant delivery tools, and only 29% use continuous development tools.
• The continuous integration tools market expects to grow from $402.8 million in 2017 to $1.1 billion by 2023 (Markets and Markets).
• The continuous delivery market was valued at $2.06 billion in 2019 and expects to grow at a CAGR of 19.75% during 2020–2025.
• The continuous delivery tools market is growing at a CAGR of 18.7% and expects to reach $1.14 billion by 2023 (Markets and Markets).

The CI/CD practice makes testing more efficient and debugging easier. All this results in the faster development of high-quality products that companies and customers will undoubtedly appreciate.

10| Outsourcing

The demand for outsourcing software development is rising sharply. It is challenging for companies in all industries to find talented IT specialists who can develop high-quality custom software projects and do them within budget. It is why companies are opting for outsourcing.

• The global market for outsourcing services has grown from USD 45.6 billion in 2000 to USD 92.5 billion in 2019 (Statista).
• Large companies increased the budget they spend on outsourcing IT services from 6.3% in 2018 to 8.7% in 2019.
• Medium-sized companies also increased that budget from 4.7% to 6.5%, according to MarketWatch.

These figures indicate that software outsourcing will increase in the coming years. Moreover, the outsourcing market’s growth supports several practical benefits, such as faster growth, cost efficiency, better quality, lower risk, and freeing up business resources.

By 2020, the global IT outsourcing market is estimated to reach USD 342.9 billion. It expects to reach $410.2 billion by 2027. (Business Wire)

| Summary

The IT market, like other industries, will be heavily dependent on how the pandemic unfolds in 2021. While certain fluctuations are possible, the general trend points to growth in the industry and an increase in revenues.

Knowing the latest software development forecasts for the coming year can help you in your long-term business planning. If you are looking to outsource your business you can contact top software outsourcing companies in India.