What is trending in 2022: Next-Level Partnerships

As we recover from the aftermath of COVID-19, the behaviors and adaptations that provided the best chance of survival have risen to the top. After witnessing the benefits of outsourcing during the disruption of the pandemic, more and more companies hire dedicated software developers to ensure their business success. Since having a unique insight into software outsourcing market trends, let‘s take a look at our top picks of the high-impact trends that will shape software development outsourcing in 2022.

The growing Demand for Dedicated Developers

With technology continuing to drive digital change across all industries, there is no end in sight to the chronic tech talent shortage. With demand projected to continue rising throughout the decade, finding affordable talent will remain a pain point.

However, there is a workaround. Distributed resourcing, such as outsourced or dedicated software development teams, is a solution more organizations are adopting thanks to the uptake of flexible work practices in response to the pandemic. Tapping deep global talent pools can allow IT leaders to source software teams in weeks rather than months, at rates that are a fraction of the onshore cost.

Outsourcing, with the right partner, opens up a world of resourcing options. An experienced outsourcing advisor like Aciety can help find specialized partners to successfully close any technical skills gap.

Digital Transformation of Software Companies

The momentum for digital transformation has never been stronger. Even with the pandemic, more than 80% of companies are moving quickly on development initiatives to make their businesses more innovative, more resilient, and more competitive, reports Gartner’s 2021 CIO Agenda.

COVID-19 fast-forwarded digital adoption by several years, according to a McKinsey global study. Eight out of 10 executives say digital transformation is vital for long-term viability. Right now, the biggest threat they face is the scarcity of necessary innovative skills.

So it’s no surprise that many IT executives say they need outside expertise for digital transformation initiatives. They’re open to alternative talent sources such as the on-demand outsourcing network provided by Aciety . The right outsourcing partner can help your company move fast on ambitious digital transformation initiatives.

Innovation and Efficiency Gains with Outsourced Dedicated Developers

What a difference the pandemic has made to software outsourcing priorities. Just a few short years ago, companies were taking advantage of business as usual to follow their tech innovation dreams.

During the pandemic, as IT executives grappled with survival issues such as business continuity, security risk, product volume, and workforce adjustments, many companies parked their innovation dreams and looked to outsourcing as a way of reducing cost and optimizing productivity.

 As the survival imperative eases, organizations are looking to reignite their innovation plans. They’re balancing the need to invest in advanced technologies with making continued use of the operational efficiencies outsourcing delivers.

Either way, software development outsourcing will continue to be in strong demand, for both innovation and efficiency gains to be had. In the long run, these benefits will drive greater usage of a broader range of outsourcing applications.

Greater Acceptance of Nearshore and Offshore Outsourcing

The COVID-19 pandemic was the spark that forced businesses to accept that a big amount of their employees would be working outside the office. The initial rush to set up work-from-home arrangements has given way to the new reality: distributed, remote-work arrangements.

With so many people required to work online since the start of the pandemic, this practice has been demystified. This sets the stage for greater acceptance of nearshore or offshore outsourcing. For example, Corporate America has become far more open to off-site resourcing and more at ease managing dispersed teams. Consider this evolution: before the pandemic, 31% of the US workforce sometimes worked from home, while during the pandemic, the number grew to 51% and is expected to increase to 81%.

The majority of workers and companies are planning to continue some degree of remote work indefinitely. Hybrid work models, allowing for a range of remote scenarios, are expected to prevail. A bigger role for software outsourcing is anticipated, given the greater comfort with managing dispersed teams.

Next-Level Partnerships with Dedicated Developers

“Value networks” and “co-sourcing” are buzzwords to describe the closer collaboration emerging between companies and outsourcing partners. More complex software development initiatives with higher stakes are requiring tighter controls throughout the outsourcing process. Here are four key areas:

Thorough due diligence - A focus on tighter risk management is driving the need to spend more time and precision in partner qualification. One solution is to make use of a value network of pre-vetted partners – a model provided by Aciety through its global network of hundreds of software firms certified after a thorough assessment.

Careful partner selection – The need for more rigorous partner selection is at odds with speed-to-market pressure. Outsourcing advisory firms can help by quickly providing a list of potential partners with the right expertise and fit, enabling the best chance of a timely and successful partnership.

Meticulous contracting – The need for more controlled, agile outsourcing relationships is changing the nature of outsourcing contracts. Companies are sharing more risk with outsourcing partners, looking for greater flexibility in terms, and moving toward an outcomes focus.

Proactive governance – The explosion in outsourcing for new technology competencies demands improved governance and project control. From our experience, we foresee a need for more systematized structures for overseeing roles, communication, risk management, issues resolution, and performance measurement.

All in all, it’s prime time for software development outsourcing. Despite the unforeseen business disruption, software application (.NET,Angular.js, React.js, Node.js, Python and much more) development remains the most frequently outsourced function among IT’s dozen sectors. A growing majority of companies currently outsource at least part of their application development with dedicated developers teams. With IT organizations picking up the pace, software outsourcing is projected to be on a 10-year growth roll through 2025.