Software Development Outsourcing Trends for 2022

Software development outsourcing is a dynamic market that evolves with every passing year, responding to business trends. The growing demand for software outsourcing, bringing fundamental changes to businesses worldwide. As of 2021, global software market size will exceed $968.25 billion. The growth rate for the market between 2022 and 2024 is around 4 to 5%.


What is Software Development Outsourcing?

Software development outsourcing takes place when one company hires another company to develop custom software solutions, rather than relying on their in-house team. Earlier, software outsourcing architecture was mainly a means of reducing operational costs, whereas, organisations’ demand for software development have increased in recent years. Now they are relying more on outsourcing development as a strategy that can power digital transformation. While cost-savings remain the main factor behind software outsourcing.


Why Do Companies Outsource Software Development?



Outsourcing software development is a big step for any company, and many business owners prefer to build software with hired employees. It is easy to sign contracts with outsource developers when compared to developing and managing your own software team. Because hiring in-house takes a lot of time and effort to get right, and sometimes it does not work according to the plan. Software outsourcing  has given benefits with no geographical borders and access to a wide range of software experts. It also,

  • Reduce Business Costs.
  • Gain Access to World-Class Capabilities.
  • Save Time on Hiring Specialists.
  • Increase Project’s Scalability Flexibility.
  • Decrease Project’s Risks.
  • No Geographical Borders.
  • Focus on Your Core Business.


List of Software Development Outsourcing Trends for 2022


  • Cloud Services Will Grow

Cloud-based services have been rising over the years. 90% of the firms find that the monthly payments and low overhead make cloud services a great solution. According to Gartner, cloud spending has gone up $396 billion in 2021, and the year-on-year growth of cloud services will reach 18%. Companies choose cloud services for their flexibility and scalability. Investing in and utilising cloud computing offers many benefits, such as increased scalability, speed, security, and lower costs, and we expect this trend to continue.


  • NFT Tokens



One of the emerging digital trends in recent years is NFT or Non-Fungible Tokens. NFTs are digital content and they are created on the blockchain, which is connected to cryptocurrencies like Bitcoin. NFTs can be anything like gifs, photographs, art, music, videos, written words, etc. NFT tokens are mostly dependent on their uniqueness, which means no two NFTs are similar. In recent years, the NFT has gained huge popularity. The artist Beeple sold the token for $69.3 million in 2021.


  • Full-Stack Developers in High Demand

It’s true that being a specialist in one’s field has distinct advantages, but as technology rapidly expands and evolves, many companies are seeking a person who has knowledge of both the front and back end. Full-stack developers have knowledge of each part of the application, from the front-end to the backend, and the database as well. They can create a usable end product with little input or support. Full-stack developers prove their worth because of their wide understanding of applications and development.


  • High Demand for Data Science and Analytics

In the last two decades, many firms have focused on shifting offline business processes into automated computer systems. This means every organisation is now sitting on a pile of data that it knows can be of great value but doesn’t know how to handle. As more companies start outsourcing their software development processes, they will need companies that specialise in the data management area.


  • Increased Focus on Cybersecurity

We all know that data has become the most valuable resource in this technical world, and no doubt, data comes up with cybersecurity issues. Cybersecurity is still a company’s top priority. It’s becoming crucial to ensure that you are protecting and managing your data carefully. Therefore, it is essential to choose an outsourcing partner who has the capabilities and expertise to tighten the security and guard the business data of clients. Moreover, outsourcing partners need to have security experts, both on and off the cloud.


  • High Demand for Blockchain

Blockchain is known as Distributed Ledger Technology (DLT), it stores data in an electronic format. Blockchains are essential in maintaining secure transaction records in cryptocurrency systems like Bitcoin. It ensures data security while also building trust without the involvement of a trusted third party. On the other hand, smart contracts, logistics and supply chain security, and identity protection are a few of the reasons that make blockchain one of the most popular software development trends. According to Statista, blockchain technology will continue to rise in the coming years and reach $19 billion by 2024.


  • Demand For Social Media Services


    One of the most important outsourcing trends is social media. According to Statista, in 2021, over 4.33 billion people worldwide were using social media. On average, an active user spends almost 138 minutes of their time on social media. Thus, more companies have started to utilise social media services to interact with their customers. To target the right audience and leverage their business, almost every company wants to utilise social media.



2020-21 proved that remote work is possible now. Most organisations choose to run their businesses by outsourcing most of the processes as it is not only cost-effective but has a lower risk as well.

These are just a few of the benefits of software development outsourcing, but think about the quality you can get if you hire  the right outsourcing team. At GrayCell Technologies, we have plenty of experience with various forms of software development, and a high-quality team waiting to collaborate with you to build and deliver cost-effective solutions.


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