Offshore Software Development Trends in 2012

The Drivers of Offshore Software Development

The trend to develop software offshore has been in existence for a long time, and now many IT as well as non-IT businesses across the globe are outsourcing their software development requirements for development to off-shore software centers because of the many benefits offered by outsourcing. One of the major drivers of this trend is the cost reductions that come with the outsourcing process generally. In the wake of the credit crunch brought on by the financial crisis in the world, companies were focused on decreasing costs and the outsourcing process has helped cut expenses and increase the bottom line of the outsourcing company. Other times, firms that have no or minimal IT departments also outsource their software development needs as the process of developing such software in-house often tends to be cost prohibitive. Lack of experience of an organization in the employing a specific set of tools or platforms for developing some or all of the applications is another reason that is often associated with such outsourcing. These companies are with a broad range of industries including but not only transport and logistics, education; healthcare as well in financial and banking services. These sectors, as well as companies in the same industry, require unique solutions suited to the particular needs of their respective industries. A lot of companies also employ an integrated approach, combining outsourcing with in-house know-how to design the appropriate 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. The development of new software is anticipated to account for a major part of the revenue generated by software for 2012 as well as beyond. A close second is the necessity for Hire Software Development companies to improve their current software by incorporating new technology or modules into their existing 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 primary benefit of this integration is the reduced deployment time for the company and also the reduced costs for development opposed to internal development. The increasing consumption of IT (CoIT) tendency is also beginning to affect the market, as consumers demand more user-friendly experiences offered by these services. As the demand for solutions which go beyond delivering basic functionality expands into 2012 and beyond the primary focus of many an offshore software development business is likely to shift to developing new technology to build better User Interface (UI) or graphics solutions, that were previously used in the corporate. Such development is often classified as custom software development and will also be expected to experience an increase in demand for offshore development firms in the year 2012 and also in the recent future driven by increases demands across a range of industries.

Other areas of expertise for offshore software development operations include performance improvement-based software development as well as ongoing maintenance and support for existing solutions. As more and more businesses utilize software applications to get an edge in a highly competitive market there is a growing demand for contract agreements to improve performance between organizations and offshore software development companies is expected to increase. Another area of software development expected to see rapid growth this year is development of mobile-specific applications. The attention paid to developing apps for mobile is expected to continue into the near future driven by increased enterprise mobility requirements as well as the increasing use of BYOD (bring the device you own) concept by businesses. A related area which is expected to expand through 2012, is development of cloud apps for use by companies as well as the development of improved security solutions to ensure superior data security as well as compliance with all current rules of data protection.

Leading Deployment areas for Software developed at Offshore Locations

The demand for software created by offshore centers is not exclusive to one particular industry therefore the list of probable applications is very extensive and is expected to expand in 2012, as technological advancements provide new areas of application. However, the development of data storage/management/Business Intelligence software is expected to be the leading business area for offshore software developers in 2012. Such solutions are deployed in a broad range of industries to handle the explosion of data in digital format and facilitate an informed decision-making process that is anticipated to propel continued growth within this Business Intelligence solutions market. Other major areas of deployment for software developed at leading offshore locations are those required by the financial and healthcare sectors as also solutions that are used to manage processes and projects, and applications which are necessary to aid in the creation of enterprise-wide networks and communications. Other areas of interest to these companies in 2012 are applications that help in the deployment of e-commerce, CRM and content (document) administration platforms, and online analytics, and so on. Overall, in 2012 as well, the field is predicted to experience a significant growth as companies increase their IT investment with the goal of gaining an advantage in the market.

Development Platforms Preferred by Outsourcing Enterprises

In the vast array of software and application development platforms available today, internet/web-based development platforms are likely to dominate the offshore development market in 2012. However platforms for enterprise-level application development and cloud-based SaaS/Cloud platforms are anticipated to see growth since more companies sign contracts for new services based on these new platforms. The emergence of BYOD is also expected to result in the development of various mobile platforms-based applications in the near future, while desktop application and embedded devices are expected to only see a slight increase in 2012 because of the perceived limitations of these platforms.

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