Top Software Outsourcing Trends to Know for 2022

The impact of the Covid-19 pandemic on our lives and the business world is undeniable. Business organizations have to quickly pivot to better position themselves meeting new challenges as well as opportunities. Software development outsourcing has proved its worth during the pandemic - playing a strategic role to help organizations stay, flexible and resilient in the new digital business era. 

Outsourcing allows business organizations to lower overhead and scale engineering resources rapidly to achieve the required efficiencies and speed during the pandemic. Thus, it’s no wonder that outsourcing continues to grow strong, with software development outsourcing remaining the most sought-after among other IT functions.

In this article let’s examine the top 5 software outsourcing trends that business organizations should pay attention to future-proof their business in the upcoming times beyond the pandemic.

1. The Growing Tech Talents Shortage

Technology is expected to continue its critical role in transforming business across industries. Yet, the shortage of engineering talents is among the critical factors preventing organizations to realize their digital transformation initiatives. 

The process of hiring software engineers in the local market is more difficult and resource-intensive than ever, especially when software engineers’ salary is increasing significantly with time.

Organizations ranging from enterprise to small-medium businesses are now both vying for the same limited pool of developers on-shores. The failure to hire skilled engineers can disrupt their transformation plan and impede the adoption of modern technologies for business advantage and competition. 

Thus, many organizations are turning to software development outsourcing as a workaround to fill in the engineering talents gap. Additionally, thanks to the rise of remote work following the pandemic, outsourcing can be easier to manage than before. 

Vietnam is a key outsourcing region in which TPP software operates in and we have also experienced strong demand in recent times. TPP’s strong outsourcing network allows us to provide the essential technical skills that IT leaders require to fulfill their business and technology objectives.

Tapping our deep global talent pools enables you to acquire the development teams in weeks rather than months at considerably lower rates than in the local market. Outsourcing could be the solution for the tech talent shortage by quickly filling technical gaps in high-demand positions such as Senior Java Developer, .NET developer, full-stack, and front-end engineers, etc.

In 2022, business and IT leaders will be expected to face challenges in hiring and putting together a technical team for IT development strategies like cloud-computing solutions, cybersecurity, artificial intelligence, data, and advanced analytics. Choosing the right outsourcing partner will help to alleviate the problem of engineering talents shortage - finding IT specialists quickly and efficiently to close any technical gap.

2. Digital Acceleration & Transformation

Once the pandemic hit, business organizations across the globe had to rush to purchase the new digital solutions to quickly adapt to the new business conditions, where the majority of activities taking place over digital channels - driving IT expenditure spending in a big way. 

This also means that the need for the technical expertise of new technology is becoming more intense as organizations progress along with the digital acceleration and transformation strategy. Many IT departments are not well-equipped to keep pace with the latest technology advancement.

Thus, it's no surprise that many IT leaders seek to acquire external expertise and resources, including external engineering teams, for their organizations' digital transformation. IT professionals for emerging technologies like cloud computing engineers, artificial intelligence/ML engineers, are in high demand these days.

Over two decades, TPP Software has been working with clients across the globe to accelerate their development projects and providing turn-key resources to the existing teams - with the right technical skills at the right time.

3. Cyber-Security is Always In Demand

Major cyber-security attacks, including ransomware incidents, such as the attack on caused severe business disruption to organizations in 2021. The threat to critical infrastructure posed by ransomware and a new wave of denial of service (DDoS) attacks are still on the rise.

Along with the innovation of new technologies come more advanced attacks, thus, business organizations must do more to prevent the evolving cybersecurity threats that are still happening and have been worsening (partly) by the move to remote working, where employees are accessing critical business applications over unsecured personal networks.

When it comes to tech talents shortage, especially regarding cyber-security, the shortage is even more drastic. Many business organizations find it challenging to hire the right security professionals to stay on top of the cyber threat landscape. As a result, many do turn to outsource vendors for solutions.

At TPP Software, we help clients rapidly scale security and compliance operations through innovative technology, as-a-Service capabilities, and cybersecurity services.
Through proven solutions, global teams, and technology-forward tools, we help clients enhance security in the cloud, infrastructure, data, digital ID, compliance, and platforms.

No matter where you are at the cybersecurity maturity spectrum, we can accelerate your cybersecurity infrastructure growth using our end-to-end services. In 2022, we expect cyber-security continues to be a major outsourcing trend.

4. Remote Work & Outsourcing

Remote working has now become the norm since the pandemic. We all witnessed a historic shift in the job market last year. All of this has forced business leaders around the world to re-evaluate their business operations.

Although two-thirds of businesses who allow their workforce to WFH reported that they saw a significant increase in productivity, there is still a sizable number skeptical about it. Tech giants like Google and Facebook employees were told that they could work from home until 2021. Remote working introduces a significant challenge for information security because the remote working environment is different from the office working environment.

Without a collaborative physical environment, the working culture might face disruption. Without direct communication, there are no professional relationships and your ability to receive and provide timely feedback. Direct cooperation is one of the key principles of the Agile Manifesto.

The problem can be solved by…

Offering remote WFH tools and extra support. This means adding more structure to previously regular cooperation. In addition to providing business support, team members are also encouraged to support each other and troubleshoot when a problem arises.

You can consider some collaboration tools like Slack, Zoom, and internal communication software to promote stronger employee-to-employee communication

5. Software development outsourcing in 2022

Due to the pandemic, software development outsourcing has taken a significant leap in the past two years. Looking ahead to 2022, the businesses with an IT model that allows them to pivot quickly in the last years will be better equipped to meet both new opportunities and challenges. Together with digital acceleration and transformation, outsourcing is expected to continue playing a key role in 2022.

Additionally, in 2022, software development outsourcing will become more interconnected with different levels of technical specialization. Business leaders must keep up with industry trends, to adapt to the rising pace of change. 

A trusted outsourcing partner such as TPP Software can help guide you through an increasingly complex software development outsourcing landscape. With 17+ years of experience, our team always keeps up to date with the latest software developments trends and can bring you the top talented development engineers. Contact us today to learn more.