ICT-IOT

Offshore Software Development Market is Projected to Reach USD 284.3 billion by 2030

Mar 2024

ICT-IOT

As per the report published by Kings Research, The global Offshore Software Development Market was valued at USD 132.61 billion in 2022 and is projected to reach USD 284.3 billion by 2030, growing at a CAGR of 10.13% from 2023 to 2030.

A hybrid outsourcing model provides the benefits of outsourcing, such as cost savings and access to specialized skills, but also offers the advantages of onshore development, such as better communication and alignment with business goals. With a hybrid outsourcing model, a team of onshore resources can provide oversight and project management to a team of offshore developers. Additionally, offshore software and hybrid outsourcing models are two different approaches to outsourcing software development. Offshore software development involves hiring a third-party company located in a different country or region to do the work, while hybrid outsourcing models combine onshore and offshore resources to complete projects.

There are different types of hybrid outsourcing models, such as the onsite-offshore model, which blends onshore and offshore resources, and the near-shore model, which involves hiring a third-party company located in a nearby country or region. The choice of model depends on the specific needs and priorities of the organization, such as cost, time-to-market, and quality of work. Overall, outsourcing software development can be an effective strategy for organizations looking to access specialized skills and reduce costs, and hybrid outsourcing models can provide the benefits of both offshore and onshore development to deliver successful projects.

Key Insights

  • Based on the deployment, the cloud-based segment accounted largest market share of 62.17% in 2022
  • Based on the organization, the small and medium enterprises segment is anticipated to register a significant growth rate of 11.35% over the forecast period
  • Based on the vertical, the IT & Telecommunications segment accounted largest market share in 2022
  • On the basis of the region, Asia Pacific is expected to hold the fastest CAGR of 11.20% during the forecast period

Binmile Technologies has Parrtnered with ServiceNow to Streamline Processes Across Organizations

October 2022: Binmile Technologies has achieved the status of a Specialist Partner in the ServiceNow Partner Program, showcasing their proficiency in delivering IT Service, Customer Service Management, and the Now Platform App Engine solutions. This achievement highlights their ability to excel in ServiceNow’s IT, Customer, and Creator workflow solutions.

Increasing Focus on Cybersecurity is Driving the Market Growth

The increasing focus on cybersecurity is gaining traction for market development. As a result, it is important for organizations to prioritize cybersecurity in their offshore development strategy. Offshore software development teams need to prioritize strong security measures, such as secure coding practices, thorough testing, and secure communication protocols to mitigate the risk of cyber-attacks.

Additionally, organizations need to implement strong security policies and procedures for their offshore partners and ensure that they comply with relevant regulations. Some offshore software development companies specialize in cybersecurity and focus on providing secure solutions to their clients.

By partnering with these companies, organizations can ensure that their offshore development projects prioritize cybersecurity and reduce the risk of cyber-attacks. Overall, it is important for organizations to carefully consider cybersecurity when planning their offshore software development strategy to ensure the security of their data and systems.

Rising Government Support to Create New Opportunities for Market Growth

Offshore software development can impact customer experience in significant ways. Despite the cost savings, businesses engaged in offshore software development must consider the quality of the product delivered and the customer experience. Challenges such as communication gaps, incorrect expectation settings, and poor quality of service can result in a negative impact on customer experience.

It is essential for businesses to partner with offshore software development providers who prioritize customer experience, ensure high-quality standards, and have clear communication to mitigate these challenges. Providing excellent customer experience should be an integral part of any offshore development engagement, and should never be compromised for cost savings as doing so can harm a business's reputation in the long run.

Asia Pacific is Anticipated to Emerge as the Fastest Growing Region over the Forecast Period Acquiring CAGR of 11.20% in 2022

The rising usage of offshore mobile development services. India is a popular destination for offshore mobile development services due to its large and experienced workforce in the software development industry. Many companies in India offer offshore development services, including design, coding, quality assurance, and maintenance. Some of the top offshore mobile development companies in India include Concept Infoway, Mobile App Outsourcing, Vofox Solutions, and many others. Offshore development in India can result in cost savings due to lower labor costs in the country.

Increasing Focus On Strategic Mergers and Acquisitions for Sustainable Growth

The global offshore software development market is fragmented with significant players in the market, such as Binariks, Intellias, Binmile Technologies Private Limited, Syberry Corporation Inc., Manifera Software Development Pte Ltd., Cuelogic-LTIMindtree, CronJ, Switch Software Solutions, Belitsoft, Clarion Technologies, BairesDev, Adreno Technologies India Pvt. Ltd., Finoit Inc., Intellectsoft US, N-iX LTD, and others, are concentrated on expanding their business through collaboration and partnership strategies.

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