The new year is officially here in just a few weeks. Closing 2023 with much excitement and anticipation, we are riding the new year 2024 with the recent Software Development Trends, especially in the Offshore and Outsourcing segment, which shall continue to play such a dominant role in catching up with the lightning speed of technological advancements. This leap year, 2024, is also for us all – the tech geeks to witness a global expansion of offshore software development, with market values projected to reach unprecedented levels.

In today’s blog, we’ll be unlocking the upcoming trends to shape the software development arena in 2024. Let’s unwrap them, shall we?

Offshore Software Development Market Growth in 2024

The software development industry is rapidly expanding, with estimations suggesting it will soon surpass $700 billion by 2026, a significant jump from its current valuation of $260.38 billion. This burgeoning landscape presents ample opportunities for enterprises, startups, and entrepreneurs. Amidst these promising prospects, the market forecasts for Offshore Software Development appear almost incredible yet undeniably plausible.

According to Cognitive Market Research, the Global Offshore Software Development Market is projected to reach USD 112,609.5 Million by 2030, exhibiting a Compound Annual Growth Rate of 15.2% from 2023 to 2030. Furthermore, the revenue from custom development within the offshore software development sector is expected to reach USD 30,802.9 Million by 2028.

The increasing demand for businesses to maintain competitiveness in the swiftly changing digital environment propels the growth of offshore software development. This surge is primarily attributed to the essential role that contracted software development plays in fulfilling this demand.

Consequently, contracted software development is gaining more traction among businesses. This article will delve deeper into the industry’s transformation and examine the trends shaping its landscape.

The Next Offshore Software Development Trends in 2024

Software Development Security

Protecting all sensitive, valuable, and personal data is a top priority for all organizations, representing brand security guidelines and safety. Unsurprisingly, companies consistently prioritize this aspect, aiming to embrace a new development model that strongly emphasizes security and safeguarding data confidentiality.

Understanding the critical nature of security measures in data management is crucial. Data breaches continue to pose a significant and widespread threat on a global scale. In 2022, the average cost of a data breach in the US skyrocketed to an astounding $9.44 million, which is both impressive and worrisome. With this in mind, data confidentiality and security will likely emerge as prominent trends in the software industry in 2024.

In 2024, security shall not stay simply as a trend but rather a necessity. We could expect the rise of strictly secured solutions, resulting in the delivery of highly fortified applications. If you are looking for a helping hand in securing your current software development project, contact Shift Asia consultants for support or consultancy.

No or Low Code Development

Visualizing a scenario in 2024 where software development transpires without traditional coding methods seems peculiar, doesn’t it? How can one-fathom software development without coding?

Yet, that’s precisely the trajectory indicated by the trends for 2024, driving the focus of most offshore software developers toward achieving rapid development.

According to Gartner’s research, the widespread adoption of low-code development is anticipated across companies of all scales, with adoption rates projected to exceed 80% within the next decade.

The low-code or no-code approaches undeniably revolve around user-friendly graphical interfaces, streamlining the software development process for developers with minimal effort.

However, one should be aware that it’s a straightforward task. It requires a comprehensive grasp of logic, ideology, and other elements to yield exceptional outcomes.

This trend leverages pre-built functions and libraries, demanding high expertise to unlock its full potential. This facilitates swift responses to market shifts and reduces reliance on traditional coding practices, ultimately leading to expedited time-to-market. Schedule a consultation today to discover how these powerful tools can expedite your projects, streamline workflows, and drive innovation!

Outsourcing is in Demand

Contracting external services is a widespread and continually developing practice in the worldwide business battlefield. As businesses acknowledge their strategic benefits, an increasing need for IT project outsourcing services has escalated since the beginning of 2023.

From reducing expenses to tapping into global talent pools and concentrating on core proficiencies, outsourcing has solidified its position as a fundamental component of contemporary business strategies. Incorporating this practice can offer enterprises a competitive edge in today’s dynamic and fiercely competitive business landscape.

What initially began as a try-out has gradually transformed into a more convenient mode of operation, yielding more pronounced results than ever before. The prevalence of outsourcing services is projected to persist as a dominant trend in 2024.

AI-Powered Development

The journey into 2024 is fueled by the integration of AI-driven tools and technologies across various industries, including the realm of offshore software development.

The impact of AI has become pervasive, permeating virtually every sector. Looking ahead, the trajectory remains promising, with forecasts predicting that the global AI market will surpass the $500 billion mark by 2024.

The upcoming year anticipates a surge in demand for proficient AI developers in harnessing AI-powered tools and platforms, streamlining the development process, and expediting time-to-market.

These developers play a pivotal role in software projects, expediting the entire development cycle. The convergence of AI and automation in 2024 is poised to unlock tangible benefits for businesses. Harnessing this potential will require a concerted focus on recruiting skilled AI developers to maximize its impact.

AI-powered development solutions reshape industries by automating tasks, enhancing decision-making processes, and elevating customer experiences. These solutions can analyze large volumes of data, predict trends, and optimize operations, ultimately leading to heightened efficiency and reduced costs. AI developers are adept at crafting and implementing tailored solutions to meet a company’s needs.

Whether developing predictive analytics for informed decision-making, designing recommendation engines for e-commerce, or building chatbots for improved customer support, AI developers are at the forefront of innovation. Hiring AI developers enables businesses to gain a competitive edge, boost productivity, and deliver superior services. If you still need time to look into this sector, it’s time! Don’t wait until it’s too late!

Shift in Offshoring Destinations

With emerging markets making strides in infrastructure development and talent attraction efforts, new offshoring hubs are emerging, offering businesses an expanded range of options for outsourcing their software development needs.

Despite the proliferation of potential offshoring destinations, factors such as the cost of living, geographical location, and other relevant considerations will continue to wield significant influence over the ultimate cost of offshoring.
Decentralized and Remote Teams

The culture of remote work will continue to flourish not just in 2024 alone but also in the coming years. The traditional model of a strictly office-based environment with centralized management is now a thing of the past.

The trend of working remotely in a fully decentralized setting will endure and prosper. In 2024, the global software development talent pool will remain widely dispersed. Businesses will slowly begin to tap into remote development teams from across the globe to enhance and broaden their software development capabilities.

Furthermore, outsourcing specific development tasks to specialized teams will become even more widespread, enabling companies to swiftly and cost-effectively access technical expertise.

High Demand for Cutting-edge Skills

Augmented reality, virtual reality, blockchain, and artificial intelligence have garnered considerable attention in recent years, dominating the technological discourse.

Yet, the tech arena encompasses more than just these domains; it may witness further introductions and advancements on a much bigger scale. As a result, proficiency in current technologies alone will not be adequate, as there will be a significant need for state-of-the-art skills in almost every sector.
Focus on Enhanced Collaboration Tools

Utilizing modern communication tools guarantees seamless collaboration among remote teams and clients. Offshore development companies should use platforms like Slack, Jira, Google Meet, and Microsoft Teams to foster real-time communication and teamwork.

Through adopting industry best practices, cultivating strong client relationships, and effectively utilizing contemporary communication tools, professionals in offshore software development can deliver high-quality products and services customized to meet their clients’ evolving demands.

While the introduction of new collaboration tools is anticipated in the coming year, the platforms above are expected to remain the primary choices.

2024 in short

Settling into 2024 brings both joys and challenges for the technological field as innovations and inventions are constantly being introduced. While it positively motivates us all – the tech-oriented folks to stay creative and updated, the fears of losing out struck us equally hard. Fear of leaving behind, being outdated, or simply being irrelevant to the customers is eating away at our self-esteem.

Therefore, stay AWAKE, informed, and be aware. Embracing the trends, however, ride or die is the option you will make on your own! If you face the obstacles of limited resources, human-wise or technology-wise, talk to our team! We can help you as SHIFT ASIA – the most efficient IT outsourcing services provider with an excellent quality rating, here to help our customers find the most sustainable strategic plan for their business operation.