Trends Re-Shaping Outsourced Product Development (OPD) Market

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Outsourced product development (OPD) has a wide range of benefits for a several businesses, specially companies building software products. These benefits include increased resources and expertise, reduced costs, and continuous delivery.

The main draw of OPD used to be cost reduction. If you are outsourcing the job, you do not have the expense of adding in-house staff. But in recent months, the focus on cost reduction has shifted towards a focus on continuous delivery. Most customers demand access to top quality services and products whenever they want. By making products and services more flexible and scalable, OPD can help you stay ahead of the competition and deliver to your customers without delay or interruption.

Agile and DevOps – How is it changing OPD?

Agile methodologies give developers the ability to break down software development into smaller pieces that help speed up feedback loops and ensure that the features of the product meet the market demands. Agile quickly emerged as a truly efficient work system and exploded in popularity.

DevOps, a combination of “development” and “operations,” grew alongside agile methodologies and allowed developers to view software and product growth as a single lifecycle, participating in every stage from development to support after deployment. And because many DevOps processes can be automated, it has allowed for significant advancements and benefits for business of all sizes.

The growth of new software and delivery processes driven by agile and devops are quickly becoming a major part of the OPD market. The growth in this area has a lot of tech enthusiasts looking forward to 2018.

Outsourced Product Built using Latest Technologies

There are many areas in technology in which you can outsource product development. Some of the new generation technologies for which you can find an ODP partner for building innovative software products are:

Automation: Consumers are looking for an easy answer to their needs which has lead to a rise in automation. Automation is able to standardize the output from software and can eliminate some of the inefficiencies found in both product development and front-line customer service. Companies that deploy frequent software updates are most able to keep up with shifts in market and customer demands. These updates would be costly and time consuming, if done by humans alone. By automating the process, and outsourcing this automation, businesses do not have to recruit dedicated staff nor do they have to worry that their software is falling behind. Look for major developments in the use of robotic process automation and microservices in advancing the technologies used in both the front and back ends of business systems.

The Internet of Things: The number of appliances and everyday use items that are connected to the internet has grown exponentially in recent years. Everything from telephones to televisions, refrigerators to washing machines, wristwatches to speakers, can be connected to the internet. This connectivity optimizes the way we use these items and can dramatically improve user experience. This constant connectivity also provides an opportunity the collection of usage data and preferences. In the year ahead, look for IoT technology to become more personalized and predictive. In some cases, this could mean companies having to redevelop their software or update it at an increasingly fast pace. It can be nearly impossible for IT staff to keep up with these demands. Whether it is improving software for connected industrial devices, expanding cloud capabilities, or creating a better experience for the end-user, staying on top of this shifting landscape can help businesses improve processes internally and increase customer satisfaction. By outsourcing these processes, businesses can stay on, or move to, the cutting edge without having to lose money to extra staffing or service outages.

Machine Learning (ML) and Artificial Intelligence (AI): While previously used to reduce cost and optimize operations, machine learning is becoming an important piece in problem solving. So much so that a report from Deloitte predicts that businesses will double their use of ML by the end of 2018. ML is a form of AI that does exactly what the name suggests, gives machines the ability to learn and improve functions based on the data it collects. The potential for ML can be seen across a wide range of industries from the financial sector, to healthcare, to the tech world. ML can find insights and solutions that would take humans countless hours to find, if they were able to find them at all. In most cases, the technology required to advance ML can be expensive which places OPD as the best and most viable solution for any business looking to stay competitive.

Summary

Outsourced product development is rapidly becoming a long term solution for businesses all over the world. As technologies grow and become more specialized, it can be difficult to keep all product growth and development in-house. Delegating product development creates an avenue toward a more efficient adoption of technologies and allows the company to focus its efforts on other things, like marketing the new technology and reaching the right customer base. Because devops and agile allow a project to be broken down into smaller parts, businesses are able to use single or multiple vendors for their OPD solutions in order to leverage costs and roll out quality products that are flexible enough to meet the demands of any customer base.

By employing OPD, businesses are able to scale their products on demand and with a specificity that meets the needs of their client base. Using OPD firms allows for the constant development and monitoring of software programs and will ensure continuous delivery, seamless product updates, and customer satisfaction.

Even start up companies have found incredible benefits with OPD. By outsourcing the development of software, these companies are able to access the best tools and technologies available which gives them the ability to grow and adapt their products in ways that may have been impossible if everything had been kept in-house.

As the use of advanced software spreads outside of the traditional tech industries, the need to stay on pace with the changes is growing. By not developing outsourcing partnerships now, businesses may find themselves on the outside looking in when it comes to the latest advancements in their field which can produce the unhappy side effect of a decreased market share.

By,

Market Research team

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