Software Development Outsourcing
State of the Market and Emerging Trends Report 2025/26
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Software development market trends
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Team augmentation vs project delivery
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Engaging with an outsourcing partner
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Software Development Market Trends:
Outsourcing models and market engagement
The global software development outsourcing market is experiencing significant growth, with projections indicating a rise from approximately £360 billion (USD 460 billion) in 2023 to £610 billion (USD 778 billion) by 2028, reflecting a compound annual growth rate (CAGR) of 11.07%. This expansion is driven by businesses seeking cost efficiencies, access to...
Software Development Market Trends:
Outsourcing’s Top 3 Emerging Trends
1. Hybrid Outsourcing Models
Many companies are moving away from a one-size-fits-all outsourcing approach and are instead embracing hybrid models that combine onshore, nearshore, and offshore resources. This strategy allows businesses to capitalise on the strengths of each model:
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Onshore teams handle critical tasks that require close collaboration, such as product strategy, stakeholder communication, and compliance-sensitive work.
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Nearshore teams provide agile development support in...
Best practices and bonus tips
Engaging with an outsourcing partner
In this section, we’ll cover:
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1. Why Nearshore is a solid option in most outsourcing use cases
2. Which engagement model you should be using
3. Common pitfalls (and how to avoid them)
4. How to excel with governance & communication
5. Choosing the right outsourcing partner
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