Software Development Outsourcing
State of the Market and Emerging Trends Report 2025/26
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Software development market trends
The outsourcing market is changing fast - growing from £360B in 2023 to over £600B by 2028. Cost is no longer the only driver. Companies now seek speed, specialised skills, and trusted delivery partners. Our report breaks down the biggest shifts, from hybrid models to the rise of nearshore.
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Team augmentation vs project delivery
Should you extend your team with nearshore engineers, or hand over a project end-to-end? Each model has strengths - but the wrong choice can slow you down. In this report, we compare both approaches and reveal where modern software firms are placing their bets.
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Engaging with an outsourcing partner
Finding the right partner isn’t about cost alone. It’s about cultural fit, governance, and building a relationship that accelerates delivery. We share practical advice, common pitfalls to avoid, and a checklist for choosing a partner who will scale with you.
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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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