Industries that Benefit From Software Outsourcing

Gimena Aguerreberry
June 10, 2021

Nowadays, more and more tech companies decide to outsource software development teams. Undoubtedly, outsourcing to bring your tech project to life has a long list of advantages, we’ve listed the main ones in this article. Statista estimated the revenue of the global outsourcing industry to be $92.5 billion dollars in 2019, as well as predicting a rapid rise in 2021.

Most businesses have already embraced the inevitability of digital transformation and ventures of all sizes are keeping an eye on prevalent software development outsourcing trends.

A good outsourcing partner often brings many advantages both financially and professionally. Companies start to outsource to solve business problems or get help with management. Especially for startups, outsourcing is the right way to kick start and gain competitive advantages in software development projects.

Almost every sector today needs IT outsourcing services. However, there are six industries in particular, for whom software development outsourcing has become more urgent and pressing.

1. Retail

The software has greatly empowered and boosted the retail industry. This is especially obvious during the pandemic, not only in terms of the fact that shoppers are increasingly turning to online solutions as opposed to physical storefronts but also because it makes contactless ordering and payment that much more feasible.

Retail experiences are increasingly customized and customizable. And while many retail giants employ full-time software developments, smaller businesses can greatly benefit from outsourcing projects to improve their consumers’ experiences. Even larger companies may find themselves in need of outsourcing assistance when introducing special products and innovations.

Software development outsourcing transformed retail in many ways:

  • Contactless payment apps and digital wallets such as Apple Pay, Google Pay etc.

  • AI-powered analytics that suggests customers’ buying habits and trends

  • Voice shopping with assistants like Alexa or Siri.

  • Augmented Reality (AR software) allows customers to virtually try on spectacles, clothes, shoes, hairstyles or try out furniture, and more.

  • Customized retail stores to enable better customer experience

2. Healthcare

Healthcare must always be at the cutting-edge of innovation, as medicine becomes more complex, and that goes hand-in-hand with software outsourcing.

The healthcare sector manages enormous amounts of patient data, laboratory results, and reports. This is why healthcare is fast becoming automated in order to deliver faster and more efficient services. Software outsourcing services have, to a great extent, made the lives of hospitals, clinics, and healthcare providers easier through innovative software for management and operations.

Outsourcing partners can meet these demands by employing fast, dependable solutions.

Software development outsourcing transformed healthcare in different ways:

  • Telemedicine for catering to remote patients and contactless diagnosis

  • Cloud-based Electronic Health Record (EHR) systems

  • On-premise and cloud medical solutions

  • Practice management software for physicians to see more patients

  • Ambulatory software

  • AI-enabled analytics for patient history

3. Travel

The travel industry almost entirely depends on customized software services because the visibility of any travel destination, resort, hotel or amusement park depends on its online presence. Travel agencies need to manage travel information, itineraries, and search options for their customers. Also, there are many apps today that aid travelers to organize their own itineraries, accommodation, and transport.

This is how software development outsourcing transformed the travel industry:

  • Online itinerary builders for travelers

  • Travel blogs, magazines that inform people about destinations, ways to travel, reach, and tourist information

  • Hotel and flight booking websites, apps, and functionality

  • Greater visibility due to online apps

  • Augmented Reality (AR) based apps that allow customers to visit places virtually before deciding to physically go there

4. Education

Almost 95% of educational institutions worldwide were forced to switch to online education in 2020, but even before the pandemic, the Edtech industry was poised to grow due to a large part of the working population trying to upgrade their skills by taking online classes.

Software outsourcing further aids the Edtech industry in a variety of ways. Apart from virtual classrooms, there are e-learning applications that enable Edtech industries towards the teaching and evaluation of skills.

Software development outsourcing transformed Edtech in many ways:

  • Subscription-based E-learning platforms

  • Technical support during online classrooms

  • Cataloging of educational content and its accessibility

  • Augmented Reality (AR software) supplements to engage students more deeply

  • Machine Learning (ML) and Artificial Intelligence (AI)-driven assessments, group, and individual analysis, lab experimentation, etc.

  • Integration of learning tools and evaluation tools such as quizzes, question paper, answer keys


These aren’t the only industries that are strong contenders for software outsourcing — real estate, finance, insurance, and many other niches often turn to third-party technology providers for innovative solutions, too. But the possibilities are endless for areas like healthcare, travel, education, eCommerce, and even tech itself — and they can quite possibly usher them into a new era and take them to a new level.

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"Industries that Benefit From Software Outsourcing" by Gimena Aguerreberry is licensed under CC BY SA. Source code examples are licensed under MIT.

Photo by Susan Q Yin.

Categorized under software development.