Top offshore software development trends for 2025 and beyond

Do you want to cut development costs without sacrificing quality?

Well, of course you do.

And offshore software development is one of the best ways to make that happen.

If you choose the right offshore company to partner with, you’ll get a valuable, long-term partnership.

But, to find them, you need to keep up with the latest trends in offshore software development.

Here, we’ve compiled the top offshore development trends for 2025 that will help you stay ahead of the curve and pick the right development partner.

Let’s dive in!

Growing demand for offshore outsourcing

Offshore outsourcing is still going strong and demand for offshore software development is growing at a rapid pace.

And that’s not just idle talk.

The global offshore software development market is valued at $122 billion in 2024 and is expected to reach $283 billion by 2031, growing at a compound annual growth rate (CAGR) of 10.13%.

source: Verified Market Research

So, why is there such a strong demand for offshore development?

One look at its major benefits tells the whole story. These include:

• Lower development costs
• Access to a global talent pool
• No administration overhead
• Easy team scalability
• Access to experts with specialized skill sets

And these are just some of the general benefits of offshoring development – if you pick the right development partner, you’ll get a bunch of other benefits, too.

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They’ll go the extra mile and will actively strive to make your product better, which is exactly what you should want.

So, offshore development is going strong and will only continue to grow – we’ll now explore the top trends driving that growth.

Low-code and no-code development

With low-code and no-code development platforms, users can build apps with pre-built components and connect them through a visual interface.

Some of the top low-code/no-code platforms are:

• Appsmith
• Mendix
• Bubble
• Glide

And here are the key features these platforms share:

source: Maruti Techlabs

The main benefits of using low-code and no-code platforms are faster development and lower costs.

And that’s why more and more offshore vendors are using them to meet client demands faster.

But, there’s a catch – these platforms can only create simple apps and if your app has complex features, they won’t be enough to get it over the line.

Still, they can be a good choice if you want your offshore team to quickly build a minimum viable product (MVP).

AI-powered software development

AI is everywhere nowadays – and software development is no exception.

AI development tools help offshore developers work faster and better, improving their productivity and the quality of their code.

Of course, the most well-known are AI coding assistants like:

• Codeium
• Github Copilot
• Tabnine

These tools use machine learning algorithms to provide context-aware code suggestions and write boilerplate code.

And this allows engineers to focus more on complex tasks and can significantly speed up development.

Here’s an example of Github Copilot in action:

source: Github

But, coding assistants aren’t the only AI tools redefining software development. Some other examples include:

• AI static application security testing (SAST) tools – Amazon CodeGuru, Snyk
• AI documentation tools – Mintlify, Scribe
• AI design tools – Uizard, Figma AI

All of these tools allow offshore development teams to work more efficiently and increase their productivity.

And that’s why AI-powered software development is the next big thing.

Increasing demand for talent with cutting-edge skills

The IT skills shortage is only going to get worse in the coming years.

Here’s a striking statistic – IDC estimates that by 2026, 90% of businesses will be significantly impacted by the skills shortage and lose a total of $5.5 trillion due to its effects.

This is especially true for roles like:

• AI engineers
• Data scientists
• Solution architects
• Cybersecurity engineers
• Cloud engineers

So, it’s no surprise that companies are turning to offshore outsourcing to access a wider talent pool and bridge the skills gap.

And that comes with another added benefit – lower labor costs.

Here’s a comparison of the average hourly offshore development rates by role and region:

Average hourly development rates by role and region

So, if you’re a U.S.-based company and hire an offshore team from Eastern Europe, they’ll be 3-4x cheaper to hire than an equivalent team in the U.S.

And that’s why offshore development is the best solution.

Agile development and DevOps

Agile development methodologies and DevOps are another major trend in offshore development.

But, they’re more than just a trend – they’re the best approach to building software products.

Agile projects are on average 28% more successful than traditional projects.

And DevOps is, as defined by Atlassian, Agile applied beyond the software team with a focus on continuous delivery and integrating IT operations and development.

So, why exactly are they so successful?

One major reason is flexibility. Offshore teams that implement Agile methodologies and DevOps can much more easily adapt to changing requirements.

Take Scrum, for example.

With its iterative approach, the team can easily pivot and adjust their work without derailing the entire project.

When combined with a robust CI/CD pipeline, offshore teams can build, deploy, and manage higher-quality products faster.

And that’s why the best offshore software development companies use both Agile and DevOps.

Increased focus on cybersecurity

Another major trend in offshore development is that companies hiring offshore teams are paying more attention to cybersecurity.

And there’s a good reason for that.

The annual cost of cybercrime is expected to surge in the next few years, rising from $9.22 trillion in 2024 to $13.82 trillion by 2028 – that’s a 48% increase in just 4 years.

source: Statista

But, these figures are so high they’re almost abstract and are impossible to visualize.

If you zoom in a little bit, you get another eye-watering statistic – the average cost of a data breach reached $4.88 million in 2024.

So, it’s no surprise that cybersecurity is becoming more and more important.

And when you’re looking for an offshore development partner, you need to check if they have relevant security certifications like ISO/IEC 27001:

source: Kolide

In short, this means that they follow globally accepted data security standards and best practices.

So, if you’re worried about data security when hiring an offshore company, this will help you find one that takes cybersecurity seriously.

Cross-platform app development

Cross-platform app development is an increasingly popular approach to building mobile apps.

The stats back that up, too.

According to the 2023 Stack Overflow Developer Survey, 9.12% of all engineers use Flutter while 8.43% use React Native.

source: Nomtek

And offshore development companies are seeing more and more inquiries about cross-platform apps, even outpacing interest in native apps.

But, why exactly are cross-platform apps all the rage nowadays?

There’s a simple explanation – lower costs.

Cross-platform apps are written from a single codebase, so you don’t have to write separate code for each platform.

This makes them much more cost-effective to build than separate native apps, especially since they reach a wider audience from the start.

And that’s why their popularity will only continue to grow.

Business process automation (BPA) and digital transformation

Business process automation (BPA) and digital transformation might sound like empty buzzwords, but they’re much more than that.

If you want to significantly improve your operational efficiency and build a future-proof business, they’re exactly what you need.

And building these solutions is one of the most common inquiries offshore companies get from clients.

But, why are BPA and digital transformation so important?

Digital transformation is the integration of digital technology in all aspects of a business to drive growth and create more value – and BPA is one of the best ways to achieve that transformation.

On average, BPA can reduce time spent on manual tasks by up to 60% and lower your operational costs by around 30%-40%.

Here’s what the process of setting up BPA looks like:

source: Zapier

And hiring an offshore development team to build your BPA software solution is the easiest way to reap the benefits without breaking the bank.

That’s why you should go for it.

Cloud-native development

Cloud-native development is another emerging trend in offshore software development, with an increasing number of offshore teams building cloud-native apps.

And the overall cloud-native development market is rapidly growing and is expected to reach a staggering $2.34 trillion in value by 2030.

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Cloud-native apps, as the name suggests, are apps that are built, deployed, and managed directly in cloud computing environments.

Now, it has to be said that cloud-native development isn’t the right choice for every app, as they can be challenging to build and manage.

But, for complex apps with large data volumes, it’s a great choice.

Here’s what a typical cloud-native architecture looks like:

source: Successive Digital

So, why exactly are these apps so popular right now?

There are 2 main reasons – easy scalability and lower costs.

Since they’re not dependent on physical infrastructure, cloud-native apps are much easier to scale and can effortlessly grow with your business.

Also, as cloud computing services operate on a pay-as-you-go model, you only pay for resources you actually use.

And that’s why it’s such a strong trend right now.

How to choose the right offshore software development company

Now that we’ve covered the top offshore development trends, we’ll show you how to pick the right offshore development company to partner with.

This isn’t a decision that you should take lightly – you need to make the right choice or you risk losing a lot of money.

The steps you need to take to pick the right company are:

• Clearly define your goals and requirements
• Read their case studies
• Check their reviews
• Review their development process
• Evaluate their tech stack
• Review their pricing

But, that’s just the process.

To truly make the right decision, you need to look for these 3 things in a potential partner:

• Flexibility and proactivity
• Work ethic and cultural compatibility
• Transparent and accurate communication

First, a company with a flexible approach and that’s proactive during development will be able to adjust easily if requirements change or a pivot is necessary.

The next is self-explanatory – your offshore partner should be able to deliver your project on time and within budget as well as “get” your company’s culture.

Finally, it’s the most important tip of all – the company you partner with has to communicate transparently and accurately. 

Here’s what DECODE co-founder and CEO, Marko Strizic, had to say on why clear and open communication benefits you during development:

Poor communication can derail even the simplest project, so this really is crucial if you want successful development.

And with the right partner, it will be a breeze.

Offshore software development trends: FAQs 

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We can help you build your product from the ground up, whether you need a simple MVP or a complex enterprise solution.

If you want to learn more, feel free to reach out and we’ll set up a quick call to discuss how we can help you in more detail.