Outsourcing software development has become popular among companies that have realized the benefits of partnering with a near- and offshore outsourcing software provider with a team to handle certain technical tasks. The request can include anything from creating a simple mobile app to developing a complete enterprise resource planning (ERP) system.
In short, anything to do with designing, coding, testing, deploying, monitoring, and managing software applications. Often, it's also about special skills, especially with regard to new technologies: AI, ML, workflow automation, or automated customer support are some of the trends we observe
Virtido offers custom outsourcing solutions that combine Swiss-quality project management with global engineering talent. In this guide, we will show you how to outsource software development effectively, provide market insights, and explain how Virtido helps clients in various industries develop successful, scalable digital products.
In-Demand Software Outsourcing Services
Outsourcing is booming as businesses seek specialized software development services that are in line with the latest digital trends. Here are the most in-demand areas that companies are passing on to the right software outsourcing partner:
1. Cloud Services
Cloud services offer you on-demand access to cloud resources, storage space, network resources, database development, and security tools via the internet. They enable you to reduce the costs of IT infrastructure, software licenses, and internal technical support and use the resources to support other strategic business objectives.
Companies are investing in cloud infrastructure and services to make their businesses more agile, secure, and scalable. Many companies are leaning toward cloud migration as a cost-effective solution for digital transformation strategies.
Interesting facts: Cloud infrastructure services revenues reached a staggering 330 billion US dollars last year - a huge jump from under 50 billion US dollars in 2017. While the growth of the market has naturally slowed, it will be just under 20% by 2023 - this trend is taking a surprising turn.
In 2024, the explosive rise of generative AI and the increasing demand for scalable, high-performance cloud environments have reignited the growth of the cloud market. This resurgence is particularly remarkable given how large the industry already is. It is clear that with the increasing integration of AI applications into business operations, cloud infrastructure is once again at the heart of digital transformation.
2. Digital Transformation
Companies outsource digital transformation to third-party providers for several reasons. Digital transformation involves complex changes to systems, processes, and technologies – and often requires specialized expertise, speed, and flexibility that internal teams don’t have.
Digital transformation strategies often include cloud computing, data analytics, automation, AI, cybersecurity, and user experience design. Most companies do not have in-house development teams in all these areas. Outsourcing gives you access to experienced professionals and technology consultants who have already completed these tasks in many industries.
Interesting facts: The digital transformation market size is estimated to reach USD 1.67 trillion by 2025 and is expected to reach USD 4.40 trillion by 2030, at a CAGR of 21.32% during the forecast period (2025-2030).
3. Artificial Intelligence & Machine Learning (AI/ML)
These emerging technologies are changing business operations across industries with smart automation, advanced data analytics, and highly personalized user experiences. They’re part of everyday business solutions, helping companies be more efficient and scalable.
Companies use these innovative technologies to change everyday business workflows and accelerate operations. Some are hardware-based, such as autonomous robots, self-driving vehicles, and drones. Others are software-based, such as face and speech recognition systems, virtual assistants, AI chatbots, and AI agents.
Why Businesses Are Adopting AI/ML
- Automation of repetitive tasks, reducing time and human error;
- Deeper insights through predictive analytics;
- Personalization of customer experience;
- Better decision-making by analyzing large datasets;
- Optimization of operations in areas like inventory, supply chain, and cybersecurity.
By partnering with a software outsourcing company, businesses hire a dedicated development team that helps embed AI into business workflows, saving business owners time, effort, and money.
AI Use Case Example: Healthcare
AI is changing healthcare. For example, AI algorithms analyze medical images (e.g., X-rays and MRIs) and patient data to diagnose diseases faster and more accurately. AI systems also consider a patient’s medical history, genetic information, and lifestyle to recommend customized treatment options.
AI-Use Case Example in Financial Business
Data analytics helps analyze transaction patterns to detect and prevent fraudulent activities. Financial businesses can use machine learning models to identify anomalies and suspicious
4. FinTech & InsurTech
Financial companies also assess the creditworthiness of individual customers and businesses and help optimize transaction execution. AI models analyze extensive market data and process it faster than human traders.
The finance and insurance industry is changing with the rise of embedded finance — the merging of financial services with non-financial platforms. We have been seeing these changes for many years as businesses interact with their customers by embedding options such as payments, loans, insurance, and even investment tools into digital products. As the demand for these solutions increases, many companies, especially those from non-traditional financial fields, are turning to outsourcing to quickly and efficiently add embedded financial functions to their digital products.
By outsourcing development to FinTech and InsurTech software providers, companies benefit from API and SDK integration, secure payment systems, and regulatory compliance. Whether it's integrating a 'Buy Now, Pay Later' (BNPL) into an e-commerce platform, adding insurance at checkout, or allowing customers to invest via a retail app, these features require complex back-end systems that experienced outsourcing partners are well equipped to handle.
Interesting facts: The global market for artificial intelligence was estimated at USD 233.46 billion in 2024. It is expected to grow from USD 294.16 billion in 2025 to USD 1,771.62 billion in 2032, at a CAGR of 29.2% during the forecast period.
Source: FortuneBusinessInsights
5. Telecommunication Industry
Outsourcing agencies offer custom software development services, ranging from OSS/BSS systems and CRM integrations to telecom billing solutions and business automation tools. Telecom companies often seek cloud-based telecom solutions and experts to develop digital transformation strategies.
Under pressure to innovate and remain competitive, companies are migrating from legacy systems to cloud-native, API-integrated platforms that improve operational efficiency, enable real-time monitoring, and support AI-powered automation. From chatbot support to voice/video call apps to predictive analytics dashboards, staff augmentation and outsourcing teams are helping internal staff meet growing demands and accelerate product development.
Interesting facts: The world of telecommunications is growing, and the adoption of 5G is one of the key drivers. Another reason for market growth is the increasing number of mobile phone users worldwide and the growing popularity of social media, both of which are leading to higher data consumption and the need for digital services. Innovations in the Internet of Things (IoT) support the need for more reliable and scalable networks to support smart devices, homes, and cities.
6. Business Processes Automation
As companies realize that business process automation (BPA) means greater efficiency, competitive advantage, and agility, the implementation of this technology has become a top priority across all industries. By automating repetitive tasks, improving customer interactions through personalized experiences, and ensuring a consistent workflow, automation reduces workload, lowers costs, and minimizes human error. While the benefits are clear, the effective implementation of automation requires specialized skills, tools, and in-depth knowledge of business systems and workflows that vary by industry. That's why companies are turning to experienced technology partners to outsource BPA.
Common areas include invoice processing, task management, HR onboarding, customer support ticket processing, sales funnel tracking, inventory or supply chain management, and more. Automation helps standardize and improve these workflows, allowing internal teams to focus on strategy.
Interesting facts: The global business process automation market was valued at $9.8 billion in 2020 and is expected to reach $19.6 billion by the end of 2026, with a CAGR of 12.2% during the forecast period.
7. Innovative Technologies in Healthcare
The healthcare industry is now different from what we knew a decade ago, and software is playing a central role in improving staff operational efficiency and, in turn, patient outcomes.
- Telemedicine and remote patient monitoring platforms
- Electronic health record (EHR) systems
- AI-based diagnostic tools
- Wearable device integration and dashboards for health analytics
Outsourcing software development helps healthcare organizations keep pace with innovative technologies. For example, the Virtido team works with various healthcare clients, ensuring compliance with regulations such as HIPAA and GDPR.
Our healthcare clients turn to us to bring our technical skills and expertise needed to develop complex healthcare applications, including electronic health records (EHR), remote patient monitoring tools, mobile health apps, and automated scheduling platforms with patients' profiles and personal information. These solutions streamline not only medical staff workflows but also improve diagnostic accuracy, personalize patient engagement, and enable better-coordinated care. AI-powered solutions help doctors, for example, to analyze medical histories and imaging data to make faster and more informed treatment decisions.
Telemedicine platforms are another popular area where outsourcing is having a major impact. Healthcare providers can quickly deliver secure, user-friendly apps for virtual consultations, prescription management, and follow-up care. These digital products offer access to healthcare services from any part of the world, especially in remote or underserved areas, while reducing the workload on hospitals and clinics. In addition, mobile health solutions allow patients to track their vital signs, medication schedules, and wellness metrics, enabling a more proactive healthcare approach.
Ultimately, outsourcing healthcare software development allows medical facilities to focus on what matters most: patient care. They do not have to worry about data security or the challenges of this highly regulated and dynamic industry.
Interesting facts: The global healthcare software as a service market size is estimated at USD 34.84 billion in 2024 and is anticipated to reach around USD 94.56 billion by 2034, expanding at a CAGR of 10.50% from 2024 to 2034.
8. IT Infrastructure Audit
If a company has an IT infrastructure, it usually needs to develop a strategy to scale it or improve security or avoid technical risks associated with system failures. Companies are increasingly turning to external providers for IT audits and due diligence. Outsourcing these services brings expertise and an unbiased approach that internal teams may lack.
A comprehensive IT audit can cover various areas, such as system architecture, code quality, system performance, server infrastructure, and cybersecurity. External experts will assess whether your infrastructure is scalable, can handle traffic spikes, has properly integrated APIs, and has stable and secure server configurations.
This objective assessment helps companies identify hidden vulnerabilities, avoid system disruptions, and save costs for potential future infrastructure recoveries.
IT due diligence audits are usually outsourced for mergers, acquisitions, or investment rounds. Company owners, potential investors, and buyers can order this service. The audit focuses on assessing technical debt, evaluating infrastructure health, and identifying risks that could impact the integration of the buyer's infrastructure. External providers deliver clear, detailed reports on request to help investors and stakeholders make confident decisions.
Interesting Facts: The audit software market is expected to grow from USD 1.27 billion in 2024 to USD 3.02 billion by 2032, at a compound annual growth rate (CAGR) of 11.3% during the forecast period (2024 - 2032).
9. Cybersecurity Services
Outsourced cybersecurity companies provide access to skilled experts, advanced tools, and best practices for identifying vulnerabilities, monitoring networks, and responding to incidents. These providers typically offer software outsourcing services such as:
- 24/7 threat detection,
- penetration testing,
- security audits,
- compliance assessment,
- incident response.
Businesses choose to partner with outsourcing software development companies not only because of the proven cost-effectiveness but also because building an in-house team requires hiring, training, software licensing, and constant upskilling. Third-party providers can constantly monitor your IT infrastructure and, if necessary, identify and eliminate vulnerabilities.
This cooperation model is particularly interesting for start-ups and medium-sized companies that need enterprise-level protection without the overhead. Third-party providers often have cross-industry experience, which helps companies stay ahead of emerging threats and regulatory changes. Overall, outsourcing cybersecurity is not just a tactical decision but a strategic investment in long-term protection and operational stability.
Interesting facts: The global cybersecurity market reached USD 299.6 billion in 2024. Analytics predict it will reach USD 644.4 billion by 2033, exhibiting a growth rate (CAGR) of 8.9% from 2025 to 2033.
10. Marketing Technology
CRM systems, data analytics platforms, email automation tools, and customer journey mapping are all part of marketing technology. MarTech has become essential in creating personalized customer experiences, developing product promotion strategies, and increasing ROI. However, developing and managing these tools in-house can be resource-intensive and requires technical and strategic expertise.
Typically, companies looking to implement customized solutions for their unique needs outsource MarTech development to experienced third-party providers. By outsourcing marketing technology, companies gain access to cross-functional teams with in-depth knowledge of marketing tools, customer data platforms, and API integration best practices.
These teams use an agile approach and provide expertise to build and launch marketing solutions faster, optimize campaign performance, and make data-driven decisions without creating an in-house technical department.
Interesting facts: The global marketing technology (MarTech) market size was valued at USD 493.7 billion in 2024. Analytics estimates the market to reach USD 2,431.45 billion by 2033, exhibiting a CAGR of 18.41% from 2025 to 2033.
Swiss Quality Meets Eastern European Software Engineering
Virtido is a forward-thinking provider of outsourcing and IT staff augmentation services. It is headquartered in Switzerland and has delivery centers across Eastern Europe (EU and non-EU regions) and the Philippines. With a strong focus on quality, the Virtido team has built a reputation for delivering end-to-end software development solutions, ranging from early-stage prototypes to fully scalable enterprise applications.
Over the past ten years, we’ve successfully completed 500+ remote staff augmentation projects, supporting startups, SMBs, and enterprises with reliable, high-performing technical expertise.
Our teams bring deep knowledge across a range of technologies and industries, ensuring that every project is executed with precision and agility.
We offer flexible collaboration models tailored to your business needs, whether you need talented software engineers through staff augmentation or a dedicated team model for full-cycle mobile app development, technology consulting, data protection, quality assurance testing, etc. Virtido is your trusted software development outsourcing partner for cost-saving, scalable, and future-ready software solutions that help you achieve your strategic goals.
What sets Virtido apart is our unique hybrid model that combines Swiss precision and project governance with Eastern European engineering scope of skills. This blend ensures that clients get high-quality results that are cost-effective and meet business objectives.
Why Our Clients Choose the Virtido Team:
- Proven Track Record across healthcare, fintech, real estate, manufacturing, legal tech, and more;
- Dedicated Development Teams tailored to each project;;
- Staff Augmentation covering client's needs;
- Agile, Transparent Workflows with regular detailed reporting and time tracking;
- Nearshoring as an Advantage with better time zone overlap and cultural alignment;
- Scalable Engagement Models: staff augmentation, dedicated teams, offering full-cycle product development.
Final Insights
By outsourcing software development projects, companies can access full-time specialists in automation, UX design, and back-end integration, with a project manager who can lead a dedicated team and get feedback from stakeholders and internal teams. This agile approach enables faster prototyping, lower development costs, and more efficient use of the company's budgets.