The Advent of Software Product Engineering & Its Key Market Trends

The Advent of Software Product Engineering & Its Key Market Trends

The overall landscape of technology has been in the process of constant evolution since the rise of new and modern technological themes, along with state-of-the-art software development methodologies.

The focus has shifted towards providing more consumer-centric solutions and services. We live in an era that can be termed as “software-defined”. The complexity and scale of software solutions that we use have been increasing exponentially.

Architectural intricacy and the constant need to develop more intuitive, visceral software interfaces pose a big challenge to the software development industry. In some cases, the lack of appropriate in house talent acts as a challenging factor in maintaining and scaling the existing services.

This gave rise to agile product engineering services & solutions, aimed at easing the pain and curbing down on the prevailing challenges. The software services and solutions have also evolved with time. They now have a strong foundation in the market, being the catalyst to rapid growth and transition.

Here are some key trends in the field of software product engineering services and solutions:

1. Spotlight on critical outsourcing:

Businesses and customers have been on a lean approach to work in organizational functions and buying strategies respectively. Companies prefer to segregate their core and non-core products and functions in their portfolios.

The ones which are non-core, the products which function on the surface are outsourced for their cost savings and operational efficiency, bringing by a long-term and collaborative engagement with their service providers.

2. The importance of consulting:

Organizational planners demand strategic consulting for product roadmaps so that they can accomplish their transition from legacy technologies to the adoption of new, state-of-the-art technologies. They have a product engineering mindset expecting skillset in organization-wide processes and cultural and operational changes.

On the other hand, the service providers are increasingly engaging with their clients as a strategic advisor and implementation partner. It has been observed that in most cases, these service providers are partnering with big consulting firms to rivet the consulting gaps.

Modern business solutions:

Businesses have always wanted to reduce cost overhead and engage in exclusive commercial models with their service providers. The SaaS service model is dismantling the traditional product license and revenue channels of the customers. Due to this, they are more becoming more inclined toward nonlinear pricing models.

Product engineering services & solutions providers have also mentioned several examples of outcome-based and risk-reward pricing models for both vertical and enterprise independent software vendors,.

3. Consolidation of outsourcing partners:

As customers optimize their product portfolio by segregating core and complementary products, they are also consolidating their outsourcing partners to build strategic relationships and sharing their vision to help align growth initiatives.

In some cases, clients are outsourcing in bits and pieces, requiring very specific capabilities with constant change in the specifications and project requirements, thus a long-term, 360-degree relationship is essential.

4. Influence of digital technologies:

The technological trendsetters for software product engineering includes, IoT, cloud, and artificial intelligence. They are instrumental in the overall customer journey, competitive advantage, user experience, and other business outcomes. Service providers need to establish strong expertise in these growingareas.

5. Companies adopting the co-investment model:

The co-investment-led business model has been successful so far. Organizations partner with service providers in order to develop next-generation products and has become popular in the software product engineering space.

There has been a rise in the number of initiatives and participation by service providers based on this investment model.

6. Having skillful domain knowledge:

What makes these solution providers stand out from each other is the in-depth understanding of domain knowledge. It differentiates them from the others. You can relate this to “Industry context”, experience in enterprise tools and platform development.

Now that we are experiencing the deluge of cloud-based solutions computing, micro-services, and mobility, deep knowledge in business processes can be a unique differentiator. This is not only from the business point of view but also from a technology perspective.

Evolving technologies provide a clear road-map for future development purposes. It becomes important for companies to match the pace of these trending software technologies in order to stay ahead of their competitors.