Software Development Outsourcing 2022 Market Report and Trends for 2023

Timo Railo
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We at East have a somewhat unique place in the IT market, with a good pulse on the Nordic enterprises and scaleups buying IT services and software development companies in the Balkans—and some of the surrounding countries.

At the beginning of the year 2022, we started a blog series reviewing IT outsourcing industry market changes and predictions for the upcoming year. To wrap up the year, we published an eBook including research, predictions, and ideas for overcoming challenges in the changing market situation.

A big part of the three-part blog series deals with macro-trends and how to manage changing market conditions. At the end of the first quarter of 2023, we are in the middle of this modifying market, and we believe this report gives concrete help for both end-clients and software development companies alike.

This eBook covers the following interesting topics for 2023:

  • Trends – Macroeconomic trends that are already affecting the IT industry and will continue to do so in 2023.
  • Business models – A market fashion that is pulling towards team augmentation as opposed to end-to-end deliveries. This movement highlights a strategic misalignment between vendors and clients.
  • Tech talent development – How to find and retain talent better and take care of ongoing skills development.
  • Tooling – How better tooling, AI, and a move towards SaaS and PaaS are affecting the IT industry. As well as, how service provider companies can find new opportunities by looking more in-depth at where to focus new technical skills development investments.

We will continue to publish market data during 2023, but don’t be fooled by the 2022 title—the series continues to be a relevant read.


Download the East Market Report 2022


I’m a creative builder with over 25 years of experience in the IT industry. I understand the customer’s real needs and their operating environments, which allows me to find and connect the most technically and culturally most suitable experts with companies that need the best IT talent.

I currently aid Nordic companies to source talent from the Balkans and set up processes to improve the efficiency and success rate of IT offshoring and nearshoring ventures. I’ve gained my experience in Bulgaria by living in the country for years and working with Bulgarian IT talents over a decade.

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