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Home 8 Reasons Software Development Outsourcing Works

8 Reasons Software Development Outsourcing Works

Software development outsourcing sounds a little tricky word but it provides you complete solution and answers to the business challenges you face in your organizations. Outsourcing software development has provided many successes to organizations across the globe. There are many reasons today even large organization opting for outsourcing software development work to expert companies. In this blog post, we will cover a few reasons and the benefits.

So Why Software Development Outsourcing is a better option?

  • Reduce Cost

One of the major benefits of software development outsourcing is that it reduces your workload. If you develop the same solution with in house team the cost of labor may be higher based on the country, for example, Europe or USA. Outsourcing software projects can save cost up to 70%. Further, you don’t need to manage other recurring costs on the outsourcing vendor as you may incur on your in house employee.

  • Save Time

Time is Money and investing the time of multiple people with in-house development may increase your cost as well as your time. There are training, processes, workflows that need to be given to the in house employee or developer. But with Outsourcing, you get a complete pool of experts who handle your project within the timeframe and targets you set to go live.

  • Complete Expertise

When you opt for outsourcing your software development projects with any vendor you get complete expertise and different experiences working on your software project. This includes Developer, Senior Developer, Team Leads, Testers etc. Establishing the same within your organization may be a time-consuming task. Software development vendors already keep skilled workforce for various verticals.

  • Flexible Resource

Spending time on recruitment and scaling the employees for a particular contact can be hectic – With software outsourcing, you don’t need to worry about the training and hiring part as the vendor who undertook your project will manage the labor and expertise to ensure proper delivery.

  • Professional Services

One of the biggest benefits of outsourcing is that you get the best of IT resources and professionals from the vendor including the expertise they hold in handling the similar kind of project. Therefore Outsourcing helps you with optimum and professional handling of the projects.

  • Accuracy

If resources available in your country for a particular software development task is limited, you can opt for outsourcing which provides you with international talents and reduces human resource problems.

  • Advancement in Technology

With outsourcing, you gain innovation and advice on new technologies that can be used for your software development project. As we know that technology is evolving every day therefore with in house development team your company may not use the best technology.

Controlling Risk

Outsourcing helps you to mitigate risk for the software project as before selecting any software development firm you understand their expertise, resource, people, experiences etc. This may not be the case if you are hiring an employee in-house.

How you can take advantages Software Development Outsourcing in your business?

Outsourcing software development project is one of the finest solutions in this era of the Internet. There are a pool of talents and resource available around the globe to provide services towards your needs. From app development to ERP or website development work you name it… Today outsourcing has become key to any organization. Even big organizations who can keep a pool of talent resource in their office premises are opting out for Outsourcing to ensure time and cost both are saved with low risk.

How to get started with Software Development Outsourcing?

One of the biggest questions that come in the mind before outsourcing is How you can rely on an external vendor to meet your expectations? Below are some of the list of tips and points which you can remember while hiring or outsourcing the software projects.

  • Understand your own Project

Before even shortlisting any potential partner you need to understand the in and out of your own project including what your organization wants to achieve with particular software development and expectation setting with the partner.

  • Research:

Once you have set up the expectations and outcome of your software you can initiate by researching potential organization that has expertise and experience in similar industry.

  • Shortlisting

With the reputation and skills, you can start shortlisting potential partners with proper skills, resources, and client list in a similar industry.

  • Background Checking

A background check is important once you shortlist any company for outsourcing your software project. Stability, year of establishment, Customer list, financially sound and the number of projects they are handling with the allocation of resources. This will build more trust while opting for a particular company.

  • Resource understanding

There are many organizations you will come across during your research. Some may state a team of 100 people or 200 people etc.  Understanding their resource skills and knowledge is important as in the end your concentration should be on the successful project delivery and sign off.

  • Communicate

Once you understand the background you can communicate with different outsourcing partners. You can also ask for client reference for their previous work. Gain demo access to understanding how the base of software will look like and in case you have any changes that can be communicated.

Various Models in Outsourcing

There are various high-level outsourcing models via which you can gain the advantages of software development this includes the following:

  • Project Based outsourcing

Based on your project you can outsource the software development work. This is a little straight forward as where you provide complete responsibility of your project from requirements understanding, development, customization till training the resource on how to use the software.

  • Time and Material Base outsourcing

Based on project size you can select this model where you can hire resource from outsourcing partners on time and material basis. The cost of the resource may differ based on the experience of the resource and the number of resources you are selecting. This model works for short term project where there is minimal development require.

  • Staff augmentation

In this method, there are certain task organization outsource in which they don’t have expertise.  This may be due to a particular skill resource not available and hiring them as an employee for short term may be hectic. For example: Outsourcing the designing work of a website and managing the optimizations and development in house.

  • Contracting or Out Tasking

In the contracting model, you transfer a specific process to the outsourcing partner. As an outsourcing partner, our organization get many contracting projects specifically for integration of 3rd party software where we specialized by another Vendor or company.

  • Managed services

As the name suggests manage services mean handling of infrastructure and function on behalf of a company. Example handling of Server, Maintenance, bugs fixings etc.

  • Offshoring Model

In Offshoring, method organization locates its dedicated resource to another country or at client place. This method also called as Onsite resource hiring and expensive compared to another method of outsourcing. This model works when software development work requires months or years to develop or maybe if the development is done in different phases.


To conclude our blog post – Outsourcing model provides you with flexibility, choice, and expertise to develop any software for your business. Understanding the partner capabilities and choosing the right model is important to ensure you gain the highest benefits from outsourcing your software development projects.

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