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What is software outsourcing and its importance?

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software outsourcing

In the modern-day life of humans, everything around it is digitalized. Whether it is buying a car or transferring money to other accounts we have to rely on different software and applications. According to a survey, 70%  of businesses from all sectors are on the way to digitization or making strategies to move to a digital platform.

Since most of the software is used by people on smartphones, we have a potent medium to use it efficiently. There are 2.79 million applications on the Android Play Store and 2.2 million applications on the Apple App Store to download. And same goes for the computer operating system where we have ready-made applications. But sometimes the user has some specific set of requirements to fulfill, so software outsourcing comes into play.

There are much software outsourcing companies that offer a range of services in relation to software outsourcing to fulfill the customer’s demand individually.

In this article, we will learn about software outsourcing and its importance in different sectors of the economy.

Software outsourcing (definition):

To understand the importance of outsourcing software we need to understand it.

When a third-party vendor is given work to develop a computer or application program set of projects to complete is called software outsourcing. The service provider may be an individual or a company. Most of the business rely on outsourcing companies to complete their projects.

In other words, organizations come to an agreement with other companies for their requirements for the software. A certain amount of tasks and responsibilities are assigned to the vendor for the completion of work in time. Though sometimes companies only transfer a part of software-related projects while most of them are handled by the in-house team.

So, we can say that reputed software outsource company is rare to find and we cannot deny its contribution to the global economy. And the adoption or hiring of software outsourcing companies is very crucial for the growth of firms and different sectors of the economy.

Importance :

  1. Low cost

The cost of transferring a software-related project or a series of projects to third-party vendors massively reduces the overall cost of expense. The process of setting up a new dedicated team for developing software takes a huge of money and is quite tough to handle. Additionally to have a dedicated development team requires rigorous training to be proficient in software development. Also, one more thing is not only staff attracts huge expenses but also the whole hardware arrangement needs a tremendous amount of money. So to tackle this diverting the program development project to a third party is a wise decision to make especially when you have a strict budget for your project.

  1. Scalability

One of the best features of outsourcing the software is the option to have scalable with changes in the demand of work. When the demand increases, in no time the outsourcing vendors are back with a large system of infrastructure which is not possible by the in-house team. The process of augmentation of the company is managed by the third-party vendors. Unlike the permanent staff, the company is not liable to the staff of the vendor companies.

  1. Focus on core business

The outstanding feature of outsourcing the services makes the companies work in their niche fields. This means by transferring the development of software to the companies they allow themselves to focus on their core working models. If the major revenue-generating source of the organization is not well managed then they will not able to remain in the competition. In order to create a balance between the core sectors and the development team, we outsource our work to companies outside the parent company.

Therefore, by doing so we can an efficient results with improved productivity for the expansion of existing business.

  1. Faster production of products

As the outside firms have a huge amount of experience and technically skilled staff then the total time for developing a program is far less. When we compare the in-house team the outsourcing companies have a significant advantage in the completion of projects in time. There we don’t have to spend extra time to train staff according to the required plan for the software. This ensures the organization reduces the time for finishing a project at a faster rate.

Kossi Adzo is the editor and author of He is software engineer. Innovation, Businesses and companies are his passion. He filled several patents in IT & Communication technologies. He manages the technical operations at

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