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Why Outsource Software Development

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Software Development Outsourcing

Over the last few years, the software development outsourcing industry has gained tremendous growth and is expected to reach 141 Billion USD by 2026. Outsourcing software development has become the new norm.

Although if you haven’t outsourced development service before it might seem a bit intimidating and that’s perfectly fine. When the success of your business entirely depends on the software you’re about to develop, trusting an outsourced company to deliver the expected results is a big decision.

But hiring and maintaining an in-house IT department can be rather expensive and sometimes inefficient for a business. As it will require getting a license, investing in tools and technologies, spending time in search of experienced developers, and so on.

But before digging deeper into the benefits of software development outsourcing, let’s take a look at what outsourcing software development is all about.

Software Development Outsourcing – An Overview

Software outsourcing refers to a business arrangement to hire a third-party software development company to build the software from scratch.

Most of the time companies think that the only choice to build a software solution is by onboarding an in-house team of developers. While sometimes having an in-house team is the best way to go, if you opt for the right software development partner it will feel like an extension of your team.

Besides, software development outsourcing is a more scalable and faster way to do so.

With outsourcing, businesses can significantly reduce overhead costs, increase productivity, provide access to a variety of skills and capabilities, increased flexibility, accelerated time to market, and so on.

Some of the software development services that you can outsource include consulting, feasibility studies, UI/UX design, Software Architecture, Software Testing, and Maintenance.

Why Outsource Software Development – Benefits

Now that you have a better understanding of software development outsourcing, it’s time to see the benefits that you will acquire by outsourcing.

  • Access to a Larger Talent Pool

The requirement for software engineers and developers in most countries is at an all-time high and incredibly competitive, making hiring highly skilled candidates quite difficult. On the other hand, by outsourcing software development, you easily dodge the issue by surpassing geographical boundaries and accessing a completely new talent pool around the world.

  • Cost Savings

This is another crucial benefit that has made businesses outsource software development teams. While hiring an in-house team of software developers can be time-consuming and expensive as you have to use resources for searching, hiring, and training new candidates, opting for software development outsourcing can save money on hiring expenses.

Moreover, by outsourcing a software development team, you won’t have to worry about investing in office supplies or training.

  • Better Focus on Core Business

With continuous innovation, businesses need to identify ways to expand and survive the competition. By software development outsourcing, rather than planning and implementing software solutions, you and your team can focus on empowering other processes by aligning strategic objects with the business and streamlining processes to run the business smoothly.

  • Ability to Scale Up or Down Resources

Another important reason for the popularity of software development outsourcing is the ability to scale several resources according to their requirements. Businesses sometimes need to increase the number of developers for a specific period to achieve certain objectives but cannot fire them whenever their requirements are fulfilled. However, outsourcing software development keeps you free from the headache of hiring developers on a full-time model.

  • Improved Product Quality

The outsourced company will have a team of experienced developers and a dedicated team for quality assurance to ensure that the final product meets your expectations. They might also have some fresh ideas that can make your software quality even better.

  • Reduced Time to Market

With an outsourced software development team, you don’t have to worry about the product launch based on the availability of in-house resources. Instead, you can specify the timeline to the outsourced team based on your schedule and the product or software solution will be delivered accordingly.


Another thing to remember before outsourcing a software development team is that there are different models to choose from, namely the dedicated team model, fixed price model, project-based model, and time and material model.

Also, to ensure you reap all the benefits of the outsourcing team, define your end goals, do your research, communicate your requirements clearly, and prepare to manage the project.

So that was all about Software Development Outsourcing. We hope that this has positively impacted your decision on outsourcing the development team for your future project.

I'm a passionate full-time blogger. I love writing about startups, how they can access key resources, avoid legal mistakes, respond to questions from angel investors as well as the reality check for startups. Continue reading my articles for more insight.

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