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Outsourcing Software Development: The Smart Way to Save Time, Money and Hassle (And How to Do It Right)

04 May 2023
Outsourcing Software Development: The Smart Way to Save Time, Money and Hassle (And How to Do It Right)
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When you have a software development project, you have two options: build an in-house team or outsource it to a company. Which one is better for your business? In this article, we will compare the pros and cons of both approaches and help you make an informed decision.

Software development is a complex and time-consuming process that requires a lot of skills, resources and expertise. If you are a business owner or an entrepreneur who wants to launch a new product or service, you might be wondering whether you should hire an in-house team of developers or outsource your software development to a third-party company.

There are many benefits of outsourcing your software development, such as:

  • Cost savings: Outsourcing can help you reduce your operational costs, such as salaries, taxes, office space, equipment and training. You can also take advantage of lower labor costs in countries where software development is cheaper than in your location.

  • Quality: Outsourcing can help you access a pool of talented and experienced developers who have the skills and knowledge to deliver high-quality software solutions. You can also leverage their expertise in different technologies, domains and industries.

  • Speed: Outsourcing can help you accelerate your time-to-market by allowing you to focus on your core business activities while the outsourcing company handles the software development process. You can also benefit from their agile methodologies and best practices that ensure fast and efficient delivery.

  • Scalability: Outsourcing can help you scale up or down your software development team according to your changing needs and demands. You can easily add or remove developers without having to worry about hiring, firing or managing them.

  • Innovation: Outsourcing can help you foster innovation by exposing you to new ideas, perspectives and solutions from the outsourcing company. You can also leverage their experience in working with different clients and projects across various sectors and markets.

However, outsourcing your software development also comes with some challenges and risks, such as:

  • Communication: Outsourcing can create communication barriers due to differences in language, culture, time zones and expectations. You might face difficulties in conveying your requirements, feedback and vision to the outsourcing company. You might also experience delays or misunderstandings in communication that can affect the quality and timeliness of the software delivery.

  • Control: Outsourcing can reduce your control over the software development process and outcome. You might have less visibility and involvement in the project management, testing and deployment stages. You might also face challenges in ensuring that the outsourcing company follows your standards, guidelines and policies.

  • Security: Outsourcing can expose your sensitive data and intellectual property to potential threats and breaches. You might have to share confidential information with the outsourcing company that could be accessed by unauthorized parties or competitors. You might also face legal issues or disputes if the outsourcing company violates your contract terms or infringes your rights.

So how can you outsource your software development successfully and avoid these pitfalls? Here are some tips to help you do it right:

  • Define your goals and expectations:  Before you start looking for an outsourcing partner, you should have a clear idea of what you want to achieve from outsourcing your software development. You should define your project scope, budget, timeline, quality standards and success metrics. You should also communicate your goals and expectations to the outsourcing company and make sure they understand them.

  • Choose the right outsourcing model: There are different types of outsourcing models that vary in terms of the level of involvement, responsibility and risk-sharing between you and the outsourcing company. Some of the common outsourcing models are:

    • Staff augmentation:

      This is when you hire individual developers or a small team of developers from the outsourcing company to work as an extension of your in-house team. You retain full control over the project management, direction and outcome. This model is suitable for short-term or simple projects that require specific skills or technologies.

    • Project-based outsourcing:

      This is when you assign the entire project or a part of it to the outsourcing company. They take care of the project management, development, testing and deployment. You only provide them with the requirements, feedback and approval. This model is suitable for long-term or complex projects that require end-to-end solutions.

    • Dedicated team:

      This is when you hire a dedicated team of developers from the outsourcing company who work exclusively on your project. They act as a separate unit within your organization and follow your processes, standards and culture. You have more involvement and collaboration with them than in project-based outsourcing. This model is suitable for ongoing or strategic projects that require long-term commitment and partnership.

Select the right outsourcing partner: Choosing the right outsourcing partner is crucial for the success of your software development project. You should look for an outsourcing company that has:

  • Relevant experience: The outsourcing company should have proven experience in delivering similar projects or working with similar clients in your industry or domain. They should also have expertise in the technologies, tools and methodologies that you need

  • Quality standards: The outsourcing company should have a quality assurance process that ensures the software meets your expectations and requirements. They should also have a quality control team that tests the software for functionality, performance, security and usability.

  • Communication skills: The outsourcing company should have good communication skills and tools that facilitate clear and timely communication with you. They should also have a project manager or a point of contact who keeps you updated on the project status, progress and issues.

  • Cultural fit: The outsourcing company should have a similar or compatible culture and values with yours. They should also respect your vision, mission and goals and align their work with them.

  • Flexibility and adaptability: The outsourcing company should be able to adapt to your changing needs and demands and accommodate your feedback and suggestions. They should also be flexible in terms of the outsourcing model, contract terms and payment options.


Outsourcing your software development can be a smart and strategic decision that can help you save costs, improve quality, speed up delivery, scale up your team and foster innovation. However, outsourcing also comes with some challenges and risks that you need to be aware of and avoid. The key to successful outsourcing is choosing the right outsourcing partner who can understand your needs, deliver your expectations and support your goals.

Contact us today to discuss which solution might best suit your needs and how we can help you succeed and leverage our expertise and resources to tackle any software development project, from web services and mobile apps to cloud and AI solutions.