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The Benefits of Software Outsourcing

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Software outsourcing is on an upward trajectory. The Global Outsourcing Market Report estimates that the IT outsourcing industry will grow at a CAGR of 4.42% from 2018 to 2022. With companies like Google, Slack, WhatsApp and Alibaba founded on software outsourcing, the results speak for themselves. 

Cost-reduction is one obvious benefit of outsourcing development, but there are many more to consider, including accessing top quality IT talent, risk mitigation and getting your product to market quickly.

Let’s explore these benefits in more detail:

Access to Talent and Skills

Outsourcing software development provides companies with access to the world’s top talent. In the Information age, hiring decisions are no longer bound by a company’s geographic location. 

Software outsourcing provides companies with expert developers boasting a range of tech skills from cloud computing to UX design. Statista reports that software application development was the most commonly outsourced function by IT leaders worldwide in 2017. Companies don’t have to compromise on their products just because they don’t have all the required skills in-house. A software outsourcing provider can fill skills gaps and complement core competencies.

Get Your Product to Market Faster

One of the biggest advantages of outsourcing development is ensuring that projects are launched on time. Companies generally underestimate the time it takes to develop a product. Software management company QSM reported that the average development project takes just over 11 months to complete and requires 11,414 hours of effort. Outsourcing teams are used to working quickly and efficiently and will have procedures in place to ensure a seamless workflow that keeps a project progressing.

Reduce Project Risks

Outsourcing software development can alleviate risks. While every development undertaking carries an inherent amount of liabilities, the best software outsourcing companies will help you identify any potential issues early on. They’ll ensure that effective risk management processes are in place to keep issues to a minimum. 

At good software outsourcing company will be meticulous in how they handle risk. Conducting feasibility studies to validate ideas, delivering proof of concept, developing prototypes and carrying out testing are all essential to reducing risk in the development life cycle. 

Stability and Reliability 

Over-stretched developers make mistakes. If your internal development team doesn’t have the capacity to take on a new development project, or if they don’t have the expertise, outsourcing is the answer. Software outsourcing eliminates the need for internal developers to double-up on projects or for companies to hire full-time staff. 

The adage that “all companies are becoming tech companies” certainly rings true and this has caused the demand for skilled developers to skyrocket. 

With the software development industry currently facing a skills gap, companies are finding it increasingly difficult to hire the talent they need. According to Deloitte, more than 75% of executives are experiencing challenges in digital recruitment.

The need to hire full-time staff is eliminated with software outsourcing. Working with a stable and reliable outsourced team frees up company time to focus on existing projects and the marketing of new ones.

A Fresh Perspective

When it comes to outsourcing software development, a good provider will take the time to study your project specifications. They’ll ask questions, request clarification and suggest more efficient ways of working. Developing world-class software requires innovation, non-stop creativity and new approaches. 

Outsourced developers approach software projects as outsiders looking in. They can easily spot potential pitfalls and provide ways to enhance the efficiency and quality of your product. Talented developers will also think ‘outside the box’ and offer creative solutions to challenges. 

In summary, the core benefits of software outsourcing are:

  1. Gaining access to top-quality developer talent and digital skills that can bring your project to life.
  2. Getting your product to market faster by using external teams that quickly and efficiently build your software.
  3. Ensuring the stability of your project by working with a trusted outsourcing partner.
  4. Mitigating risks by choosing an outsourcing software firm that can proactively identify risks and offer advice on how to respond.
  5. Having a fresh perspective on your project to identify more efficient ways of working.

The bottom line is that software outsourcing enables companies to grow. A high-quality software product can enhance your reputation in the marketplace, increase your revenue and position your company for success.

About the author


Malcom Ridgers

Malcom is a tech expert specializing in the software outsourcing industry. He has access to the latest market news and has a keen eye for innovation and what's next for technology businesses.