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Why Consider Outsourcing Software Development in 2021

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The outsourcing industry reached $92.5 billion in 2019, with a rapid rise in 2021. The pandemic is a significant driver for the high demand for software outsourcing services. Software development outsourcing trends showcase that companies now prefer to outsource rather than hire in-house resources for IT projects.

This article will focus majorly on the reasons to outsource software development in 2021. We will begin by understanding what led to the rise in demand for outsourcing software development projects. Whether companies are considering outsourcing software development to India, Poland, Ukraine, or any other country, depends on where they can find the right skills for their budget. 

What Led to the Rise in Software Development Outsourcing in 2021?

Three things are major contributors to software development outsourcing. It is an interconnected web of significant factors that led to an increase in software development outsourcing projects. 

The most significant reason for the rise in software development outsourcing services is the need for digital solutions during the pandemic. Companies now want B2C applications to reach their customers at home. On the other hand, they also want high-quality enterprise applications to manage their business operations.

This brings us to the second point. Since remote work has become a mainstream possibility and is showing excellent results, it makes sense to outsource software development. Companies can hire world-class talent from far away places without asking them and project managers to come on-site. It saves massive costs and gives them access to resources that might not have been available earlier on.

The third aspect is that the pandemic is leading to more losses for companies than profit. Since there’s less revenue, extra expenses have to be cut back. However, the need for web applications and digital solutions is imminent. Due to a lack of funds, hiring an in-house development team heavily impacts the budget. Therefore, outsourcing software development projects is the best option to reduce the costs and still get an effective product to serve  customers.

Likely, the software development outsourcing market trends will only multiply. As companies realize the economies of scale they can reap from outsourcing talents, there is going to be a positive rise in demand. Let’s look at the different reasons why companies should consider software development outsourcing services for their IT projects in 2021.

5 Reasons to Outsource Software Development in 2021

When companies outsource a software development company to work on different IT projects, they leverage their expertise and get significant benefits. They are adept in the latest technologies and help businesses transform digitally through their experts.

In 2021, the pandemic clearly highlights the advantages of outsourcing software development. With the rise in the gig economy, more and more companies now hire software developers who can work on specific projects and then leave. The more flexibility they have, the better they are able to operate their control over the development process.

Here are 5 reasons to outsource software development in 2021:

1. Reduction in costs

One of the most significant reasons to consider software development outsourcing projects is to reduce costs. In-house developers require a salary, perks & benefits, bonuses, and compensations. There are a lot of maintenance costs as well. And then, what if there’s a need to build a team of developers?

Cost-saving is one of the leading benefits of outsourcing software development. Enterprises can pay a monthly amount to a custom software development company that can work on their project. Outsourcing software development to India will cost them around $30 to $70 per hour, whereas, in developed countries, it would cost about $70 to $150 per hour.

2. Better skill set

When companies ask about the reasons for outsourcing, access to a diverse skill set definitely makes the list. A broader base of talent and experienced developers are always a priority for companies. Skilled experts are much more expensive to acquire than regular employees.

An outsourcing company would have a pool of talent for different technologies and projects. Whether companies want a developer for Ruby on Rails or Laravel, the outsourcing software services partner will have it all. They can ensure the highest quality of work through developers who have knowledge of different technology stacks.

3. Focus on core operations

The IT team comprises developers, business analysts, project managers, and quality analysts. However, by outsourcing software development to India, not only do companies save costs, but they also save a lot of time. They can use the time to focus on their core operations related to the project.

Want a development team to migrate the database? Companies can outsource to a software development company and engage their core developers in building new features. They can outsource project managers and business analysts as well to ensure that developers don’t need to spend extra time on managing the project as well.

4. Eliminate uncertainties

Another of the reasons to outsource software development is to reduce uncertainties and minimize any risks in the process. How does this happen? For one – the software development company takes care of everything – from planning to testing of the product. The business has nothing to worry about.

Apart from that, outsourcing companies have developers who have already worked on such products before. They communicate better and bring transparency to the development process. Without any problem, they ensure that the risk is minimal because they are responsible for any issues during the development.

3. Round the clock

Companies can utilize time zone differences in their favor. They can plan and coordinate the project details and requirements when the times overlap. After that, the developers will work even when the employees at the company are sleeping. This is one of the biggest benefits of outsourcing software development.

In essence, it will also lead to faster completion of the software development outsourcing projects. Since developers are working round the clock, there are higher chances of reducing the development time. The project managers can review the work the next day and manage any inefficiencies that may occur.

Bottom Line

The software development outsourcing trends are clear. They showcase that companies are looking for partners who can help with IT projects at a lower cost from wherever they are. Enterprises need outsourcing partners for better productivity, efficiency, and cost savings. In the time to come, we will only see outsourcing rise due to digital technologies becoming mainstream across the globe.

About the author


Shardul Bhat

Shardul has been in the tech industry for over 18 years. He has worked with some of the global leaders like Mastercard, CIGNEX, and others. Today, Shardul stands as the CEO of Tntra - a global innovation ecosystem that provides product engineering services. He also serves as the CEO of BoTree Technologies, a leading software development company. He is enthusiastic about the latest innovations in the software industry and writes extensively to guide businesses & engineers for making better development decisions.