The 7 most significant benefits of software development outsourcing


Nowadays whether a company is a smaller startup or a giant corporation, it can’t become successful without a well-functioning software product supporting its business.

Over the last few years, endless demand for software development services has caused unimaginable growth in this industry. At the same time, it has forced companies to look for the most suitable solutions in this area. What practice has turned out to be the best?


There’s no surprise – OUTSOURCING! We can describe this model briefly as assigning a certain company functions to outside service providers. In this case, it’s software development outsourcing.

It has become more and more popular and, as these statistics show, the whole outsourcing market amounted to 88.9 billion U.S. dollars worldwide in 2017! 64.3 billion U.S. dollars of this revenue was generated by information technology outsourcing and software development is a huge part of this. As other global data analysis shows, software application development was outsourced by 64 % of IT leaders in 2017.

What makes the software development outsourcing model so special and attractive? The answer is simple – this solution has many more advantages than disadvantages. Besides, thanks to continuous improvements, it’s easy to implement and match market demands. Let’s take a closer look at the most notable benefits of outsourcing software development.


1. Cost-effectiveness


The reduced costs of outsourced staff compared to an in-house team are obvious and are one of the main factors that are taken into account during the decision making process. It is not only about low wages, especially if you decide to choose an offshore outsourcing model, but also any other additional labor-related costs such as hiring, training, or housing. If you decide to go with outsourcing, no upfront investments, such as equipment or any extra supplies, will be needed. Covering only the cost of the work that is ordered, with no commitment to long-term hires, is not without significance as well.

2. Time savings


This benefit can be considered from two sides. The first one concerns the performance of the outsourced teams; working at a higher level of proficiency leads directly to delivering the product in a shorter period of time. It is also meaningful when it comes to getting the project off to a quick start because you don’t have to waste time for appropriate training or technology implementation that may be required. The second side regards saving you valuable time as a client. Instead of resolving the issues of your in-house software development team, you can focus on your core business activities or give more attention to marketing or brand awareness connected with your new software product.


3. Expertise and experience


With outsourcing solutions, expertise, and experience are readily available and offer a wider perspective on your projects. By choosing an external partner who already has the required know-how and talented IT professionals, you don’t have to worry about mastering the newest technologies. Furthermore, an outsourced team usually provides much better accuracy of task estimations and is thus more likely to deliver your project on time.


4. Less risk


Cooperation with a software development company that has implemented a quality management system and the best information security policies may significantly mitigate the risks of your software development project. Tried-and-true processes, project monitoring tools, and better predictability based on experience are all invaluable in supporting risk management as well. Not every partner can ensure such standards, but if you choose wisely, the chances of seeing your project fail are much lower.

5. A fresh and broader perspective


Companies that are specialized in delivering outsourced software development teams usually have a wide range of completed projects. This not only gives them fluency in technological topics and a broader perspective but also keeps them up to date with all the newest trends in this fast-changing field. Thanks to all of these aspects, they can bring fresh and unexpected solutions to your software development project and elevate your business to new levels.

6. Matching your needs


At the beginning of your collaboration with an outsourcing partner, you have to establish the type of contract that is most suitable for your project. Usually, you can choose between two basic options: fixed price or time and material (T&M). Then, based on this, you can start to work out the rest of the terms of cooperation that will assure a smooth project realization process. One of the most important conditions that are worth mentioning, is that in most cases you have the possibility of expanding or downsizing your outsourced team easily. As we all know, it is not that simple if you have an in-house team.


7. Shortened time to market


Without a doubt, the technical environment is the most changing area of our lives. Companies are trying to outdo each other in placing innovative, cutting edge solutions on the market. Only cooperation with a reliable team raises your chances of sticking to tight deadlines. Furthermore, an experienced team is able to provide effective solutions in no time, since not every feature needs to be made from scratch. Such a group can create the potential to save a great amount of valuable time in the whole software development process.




There are many factors that may positively and negatively influence the effectiveness of your outsourced team. Turning to external partners, however, seems to be a savvy choice and might be a real gateway to the success of your software development projects. But as they say, the devil is in the details. The outsourcing model is intended to be an extremely competitive alternative to internal teams but in order to live up to these expectations, it must be carried out in an efficient, productive, and inexpensive manner. These are not the only factor though. Helping to face technological challenges and achieving goals requires the client’s commitment as well. Clear expectations, good communication, and a positive attitude is the key to success. This model gives you a real opportunity to grow your business, but how you take this chance is only up to you!


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