Software Outsourcing: The Ultimate Guide to Software Development Outsourcing


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Over the past few decades, software development outsourcing has grown enormously. It has become a quite popular option for business growth. Outsourcing primarily involves high-speed Internet and high-end communication tools. Outsourcing software development has proved to be a smashing success for several companies worldwide. It reduces your in-house costs while allowing your company to focus on its core competencies.

If you have acknowledged the need to develop software and if you intend to hire a software development team then you are at the right place. This article will guide you through every important facet of software development outsourcing.

What Is Software Development Outsourcing

In simple terms, it is the process where a company hires a third-party service provider to manage its software development projects instead of doing it in-house. When you outsourcing app development activities, you generally save time, money, and effort, or else you will need to allocate to set up a full-time IT department. Outsourcing will allow you to access a more global skill set and get the job done while you focus more on your core business processes.

Pros & Cons of Outsourcing


  • Outsourcing will reduce the operating expenses as you don’t have to buy equipment and other supplies mean that the overall cost is drastically reduced.
  • When searching for the talent you use an international talent pool because with outsourcing you are not location limited and thus you will be able to find the best.
  • By migrating time-consuming projects to a third-party vendor, you can reduce the workload of your in-house technology-team and they can concentrate on their strategic goals.
  • If you are not an IT company, with outsourcing you are flexible to scale up and down. You can measure software development team only when you need it.


  • Whether it’s time-zones, language barriers, or cultural differences, it makes sense that offshoring your business will create certain problems, particularly geographic distance for the best communication.
  • You may lose critical information while communicating back and forth unless you ensure that the company you are working with is professional, has good communication and project management.
  • It’s hard to trust someone you haven’t collaborated with before. You can sign the NDA with an outsourcing partner and you’re safe to proceed.


When selecting an enterprise for software development outsourcing, you should be familiar with the various outsourcing models and choose the one that fits your needs. There are 3 types of model that includes:

Fixed-price Model

In the fixed-price model, the company and the development team agree on a fixed cost and time frame for software development. It includes outsourcing end-to-end management of the entire software project. This is an appropriate outsourcing model when both parties are clear about the exact project requirements and the probability of any deviation in terms of requirements is lesser.

Time And Material Model

A software development company would probably prefer to implement this model when they are unable to determine the project requirements. The pricing will depend on the number of hours and dedicated web developers you hire, plus the cost of the material.

Dedicated Team & Resources Model

In this model, clients will hire a software development team from an outsourcing partner that will serve as an extension of your current team. If you are looking for long term development and maintenance and support requirements then you are good to go for this model.


Choose A Service Provider Wisely

The quality of your software highly depends upon the standard of your outsourcing service provider. it’ll assist to spice up your company’s productivity. Therefore whenever you hire offshore developers, you should check their portfolio, ranking, years of experience, and previous projects. Check out the apps, websites, and software they have worked on.

Get A Trial

Before you finalize any software company, you must be certain of their capabilities. Start by asking them to work on a test project first. Ask them to work on a small project to test how the communication goes. Besides, check their credibility and honesty about the process, the fulfillment of promises, and the timeliness of their development. Test projects may require some investment in time and resources but it ensures that you simply don’t face any significant problems within the future.

Effective Communication

While hiring remote developers, be sure the people you talk to should have a good command of English to prevent misunderstandings. You should thoroughly discuss your concerns and worries with your potential partners so that confrontation can be avoided later.

When To Outsource?

If your whole business concentrates on an app then it is better to invest in in-house software developers. However, Software development outsourcing is for everyone. If you are a startup or a small or medium-sized business owner and need a good software solution to automate your business process at the right cost and within the desired time frame, you can rely on outsourcing experts.

Read below reasons why to outsource your software development

  • If your budget is limited
  • If your region lacks the required competencies
  • If your in-house team is too busy with other projects
  • To speed up your development timeliness


Countries in Asia are known for low software development costs, and the talent pool in India is high. The number of software graduates continues to grow and the number of graduates added to the workforce keeps increasing. This leads to lower labor costs and higher quality. And India is the second-largest English speaking country therefore you don’t need to worry about any communication gap. Recent figures show that India has become one of the most invested destinations in the IT industry with a 55% share in outsourcing.


Outsourcing software development can provide great benefits to businesses whether it is a start-up or a large enterprise. This is the easiest way to save money and speed up your software development process. By outsourcing software development, you can increase the growth rate and efficiency of your business.


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