10 Reasons to Outsource the Software Development

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Nowadays, more and more great ideas need software development in order to be brought to life. However, forming your own in-house team of developers, managing, training, and retaining them is a pretty hard and time-consuming task, and it especially does not make much sense when the project is short-term. For these reasons, there comes outsourcing. Outsourcing software development has become hugely widespread during the recent years and many successful projects have been launched this way.

So, here are 10 reasons why hiring an offshore software development team pays off and helps reach amazing results.

Market overview

Statista reports that the worldwide IT and software development outsourcing industry reached the point of $395.05 billion in 2022. Besides, experts believe that the relevant market will continue to grow further, with an annual rate of 8.20%. It means that the outsourcing market will reach $587.60 billion by 2027.

In this case, there are some simple reasons to outsource software development to stimulate such significant growth. For example, your business wants to initiate a short-term project. Thus, you should have a team of experienced software developers, but building an in-house team will require great costs you cannot afford to pay. At the same, hiring and training staff, along with managing different technical resources, will also take too much time. Of course, you would better spend this time performing other critical business functions.

Instead of conducting such extra work, companies outsource software development – they hire a third party that takes over entire software development and has an established quality assurance process. An appropriate outsourcing company also has the necessary professional skillset, so you will easily gain all the required services for your software project, making much smaller investments.

Ultimately, cost savings is one of the most critical reasons why outsource software development. Actually, for many businesses, the opportunity to outsource software development is a key to surviving in the modern highly-competitive market where companies try to find efficient ways to cut down their expenditures.

Saving costs

First and foremost, outsourcing developers is meant to cut costs. Even if the cost factor is not of the highest importance, the best app development companies in the US charge more, than those overseas. Spending minimum money is especially crucial to the startup companies which are only about to enter the market and capture their share, because they usually lack funding.

saving costs

Most often, when you hire a team of offshore developers, the final cost of your project will be lower compared to that of the in-house team. Since you are not geographically limited, you can easily choose an area or country with lower average prices and incomes than those in your region. This way, your labor and operational costs got to be lower and it does not influence the quality of work. Also, outsourcing software development saves you from enormous upfront costs for forming your in-house team of software developers. Not only do not you have to spend money on the whole hiring process, but also, as you hire a team of professionals which know their thing, you don’t need to invest in their training. Therefore, choosing your outsourced vendor implies paying only for the development of your product and sets you free from any other overhead, operational, technological or training costs.

Saving time

Outsourcing the software development enables not only saving money but also your precious time spent on figuring out and studying software development, searching the individual developers, and forming a development team. You just take the one, which is already made up, has quite enough experience, and successfully functions on the IT market, and pass the vision and idea behind your software development project as well as give specific tasks and timeframes for their execution. Since this is a team of experts, the work has all the chances to be more efficient and you will have clearly set time constraints. This way, with well-organized and professional work of your outsourced software house team, it will be possible to launch your product even faster. Moreover, you avoid all the time expenses spent on hiring IT in-house staff, its managing, education, and motivation needs. If somebody from the development team quits, it is not your problem since it is a task of your partner (outsourced company) to find the right person.

Experts on board

When you look for an offshore software development provider, you look for significant coding expertise in a relevant field. There are plenty of custom software development companies worldwide with specialization in different technologies, and this number grows all the time. Therefore, outsourcing software development gives access to a huge pool of talented and experienced developer teams around the globe who know how to kick your project off successfully.

You can easily find a dev shop with relevant skill set for your business and years of experience in their field. Usually, software development companies have their set up approach which works, established workflow, pre-defined procedures, and well-trained engineers. What is even more important, they can offer an experienced and qualified team of professionals who will be able to handle your project development and overcome possible challenges on the way. So you can get the team on which you may rely and which will be there if you need it.

experts on board

This way, with the right software outsourcing company, you receive a highly-skilled team, which will provide your software project with effective collaboration tools and well-defined strategies for getting a show on the road. Overall, it results in cost reduction, saving time, and, eventually, more productive and accurate work.

More than just developers

Software development process requires not only a team of developers. You will also need Quality Assurance specialists (QAs) to monitor every phase of the development process, detecting bugs and ensuring the quality and readiness of the project to be released to the public. There are also UI, UX, and graphic designers needed in order to take care of how the product looks and feels. Furthermore, you will need a project manager (PM) who has to organize effective planning and execution of the project development course of action. Of course, hiring all these staff means more money and time involved, so when you outsource software development effectively, there are all chances that your third-party digital firm will have all these positions on its board.

Focus on the core competency

When you opt for outsourcing software development, it allows you to concentrate on your core business goals and not to dive deep into the development technologies and coding. Thus, it helps decrease the burden on your company staff and enables it to do other important tasks. There are many different tasks that require thorough and intensive work, such as marketing, sales, customer management, content, design, networking, maintenance, and many other ones depending on the specifics of the company.

Focusing on your primary goals and working on them will be much easier without programming processes on your shoulders. It will bring benefits in the long run and have a positive influence on the company’s growth.

Technological advancements

Hiring experts in their field is not only about having your job done professionally. Working with the outsourced software development company gives access to technology advancements probably not available within your in-house development team. Companies that specialize in technology and software development usually keep up with the latest trends and advances in this area. They use the latest and most effective entire development infrastructure and project management tools in order to make their work highly productive.

technological advancements

Technology is constantly evolving and software houses keep track of it. When the software development part of your project goes to a dev shop with decent experience in technology and innovations, it will have a great impact on your business growth and make it easier to get a competitive advantage.

No licensing costs

Technology is constantly evolving and software houses keep track of it. When the software development part of your project goes to a dev shop with decent experience in technology and innovations, it will have a great impact on your business growth and make it easier to get a competitive advantage.


This factor is especially beneficial when it comes to short-term projects. Recruiting software developers, their training, adaptation, and forming a team in general requires a lot of money and time. And when the project goes live, you may lose the need for the previous number of developers as less work must be executed. Both keeping your extra employees just in order not to lose professionals or firing them directly after the work is done do not seem to be the right options. Therefore, on the condition that the development of the project is not supposed to take a long period of time, the idea of making up your own in-house team does not sound as the most effective way out. You can always continue your cooperation with the offshore developers when there is a need for it, but you have the choice and you do not lose in any case. Plus, this way you prevent yourself from additional costs, such as medical insurance or bonuses for employees. Moreover, when looking for an outsourcing app development team, you are free to choose the cooperation model which will fit your requirements such as fixed price, time and material model or dedicated team.

Better accuracy

When you start working with an outsourced team, you have all the rights to call for clear deadlines and a predefined budget. Usually, software development outsourcing companies know how to deal with the timeframes, have their established and proven working procedures, and will easily estimate the time and resources needed for the development of your product and stick to it. Thanks to their experience and proficiency, dev shops understand what development efforts and costs particular tasks within the project demand, so you can expect a pretty accurate project budget and fewer risks of unexpected expenses.

better accuracy

A simpler way

All facts considered, software development outsourcing is a much easier way to get things done as you do not have to go far into the details of the whole technological process and form a complete and competent team to work on it. You do not have to look for the members of your development team one by one, check how they work separately and as a team, fire them when the project is over and then hire again if something new is being started. Instead, you can just outsource an already built up team with valuable experience and an excellent reputation.

So, as you can see, there are significant reasons to search for a software development team somewhere overseas. It is really important here to find the right software development outsourcing company, which will become a part of your own team. And when you do, it will help you save your time, reduce software development cost, focus more on your core competencies, and have other valuable benefits of outsourcing highlighted in this article.

Wrapping up

To conclude, outsourcing development is constantly increasing in its popularity. Such a practice can be incredibly efficient in the modern age since companies outsource software development due to the numerous benefits it provides businesses with. After all, the particular practice is mutually advantageous for organizations that outsource software development and for a relevant outsourcing software development company.

So what are the key reasons to outsource software development? It serves as a relatively easy way to obtain necessary products or services for many organizations, especially small and medium-sized ones. These organizations outsource software development because they cannot invest in creating and training their own in-house developers. Also, they may outsource for short-term projects when there is no need for long-term investments. Finally, businesses appreciate the benefits of outsourcing software development. This approach is cost-effective, time-efficient, and provides more flexibility and fewer risks compared to in-house software development.

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We always keep track of the latest trends in the tech and business world. Check out our blog for the expert opinion on the hottest topics!

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We always keep track of the latest trends in the tech and business world. Check out our blog for the expert opinion on the hottest topics!

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