Why Should Your Company Outsource Software Development?

Why Should Your Company Outsource Software Development?
The Siliconreview
24 July, 2020

In the current business and technology-driven age, it’s difficult to even think of a business that goes without using or having a software application of some sort as a part of their daily ins-and-outs. From internal process automation and transaction management to enterprise-level programs and those that improve the customer experience, software applications are a driver of business no matter the industry.

The importance of software forces companies to search for tech tools to power their daily tasks and even to develop their own customized applications. Of course, doing so takes a lot of time - an effort not all companies can afford to make. This is where the power of outsourcing software development comes in.

Software outsourcing is the practice of hiring a third-party team of experts to complete the software-related work that in-house teams don’t have the ability to complete. This is caused by a lack of time due to the work levels of the in-house team, a general lack of an IT or development department, budget constraints, and so on.

Outsourcing provides businesses with a competitive advantage by minimizing overall costs, enhancing customer service, maintaining product quality, and staying within budgetary constraints. Companies that are not in the IT sector themselves typically don’t have the resources necessary to complete their software projects in-house and turn to outside teams to get the job done.

Why Choose to Outsource Development?

Software development outsourcing is a great way for businesses to get the software they need or complete their projects in the most streamlined method possible. However, many company decision-makers and leaders find themselves asking why they should choose to outsource.

Here are just a few benefits and advantages that outsourcing provides compared to trying to complete software projects in-house:


  • No Stressful Employee Hiring Process - Recruiting, interviewing, and eventually hiring an employee for an in-office or in-house job is stressful and tiresome, to say the least. It also comes with a menagerie of costs in addition to a new employee salary, including health insurance, benefits, hardware and software, and recruiting fees.

    Outsourcing relieves employers of these costs (and the stress that comes along with them) as they are only required to pay a flat hourly, monthly, or project-based rate. The hiring company doesn’t have to worry about retaining or paying individual employees either.

  • Extensive Experience and Knowledge - Outsourcing companies provide businesses with access to talented and experienced individuals. From frontend and backend devs to quality assurance and UX/UI professionals, these teams are made up of experts in their respective fields with the experience and know-how to get software projects not only done but done the right way.

    If a project calls for niche or specialized expertise, these teams typically have someone on staff already who has some experience with these technologies. There is also a global shortage of IT talent in today’s marketplace, making it nearly impossible for companies to even find said professionals to interview and hire for their own in-house teams in the first place.

  • Easy Scalability and Flexibility - Outsourcing providers allow companies to scale their outsourced teams on an as-needed basis. When working on a smaller project, or when business slows down a bit, the outsourced team scales down to meet the current needs of the company.

    When larger, more extensive projects come up, or if the business gets busier, additional outsourced employees join the team. This helps ensure that companies are getting their projects completed within time and budget constraints but also working as cost-effectively and efficiently as possible.

  • Focus on Core Competencies - Software development takes time and resources. When dealing with an in-house team, this can mean taking individuals away from the core competencies of the business. Hiring an outsourcing company allows businesses to keep their priorities on track while still getting software development work completed.

    Although outsourcing doesn’t mean taking a totally hands-off approach to development, it does mean that in-house staff members can better focus on their core tasks and responsibilities instead of worrying about additional development projects.

    Apart from the more tech-driven roles on a development team, most outsourcing providers also have project managers on staff to help coordinate and work with in-house employees. This helps relieve the workload for the in-house employees while ensuring project success.

  • Faster Timelines - Software outsourcing isn’t just a much quicker solution to hiring in-office employees, but the outsourced team is also much faster at actually developing and releasing software in general. The designing, developing, testing, and releasing of software products are these companies' areas of expertise, therefore they already have the experience needed to start on projects right away.

    They’re familiar with their own processes, how to work most effectively and with the right technologies, their own roles within the Software Development Life Cycle, and the best way to get things done correctly. To build this level of skill, agility, and experience within an in-house team would take much longer than the duration of a single software project.

Companies choose to outsource their software development projects for a variety of reasons. From shortened timeframes and cost-effectiveness to niche expertise and just general stress relief, partnering with an outsourcing company is very beneficial and helps ensure overall success.