Outsourcing Software Development: What you need to know

For the past few decades, the world we live in has evolved rapidly. Machines have replaced people in many ways, and software is needed for every machine. This is the reason that there are millions of software being developed around the world every year. And that has raised the need for outsourcing of software development. This is because not everyone can develop software, it requires a certain set of skills. People who need software but don’t have the skills to develop them, go to third-party IT companies or individual programmers who with a command on different programming languages to outsource their software or application development work. According to current statistics, 60 percent of the outsourcing market is comprised of Software/IT workers which shows the potential of outsourcing software development. Below are some reasons for outsourcing software development:

Reasons For Outsourcing Software Development:

  • The way current businesses work, it is tough to operate a business without the use of the software. So you need to hire someone to make software for you.
  • No geographical boundaries which means you can find the best talent from around the world to develop your software.
  • Faster and on-time delivery of projects by professional developers.

Benefits of Outsourcing Software Development:

There are a lot of benefits associated with outsourcing the software development. But for the sake of this post, we have a few major benefits highlighted for you below:

Smart Downsizing: By getting software developed from third parties, you can get rid of your in-house software team. This way, you will not have to pay their salaries, allowances and other expenses. This will make it easier for you to manage your employees as there will be less of them.

More Focus on Business: The best thing about outsourcing software development is that you will not have to worry about a thing. Everything will be taken care of by the software developing company or individual. This will allow you to put more focus on the thing that you do best; operating your business.

Less Expensive: There is no doubt about the fact that outsourcing software development saves you a lot of money and time. You will not have to build an in-house team to develop your software, you will not have to purchase costly software to create your own software, and you will not have to spend money if the software malfunctions after your team develop it. The third-party company will take care of all of that and will save you a fortune.

Having Fresh Perspective: This is another benefit of outsourcing software development to third parties. You will get to know their ideas about your software and valuable insights into what more you can do to enhance the quality of your software.

Risks of Outsourcing Software Development:

Although, there are not many potential risks related to outsourcing the software development but a few major concerns and their solutions are given below:

  • One of the risks can be poor communication with the company and that may not produce great results. But you can solve that by establishing a clear point person so you can communicate the whole company through him.
  • Hiring the wrong company is also a risk that may result in a poor experience. But, to handle that, you can first perform an audit of the company, its technology, infrastructure and management to get a clear idea about them.


Although there are a few drawbacks of outsourcing software development, its benefits outweigh all of its risks. And if you manage the risks properly, there are more benefits in working with third parties for software development than doing it all on your own.