8 Reasons Why Outsourcing Software Development is Right for You


Outsourcing software development is a smart decision business can make to maximize their productivity in a cost-effective manner. This proven approach has become the new normal because it allows companies to focus on their core growth objectives while key software development needs lie in the best hands. This clearly helps to achieve a competitive advantage in a technologically driven market.

Furthermore, if the in-house IT department has too much on its plates, software projects outsourcing is always a good call because it will get the attention and skills it deserves. So, there is no compromise with the quality too.

Now that we are talking so highly about IT project outsourcing, what exactly does it mean? Let’s take a quick look.

What is Software Outsourcing?

Software outsourcing meaning a type of service provided to the clients from a different source, a third party, so to say, to deliver assistance using various software outsourcing business models. In layman’s terms, it defines the process of taking service from an external source, mainly an IT partner, to meet the software development requirements.

The history of outsourcing programming dates back to 1970s, after industrialization took place and companies started to compete globally. Though outsourcing was practiced, it was not termed or recognized as a profit-generating software development outsourcing strategy until 1989. It shook the world of business when it started becoming an area of competency. Just for a dramatic pause, can you imagine the kind of revolution an idea can cause?

Pros & Cons of Software Outsourcing

The scope of the topic is tremendous. But every rose has its thorns. Let’s bifurcate the pros and cons of product development outsourcing.


1. The Economic Stability

This is one of the biggest reasons for its fame and exposure. In a short span of time, you can pay lesser and get top-notch quality project delivery. Does that mean you are paying less to your workers? Of course not! Every country has its own economic scale. For example, if you are from Sweden and hiring an outsourced partner from Bangladesh, the wage range of Bangladesh is way lesser than Sweden. The rate of payment depends on the locality of the partner hired.

2. The Quality of the Software Deployment

There are chances that if you try to create an internal team, there may be many employees who do not have the right skillsets. But, with a little investment, the outsourced partners can guarantee a1 project delivery.

3. Rate of Confidence

Every outsourced partner builds or helps to enhance the software and tests the same before delivering. This builds a sense of confidence for the company to hire the outsourced partners.

4. Rate of Delivery

They are skilled, they are professional, the wage is lesser but what is the best part? They deliver way before time. There will be no tension of missing the deadline.


1. Cross-cultural Barriers

Since the outsourcing partners come from different regions, the cultural barrier often comes as a hindrance. This issue gets bigger when both parties do not understand each other’s language and fail to communicate at all.

2. Security

Since the outsourced partners are outsiders, there is always a fear of data theft and security. Hence, before recruiting the outsourced partners, the first step goes without saying that the company should cross-check the third party well before handing over their data.

Benefits of Software Development Outsourcing

Software development outsourcing is a process wherein a company hires a focused custom software development partner to perform and manage the entire or particular segments of software development-related work.

Building complete in-house software can be expensive and equally time-consuming. Most importantly, not every company has the advanced technology and skilled developers to build a software application. In such scenarios, hiring an IT outsourcing company is always the best choice.

Outsourcing software development to an experienced and reliable offshore company gives businesses a competitive edge by reducing costs, improving product quality, and augmenting customer service. Discussed here are the key benefits of outsourcing in the most effective manner.

Are you still wondering why outsourcing is good for your company? Check out these top 8 reasons why hiring a software outsourcing company does work.

1. Cost Savings

Businesses can save a lot on their operating costs by outsourcing software development, is it true? Yes, cost savings is the topmost reason why businesses consider outsourcing. There are several ways outsourcing can help you save big money –

  • Most small-to-medium businesses and startups do not have the technical expertise and skilled people required for effective and flawless software development. Initial investments in infrastructure can be significant. An experienced IT outsourcing company has the technology systems and talent it requires to build cutting-edge software. So, you can be assured of excellent quality without having to spend millions of dollars in setting up advanced IT infrastructure.
  • Hiring seasoned and proficient software developers for your in-house IT team can dig a huge hole in your pocket. The recruitment process, training, salaries of professionals, perks, and incentives – all add up to a huge expense for your business. But when you outsource software development, you pay only a fraction of the amount.
  • Another integral factor is when you build all of the software internally, it can cost exorbitantly to your business. Rather, you can choose to outsource some portions of the development process to an experienced company. This will ensure quality as well as cost savings.

2. Leverage Latest Technology and Highly Qualified Talent

When you hire a credible and experienced software outsourcing company, you automatically get access to a highly-skilled workforce from across the globe. Additionally, it is not possible to have every updated technology and required skill in-house. Therefore, the best way to ensure excellent quality is through outsourcing because it helps harness global technical capabilities in a cost-efficient manner.

So, you can be assured that your entire software development needs are in safe hands. From software design consultation to development and deployment, the outsourcing company leaves no stone unturned to ensure high-quality deliverables that meet all your specifications. They can also provide additional guidance and training to your in-house team for best-in-class software development. Exposure to wide-ranging talent certainly gives you a competitive advantage.

3. Meet Deadlines Quickly and Efficiently

As a business, the core objective is to minimize your product’s time-to-market. By outsourcing software development to an expert team, you can minimize the load of your in-house programmers. Whether you outsource the entire project or only a part of it, outsourced developers ensure prompt and quality delivery by the deadline guaranteed. They can also rapidly plan and collaborate with your internal team and leverage agile methodologies to speed up the time to market.

4. Saves Time

In today’s cut-throat competition, there isn’t a minute for businesses to waste. When software development is not your USP or core business process, outsourcing it to a professional company will help save your valuable time. This gives you more time and helps boost your concentration in improving what matters most to your business. Relieve your in-house resources from performing a task that is not their forte after all. Rather, they can be allocated to help achieve key business goals. So, when you outsource software development, you get more time to focus and propel business growth.

5. Mitigates Risk

It is rightly said that the more you spread your investment portfolio, the lesser you are at risk of losing money. The same concept applies to outsourcing software development. It is an effective process of mitigating your risks and harnessing the far-fetched benefits outsourcing offers.

Instead of trying to get everything done by your in-house team, diversify your business risks by splitting key operations and components amongst various offshore agencies offering outsourcing solutions. However, make sure you choose the outsourcing vendors carefully because a lot depends on it. Check their industry experience, expertise, ratings, and reviews before making a wise decision.

6. Flexibility

Let’s face it! It isn’t practical to recruit a full-time developer to work on short-term projects internally, especially if software development is not your core business. Take for instance, when you only want to build an enterprise app to bring your business on your phone. Hiring a full-time professional for the job is irrelevant here because there aren’t enough projects to keep him busy. You will have to continue paying him a salary even if he is not actually working.

In this case, outsourcing software development gives you the utmost flexibility. Depending on your project requirements, you can choose to outsource or not. This also helps you save big time.

7. Superior Quality

If your in-house department does not have specialized skills in IT, chances are your software will show up with poor quality and security. This can affect your business credibility. However, when you outsource software development, you can be assured of highly skilled IT professionals who are committed to delivering high-end software quality and security. Their key forte is a software development and can build high-quality, cutting-edge software in a prompt way.

8. Exceptional Support

Software development isn’t the end of the process. You need continuous support and maintenance to ensure it is bug-free and performing as expected. By outsourcing software development to a professional offshore IT company, you can get quality support and regular software maintenance services. Keeping distinct time zones in mind, they can also provide round-the-clock services to ensure you are always at an edge to outrank your competitors.

Read More: The Complete Guide to Software Development Outsourcing

Tying Up the Loose Ends

Software development outsourcing guides in reducing your costs, mitigating risks, and maximizing operational flexibility. It can help you innovate and gain a competitive advantage by leveraging the skills and technology of global resources but in a cost-effective manner. However, before outsourcing software development, it is crucial to choose the company wisely.

Radixweb has the optimum combination of expertise, technology skills, portfolio, along with positive custom reviews and customer-friendly pricing for outsourcing projects. Get in touch with us.

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Pratik Mistry is a rare mix of technologist and vice president of sales at Radixweb. His passion lies is in helping companies to grow revenues by delivering top notch software development services and build value-based partnerships. When not driving high-impact go to market strategies, Pratik loves to try new cuisines and going to the movies.