Offshore Development|Outsourcing Software Development June 12, 2019 Last Updated: April 30, 2020

In this Covid19 lockdown situation, where many businesses are working remotely, many are left with no option but to shut the business for sometime(or permanently). During these difficult times, the outsourcing is the new normal. If your company’s growth is software dependent and your internal IT team has too many things on their plates, you should think of outsourcing your software development.

Software development outsourcing can reduce the operating cost in the development process, it can help secure up to 80% of your success. Apart from saving cost, Outsourcing exposes the outsourcing firm to professional expertise, time efficiency and competitive delivery time. Software development outsourcing provides businesses with a competitive edge by minimizing costs, enhancing customer service and maintaining product quality on a limited budget.

Software Development Outsourcing in India

There are many reasons why a firm should consider software development outsourcing and they include:

  • Retention of compactness: Outsourcing enables your company to be compact, instead of creating so many departments that may not be doing some jobs regularly, you just outsource some of those jobs and retain your company’s compactness. This will, in turn, will help you optimize operating cost.
  • Reduce Operational Risk: When you outsource a job, choose an outsourcing firm that has a reliable project management system and a trusted process of developing applications, all you have to do is to monitor the third party to make sure delivery is prompt.
  • Operational costs are lower: Even though you are going to pay for the services rendered, outsourcing especially jobs that you have no expertise on saves you the cost of making mistakes which may arise in the course of doing that job, you will also worry less about recruiting, hiring, training, and housing employees for projects.
  • Improved Compliance: Outsourcing your software development services can help you to gain access to international talents without going through the legal compliance you would have gone through while hiring employees. The outsourcing company usually takes care of all the legal paperwork allowing you to focus on other things that need your attention.
  • Focused Strategy: Having a focused strategy is one of the key advantages in a technological quest, outsourcing software development helps you streamline your business processes without having scattered work processes.
  • Technological Advances: With the advancement in technology, keeping up with the growing tech needs can be very demanding, by outsourcing software development, you will be exposed to new technological perspectives around the world, you will meet innovative people will a professional and diverse technology expertise.
  • Talented IT Professionals: Since you are outsourcing to a specialist in the field, you will have access to the best and smartest IT and technology professionals who will execute your project optimally and professionally.
  • Time Economy: When there are experts dedicated to developing your software or application, you are guaranteed to have a short time to deliver to your target clients, thereby improving your competitiveness and gives you an edge above your competitors.
  • Cost Savings: International Outsourcing can save cost up to 70% when compared to doing that same work in the house. Because certain resources needed to do that job may be more accessible in certain areas when compared to others.
  • Lack of in house experience: If your internal workforce and resources are not enough to handle the new technology in software development, outsourcing is a better option to choose.
  • New market opportunities: The easiest way to penetrate new markets is by creating a presence there, for instance, AstraZeneca found their way into the booming Chinese market by partnering with Chinese companies, as a result, they are now the largest pharmaceutical multinational company producing Chinese prescription drugs.

  • Reduced tax payments from employees’ salaries: There are countries with a lower tax percentage than others, for instance, outsourcing to a company in Belarus will save you some money because high tech park resident companies are exempted from paying corporate taxes, VAT and real estate taxes.
  • Spend Less Time on Support: Software needs support and maintenance, and nobody can do it better than the team that created the software when you outsource custom software development, you need a team to maintain and fix bugs while you focus on getting new customers.
  •  Work with a Managed Team: You don’t need to manage or hire a manager when you outsource custom software development, the outsourced team has their own well-structured management that will give you all the updates you need without you asking for it.
  • Speed: There is no delay when staff is on maternity leave, or when another staff is ill, the outsourced team has a way of covering those gaps to make sure that they meet your deadline.

How quickly can you get your product to market, and how quickly can you adapt? Hiring a separate team to handle custom software services will make you stay ahead of your competitors.


Outsourcing industries have not reached their full potentials, there are many people who outsource software development and outsource it again to another company, and therefore you are advised to do a thorough shopping for the best deal from the best team to avoid the disadvantages of outsourcing your software development services.

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  1. Dung says:

    Searching for a good outsourcing software company is a tough task. You must take into account a lot of variables. First of all, it’s their rates. They may differ because of company location and professional level. For example, nowadays people often say that developers from Vietnam are the cheapest. Choosing an outsourcing software company you also must think about ways of communications and time zones. A process of development is rather complicated and especially at the start, it takes a lot of meetings and discussions. Find a company that is suitable for you. Then look at their portfolio and contact them with your project ideas.

  2. Stan John says:

    Nice and very knowledgeable blogs thanks for sharing this information.

  3. Ravish K says:

    Got to learn a lot about software development… thanks for sharing this valuable information.

  4. John Young says:

    this gives me a lot of knowledge about software development… Software development outsourcing provides businesses with a competitive edge by minimizing costs, enhancing customer service thanks for sharing this valuable information.

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