Why outsource your software development?

  • Home
  • Why outsource your software development?
Dev Admin January 11, 2021 0 Comments

Outsource software development refers to hiring an offshore team to work on your software projects. This model is relatively popular among companies. It is estimated that approximately 52% of SMEs will either start to or continue offshore outsourcing for several business operations; 20% of these outsourced processes are related to IT. Hence, outsourcing is a steadily growing business model that many businesses, either large-scale or small-scale, adopt. In fact, in 2020, the outsourcing industry is estimated to be worth 132.9 billion in the US and has shown a growth of 1.6%.

Should you opt for offshore outsourcing for software development?

Hiring an offshore software team has several benefits. However, it may not be for everyone. An offshore team can present difficulties in communication, which may not be conducive to working on urgent projects or any project that requires a lot of customization. Outsource software development may be cheaper, but the teams can be hard to manage as they are in different time zones. In some cases, the teams may not be familiar with the ongoing process in other countries, making them unreliable.

What are the alternatives to offshore outsourcing?

Hiring an onshore team or internal employees that are in-house software development are great alternatives to offshore outsourcing. When you employ onshore or in-house teams, you can communicate face-to-face and conduct emergency meetings as and when needed; there are no communication barriers, and every candidate is familiar with the ongoing trends and processes. Hence, it is the perfect solution for those who want greater control over their software projects.

However, these alternatives can pose a few problems as well. Firstly, hiring an onshore or in-house team is quite expensive. The local rates depend on the standard of living and minimum wage laws in your location. Often, these charges can be quite exorbitant.

Additionally, when you decide to hire an onshore or in-house team, you limit the talent pool available to you. When you want the best for your project, you would want to interview many candidates. With onshore teams, you are limited to hiring candidates who are local, or at least in the same country. While that may seem like a large pool, it may happen that you do not find a candidate who can meet all your needs.

To find the right candidate, you will need to interview several candidates. Not only is this a tedious process, but it can also be quite expensive. Sometimes, even after conducting several interviews, you may not be able to find the perfect candidate for the job.

If you are lucky enough to find a suitable candidate, your job does not end there. Not only will you need to pay expensive fees to hire a team, but you will also need to pay to train them. Every company has a different standard, and a certain level of training is required when you want candidates to work on specific projects. From high labor costs to the training and interviewing expenses, hiring an onshore team can be an expensive affair. Hence, many companies opt to outsource software development.

Benefits when you outsource software development

Offshore outsourcing is popular among businesses because of the various advantages it offers. If you aren’t sure whether you should outsource software development for your business, look at hour offshore outsourcing can help you:

Larger Talent Pool

As mentioned earlier, when you opt for alternatives to outsourcing, you limit your talent pool. Outsourcing your work means that you can hire anyone from across the globe. Hence, you have the freedom to hire only candidates who meet all your requirements. There is no need for you to
compromise on your needs due to limited options. No matter where they may be, you can employ their services and get the results you are looking for.

Lower Costs

Hiring an offshore team lowers your costs. Hence, the project's cost is cheaper, which means that your business can rake in more profits. Depending on which part of the world you hire your software development team, you will likely pay a lower fee than the one you would be paying to any local team.

This is because, in different countries, the cost of living varies, and so does the minimum wage. Hence, you can hire individuals who deliver the same work level at a fraction of the cost. It is easy for businesses to hire an offshore team and meet their pricing needs; in some cases, a high quote from an onshore team may fall well within your budget, making both parties happy.

Streamline Business Processes

To grow your business, you need to focus on core processes. But that does not mean that you neglect all other processes as well. To run your businesses smoothly, you will need to allocate certain responsibilities to others and trust that they can do their job if you are looking at offshore software development teams. Then it is likely that you do not have an in-house team.

Hence, software development may not be one of your core business processes. While you can hire a new in-house team, this will mean added expenses for your business.

Additionally, you will need to supervise new employees constantly to ensure that they are following all protocols. Hiring new employees for a single project is not very practical and can be a challenging process. However, when you opt for outsourcing your software development projects, you can go to an agency or freelancers who have a body of work that proves their capabilities. Hence you will feel more at ease leaving the work to the experts.


When you hire offshore software development agencies, you can be assured that they are reliable. They have years of experience working with other businesses for their software development needs, but they have a large team dedicated to your project. Hence, while you may need t to follow up once twice, there will not be any need for constant supervision.

You can review each agency before deciding to hire them and look at their previous work to see what they have accomplished. Hence, it is easier to rely on agencies with decades of experience rather than new candidates.

Thus, it is evident that outsourcing software development provides some invaluable advantages to businesses. Hence, it is no wonder that outsourcing is a billion-dollar industry in 2020, and it will only continue to grow from here onwards.

Businesses often have software development needs in the digital age, although it might not be their primary business process. However, it can be challenging to decide whether they should hire an onshore or an offshore team.

Outsourcing software development provides a host of different advantages, some of which have been discussed. Overwhelmingly, businesses prefer to outsource their software development needs. While onshore software development is a great alternative, in some cases, outsourcing the work may be a better option. While outsourcing software development does have its disadvantages, the overwhelming number of benefits it offers is often enough to overlook any communication barriers.

However, with the steady growth of this industry, there is no surprise that there are many digital solutions in the market to overcome any communication issues and provide digital workspaces where businesses can collaborate effortlessly with their outsourcing team. Businesses are coming up with unique ways to overcome these issues to ensure a seamless outsourcing relationship.