ultimate guide to outsourcing software development

Ultimate Guide To Outsourcing Software Development 2022

Outsourcing is a technique that helps your company to grow more. When companies choose to have business solutions developed by a third party, then Software Outsourcing takes place. In today’s largely digitized business landscape, companies can hire the world’s topmost software developers for their projects. Approximately 64% of the companies now outsource their entire development process and hire software developers in India.

However, it is just the beginning. Let’s have a better look at what software outsourcing is and its advantages and disadvantages.

What is Outsourcing Software Development?

What is Outsourcing Software Development?

Outsourcing is a technique where a business hires an offshore outsourcing software development company rather than in-house to perform a specific task. Or we can say that companies look for offshore outsourcing software development services outside to perform some activities to remain focused on core business activities to save money and time.

Types Pricing Models for Outsourcing

There are two types of pricing models. These are:

  1. Fixed Price: In this type of model, you agree upon the total price of a work in advance, and your expenses will not exceed the agreed cost.
  2. Time and Material: You will be charged according to the time and material usage in this type of model.

Why Do Companies Outsource?

This business strategy helps to reduce costs and provide seasoned professionals; that’s why companies adopt outsourcing. The success of any project is essential to both the customer and the company itself.

Where Do You Outsource?

India and the Philippines are the most popular offshore destinations because of their low cost and fluency in English. Also, you can outsource your project according to the location that suits you.

Why Outsource Your Software Development?

Software development outsourcing is a technique that helps you to grow your business.

Software development companies help you to solve these three problems mainly:

  • How to reduce fixed costs?
  • How to speed up your development team?
  • How to find skilled developers?

Before picking an outsource service provider, let’s discuss some pros and cons of outsourcing:

Advantages of Outsourcing Software Development Work

advantages of outsourcing software development work

Here we will discuss some of the primary advantages of outsourcing software development.

Cost reduction

It is much cheaper to outsource the whole project when you require a team of 5-100 than hiring developers individually. You can find cheap labor in developing countries like India, China, etc. You don’t need to provide them with equipment or other office supplies. The main aim of outsourcing companies is to offer quality services at a reasonable price.

Time Savings

The hiring and training of new developers for your project are very time-consuming. So, you can employ a suitable offshore developer through reputed outsourcing software development companies.


For short-term projects, hiring offshore developers is more practical than hiring in-house developers. You have to keep your in-house developers busy by giving them new projects or salaries even if they are not working. Outsourcing Software development allows you to pick a suitable developer for a single project, or you can hold them for future projects if you want.

Focused Strategy

Your in-house team may have to deal with more than one project at a time, so it is more difficult to focus on a single project. It can affect the quality of the projects. On the other hand, your hired candidate will focus entirely on the provided project and deliver quality work if you outsource software development.

Talented IT Professionals

By Outsourcing development software, you can gain access to hiring talented IT professionals all over the world. You can work with talented developers who will take your business to new levels with their performance.

No Hiring Stress

The recruitment process is very stressful and time-consuming. If you choose to outsource your project, then you don’t need to worry about recruitment-related problems. The outsourcing company will make sure that your idea and project will remain safe.


Outsourcing software development has several disadvantages; we will discuss some of those limitations in this section.

Lack of Control

By signing a contract with an outsource company, you are giving the management to another company. So you lose control over the project.

Hidden Costs

You will sign a contract with your outsourced company; if the outsourced company sets up the agreement, you are most likely at a disadvantage while negotiating.

Risk of Exposing Confidential Data

The relationship between the company and the outsourcing company is built on trust. But you have to be cautious not to expose your company’s data to the outsourced service provider, as this could cause problems for your company.

How to Outsource a Software Development Project?

how to outsource a software development project

To help you ensure that your project flows smoothly, here are our three steps to outsourcing software development:

Evaluate Your Team’s Skills

You need to know what skills you require before outsourcing software development. Once you know what skills you require, you can create a project specification and explain the product.

You can contact outsourcing companies like Invedus and pick a suitable software developer.

Check the Quality of Outsourcing Companies

Before hiring a software development company, you must check its reputation in the market. Go through their website and read their case studies. You should also check reviews on their social media. Or you can contact their previous clients to check the quality of their work.

Implement Project Management Processes

After choosing your software outsourcing team, you must use project management tools like Trello, Basecamp, Jira to help you organize your project into boards. You can also communicate through these apps. When communication takes place openly, projects can progress efficiently.

Remember that it can take time to find a software outsourcing company that you want to work for a long time.


There are numerous benefits of outsourcing software development

but, it is necessary to say that you need to be cautious about the company you would like to work with. Check their cooperation flow, expertise level, ask about the approaches, etc.

These things vary from company to company. With careful consideration, you can build a partnership that will take your business to a new level.

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