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Outsourcing software development – advantages and disadvantages

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Outsourcing software development – advantages and disadvantages

The global IT service outsourcing market is estimated to be $572.8 billion in 2022. The easy availability of expert developers and cost-effective development are the prime drivers of the IT outsourcing market. Are you one of those entrepreneurs in search of expert software development company to hire for outsourcing software development services? First you need to assess the pros and cons of outsourcing software development.

In this blog, we will take a look at the pros and cons of hiring a software development outsourcing service provider.

Pros of outsourcing software development


One of the major benefits that you gain when you outsource software development is the substantial amount of money that you can save. If you're trying to keep the price of your software development project down, then maybe you should look into outsourcing it to a foreign country. It's not like you're the first business owner to outsource software development to another nation.

Deloitte found that outsourcing software development helped 70 percent of organizations save money. It's easy to see why outsourcing is so popular.

When seeking low prices, it's worth thinking about looking at Asia, Latin America, or Eastern Europe. Take advantage of scale economies by working with an outsourced staff from one of these countries.

Remain focused on core projects

Some businesses choose to do their own software development, but outsourcing projects is often a better choice. Your in-house staff is limited by time or quality, but outsourcing gives you both flexibility and expertise that will make any project better.

Even though in-house teams are great, they can sometimes be too busy. This is especially true for software projects, where quality should never be sacrificed. Don't try to build your own app or website if you want to save time and stress.

Outsourcing is also the best choice if you're working on another project at the same time. That way, neither side of the deal will be able to get in the way of the other, making things easier for everyone.

Leave the management to your partner

It is possible that you will find it comfortable that you do not need to manage another team if you outsource your software development. This benefit may not be the most visible among the advantages of outsourcing software development. Due to the fact that the outsourcing firm handles everything, you won't have to worry about those headaches.

No longer are you responsible for the management of a team of software developers, their quality control, or the process of recruiting new team members? You still get the opportunity to evaluate the expertise and previous work experience of the outsourced development team that will be working on your project. This is analogous to the process of recruiting a development team to work in-house.

Thus, not only will you receive your perfect team, but you will also save time by eliminating all of the processes that are involved in hiring and training new employees.

Get better access to skilled developers

Access to a larger pool of talent all around the world is one of the benefits that come with outsourcing software development.

Offshore teams almost always have a plethora of knowledge and skills that may not be available in your local market. This is something that you should keep in mind while outsourcing your software project. With outsourcing, it is possible to discover developers who possess the level of knowledge required to complete the task successfully.

Because the hardworking teams coming from underdeveloped nations are also proficient in English, there is no need to be concerned about any communication problems.

Remain at the forefront of innovation

No in-house development staff can keep up with current trends in technology, much less acquire new expertise in such a short period of time. You may rest assured that when you hire a software development team through an outsourcing service, you can get qualified experts in their field. They are on the cutting edge of what's new in technology, giving you a leg up on the competition. This is because your software development outsourcing service provider will be competing with similar companies worldwide, and hence the firm will need to be on top of its game to remain competitive.

Cons of outsourcing software development

Lack of control of the project

In comparison to working with an internal team, outsourcing development services requires you to relinquish some project control. Those who prefer to be in charge and have a significant impact on every aspect of a project may find this to be a problem.

If you are concerned about a lack of control, consider an outsourcing partner with a management style comparable to your own.

You should also receive regular updates and checks from the team to ensure that everything is proceeding as planned. Ensure that your development team has a project manager who functions as a liaison between you and the developers and communicates information.

Finding the correct outsourcing company

You definitely don't want to work with a firm that misinterprets your needs or fails to deliver on its guarantees. When it comes to choosing a software development outsourcing firm, there are numerous possibilities, making it difficult to decide where to begin. You can expect to spend a lot of time researching potential outsourcing partners in other countries. Additionally, there is a big gap in time zones to consider.

You can overcome this challenge by consulting websites or online directories that provide information on offshore software development companies. Keep in mind that finding a software development outsourcing company is a major investment in your business’s future. Find the proper one, and all your hard work will be worthwhile.

The language barrier

Most firms that do software development outsourcing are based in non-English speaking countries. This can make it hard to talk about your company's plans for digital transformation because of language barriers.

It's best to hire teams that can speak English. If you don't, you risk not getting your point across and not being understood. Don't forget that personal communication is very important. Make sure to have regular video calls or meetings in person to avoid confusion.


Most of the time, what tilts the scales in favor of outsourcing software development is its ability to lower the cost of maintaining the internal infrastructure and get rid of the problems that come with it. As you can see, outsourcing may be a lifeline for small and medium-sized enterprises, enabling them to grow in ways that are both efficient and cost-effective.

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