What is Software Development Outsourcing - Zone Tech Park

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What is Software Development Outsourcing

What is Software Development Outsourcing

Software Development Outsourcing is the practice of selecting a 3rd party service provider of software development services that can manage all the task involved in a software development project. As far as global trends in IT, software outsourcing is definitely number one the list. Many of the tech giants we have today, such as WhatsApp, Google, and Slack owe their success to outsourcing software development. 

The concept of software outsourcing is moving faster now more than ever, as more and more organisations are beginning to choose this route to achieve their software development needs. Outsourcing is the preferred method of software development due to the distinct advantages such as cost savings, time savings, improved flexibility, reduced risk, better compliance, improved precision and many others. 

But how exactly do you know if it is right for your business? We have compiled a list to help you determine if software development outsourcing is right for you.

How to know if Software Outsourcing is Right for your Business

You Have a Limited Budget

You Have a Limited Budget

Outsourcing is usually a much more cost-effective option when compared with the long-term costs of recruiting, developing and maintaining your internal team of experts. Perhaps the most obvious advantage of outsourcing development is cost reduction.

For a business organisation, minimising expenses is one of the surest ways of facilitating growth. Keep in mind that employing the cheapest software developers doesn’t always translate to improved services, and for this reason, businesses have to find an equilibrium between quality and affordability.

The fact that you don’t have to buy equipment, tools and other supplies also implies that the overall cost of developing your software is drastically reduced.

It Is a One-Time or Secondary Task for You

It makes no sense to employ software developers or even worse, to establish an IT department from scratch if the software development is a one-time assignment which will take less time.

This is the main advantage of outsourced development – the possibility to quickly involve dedicated experts and pay only for hours worked without hiring them as office employees.

The same thing applies to the task, which is secondary for your company. For example, your organisation specialises in e-commerce development, but you have an assignment in the machine learning area. In that case, outsourcing is there to help you.

Time and Flexibility Is Of the Essence

When you are short of time and have a clear product release deadline, it is worth considering outsourcing your software development needs. Setting up software projects from the begining can be a real challenge and building an in-house team can take several months before you get started with your work. Even after you have assembled your team, you still have to set up project architecture, workflow, planning tools and conduct continual code reviews.

Software outsourcing is faster because a good software development firm already has a ton of experience in developing and releasing software. When you outsource the development of your software, it means you already have the expertise required to start right away and understand the processes in and out.

Also, reusable modules play a crucial role in efficient software development. Software outsourcing firms can leverage previous modules they have worked on to help deliver products faster.

In today’s rapid business environment, it is crucial to innovate quickly and being first in the market can be a critical element for success. For these reasons, a software outsourcing company is an excellent solution to gain control over the speed of your software development. With talents working around the clock, your application is guaranteed to have a shorter time-to-market delivery. This improves your competitiveness significantly and gives you a head-up against your competitors.

Fast deployment also gives way to high flexibility. When the software development outsourcing company you partner with can get together a development team for you within weeks, it follows that they can ramp the team up or down quickly, depending on your requirements.

Having this flexibility would come in handy when there is a need to speed up development or to give the product the push it needs in the final periods of completion.

You are Looking to Scale Up

When your software solution begins to scale quickly, there will be a need to expand your team within a short time. That means acquiring more developers to work on improving and deploying new features requested for by clients, fixing bugs and maintaining constant development.

If you want to scale on your own, it can quickly become a difficult task, and you will drain a lot of financial resources just to set up the recruitment processes.

Software development companies have a great understanding of the challenges posed by the rising popularity of your product and are better prepared to help tackle them. Usually, you will wait no longer than a few weeks to expand your team with additional tech talents, developers, quality assurance engineers, UI/UX designers and development operations specialists.

You Need Developers with Special Skills

You Need Developers with Special Skills

Finding and recruiting good developers can prove to be very difficult. If you want to start hiring your developers, you have to prepare yourself for months of searching before you find the right fit for your company.

It is also important to remember that with such talent shortage, it’s increasingly difficult to attract top talent and recruitment costs are rising rapidly. In today’s business environment, every recruitment mistake means wasted time and money.

There is a decent chance that the software house has been recruiting the best programmers for a long time now. They will enable you with access to a much larger talent pool, therefore making your product better and providing a smoother, more enjoyable experience for your users.

Recommended Post: 11 In-Demand Tech Skills you can Learn in 2020

You Lack In-House Experience and Need A Fresh Perspective

When your internal team does not have the needed experience to deliver the expected solution, then outsourcing will provide additional knowledge and power to carry out the task. Software development houses work with diverse industries and work on countless business ideas, models and strategies. As a result, they can easily come up with a different perspective that helps you make better product decisions.

Writing great software usually requires trying new approaches and thinking out-of-the-box. You will almost certainly profit immensely from hearing new perspectives. Remote team members could surprise you with instantaneous feedback and fresh ideas about how you can improve your product.

Focusing On Software Development Is Distracting From Your Core Business

Technology today is a very complex topic. It takes countless hours of learning to understand all the nuances of what it takes to develop great software.

When you hire a software development company, you hire experts. That means you won’t need to waste your time and mental energy on figuring out what’s the best tech approach – you can simply ask your software team. Meanwhile, you and your core team can focus on what you are good at – your business and product strategy for the years to come.

Also, your in-house team may have to deal with more than one project at a time. As a result, you most likely will have to compromise on the quality of your application and sometimes cause a delay to some projects. If you think of employing new talents, you will have to spend both time and money to hire and train them.

However, when you outsource software development, your employees will focus entirely on the project, you provide them and deliver high-quality outputs within the deadline.

Let the specialist handle your product development so that you can place your undivided focus on the core value of your business and operations. In the long-run, this can help your company grow and expand more efficiently and rapidly.

Top 9 Things to Consider When Choosing the Right Software Development Firm


Hiring the right firm to develop your plan or product dream requires hiring a firm with specific expertise in particular areas. Hiring an all-area firm is usually not a good idea. Try to pick out a software firm that recognises their strength and focuses on it. 

Try not to be carried away by business sale pitches that claim to be experts in everything. You know what they say about jack of all trades.


When you search for the right software development firm to outsource your product development, selecting the cheapest organisation you come across is often an enticing option, but that is not always the best option.

Instead, it is better to identify a cost-effective software development firm that gives you a payment plan that can suit your organisation. 

Comprehensive Services

It’s good to know that the right software development firm is not one that can write computer codes. It must exhibit some other complementary skills that will help grow your product in the long run.

 A right software development firm will show that they’re responsible for so much more, including content creation, customer experience, and so on. The best software development firms do all they can to contribute to the overall success of your product.

Communication Skills

Communication is one of the critical considerations in selecting the right software outsourcing firm to partner with for software development.

Before choosing the organisation to work with, Get a development firm that understands and can speak your language fluently, and, more importantly, a firm that can talk logically and get the job done. Additionally, you must ensure that the organisation you choose to work with keeps you in the loop.

Avoid Firms That You Have To Tell Everything

Avoid Firms That You Have To Tell Everything


One thing you do not want to do is partner with an organisation filled with “yes-men’. One of the reasons you are outsourcing the development of your product is that it helps you to focus on your business core, so hiring a team of ‘yes men’ completely defeats the purpose. You want a company that is innovative while still keeping the goal of the product in mind. 


Make sure you find out their level of experience before choosing the team to partner with during the development of your product. Usually, experience shows the level of competence of an organisation. Testimonials also go a long way in informing the level of expertise, integrity, and capability of an organisation. 

So ensure you go the extra mile to know the kind of organisations they have worked with and what those organisations have to say about their service. It would be best if you avoided organisations that have never had to face any challenges.

Formal Agreement

Getting into any business without formal agreement is one of the most dangerous decisions or omissions one can make. Always look out for organisations that are willing to go into formal agreements in case of any unforeseen circumstances.

 Ensure that you sign a Service Line Agreement on both sides to protect your organisation. Avoid organisations or teams that refuse or shy away from signing agreements.

Case Studies

Case studies are another way to get more information about the company’s development process and learn about the kind of projects they have completed.

Whatever the take on their case study, the software development firm should detail the scope of work for each project they have embarked on and present the crucial benefits of the solution they provided to the client. Specific details and key metrics in case studies can inform an organisation’s interpretation of the word successful.


Engaging a dedicated software development team to develop your software product significantly increases the chances of getting that product built and market-ready within your stipulated time frame.

But when the signs show that establishing that team of developers from within your company’s pool of IT talents is not feasible, software development service organisations can step in to provide you with the required skill sets you need to realise your software development goals.

By partnering with IT outsourcing companies, you can readily assemble an all-star tech team; you’ll be proud to call your own. We hope our article will help you come to the right decision.

Need help getting started with your software project or looking to outsource? Schedule a meeting with our team of tech professionals at ZoneTech Park to chart a course of action and build a good software application.

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