How to Outsource Software Development

Outsourcing software development is a great way to save time and money, especially for small and mid-size businesses. In case you have no prior experience in working with any kind of software development organization the process may seem a little bit complex to you. But in this guide, you will find everything you need to know about outsourcing software development.

What is Outsourced Software Development?

Outsourcing software development is one kind of business strategy where a business assigns its software development projects to an external organization instead of working on it with in-house resources. As per reports, it is expected that almost 36% of software development is expected to be outsourced in 2023.

Why Outsource Software Development?

  • Cost-Savings- The biggest6 flex of outsourced software development is its cost-effectiveness. When outsourcing services a business can hire offshore development teams with comparatively low labor costs.
  • Expertise- When outsourcing software development services a business gets access to a much wider pool of talents to hire from. A wider pool offers the business an opportunity to avail the expertise of top professionals which is missing in in-house teams. 
  • Clear Focus- When software development is a business’ non-core function outsourcing software development will allow them to focus more on their core functions and operations.
  • Flexibility & Scalability- When a business’ in-house team lacks the knowledge and skills outsourcing software development will allow them to avail flexibility and scalability to evolving business needs. 
  • Accelerated Time-to-Market- Outsourcing software development allows businesses to accelerate their products’ time-to-market because offshore development teams can work around the clock to ensure faster development and deployment.
  • Risk Mitigation- Outsourcing software development allows businesses to mitigate risks as the offshore teams bring in fresh perspectives and different approaches to problem-solving. This helps to minimize the chances of errors and optimize the standards of final products.

Factors to Consider When Choosing an Outsourcing Partner

  • Research- The first and foremost thing to do when opting for outsourcing software development services is to research the potential partners. Conducting thorough research on every single of these companies as well as their expertise, experience, and reputation among their previous clients.
  • Reviews & Portfolios- One of the finest ways to assess the capabilities of potential clients is to go through their portfolios and looks for reviews or references from their past clients. 
  • Communication & Collaboration- Communication is vital in outsourcing software development. So make sure the outsourcing partner you are going forward with, has fine communication skills, a quick response time, and is able to collaborate effectively.
  • Expertise- Always verify the outsourcing partner you are selecting for your software development is rightly suited for the project. Make sure their expertise is what you need for the project.
  • Security- Data security is a very significant factor in software development. That is why it is essential to confirm the outsourcing partner is reliable and has accurate security measures and practices to reduce the chances of data leaks.

Best Practices for Managing Outsourced Projects

  • Well-Defined Project Goals- Start with clearly defining your requirements, goals, and future expectations from the project. It will help to ensure everyone involved in the software development project is on the same page.
  • Regular Communication- Regular communication ensures all the members involved in the software development project are well aware of the current progress and even if there are any issues identified they can be addressed in a timely manner.
  • Set Up Timeline- Setting up timelines and checkpoints for the entire software development project can help in keeping the process on track for timely development and deployment.
  • Track Progress- Regularly tracking the project’s progress and if needed offering feedback is the best way to make sure the project is getting completed on your terms and requirements.
  • Agile Software Development- Opting for agile software development methodologies like scrum can assure that the project is being developed in an incremental process, with a major focus on delivering value to the client.
  • Great Relationship- Creating a great bonding with the offshore development team can confirm the successful completion of the project. Treating the outsourcing development team as nothing less than your own employees can help establish a fine-tuning between both sides.

Common Challenges Associated with Outsourcing Software Development

  • Time Zone Differences- One of the major challenges in collaborating with an offshore software development team is the time zone difference. It can cause serious challenges in communication, development timeline, and more.
  • Language Barriers- Language barriers can often become huge obstacles in communication. With no proper communication misunderstandings in requirements and flaws or errors in the software becomes very common.
  • Intellectual Property Protection- When working with an offshore software development team protecting intellectual property rights can get tricky due to the differences between the laws and guidelines of the two countries.
  • Lack of Control- Outsourcing software development can generate multiple challenges in maintaining control over the software development process to ensure the project is up to the company’s expectations.
  • Hidden Costs- Although outsourcing software development helps companies save significant amounts of costs it can also lead to unexpected expenses on the higher side. Hidden costs, like additional charges for delays and changes in between, can cause a significant increase in costs.


Outsourcing software development can be a great option for businesses of all sizes as it brings in so many positive aspects. But to maximize the positives and keep the negatives out serious attention is mandatory when selecting the outsourcing partner. It is highly recommended to go through the portfolios, reviews, reputation, areas of expertise, and more to find the right hands for your project. By following these guidelines, businesses can optimize their chances of finding the perfect outsourcing partner for their software development needs and reap the benefits of outsourcing while avoiding potential pitfalls.

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