How to choose the right software outsourcing company

You would think it’s a simple task, right? A simple choice and get to work, but having the right software outsourcing company as a partner involves several aspects to consider, and that’s what we’ll explore in this article.

What is a software outsourcing company? Well, that’s precisely what we do, among other things. To summarize: it’s subcontracting. Software outsourcing is a model in which a company chooses to hire an external provider to deliver services related to software development. This may include development, planning, management, maintenance, and/or the operation of services, products, and other software applications.

Steps to determine the right company

1. Recognize why outsourcing makes sense today

There are three key reasons why many companies in the U.S. and worldwide choose outsourcing:

• Tangible savings, both direct and indirect: a recent study reveals that outsourcing can reduce development costs by up to 53%. It also helps avoid expenses in infrastructure, recruiting, and training.
• Global access to talent, including highly specialized skills that may not be available locally.
• Operational agility and strategic focus: outsourcing frees internal resources so you can focus on your core business and accelerate time-to-market.

In the U.S., 66% of companies outsource at least one department, and 59% cite cost as the main reason. Every year, approximately 300,000 IT-related jobs are outsourced.

2. Define exactly what you need

Before searching for providers, ask yourself:

• What type of project is it? An app, a portal, an integration?
• What technologies or stacks do you need? Frontend, backend, .NET, microservices?
• How much flexibility and scalability do you require?
• What level of security or regulations (e.g., data privacy, fintech, healthcare) are relevant?

It’s about clearly framing your objectives and expectations; the better you define them, the more accurate your results will be when choosing a company.

3. Evaluate their experience, reputation, and capacity

These are some key signs of a reliable partner:

• Proven experience: look for companies that have worked on projects similar to yours.
• Recognition and growth, such as ScienceSoft, which has been listed in the Inc. 5000 and Global Outsourcing 100.
• Clear agile processes, flexibility to adapt to changes, and scalability.
• Real references: check platforms like Clutch or GoodFirms, and request to speak with past clients to understand their direct experience.

4. Consider your geographic strategy: nearshore, offshore, or local

In the U.S., many companies choose nearshore (Latin America) or offshore (Europe, Asia) to balance cost, quality, and time zones. For example, outsourcing to Latin America has proven very profitable: some companies reduce costs by up to 70%. Platforms like Neklo also highlight that outsourcing enables flexibility, global talent access, and accelerated time-to-market.

5. Strategic alignment and innovative potential

Outsourcing is no longer just a cost tactic; it can be a strategic advantage. The concept of transformational outsourcing describes the evolution from simply saving costs to driving innovation and joint growth. This implies a collaborative relationship that goes beyond executing tasks: building competitive advantage, new functionalities, and tech transformation.

When choosing the right IT outsourcing company, you’re not just looking for external resources: you’re building a strategic extension of your team. At Rootstack, that synergy is our focus: we combine global talent with local vision to deliver outsourced IT solutions that boost your business.