How Software Outsourcing Works

June 18, 2021


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## Introduction Software development outsourcing can be a good way to develop a project. For organizations, the software outsourcing strategy has become a strategic alternative to reduce costs and improve software quality. However, the complexity of the management of this type of project increases, due to the relationship of different parts (customer and provider), on which the success of these projects depends to a great extent. According to "State of Software Development Report", 66.62% of software development companies have outsourced companies to carry out their projects. The high demand for software applications and services is forcing more companies to turn to outsource to meet their customer needs. In this document we show why software development outsourcing works for any business, and why your business should hire this work model for your project. ## What is software outsourcing? Software outsourcing is a modality in which a company chooses to hire a third-party company to offer services related to software development. This may include the development, planning, management, maintenance and (or) operation of software services, products or other applications. ## Types of software outsourcing ### Staff Augmentation Is the simplest offshore development model. It consists of integrating an outsourced professional team in the organization, to enhance the capabilities of the internal team and carry out a project. ### Dedicated team To achieve the objectives, the customer chooses the software development outsourcing to collect and form a highly qualified specialists team to work on a specific project. ### Project-based model This model is for outsourcing initiatives with fixed start and end dates. Organizations usually select this model to deal with irregular or punctual projects so as not to interrupt their other operations. ## Benefits of Software Development Outsourcing **Costs savings**: Having a development team in the company adds fixed personnel and infrastructure costs while outsourcing is contracted for the delivered product. **Specialized staff**: The knowledge of the technology, as well as the implementation of methodologies for the analysis, design, testing and production of applications, are its main offer. They are companies dedicated to research and development as the core area of their business. **Reduced risk**: Every project has events that can alter the defined deliverables. Outsourcing allows part of the risks to be moved to the contracted company. **Effective Communication**: Establish mechanisms to understand the needs of key business users as well as the vision of executives and managers. **Newest technology**: In such a dynamic field, adapting to changes means high costs. Outsourcing is a modality that leaves in the hands of third parties the adjustments required for the proper functioning of the software. **Team**: Having qualified personnel requires time and investment. The experience of software development agencies is a highly valued competitive advantage. **High productivity**. Focusing on the core business processes is vital to obtain profitability. Letting the experts take care of the secondary areas will improve the performance of the whole team. **Time savings**: Outsource software development process is usually much faster than in house one. **Best quality**: The development firms use the latest technological advances to complete the projects, offering the best solution in the fastest and most efficient way. **Scalability**: Outsourcing makes it possible to face unexpected opportunities and challenges. A new company in the market with a reduced budget can properly manage your finances. In expansion processes, you will also benefit from all the benefits of outsourcing. ## Conclusion With the software development outsourcing, there are great advantages for the growth of a company, and get more agility to meet other priorities that the company has, but never forget to choose a supplier with a good reputation and good references.