How Software Outsourcing Works

software outsourcing


How Software Outsourcing Works




1. Introduction 

2. What is software outsourcing? 

3. Types of software outsourcing 

4. Why do companies outsource? 

5. Benefits of outsourced software development 

6. Software outsourcing services 

7. Conclusion




Outsourced software development 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 on 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.


software outsourcing


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.



software outsourcing


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.


software outsourcing


Why do companies outsource?


Minimized management efforts


When you outsource a testing job, the hassle of hiring and training workforce is avoided. This leads to an efficient and uninfluenced environment that correlates to customer requirements. It was found that an independent testing team finds more bugs and has a detailed study done compared to an in-house team of testers.


The time of testing is in no way compromised when there is a deadline or budget limitations. In other words, the outsourced teams are more tolerant to outside pressure which allows them to adhere strictly to customers’ requirements and objectives.


Less infrastructure cost


For a software tester, your overhead cost for buying additional hardware or software tools for the testing team is saved. Sometimes, when the projects are vast and complex, the capital investment on the testing tools sometimes advances the HR cost. But, when you outsource, you already have a team that is well-equipped with all the necessary tools and techniques for carrying out the work for you.


No clashes between the team


It is often seen that the testing team are not very happy with the way developers treat them and vice versa. It basically happens because developers do not like to hear about any bugs in the system to be fixed in time and again. Having an in-house team increases the risks of misunderstandings between the team to crop up, which will eventually reduce the overall impact of the system to be tested.


An outsourced team can do this without any hassles, avoiding such kind of issues to crop up. They perform their work without any partiality and indifference.


software outsourcing


Benefits of outsourced software development


  • 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.


Software Outsourcing Services


Idea & Conceptualization Feasibility Study Consulting Software Architecture Web Development Web Services / SOA Nearshore Software Development Onsite Software Development Applications Development Automation and Integrations Staff Augmentation Services Software Testing Infrastructure Management Cloud Management Mobile Product Development Enterprise Software Maintenance and Implementation UI / UX Design Support and Maintenance Training




Over the last 10–15 years, software companies in developed countries are using the services of outsourcing software development companies. They are provided with high-quality and convenient services, affordable prices, skilled and high-educated staff. They have many options to choose for the collaboration. Your choice will start with geographical location, time difference, cultural similarity, language requirement, etc.


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.


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