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Software outsourcing; How and when to do it

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While the economy is driving towards globalization, many businesses are still trying to gain a competitive advantage by enhancing customer service, maximizing efficiency, and minimizing costs.

Software outsourcing is among the ideal solutions to this problem. Both startups and established companies are currently using software outsourcing in the development of their software products. This is enhanced by today’s digitized business landscape, enabling them to access the global top talent software developers. After knowing the skill gaps in your company, you can simply identify the project elements that require outsourcing.

What is Software Outsourcing?

Software development outsourcing, in its simplest sense, is an arrangement done by a company to collaborate with an external software developer to build their software effectively rather than the inhouse developers. The third party assigned to the software development project is usually qualified and has the potential to properly handle the whole project.

Types of Software Outsourcing models

There’re three primary software development outsourcing models that you can choose from. Although your choice will depend on your budget and the project’s complexity, each model has its benefits. These models of software outsourcing include:

1. Offshore software outsourcing

It entails working with software development teams in other countries. It’s very cost-effective from low labor costs and remote management of the project through online communication channels.

2. Onshore software outsourcing

This involves hiring software development experts located in the same country. There are no challenges with language barriers; however, customers will have to pay more due to development costs.

3. Nearshore software outsourcing

Here, you work with external development partners from just the neighboring countries.

Why is Software Outsourcing necessary?

Outsourcing is typically cost-effective, especially offshore software outsourcing, which significantly lowers development costs, reducing the software product’s market price.

This, in turn, enhances competition. Also, when companies outsource their software development tasks, they get the opportunity to keep their long-term strategic priorities on the right track by focusing on their core competencies.

When should you consider Software Outsourcing?

Software engineering outsourcing happens when the entire company decides to use an external partner to build their software rather than using the internal team. You can hire a software outsourcing team only when needed to avoid the pressure of sustaining long-term employment.
It’s an ideal strategy for building your software on a limited budget or when your company hits a low season.

This is better and cheaper than recruiting full-time developers all year round. Outsourcing an expert third-party developer for the specified duration of every project is an excellent idea to maintain a friendly business image.

How to outsource a software development project

Many businesses require software services and need to experience the various benefits of software outsourcing, but how do they go about it? To ensure that your development project flows seamlessly, we have discussed some of the significant steps to follow in software engineering outsourcing.

1. Evaluate the skills of your team

Before contracting a third party to develop your software, you need to first analyze the expertise you need. By evaluating your team’s skills, you will identify the gaps in their capabilities.

After you’ve known the skills you require, proceed to create your software project specifications outlining the functions of the product and how to execute the work. After that, assign your project to the external developer who best suits your software product requirements.

2. Verify the quality of the outsourcing company

You can do this by checking the reputation of the third-party software developers in the marketplace before committing to hiring them. Go through their websites and social media channels to check reviews and cases to see their performance and position in the development industry. Also, contacting their previous clients is an excellent move to substantiate their product quality.

3. Implement the project management process

After assembling the software development outsourcing team, you need to implement all project management tools such as Basecamp and Trello to monitor the development progress. The cost of BaseCamp or Trello can vary based on your needs, so research which one is best for your needs. These tools allow the allocation of specific tasks or processes to particular developers. Besides, they streamline communication between the software outsourcing team and the client through messaging threads and calendars.

How to make sure you outsource right?

Many businesses get stranded on deciding whether to hire an external software developer for their new project or not. There are various factors to consider; however, it’s very critical to examine the work of the third parties to ensure that you choose a software developer that fits your requirements.
Get to carefully read the contract, ask any possible questions, and request changes of anything that you don’t like before the work starts.

Communication is critical in outsourcing as it ensures the project launches on time and progresses efficiently. Researching on third parties is essential to ensure a positive impact on your business from outsourcing development.


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