Outsourcing Software Development: Top 3 "WH" Question You Need To Know

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Software outsourcing services has become a popular trend recently. People consider it as urgent to grow their business. However, many organizations still hesitate to invest in this beneficial pool. These following questions will help you to figure out your basic concern.


These questions will help you to have a clear vision on outsourcing software development and why choosing outsource software development would be a wise decision in recent time.

Who should invest in outsourcing software development?

Generally, any organization can or should use this type of service. In fact, outsourcing software development is a great solution for start-ups and any non-technical organizations. The digital world gradually transforms the growth of any business. Without it, the business would find it difficult to develop. Therefore, approaching outsource software development can be a great step for non-technical organizations to grow faster. This doesn’t mean that the Tech organization should not or cannot use this service. The truth is that there are several giant companies, such as Microsoft, Apple, IBM, Intel-investing software outsourcing, ... The reasons may relate to the workforce and workload rather than costs saving or time savings.

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The reasons listed below would be the answer to the consideration of whether you should invest or not. In other words, approaching outsource software development will depend on your needs, your conditions, and your purpose.

Why companies looking to outsource software development?

The most fundamental reason for company investing in outsourcing software development services is ‘cost-saving’ and ‘time-saving’. However, the following reasons will give you some more benefits of outsourcing and help you to form the general ideas on the services.

Why Should You Invest In Outsourcing Software Development Service_

1. Quality of product

Besides the cost-effective, product quality would be the greatest concern of any client. To obtain a good quality product, it requires the company to contract with a reputable software outsourcing company; otherwise, every effort will be wasted.

A good software development partner, with strong experience and vast knowledge, will ensure the high quality of the product and the delivered on time. Of course, this will require other factors such as methodologies, contract models, an apparent detail of the project.

Developing a software project might have many risks which the in-house development team is unable to solve. Once contracted to the software outsourcing company, you are involved in a ‘win-win’ relationship. Any problems can be shared and will be solved; in order to ensure the quality of the product. It also implies that the product will meet your ideas and answer the business needs.

2. Cost Saving

Cost-savings could be a fundamental reason for a company choosing outsource software development. In terms of cost-savings, nearshore outsourcing and offshore software outsourcing would be a priority comparing to onshore software outsourcing. Depending on which countries or what kind of service that a business will take, the outsourcing service can save around 25%-35% on operation cost.

3. Fast delivery to the market 

In the digital world, the faster result will be the winner. ‘Fast delivery to the market’ will be the promise of software development outsourcing service besides cost-savings. Meaning to say the business owner can also save more time.

With the numbers of experience developers and their experience in providing the best software solutions, the software development company can help their clients to launch products at a particular time; in order to catch up with the digital transformation and give you a chance to stay on top of the competitive environment.

4. Focusing and developing core business

By delegating most tasks relating to technology, the company and its staff could spend more time to stay focusing on its business strategy. “The less workload, the better business outcomes.” This also means the company can move faster than its competitors by focusing on other aspects of business such as marketing, customer services, sales, resources management. The relationship between the business owner and software service is the ‘win-win’ relationship where everything can run alongside each other; in order to give the best benefits for business.

5. Updating to the latest technology

The fast-changing technology is a challenge. The technology you use today may not be appropriate tomorrow. However, by using software development outsourcing services, you can have a chance to update to the new trends which assure the best business outcomes for your company.

In comparison with using the in-house development team-where you might have to spend time and money to train them- the outsourcing software development, with their expertise, can assure that your business stay on the cutting edge of technology and give you a chance to cooperate with the diverse innovative and talented developers. This not only helps your software project to be completed faster but also allows your business to stay on top of the competitive market.

6. Easy to follow up and manage the software development team

Many people would say that if you hand over your software project to the outsource development team, you will have no ideas about how it is proceeding. However, for software development terms, you will have a plan to show all processes in advance. This will help you to track the progress of your project. A reputable software outsourcing company will have/provide a project manager. This person will help you to manage the daily tasks of the development team and keep you up-to-date with the development process.

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If you hire an in-house development team, you have to spend more energy to follow and guide the team. However, with the outsource development team, your project can run smoothly while you still can focus on other areas of your business. 

7. Access to talent-pool developers

Finding IT professional/IT outsourcing company will always be a challenge because of the limited pool of talented developers. Besides updating the new technology, the outsourcing software development will give you the opportunity to access the global workforce where you can find skillful, expertise, and talented developers. This will help you to work with the international team and solve the problems of human resources, notably in finding talented developers for software development projects.


8. Gain professional service and fresh perspective

Once you hire software outsourcing company, you can obtain fresh new perspectives and new ideas. The outsourcing partners can provide you with ideas and perspectives from the technological and economic viewpoint which might give you a chance to gain a competitive advantage.

Besides that, the specialized service from the software outsourcing provider also gives you a chance to gain professional experience and professional service from start to finish. Such as IT-consulting, providing a highly skilled development team, managing team and process, outstanding perspective, etc.

Is there any disadvantage in outsourcing software development?

The answer is “YES”. Everything has two sides. However, the problems can only be solved if we are aware of it and dare to face it. The following reasons will picture the other side of the outsourcing software development services.

1. Language Barriers

If you are intending to hire an onshore outsourcing company for the software project, you will not need to worry about language differences. Yet, this will cost more in another area. Nearshore and offshore outsourcing might solve your cost and other issues. However, language barriers will be a big deal. If the communication doesn’t go well, software outsourcing developers can misunderstand your requirements. Then, everything just takes more time to fix and even more money-meaning to say the project takes longer than it can be. Here are some suggestion tips which might be helpful in this situation:

  • -Meeting regularly to ensure everything is going well
  • -Choosing the right software partner/best offshore software development companies who has served a long time in the international market
  • -Having a clear vision and making sure that every software developer understands the requirements and expectations
  • -Making an on-site visit if necessary- which helps you to understand the outsourced development team better and help you to adjust your manner of communication

2. Risk of confidential information

When you use an outsourcing services, it means that you allow a third-party to use your information and databases. This is confidential information. When handing over this sensitive information, you must be sure that every single detail remains private. It could mean signing the NDA (Non-Disclosure Agreement) - This is a legal document a binding agreement between you and a  third-party (even more) to a confidential relationship where you can share sensitive information without any fears.

Considering the hand over entirely or partly of sensitive information would be challenging. No one expects this information to be disclosed. Supposing your software outsourcing provider gets to suffer from leaking the databases, no one can assure that your information would be safe. Looking for a service-provider that you can trust and finding the way to minimize these risks should be your top consideration in o achieving your goals.

When to invest in outsourcing software development?

The answer to this question somehow might bring you back to the question ‘why should you invest to outsource software development?’. However, the following reason will summary and show you ‘when outsourcing’ in a certain way.

When should you invest in Outsourcing software development service

  • -You have a low budget
  • -You have a time limit
  • -You are tired of hiring and maintaining the in-house team
  • -You have limited local software developers
  • -You want your business to grow more in the long term
  • -Your project is huge and you can’t handle the workload
  • -You are a start-up and non-tech organization
  • -You really want to focus on business strategy
  • -You want to utilize the latest technology

The bottom line

Deciding to invest in outsourcing software development services would be a tough decision. You might gain a boundless benefit from this service if you do proper research and knowing exactly what it is. By presenting the top 3 “Wh” questions above, the article has shown you a clear vision of this type of service, even the risk you might encounter on the journey.

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