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We live in the Digital Age. These are times when technology is dominant and is revolutionizing the way we lead our everyday lives.  Is it also a time when the world is moving towards a more globalized economy, companies are forced to find effective solutions for the competition. Outsourcing software development is one of those smart solutions that can bring companies lowered operational costs while maintaining high standards in quality control and customer service.

Have you ever looked into outsourcing abroad? If not, it is time when you give it a serious thought. We point out 7 main reasons why you can consider outsourcing software development. It is on account of the many benefits that software development sourcing offers. Let us get started with it right away.

Benefits of Outsourcing Software Development

1. Cost Saving

The first and foremost reason companies are now opting for Outsourcing development is that it enables them to save costs to a large extent. Offshoring is the process of moving work from your company’s location to another country. It can reduce costs and time and make sure you’re not investing too much in IT infrastructure or recruiting new employees for all those who would need training on how things are done differently down under (or wherever). Off-shoring has many benefits like lowering expenses & saving manpower.

2. Helps to Save Time

Hiring a remote software or web development team is an excellent way to save time and money while growing your business. Not having the overhead of hiring, training employees yourself leaves you more room for growth! Once you can save time, the same can be effectively utilized towards more productive processes. It is much in line with the popular saying, which means time is money.

3. You can avail the best software developers

The IT outsourcing market is expanding globally, and some abroad companies are at the forefront. Their country’s cost factor, skilled workforce, and expertise have ensured its influence in this growing industry for years to come. It is one more reason why companies now opt for outsourcing software development. In the process, you will have the best talent who can do the job at hand in the most effective manner.

4. For boosting Productivity 

Often, a business needs to go through the process of developing its product from scratch. However, this can be expensive and time-consuming. It is more so if they do not have an experienced team with them on every step. Because of this, many businesses turn towards outsourcing software development companies and having talented individuals working off-shore too! With such services available today, there’s no excuse not to get those features up before the deadline or meet customer demands at all – what do you say?

5. Helps to meet deadlines

When you outsource the development job to any company, you can be sure that they have the expertise and the experience to do the job at hand. Thus, they can do the same job much more effectively and efficiently. The results are that much less time is required to complete the development job. For projects meeting strict deadlines is often an essential requirement. And with the help of the companies’ expertise who handle the outsourced job day in day out, meeting the strict deadlines is no issue. They can do it quickly. As a result, you stand to gain. It is also one main reason why software development projects are now being outsourced. The companies outsourcing the job stand to gain on all fronts.

6. Successful Digital Transformation

Technology has become an integral part of business, and the modern market demands that a company needs to constantly innovate for them not only to survive but also thrive. In this digital age, there are many emerging technologies such as IoT (internet-of-things), AI/ML, etc., 5G connectivity which will shape how software is developed going forward with new trends like blockchain reshaping everything we know about outsourcing development projects.

In today’s fast-paced world, it becomes necessary – more than ever before actually-to drive innovation from top-down rather than just waiting around hoping something good comes along on accident one day because you never know when the next opportunity might come knocking again.

7. Better Risk Mitigation

What are you willing to risk? If it’s money, then think of the portfolio analogy. The more spread out your investments in various markets and industries become-the less likely they will be lost because there is another party taking on some responsibility for them! It also works with software development outsourcing; find an agency with good ratings so as not to get burned when things go wrong (which happens). 

Models of software development outsourcing

When choosing an outsource development company you should pay attention to the models that the outsource company works with. Each of them has its benefits and disadvantages that should be considered before the beginning of the cooperation. 

Time and material

In this model, the client pays only for the time that was spent on the development. Companies with small or medium projects should consider it because it gives them a chance to work without strictly predetermined requirements. 

It’s flexible. The client gets a chance to change the work scope and requirements if needed. As the specifications are not settled initially, this model combines well with agile methodologies.
The client gets engaged in the process and sees all the stages. It levels up the chance to have an end result that will be suitable for the client.
It’s hard to estimate the budget without predefined requirements. 
You won’t get quick results. There will be a lot of time spent on communication and reestimation, so the results won’t come right away. 

Fixed price

Fixed price model works best for companies with small projects. In this case, all the peculiarities, specifications, price, and project scope are set in advance. 

Predefined requirements and specifications guarantee that you will get what you need, and that will be within the budget.
The project is more likely to be finished on time due to agreed time requirements.
This model doesn’t leave room for changes, so your risk management will get difficult to manage.

Dedicated team

In this model, the client pays a fixed wage monthly to the specialists as well as the additional administrative costs. It suits well for large long-term projects when the client’s team doesn’t have the qualification to do the required work. Such projects usually have vague requirements for better risk management. 

It’s under the client’s control. The client has a dedicated team to work with.
Full focus on the business aspects of the project, no need to take over the onboarding and administrative work.
No strict requirements. A remote team has room for creativity.
That might lead to results that are different from the client’s expectations.

Set your outsourcing strategy

To get a successfully developed product by the outsource vendor you need to set a detailed plan and strategy. That is one of the first steps towards hiring the right team that can fulfill your needs. There are a few things to consider to make the right choice. 

Determine your goals

Make sure your goals are realistic and achievable, find a balance between the cost and your expectations. Outsourcing gives you a chance to capitalize on new technologies without permanently hiring new narrowly specialized employees.

Choose tasks to delegate

Define the exact tasks you want to delegate. Each outsourcing company is specialized in a particular field, so make sure you find a perfect fit for your development needs. Don’t start with delegating tasks of high importance, first make sure that the outsourcing company you have chosen is the right one.

Good job climate

Take your time to introduce the outsourcing team to your regular staff. Make sure, all the members are well-informed about the company’s goals and requirements and try to avoid any misunderstandings concerning the work delegation.

Share your technological profile

In most cases, software development outsourcing is remote, so make sure your vendor’s technological profile can suit your requirements and needs. Make a list of the resources that you use for the project and share it with the vendor. Do your best to protect yourself from data leakage, so discuss all the possible security and data protection issues. 

Final Thoughts

There is no doubt that outsourcing is an extremely complex issue that takes a lot of aspects to consider, including diligent risk management and budgeting. Though, if you find an excellent software development provider and put enough effort into establishing clear communication and implementation of all your requirements, you will get the results that you need. Outsourcing gives you a great chance to achieve your business goals within a determined time limit and budget. 

To conclude, we can say that the outsourcing of software development, much like other sectors, has become very popular globally. And this is for many reasons as well, as has been pointed out. Once you, too, are a business owner who can outsource your software development effectively, you too stand to gain a lot. So go for it.


What They Say

UPQODE accelerated the development process by completing tasks ahead of schedule. Their responsiveness and receptiveness to feedback enhanced a productive collaboration. While still evolving, the team’s work ethic and responsible approach are impressive. UPQODE has a very modern and relaxed company culture, but still operate professionally, skillfully, and responsibly. They understand how it feels to be on the client side of the engagement and are willing to work through common pain points.

Nicholas Chan

Project Lead, Hundredfold Studios