What You Need to Know About Outsourcing Software Development

Every modern enterprise-level business uses software to store and utilize data, set and optimize processes, and accomplish a wide variety of different tasks across all verticals of the organization. Since most of these businesses have specific needs and organizations, there is no one-size-fits-all solution on the market that works great for everyone. In most cases, big companies can’t really rely on existing solutions.

Companies often need solutions that are tailored to their specific needs and desires. In other cases, they might want to launch a new product (e.g. some kind of app), but they cannot really afford to let their in-house team handle it.

Since software development tends to be a long and laborious process that requires a certain level of expertise, a dedicated team of developers and managers that cost a lot of money, most enterprise-level businesses tend to outsource their software development needs.

Renowned companies such as Google, WhatsApp, Skype, Basecamp, and Slack are known to outsource some of their software development. Here’s why you might want to consider this option, too.

Outsourcing Software Development = Expertise + Saving Money


If you choose the right company for software development, you can expect a perfect mixture of expertise and cost efficiency as their team of professionals brings your product or IT solution to life. Outsourcing software development can help you reduce operational costs by 30-60%, which is quite a figure. By minimizing expenses, you can organize your budget more effectively and ensure all business sectors stay on the right track.

Here are the main benefits of partially or completely outsourcing software development, money-wise:

  • Reduce workload and overhead expenses (e.g. you can lessen the burden of some particular tasks on your in-house team and outsource them, or you can outsource the entire development and eliminate expenses such as taxes, employee healthcare, onboarding, IT equipment, etc.)

  • Forget about wasting time and money on recruitment (outsource to proven IT experts directly)

  • Eliminate the issue of talent shortage and get access to dedicated software development teams

  • Prioritize tools and technologies you need in-house and let the outsourcing company cover the rest (i.e. the outsourcing team will be responsible for providing everything that’s needed for the project)

  • No need to invest extra in infrastructure (usually the outsourcing company takes care of new infrastructure needs and they are bind to do so with an SLA agreement)

Now that we’ve covered most of the financial reasons why outsourcing software could be a good idea, let’s take a closer look at how it can help you manage your resources better.

Improve Your Resource Management

For smaller companies, not having enough talented developers on their payroll is one of the main reasons why they outsource their software development. For bigger brands, the story is a bit different - it all revolves around maintaining a healthy balance between projects and making sure that their top talent is where they need it the most.

Even though companies like Basecamp, Slack, and Skype have their own teams of developers, they still frequently outsource their software development needs for these specific reasons.

Organizations of that size and magnitude need to pay extra attention to resource management. Their engineers have a lot on their plate. They are tasked with important activities and projects on a regular basis, so it’s not really smart to drown them in extra work; especially if that extra work doesn’t really require their skill level.

It’s always a good idea to map out what skills you are missing in-house so that you can outsource them.

By outsourcing bits of work that don’t really take centre stage (at least not just yet), above-mentioned brands enable their top talent to focus on strengthening core processes that take their main products forward and let outsourcing companies develop all the smaller things that support their crown jewels.

Get to the Market Faster


Regardless in which industry you operate, we are pretty sure that speed is something that is used to leverage competitive advantage. By outsourcing software, companies are able to develop their project faster. They are actually able to dictate the timelines in accordance with their desired schedules.

They can set dates that work for them and then it’s up to the outsourcing company to figure out how to make them. Of course, this is only possible if the outsourcing company finds the client’s demands and deadlines reachable.

But it’s not just about launching a new product faster. It’s also about saving time in the process.

When you hire an outsourcing software development company, you get access to a highly profiled, skilled team that works like a well-oiled machine. Since you’re not developing the project in-house, they are the ones who ensure that all bugs and modifications are taken care of. No matter what type of software we are talking about, it needs to be properly monitored and maintained.

With the in-house team, you need managers that guide the project. With external experts, you get to focus on the business growth and figure out the product launch strategy while someone else actually builds that product for you. Isn’t that peachy?

Be Aware of the Possible Hiccups

Of course, just because outsourcing software development has so many benefits - it doesn’t mean that it always implies only smooth sailing.

It’s very important to be clear on what you need and to respect the process the outsourcing company has set for the best results. This means you need to have a thorough project specification ready.

Still, since we are talking about remote development, you need to prepare yourself that there might be:

  • Misunderstandings and poor communication
  • Issues with time zones and other challenges posed by distanted locations
  • Methodologies that you are not quite used to, but in which you’ll need to participate in
  • Ad hoc meetings that you’ll need to attend in order to immediately approve changes

Sure, the terms of collaboration and responsibilities are defined in the contract, but to avoid unpleasant surprises - you should always look for outsourcing software development companies that have established procedures and models that ensure you enjoy flexibility and get the best value for your money. See how we at Share IT provide exactly that to our clients here.

Minimize Risks, Improve Security

Cybersecurity is a big deal, especially for enterprise-level companies. Everybody knows that there is no 100% guarantee that your data and system will be completely protected, but it sure does help when you hire developers that are well skilled in the security department.

If you choose to outsource your software development to a reputable company, you can rest assured they will give you optimal protection when it comes to data breaches, as well as detecting and handling system vulnerabilities. Experienced developers follow strict security protocols and procedures so that all the sensitive data and written code stay safely protected.

Of course, the outsourcing company you choose must prove that its facility and personnel match industry standards when it comes to security, as well as disclose capabilities to protect information assets.

Before signing the SLA agreement, make sure to ask your outsourcing partner about security policies which are in place, standards (e.g. ISO 27001), work environment protection, antiviruses, malware protections, etc.

Over to You

Outsourcing software development is a common business practice for a reason, but as you can see from everything written above - it’s all about trusting your chosen partner and being prepared for possible hiccups. However, the benefits outweigh the cons for sure, especially when it comes to scalability and cost efficiency.

So, are you in need of software development outsourcing? Reach out to Share IT today and we can discuss the details.