Leveraging the Top Benefits of Software Development Outsourcing

There are a lot of software development outsourcing companies in the market today. These companies are solely focused on creating software as per their client’s needs and providing custom software development services to each of them. 

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About The Author
Nitin Nijhawan, CDOicon

They also provide software development consulting services to plan and implement new software or improve existing ones. But what is software development outsourcing exactly? Let’s look..

Understanding software development outsourcing

Software development outsourcing, as the name suggests, is taking the services of a third-party organization to get your software developed instead of hiring developers in-house. These companies offer a complete package of software product engineering services which include design, development, and testing. Another type of outsourcing company is an offshore software development company. This means outsourcing your work from a team of developers based in another country.

Reasons for outsourcing

Companies tend to choose outsourcing software development for a lot of reasons. The most important of them is the huge list of benefits they provide. Outsourcing helps with saving time, costs, and resources, and also holds a lot of other advantages.

Advantages of software outsourcing services

There are many reasons why outsourcing software development companies are flourishing. Let us explore them a little.

  • Cost savings

This is undoubtedly the biggest benefit that comes out of outsourcing software development. It can help you cut down costs significantly, compared to hiring your own team of developers. Also, a lot of surveys indicate that for certain European countries, the cost of outsourcing from offshore companies, based in Asia, is further reasonable than in the same country.

  • Flexibility

During software development, you may realize that you need more or fewer developers than the ones that are currently working on the project. Both these scenarios can be a huge problem if you decide to hire an in-house developer team. Also, it is very difficult to accurately estimate beforehand any unexpected situations occurring midway through the project. To tackle this issue, outsourcing is the best solution as developers can be added or removed from your project as per your requirements.

  • Risk sharing

Risk sharing essentially means transferring the risk to a third party. It is an arrangement between the company and a third party where both of them share the risk of financial or other kinds of losses.

  • Focused strategy

Removing the burden of building your software in-house gives you time and resources to focus on the core business strategy. It saves you from the challenging task of finding and hiring skilled developers and spending on their training and skillset if required. Alternatively, outsourcing companies already have a set of highly skilled developers at their disposal who can immediately begin working on your project and get it to the finish line.

  • Time-saving

In this fast-paced world, rolling out your idea as a finished product as quickly as possible is one of the key factors in determining the success of your idea. Since outsourcing companies already have a pool of dedicated developers, you just need to build your idea and contract them for development. The development process will start promptly, and you will have a ready product soon based on the complexity.

  • Improved service quality

The developers working for these outsourcing companies are dedicated and skilled. It reduces your overhead to look for talented developers for your project. This is managed by the outsourcing company you are contracting with.

  • Faster time to market

The time required to build a product depends on its scale and the business use case. Outsourcing this development can accelerate the time required to roll out the product in the market which would otherwise take longer for in-house teams. Being the first in the market with a unique service is another important factor of success, especially for startups.

  • Sourcing top talent

It is very difficult for small-scale companies to hire good tech talent for development. Additionally, the licenses and equipment maintenance required for development can become very expensive quickly for such companies. This is where outsourcing companies step in.  These companies can provide the same development services to small companies that large companies can afford in-house.

  • Futuristic approach

It’s not overselling to say that all companies need to be future-ready with the fast-paced changes coming about in the industry. An outsourcing vendor will have enough resources to weave the necessary technical advantages into your product. They will be able to gather the expertise required to build a future-ready product.

Important steps for outsourcing software development & the risks involved

There are just a few necessary steps that you have to follow before you are ready to contact an outsourcing company for your software development needs. Let’s briefly go over them.

  1. Define your goals and write a scope statement
  2. Get a clear picture of what you need
  3. Create a budget for outsourcing and set time expectations
  4. Do a little research on which outsourcing works best: onshore or offshore
  5. Choose your outsourcing partner based on your research
  6. Sign a contract with them to get your project started

Along with these steps you also need to keep in mind a few risk factors. These factors might create issues for you or the outsourcing company before or during development.

Hire the right software development outsourcing partner

It is very important to carefully select the right IT staff outsourcing company that suits your requirements. For this, the most important step is conducting proper research. You can read the company website for its offerings, case studies, and history. Check their market presence on social media and third-party reviews of other clients. This will ensure you are selecting a trustworthy company with a proven background.

Importance of effective communication

Another disruptive factor that can drastically affect the time and costs of development is communication. You need to make sure all your requirements and feedback are properly shared with the developers. Even a slight error can result in a major difference in the final outcome.

  • Avoiding cost overruns

Some vendors might have hidden costs for some services. Also, you might get some ideas in the course of development which might overshoot the cost. It is best to set a strict budget before starting and check with the vendors for any hidden costs.

  • Quality control

Since the development team will likely be remote, it is difficult to supervise the work. Make sure to schedule regular catchups to check for the quality of development and catch any discrepancies on time.

  • Why you should outsource software development

There are many companies that provide custom software development services. Working with external vendors brings far more advantages than the risks involved.


To conclude, working with software development outsourcing companies might be the best step to take for your organization. These services along with software development consulting are provided at VLink.  VLink manages all the risks and provides a single point of contact to ensure the project’s success.  You can opt for any of their services to take leverage of outsourced software development for your company.

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