Why businesses needs to outsource software development

September 20, 2022

Technology has revolutionized how the world functions. The intervention of technology in the world of business has led to the creation of innovative solutions. Businesses big or small are going through digital transformation. According to a report by International Data Corporation, investment in digital transformation is estimated to be $6.8 trillion between 2020 and 2023. Simultaneously it would increase software development outsourcing.

Software development outsourcing is trending globally for quite some time. The reason for the concept being so popular across the globe is the benefits that companies get from outsourcing. Software development outsourcing is a cross-industry phenomenon. The reasons for a company to outsource their software development can vary regarding the shortage of resources, time, and money can be parameters. With businesses adapting to digitization swiftly, there is a rise in companies outsourcing their software development.


Outsourcing the IT requirement is cost-effective rather than hiring the talent for the development. The company has to bear the development cost and not the other expense related to finding and hiring the technology experts. The development cost also varies depending on the country it is outsourced.

Technology Experts

It is nearly impossible to keep up with all the latest technology and have experts for all the various tech. When you outsource the development the IT consultancy makes sure to acquire the best talent and complete the project. The service provider has a large pool of talent.


When you are missing the deadlines there is a high chance of a resource shortage. The timely launch of the product is a crucial aspect of the business. In this scenario delegating the project to a company with the ready resource is a wise thing. The project is completed on time by the dedicated developers. It will ensure the product reaches the market in time.


With the ongoing project, there can always be a demand for scaling the project. In the case of in-house development, it might delay the development due to limited resources. On the other hand, scalability can be easily managed by the outsourcing company with its large pool of resources.

Recent trends that are driving the software outsourcing trend

The pandemic has accelerated the rate at which businesses are undergoing digital transformation. For the business to be robust, digitalization has become inevitable. In turn, the demand for technology experts has increased, shortage of in-house resources has increased outsourcing software development.

Cloud computing

With the advancement of cloud computing technologies, companies are adapting cloud-based services. Cloud-based application development eliminates the need for on-site physical hardware and the physical presence of the developer. Since all the development is taking on the cloud.

Cyber security

According to research the average cost of a security breach has increased 2.6 % in 2022 from the cost in 2021. Most companies don’t have the expertise and extensive resource required for providing the best security solutions. Outsourcing can ensure the best possible expertise for security.

Artificial intelligence

With the advancement of complex technologies like Artificial Intelligence and Machine Learning. It is difficult to have a skilled resource of all advanced technologies in a single company. Companies are opting for an alternative solution that is to outsource than hiring expertise for each technology.

Remote Working

The outbreak of the pandemic made it necessary for companies to adapt to remote working. The business had to restructure its operations to support remote working. It has increased productivity and efficiency. Companies are continuing with remote work, and it has increased outsourcing.

Tips to follow while choosing the software development company for your software development.

Company’s Profile

Make a thorough check of the company’s past performance and look for a proven track record. You can ask for details of past projects, and existing clients.


The other important factor is the number of skilled subject matter experts they have on board. This will ensure that you have access to the best talent for the project.


Ensure establishing a proper and effective channel of communication. To avoid miscommunication in the later stage, there should be no scope for language barriers.

We live in a world where physical boundaries are no more a barrier to reaching the best talent. Outsourcing software development is a possibility because of advancements in technology.

Outsourcing software development provides the flexibility to focus on core business operations rather than worrying about project completion. There are different outsourcing models available in the industry. Connect with the IT expert and find what works best for your requirement.


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