What Are the Advantages and Disadvantages of Outsourcing Software Development?

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What Are the Advantages and Disadvantages of Outsourcing Software Development?

A company’s software development project can be done either in-house or through outsourcing. The tricky question is, which is the better option for quality and cost-efficiency, among other considerations?

Strategic business leaders can leverage software outsourcing to sustain their growth and extend their reach without significant investments in hiring, technology, hardware, software and IT infrastructure. Outsourcing can help startups and small businesses stay competitive on a larger scale. When we say that you can save time with software outsourcing services, we talk about the time spent on the entire product development cycle.

To help you arrive at the best decision, let us take a look at the key advantages and disadvantages of outsourcing software development:


  1. Cost efficiency

The high costs associated with internal development, including the errors of your team, can be avoided, thanks to experienced, professional outsourcing software companies. They can reduce many of these costs, including those spent on hiring and training facilities. Outsourcing tasks and projects allow you to save money on hiring, onboarding, training and accommodating employees within your company. You can all get your product to market faster, expand it with more time to focus on other strategic areas, and you all spend less money than with an internal team.

When you work with outsourced software consulting, you benefit from access to proven and robust project management and quality control systems. The outsourcing partner documents descriptive software requirements to plan the allocation of resources, identify possible risks and ways to avoid them and optimize the functional approach.

  1. Access to Best Talents and Latest Technology

Robust and proven project management and quality control systems form the core of the outsourced software approach and help reduce the risk for your company. Choosing an external partner requires the expertise of talented IT professionals, but you don’t have to worry about mastering new technologies. Outsourced solutions have the know-how and experience to offer a more comprehensive perspective on your project.

Outsourcing makes available to you a diverse pool of developers, thus giving you several inputs and new perspectives suited to your specific requirements.


  1. Flexibility and Scalability

Scaling up or down an in-house development team poses difficulties and challenges. The development process involves a whole team with varied roles. Not all companies can immediately hire a full-time project manager, API developer, App developer, designer, to name a few.  And during the development process, there is a possibility that the work scope will also change. It is not easy to either reduce or find new recruits with the same or higher skills that the project requires.

You eliminate this problem with outsourcing because an IT company would have an experienced and interchangeable workforce available anytime. With an outsourced team, you can easily upsize or downsize the group according to your preferences. Outsource the job to an external provider, and you won’t have to repeat the entire recruitment and hiring process before finding the right person.


  1. Choosing the wrong company

It would be best to do diligent care in choosing your outsourced company; otherwise, you may end up with one that does not meet your needs and expectations. With the industry’s rapid growth, hundreds of software development companies are available in the market, and choosing where to invest your resources is not easy, especially for first-timers.

Credentials and portfolio of IT companies will be a good reference for you in making your decision. These are usually available on their websites or upon request.

  1. External access to your project

Outsourcing inevitably means you are giving access to your servers, apps, portals and the software itself to company outsiders. Although confidentiality should be an integral part of your agreement, the risk of any untoward issues is not erased.

  1. Adverse effect on employees’ morale

Rightly or wrongly, an employee may feel threatened in the presence of outsourced developers. He may doubt his importance in the company, which may lead to low morale and an uncooperative attitude affecting the project’s overall success.

Time to Decide!

Hiring an in-house development team entails various costs. On the other hand, outsourcing to a dedicated development team gives access to top talent with vast experience, which is seen as a considerable expense when hiring individuals as full-time specialists. For this apparent reason, many companies delegate the application to outside companies to increase productivity, gain access to the best IT talent, and reduce costs.

Whether to outsource or create an in-house team is a decision that has a crucial effect on your short term and long-term business goals. Looking at the pros and cons, it is safe to conclude that outsourcing offers solutions to some of the most critical problems of the company and is a sound business strategy in realizing your goals. Its disadvantages are easier to deal with, and proper dialogue and clear-cut terms and conditions can mitigate or even eliminate them.

What are you looking for in a software development company? Feel free to reach out, and we’d be glad to hear from you!

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