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7 Key Benefits of Software Development Outsourcing

Software development outsourcing has become an attractive option for businesses across the globe. Read on as I elucidate the 7 key benefits of software development outsourcing from an enterprise’s perspective and why your enterprise, too, should partner up with a software outsourcing company.

Software development outsourcing has become an attractive option for businesses across the globe, given the significant reduction in operational costs it offers.

According to a report by Statista, the IT outsourcing market in Europe is expected to reach $103.9 billion in 2021. This growth trend will be observed across the globe. But is it just reduced costs that have made Software Outsourcing so desirable?

This article attempts to elucidate the 7 key benefits of software development outsourcing from a perspective and why your enterprise, too, should partner up with a software outsourcing company.

Enhanced Agility and quality

It is well known that the agile methodology positively affects the achievement of a quality product. A development environment that follows ‘agile’ principles allows for enhanced collaboration between teams such as teams overseeing strategy and the actual IT development team. This, in turn, results in high speeds, high team productivity, and efficiency.

Following the agile methodology, engineering and testing teams focus on detecting and fixing vulnerabilities and bugs, ensuring that they receive a product that meets all enterprise requirements and goals.

The Agile methodology helps establish a resilient process that ensures the achievement of promised sign-offs in the SLA.


Over the past couple of years, disruptive outsourcing has taken center stage.  With technologies such as IoT, Artificial intelligence, Machine learning, and 5/6G connectivity, companies that have the pluck to leap over the tech precipice have experienced a massive acceleration in operational change and digital transformation.

The market environment of today demands that enterprises adopt digital transformation to remain relevant and keep pace with the ongoing rapid shift in technology.

A Gartner report states that by 2021 7.6 billion people will have 100 billion connected devices, which will, in turn, run 1 trillion applications in totality. An ideal outsourcing partner can bring all the necessary expertise required to create next-gen solutions to meet unique business needs, e.g., Deploying predictive analytics to pinpoint events that trigger traffic surges.

Massive cost savings

Offshore software development outsourcing results in massive cost savings, given that skills and expertise, which cost $100/hour in the US, can be found at the same quality standard at just $55/hour if outsourced offshore to a high-tech-literate country like India. Developers in countries like India work at salaries that are much lower than their counterparts in the US or the UK, given that the cost of living is much lower in developing countries.

By even the most conservative estimates, enterprises can save a very large amount of money dollars in training, benefits, depreciation, support, and rent.

With software development outsourcing, an enterprise can reduce the cost of overall application development from the standpoint of labor costs as well as the total cost of ownership.

Rapid delivery

A product development life-cycle can prove quite time-intensive. Based on the scale of the project and specific use cases, a cross-platform hybrid app would take a few months to reach deployment, while the development of complex platforms that utilize technologies like AI and ML could stretch out over several years.

Choosing to outsource an enterprise-grade application to an experienced outsourcing partner can accelerate its time-to-market.

Augmenting an in-house team is not always advisable if time is a constraint in your development initiative, as that would mean maneuvering through the hurdles of recruitment and onboarding, which are inherently time-consuming.

According to industry standards, an ideal software development outsourcing company can deliver an MVP in about 12 weeks by following the agile approach. With the gargantuan risk of idea theft, hitting first-to-market is key to the success of all enterprise development initiatives, and hence rapid delivery is highly desirable.

Focus on your Core Business

Enterprises often go wrong by diverting overt resources and time to application development and the technologies used. Such a diversion can result in the enterprise losing focus on its initial idea and the core processes of its businesses can prove to be greatly counterproductive.

With software development outsourcing, an enterprise can shift its focus from application development, which isn’t its forte, and pay more attention to core business processes like brand building and market research to provide high-value service to its customers

With the technology part of software development being the outlook and responsibility of the development partner, enterprise leaders can decide on solution requirements that fit their goals.

The Perfect fit

It is a typical misconception that software development outsourcing is gainful only to larger companies. However, in actuality, new companies to Fortune 500 organizations outsource their software development ventures.

While larger companies deploy offshore development groups to mitigate locational hazards, small and medium businesses outsource to cut costs on human resources, infrastructure, etc. Whatever the business use case, industry vertical, or size of the undertaking, software development outsourcing can prove to be the perfect fit for businesses of all sizes.

A Trusted Partner

With expanded utilization, outsourcing is slowly transitioning. An ever-increasing number of organizations presently outsource IT support and maintenance administrations, which permits them to zero in on their core abilities.

In the case of enterprises still using obsolete and overtly complex legacy systems and applications, there is a frequent bottleneck/overload of software application maintenance and support requirements; This, in turn, leaves the enterprise with no time to develop and implement newer software systems.

Outsourcing your enterprise software development, maintenance, and support to a trusted software development partner is the most viable solution to this problem. An ideal software development outsourcing company can offer real-time support and maintenance, upgrades, and even migration services while guaranteeing consistency, reliability, and security.

The Takeaway

The present IT landscape is ridden with capability deficiencies, spending limitations, and continually evolving technology. To address demands of competency and relevance, enterprises require an extraordinary team that can consistently offer hyper-aligned software development, support, and maintenance. Despite the worldwide market being inundated with top-notch IT development organizations, not many have the broadness and profundity of abilities and resources to address these requests, and therefore your choice as an enterprise should be well informed. Research on how to outsource software development is also advised.

With the endless opportunities offered by software outsourcing, right now is perfect to begin with software development outsourcing. If you’re prepared to accomplish your software development goals with more enhanced cost-effective, nuanced control, and augmented business potential, software development outsourcing is the perfect solution.

Written By

I am Pratik Mistry, a driven technologist and spirited technocrat. I hold the helm of Senior business head at one of the best software development outsourcing companies where I steer my passion for helping businesses grow revenues by delivering top notch software development services and in building value-based partnerships.

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