Software Development Outsourcing Vs In

The services of dedicated development teams are used by companies around the world, as it is more cost-effective than maintaining their own staff permanently. Most in-house software development teams specialize in one area more than others. Setting up your in-house software development team is the best solution for long-term, large-scale projects.

  • Sometimes people just don’t match, and cultural differences have to be considered.
  • Software development companies should follow the EU General Data Protection Regulation .
  • Long-term government campaigns like Digital India, have greatly uplifted the technological surroundings of the social ecosystem.
  • Her first passion is SEO, she can’t start her day without coffee, and she enjoys spending time at the beach with her two boys and her husband.

Outsourcing is generally considered desirable for its cost-saving benefits. When you outsource you have to set up your own technology, infrastructure, and team; you save up on their maintenance as well. But when you outsource software development to India you get an added cost-saving benefit. A vast pool of engineers has resulted in a vast number of software development companies, and thus a highly competitive industry.

Limited Talent Pool

So, it’s better to look for a partner with similar values and approaches, so that your collaboration represents a win-win situation. Maybe you’re looking for the maximum time overlap with the vendor for the outsourced and in-house teams to work synchronously? Insourcing, in turn, means working with an individual or team on a similar contractual basis but inside your company. Focus on core business tasksThough software development may be one of the central priorities in your company now, still there are other tasks to perform. Those who have small projects with clear staff and duration requirements may choose to follow the fixed-price arrangement as it will allow them to avoid mounting costs and hidden fees in the process.

More companies are handling larger amounts of data every year, with the need for server computing power never being higher. More than 50% of outsourcing professionals work on cloud delivery today. Developing countries hold a wealth of knowledge and expertise in various fields, software development being one of them. By outsourcing to an offshore agency, you can take advantage of reduced costs that can offer you better value for your money. Outsourced nations are favorable for their lower average salaries as compared to the standard of living. Since the cost of living is considerably lower in countries like India, you might be able to cut your costs significantly.

While outsourcing software development, you need to make sure that at least some project managers and resources are consistent throughout the process of development. Before outsourcing a software development project to a remote team, you need to clarify the requirements, set up a regular delivery schedule, and the project’s overall scope. Giants like GitHub, Slack, and WhatsApp are also benefited from outsourced software development. During the early phases of their journey, outsourcing has potentially helped them build sustainable web apps. Full-stack digital product development, IT outsourcing, custom software development & web development company.

Nowadays, software outsourcing providers are seen as valuable business partners who can play a major role in growth. Specialized development areas like blockchain, cloud computing, and the Internet of Things are Outsourcing Software Development no longer a challenge for small and medium-sized businesses that don’t have an in-house development team. You do not need to train, and house employees for your projects when you outsource software development.

When Is A Dedicated Software Development Team Best For Your Business?

Outsourcing is like delegating tasks – if you will not learn it, you will not find enough time to grow your business. Learn to let go and find experts either in-house or offshore/nearshore to build the best possible software for you. Outsourcing can help reduce development costs in half because there’s no need to maintain your own staff and because of the difference in developer rates in different countries.

An entrepreneur with an idea usually needs funding to move on in no time. Getting money for further business development is not “a piece of cake”. However, companies today that are in the startup phase have numerous options to get the funding they need. Venture capital, angel investing, or crowdfunding as some of the relatively new opportunities. The help is also available through startup accelerator programs. A great idea and a strong will to succeed are just not enough in today’s generation.

In fact, the development begins with the selection of an outsourcing model. It is no secret that software engineering outsourcing is a great way to make up for internal resources you lack, enabling you to focus on your core tasks. In fact, all you have to do is come up with a product idea, and you will immediately have access to a complete package of consulting, analytical, marketing, design, and development services.

Why choose software development outsourcing

Outsourcing software development means you are already paying your software team for maintenance. This section should describe in detail the services and the project scope that you expect your outsourcing partner to deliver, as well as the process for making changes to the scope. The advantages listed above, however, make Ukraine an attractive country to outsource to. So, it is no surprise that tech giants, such as Intel, eBay, Apple, SolarWinds, are leveraging its rich IT and software development ecosystem. While some companies are known for coding excellence, others offer stellar consulting services.

The time difference between Ukraine and the United States is 7 hours and between Ukraine and the UK is 2 hours, which makes the country a convenient location for working with various markets. It’s more about gaining a detailed understanding of the strengths and weaknesses of each. Apply that knowledge to your recruitment strategy, and if you’re successful, you’ll gain a competitive edge over your competitors. It’s easy to understand why the outsourcing industry is growing at such a rapid pace. It’s an effective and reliable cost-saving measure that allows you to produce results almost immediately. According to Glassdoor, the average length of the businesses’ job interview process was 23.7 days.

Benefits Of Outsourcing Software Development

You can actually dictate the timelines in accordance with your schedule and will have dedicated developers at your service accordingly. Also, you save a hefty amount of money in the form of employee salary and benefits when you outsource. So, software outsourcing to developing nations results in greater economies of scale and makes it cheaper for a firm to outsource software development and operations than to carry it in-house. In today’s times, businesses have to find ways to innovate and expand in order to survive their competition.

Why choose software development outsourcing

Often, clients have product visions that aren’t fully fleshed out. They want to remain centrally involved in making decisions about the product (e.g., features, functionality, prioritization), but they can’t or don’t want to manage a team on a day-to-day basis. You stay involved and retain decision-making control, but much of the day-to-day execution happens without your involvement. Staff augmentation outsourcing affords you the highest level of flexibility.Scaling your team up or down is as simple as putting in a request to your outsourcing partner.


Direct conversations help avoid misunderstanding and increase effectiveness. Often, a lack of English understanding becomes the cause of work disagreements and team disputes. Find the supplier with whom team communication is easy and constructive using English. Therefore, it is important to find a close-minded partner for outsourcing.

IT leaders find capacity the main challenge in software development. In the most common model, the product creation process is broken down into sprints that are usually two weeks long. Each sprint has a goal , which is typically a feature or functional component.

The average developer salary is $58,392 per year, while Senior specialists earn up to $82,796. In 2019,the number of employees in the IT sector was over 111,000, with general revenue of 149 billion Argentine pesos. I give my consent to Intersog to process and retain my personal data as set out in the retention section of the Privacy Policy.

If the price is too high, there’s no sense in outsourcing; if the price is too low, then it should cause suspicion about the quality of delivered work. In the era of rapid technological development and progress, users are getting more demanding regarding the quality and usability of tech products and web resources they use. Thus, businesses wishing to keep pace with their customers’ needs haste to develop mobile apps and mobile-optimized web resources. The most beneficial distinguishing trait of outsourcing is its flexibility.

Below, we provide an approximate range of rates, depending on the regions where software development companies operate. Finally, you may face an overload of your in-house resources, which results in increased development costs and shifted deadlines in the end. The time and budget play a significant role for the majority of projects, but, in case the company focuses on accelerating digital transformation, they can be pivotal. Another aspect to keep in mind is the technical expertise of your team. For example, your IT staff might be good at web development but lack experience in building mobile applications — something you hunt for.

Why choose software development outsourcing

Since you know what you want, you can effectively hand off your project, freeing yourself of the burden of management. When you have a simple, straightforward project with pre-determined requirements that are unlikely to change. A project-based outsourcing team can execute these requirements without your guidance or input. When you have an in-house Project Manager with relevant experience. You have ongoing access to some of the best engineers and IT experts in the world. But you don’t have to put up the hefty full-time salaries and benefits packages needed to keep them.

Outsource Your App And Website Development To Inkoop

Once a business realizes all the benefits they have, they will see how an outsourced software developer can be an excellent investment for their business in the long run. Hopefully, you have acquired vital information about software development outsourcing from this article, and are ready to work with the right service provider soon. Many firms are turning to software outsourcing to meet their software development demands due to a scarcity ofin-house software developers.

What It Services Can Be Outsourced?

Outsourcing enables you to hire a team of professionals only for the amount of time required by a specific project or the demands of your business operations. Partnering with a nearshore IT Services provider can also allow for quick changes on your team’s assembly if the project calls for it without affecting budget, time-to-market, or performance. Approximately India produces 3.1 million graduates and 300,000 postgraduates every year. With such a huge number of engineering employees at disposal, India has a huge capacity to Intake software development outsourcing projects. In 70% of the cases, the main reason to outsource software development is that it reduces cost, although there are other significant reasons to back the decision. Outsourcing software development has almost become a routine in the software development industry.


Remote developerfor your in-house team or you might need a complete team of all the developers, testers, designers, and everyone to turn your software idea into a reality. In fact, for some projects, you might have everything jotted down and can even give the entire project away to an offshore software development company. These are organizations that either needs some software outsourcing companyto build their software completely or hand over a project to an external company. They need a trusted vendor to build the software from scratch and manage it until it scales. In such cases, you will require a team that will manage the end-to-end product development and will hand the product over on its development. Many organizations do not have a technical team in their office for software or product development.

Leading brands have embraced outsourcing for software development. WhatsApp, for example, outsourced the development of its iOS app to a freelancer but eventually brought him aboard the business full-time. The global market for outsourced services is worth an astonishing $92.5 billion — and that’s only set to grow as more companies continue to leverage external teams’ capabilities.

Both your company and your software development company should establish a software matter expert or product owner for your software. These individuals are the key stakeholders who will own the relationship ensuring quality of business processes and development teams. You want a smooth transition when it is time for your outsource software development partner to hand the product over to your company at the end of the project.

Currently, Poland has255,000 IT specialists, with 15,000 students graduating annually. According toStatista, the turnover in the IT market will reach $12.4 billion by 2021. Ukraine is one of the top IT outsourcing countries where the market for programming languages is huge. According to Harvard Business Review, the majority of businesses are keenly aware of the benefits of Agile yet most of them fail to truly implement its principles in their operations. At the same time, those who have successfully implemented Agile throughout their organizations have seen up to a 60% increase in revenue.

Leave a Comment

Your email address will not be published. Required fields are marked *

error: Content is protected !!
Scroll to Top