Software Outsourcing is the process in which a third-party Software Contractor is hired to manage all kinds of software-development tasks, by a business having too low a budget to hire an entire IT team.


There are three types of Outsourcing companies: on-shore (within the country and sharing a similar time zone), off-shore (a different country having a different time zone), or near-shore (from nearby countries but having the same time zone).

Also Read: Windows 10 free Upgrade Guide [Easy Steps]

Why should you Outsource your Software?

As the era of software development is getting more competitive day by day, businesses and start-ups need to find a way to jack up their economy, which would place them one step ahead of their competitors in the race.

As many companies may not have a robust and efficient IT team, they usually tend to outsource their work to different contractors, while focusing on their crux competencies. Outsourcing saves a lot of time and money and is preferred by businesses that do not have an astronomical budget. A list of software companies on-shore or off-shore offers these services at varying rates.

Therefore, the main objective of outsourcing is to provide the customers with a better service, to have an economic advantage over its competitors while producing high-caliber products even with a limited budget.

Benefits of Software Outsourcing

(1) It offers a jim-dandy Flexibility:

Organizations can hire software outsourcing companies whenever they need without having to make a long-term commitment. So, if your business neither has to deal with a long-term software project, nor the means of hiring an entire IT team for the job, outsourcing is something you may go for.

Hence you won’t have to shell out a significant part of your budget paying the entire IT team’s salary, nor hire and fire expert software engineers for the project.

(2) Focusing on the Corporation’s crux competencies:

If your business does not have a strong IT support or expert software developers, or your team is engaged with different important aspects of your business like marketing, customer support, the management or distributing, you can remove the workload and hand it over to these firms.

You can be assured of the high-quality product you will be receiving, at a reasonable price while saving a lot of time and money. You can then focus on the prime features of your business, while the outsourcing companies handle all the software related grind work.

(3) Cost-Effectiveness:

Hiring an expert programmer or software company on-shore can be costly, which is why businesses tend to expand off-shore into countries like India, China, Ukraine, etc. where there are several expert engineers and software developers that offer the same service at a much-subsided rate.

(4) Time Management:

You always want to achieve targets within assigned deadlines as a business manager. Time is invaluable for you. This is where the outsourcing company plays a major role. Comprising several technically skilled and experienced IT professionals, these corporations haste up your software related tasks, which help you to complete the projects within the stipulated time.


As a single company can’t have up-to-date knowledge about ever-evolving software programs and technologies, therefore it is a wise choice to hand over the task to the software contractors, who have the most updated knowledge in IT and software development field.

Why Software Outsourcing Affects your Business?

There is no doubt in saying that Software Outsourcing can help your firm grow. Still, there are some loopholes, which can put your company at a major setback. Fortunately, the majority of these drawbacks can be checked.

Let’s discuss a few:

(1) Risks of losing secured data:

Don’t forget that you are handing over a proportion of your business to the outsourcing firm and hence you run a risk of your confidential data getting leaked. Hence, hire only reputed firms for your tasks.

(2) Reduced Product Quality:

Whenever you hand over a project to a firm, you do not know the quality of the final product that you are going to receive. Some software contractors may not have highly skilled developers, which is why your product may turn out to be of poor quality.

(3) Miscommunication:

This is where offshore outsourcing companies fail, because they may not be familiar with their language, culture, etc. and hence it can lead to the production of average quality products if the instructions are not properly understood by them. So, it is recommended that both parties are well accustomed to each other’s language/culture.

Also Read: 10 Best Free Online Photo Editor Apps for Creatives


Before choosing a company for your work, get acquainted with the previous projects they have handled, the quality of the products they have produced, etc. Referrals are something you can rely upon as they reflect the company’s quality of service and the type of customer service they provide after they have delivered the end product to you.

Also, read all the terms and conditions of the contract you make with the company carefully, before agreeing to it finally.