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Why and when should a company outsource software development

There are two proven aspects tech organizations rely on to survive and outpace their competitors in the market:
Control, under which cost, resources, and capabilities are managed and Speed, which makes sure the product appears at the market. For these two ensure a steady flow of benefits and future bloom.
But it is not a case of black and white but rather, multiple shades of grey as making a product is not the only task you have to tend to. The aspects of management, marketing, sales, analysis, employee management come into play. Being a jack of all trades is appreciable but not practical when you are running your own company. You need a helping hand and this is where outsourcing software development comes in. Software development outsourcing is a process followed by companies that hire a third-party software contractor to do the particular software related task that could have been done in-house. Developing a complete software application in-house asks for both money as well as time and to be honest, not everyone has an extended IT team. In these circumstances, tech companies turn to Software outsourcing companies.
For the record, stats show that annual global revenue from the information technology field by outsourcing software development has been estimated to be around 60 billion $ as of 2019.
Outsourcing software development projects help businesses achieve a higher economy of scale and let them focus on their core competency without spending a considerable amount of time and money.
While you are considering outsourcing software development to a 3rd party, you are probably questioning about quality of work, the budget required, and the overall risk associated with outsourcing. This write-up intends to focus on the benefits of outsourcing software work. They are as follows:

Access to a large pool of skilled resources

Generally, outsourced companies have access to a larger talent pool of experienced and skilled specialists in the industry, owing to their years of collaboration with multiple firms from varied fields. Outsourcing helps you to find the right talents for the right project while shifting off your human-resource issues. Many companies also have an interviewing facility with an expert panel where you get an opportunity to select the expert candidates with the right skills and experience fit for your project. Most of the software application development companies maintain an extensive database of skilled employees.



Adore flexibility

Outsourcing software development allows for flexibility within business operations. Human resources are one such area which gets a breather, as you do not need to be attentive to recruiting and hiring procedures. Plus, you are worry-free about scaling your employees to change team size from one project to another project.


Save on time & cost

Outsourcing saves an immense amount of time spent on recruiting, training, and settling employees for in-house projects. And let us not kid ourselves, the biggest reason for people to outsource is to cut costs. Outsourced projects reduce development expenses by 60% – 70% less than in-house projects and help to reduce your workload. One of the important cost-saving factors is that you don’t have to perform upfront investment. Time-saving and cost reduction has always been the first choice of any business. And, outsourcing makes sure these issues are well addressed and taken care of.


Perks of advanced technologies

It is one of the prime reasons to hire a third party to develop a software application. Keeping up with modern technology space is a daunting task as it evolves day to day and keeps on introducing techs. By authorizing your software project requirements to a software application development company, you enable them to implement the latest technology for your project. These new trends and technologies are a result of such companies having years and years of experience with clients from various fields. Outsourcing has brought a new perspective to the workspace which encourages new technology put up by specialists who possess diverse technological expertise. Therefore, one need not worry about overhauls of ever-changing technology.

Risk alleviation

Outsourcing your software development task means you do not have to worry about risks associated with the development cost, resource allocation, on the failure of the development. As you hand over the responsibility to the 3rd party vendor, it becomes their prime responsibility to deliver the pre-defined outcomes for you. So outsourcing pretty much alleviates the risk.

High-quality services

While you go for outsourcing services, the outside firm guarantees high-quality services with zero downtime. And, they deliver quality results all the time. Outsourcing also opens up opportunities for up to-the-mark custom software solutions. The biggest benefits of outsourcing are high-grade services. This is the reason why more and more companies are selecting for outsourcing.


Post-deployment services

The team which worked on your software development is also capable of solving all the issues related to it. Hence, when faced with product complexities, the outsourced team will help you to fix it. A lot of outsourced companies have a 24×7 support team to assist you with issues about the concerned project. This ensures a hassle-free experience with great services. The service provider companies offer support, commitment, and maintenance throughout the project and also after completion of the project.

Transparent work policy

This case particularly helps when you have outsourced to a reputed company. When you are outsourcing, you might be clouded with concerns about privacy policy. Sharing an idea with an outside party is always a matter to ponder upon. But when working with a reputed organization, they will make sure full work transparency is maintained and all the compliance standards are adhered to. The catch is, you need to know which service provider to approach and the nature of engagement revolving around agreement papers and legal hassles.


To obtain digital transformation and growth through innovation while reducing risks and increasing profit simultaneously, outsourcing software development is a great tool. It also helps businesses achieve competitive advantage without losing focus and efficiency. Your product remains in capable, trustworthy, professional hands, and you get to focus on running your business. It is a key step to helping your business take off.

Prescient Technologies

B507, 4th Floor, Teerth Technospace,
S. No. 103, Baner, Off Mumbai Bangalore Highway,
Pune 411045. Maharashtra, India
Email : contact@pre-scient.com
Phone : +91-20-664 779 00