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The Ultimate Guide to Outsourcing Software Development: Part 1

By March 24, 2020No Comments6 min read

Software Development outsourcing is becoming more popular with time. Currently, more than 60% of all enterprises are outsourcing their development process. However, most enterprises still don’t understand the outsourcing process. We are going to talk explain the outsourcing software development process in detail.

Definition of Outsourcing Software Development:

In this, you can hire a third-party provider for handling your software development projects. These providers will help you in quickly completing your software development projects. You can use this software for your company. Some companies are even using these services for developing commercial software. They can sell this software to their customers. If you are outsourcing these services, then your IT team can focus on other important things. Your IT team will get more time for developing innovative projects.

Pros of Outsourcing:

  1. Saves Money and Time

This is the main advantage of outsourcing software development. It will help your company in saving a lot of money and time. Most businesses are using this as a cost-cutting tool. It can be very expensive to hire software developers. You also need to train them about new technologies. If you are using a third-party provider, then you don’t need to worry about hiring expenses. Also, you don’t need to invest money in training these developers. There is also a difference between cost-of-living between different countries. For example, if you are hiring developers in the USA, then it will cost more. However, outsourcing will allow you to remotely hire workers from countries like the Philippines and India. You can hire top-quality talents from these countries at a very low cost.

  1. Access to Latest Technology

If you are outsourcing, then you don’t need to worry about the geographical restrictions. You can find third-party vendors that will help you in developing custom software. These agencies have a lot of technical expertise. They have already worked with hundreds of different clients. Thus, they have access to the best tools for meeting their client demands. These agencies will give you access to the latest technology. You will always find an outsourced team that can complete your development project.

These teams also follow DevOps and other development methods. Thus, they are more productive when compared to in-house teams. These things will help you in speeding up the development process. Thus, it will increase the tech capability of your company.

  1. Focus on Important Business Processes

Outsourcing will also help your in-house team. They will have more time for focusing on core business processes. It will reduce the workload of your in-house IT team. You don’t need to guide the outsourced team. Thus, your in-house IT team can focus on critical business processes. This will help them in contributing to business growth.

It will also reduce the pressure on your IT team. They can focus on the projects that they know about. Thus, they can work according to their skill level. Your outsourced development team will focus on other niche software solutions.

  1. Better Product Quality

These outsourced teams will also increase the quality of your final software. They have dedicated resources for QA and testing. Thus, this will ensure that the final software is stable. This will help you in providing better User experience to your users.

Cons of Outsourcing:

  1. Communication Barrier

If you are working with an outsourced team, then you need to overcome many communication barriers. There are barriers like time zone differences and language barriers that you need to overcome. For example, sometimes these teams are working when you are asleep. Thus, they need to wait for hours for getting code approval. This can decrease the productivity of these outsourced IT teams.

You can use collaboration tools for bridging this communication gap. There are tools like Jira and Slack that will help you in bridging this gap. Also, you should talk with your remote team after every 7 days. This will help you in removing the communication barrier. You can overcome the language barrier by hiring a translator. However, some teams are also using online translators.

  1. Privacy Concerns

There are also various privacy risks that you should consider. You are sharing critical business data with a third-party vendor. Sometimes these vendors can misuse this data. Also, some individual employees can steal your algorithms or software. There are also cybersecurity risks that you need to consider. If these vendors’ database is breached, then your company data will be compromised.

However, there are various ways to safeguard your critical data. You should ask these vendors to sign a Non-Disclosure Agreement. Make sure to get this document before sharing your critical data. This document will ensure that your third-party vendor can’t sell your secrets. If you have proprietary software, then you should also add the intellectual property clause. This will help you in protecting your company from copyright infringement issues. Thus, these vendors can’t copy your software. You can also use tools like Time Doctor. These performance monitoring tools will help you in monitoring these outsourced teams. Thus, you can check what your outsourced team is doing. Also, you can check the data they are accessing.


Software development outsourcing is becoming more popular with time. More than 60% of companies are using outsourcing for developing their applications. You can hire a third-party vendor for handling your software projects. These vendors have worked with hundreds of different clients. Thus, they are familiar with most technologies. This will help you in saving both time and money. However, there are privacy risks that you need to consider. Make sure to get a Non-disclosure agreement or NDA from your vendor. This will ensure that they can’t sell your company data. Also, you can use tools like Time Doctor for monitoring these teams. We are going to talk about outsourcing models in the next article. If you need more information regarding outsourcing, then you can contact Bleuwire.

Contact us today to learn about Bleuwire™  services and solutions in how we can help your business.