October 25, 2020

Why Choose Software Development Outsourcing: Pros and Cons (2020) 


  • 1 What is Software Development Outsourcing?
  • 2 Pros of Software Development Outsourcing
    • 2.1 Time and Cost-Effective
    • 2.2 Accessibility to Global Expertise and Latest Tech
    • 2.3 Focused Business Growth Practices
    • 2.4 Improved Product Quality
  • 3 Cons of Software Development Outsourcing
    • 3.1 Miscommunication
    • 3.2 Security Risks
  • 4 Conclusion

If you have a start-up, you might already be thinking about choosing software development outsourcing as a jumping board to dive into the digital market, and why not? It requires minimum investment and time. You can expect to have your product ready earlier as compared to in-house development because you don’t need an established infrastructure or a team to begin working.

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Even as an established company, you can take advantage of the kick software development outsourcing gives to your business growth. But what is software development outsourcing, really?

What is Software Development Outsourcing?

Simply put, it means hiring external software development outsourcing services that are not attainable within in-house development resources. You can hire a team of professionals from an outsourcing software development company, or an individual with expertise. It depends on the requirements of the project. The development requirements also vary depending on your product needs: whether you want custom software for your company or software development for a client.

Software development outsourcing has emerged as the most followed digital global trend over the past few years. Initially, this trend was hailed by the digital world because of its cost-effectiveness, but as the digital market expanded, more and more companies were interested in hunting down developer talent that is scattered across the globe.

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But again, world-class expertise at the lowest rates possible, what else could be the bigger reason to choose software development outsourcing? Still need some convincing, have a look at these numbers.

According to Statista, the global outsourcing market value was $92.5 million in 2019. At the moment, the US outsourcing market alone is worth $132.9 billion, predicted to grow by 1.6% before December 2020.

So, if the competitive market is growing through software development outsourcing, why not you? Let’s have a look at the pros and cons of software development outsourcing to get a better understanding of its pros and cons.

Pros of Software Development Outsourcing

Not only is it cost-effective, but can work as a booster for your business growth too. Read below to know in detail.

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Time and Cost-Effective

It is quite understandable why 59% of businesses around the world are already using this approach to save developing costs on outsourced product customization because hiring in-house developers equals additional training and boarding expenses. Training supplies cost additional. For example, a company based in the US cannot possibly hire a developer from Canada and expect from him to be readily available for in-house services.

On the other hand, if they go for software development outsourcing, not only can they hire a team of experts from anywhere around the world, but also save quite a few bucks (the bigger the currency conversion rate, the higher the saving). Because of the difference in currency conversion rates, the software development outsourcing industry is booming in countries like India, Pakistan, the Philippines, etc.

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Accessibility to Global Expertise and Latest Tech

This is probably the best feature of software development outsourcing. When a company goes on a talent hunt, it doesn’t have to limit itself to a locality. They have access to hundreds of outsourced product development resources to meet their development needs. These resources gain world-class technical expertise through working with clients all around the world. The management of such a vast clientele requires accessibility to top-notch software development tools, which ensures that they are fully equipped to tackle most of the development challenges.

Focused Business Growth Practices

Software development outsourcing is beneficial to your in-house tech team too. You can reduce their workload by outsourcing projects that are beyond their work capacity or expertise. Without the need to train the outsourced app development team, your team can focus on projects that they have expertise in. It also takes the extra work pressure off your team, increasing their work productivity.

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Your in-house team can work on meeting strategic business goals without having to worry about software problems.

Improved Product Quality

One of the best outsourcing practices is the availability of the latest tools and resources to ensure product quality. This guarantees a better user experience too, as most outsourced app development teams are equipped with the latest quality check tools. The outsourced development team can work on solving existing software issues as well as come up with innovative ideas to improve your software.

With numerous advantages, software development outsourcing has its cons too. Let’s have a look.

Cons of Software Development Outsourcing

Nothing is perfect. Software development outsourcing has its cons too. Let’s read in detail.

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We can consider this as the major disadvantage of software development outsourcing. You can come across difficulties like cultural beliefs, language barriers, time-zone differences, etc.

To ensure work transparency, you can arrange weekly virtual team meetups.

For overcoming language barriers, you can hire a translator.

Approval on a certain change from your side can take hours to get through. This can delay things, hence, affect your business productivity. However, you can solve this issue by using responsive collaboration tools such as Jira and Slack.

Security Risks

While exposing confidential company data, it is very natural to be concerned about potential data theft and leaks. Your sensitive algorithm or software can be replicated, or worse, stolen.

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Always ensure that a Non-Disclosure Agreement (NDA) is signed before you share your data. This makes you legally safe from possible theft of valuable trade secrets.

Also, get your software registered, and add the property rights in your contract. This will save you from possible software breach issues.

Make sure that you have access to performance monitoring tools to keep a track of how your outsourced product engineering is working out. It is always safe to know what parts of your data are accessible by your outsourced development team.


While software development outsourcing runs quite a few security risks and communication barriers, it also saves a lot of effort and money for the company, which can be invested in projects that ensure business growth. It would be safe to say that the risks are fewer than the advantages. You can boost your business growth rate by hiring the expertise of the top market development talent. Give it a go!

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