Advantages and disadvantages of software outsourcing

Get to know the advantages and disadvantages to software development outsourcing before you make a decision.

In terms of the entire outsourcing industry, software development has become one of the most outsourced services in the IT sector.

These days, it is quite impossible to picture a successful business model without an online presence. Your organization must have an online platform and a mobile application for all the right reasons. They help you effectively target the right customers, establish your brand, and directly engage with your possible leads and customers.

Most importantly, it is where your customers shop for your products and services. A well-built platform and application will result in an increased revenue. This is why a lot of businesses these days invest more in their software outsourcing. 

What is software outsourcing?

Outsourcing your software development means that you are delegating your software development process to a third party. You can either subcontract a part of your development process or the entire software development procedure. This helps you fill in your lack of resources and expertise to support your digital transformation and overall business growth. 

Before you make a decision whether you want to outsource your software development or keep it in-house, it is also important to weigh its pros and cons. 

Advantages of software outsourcing

In terms of the entire outsourcing industry, software development has become one of the most outsourced services in the IT sector. Part of its numerous benefits to organizations are the following:

  • Outsourcing is famously known as a cost efficient solution for organizations. Software development outsourcing enables businesses to get a hold of a quality software that meets all their requirements while lowering their overall expenses. 
  • Software development outsourcing allows organizations to contract seasoned IT professionals for the entire amount of time they need them for.

While employees also serve as good investments, there are projects or tasks like software development that only need a certain amount of time to be completed. 

  • Aside from saving on costs, it also helps companies to save some of their precious time. This enables business leaders and their staff to focus on more important matters of their business. 

What we have discussed above is just a few of the benefits of software outsourcing. Essentially, your software development team must have the required skills, knowledge and experience to produce a quality outcome. 

Disadvantages of software outsourcing

Now that we have already outlined the advantages of software outsourcing, it would be fair to also discuss its disadvantages:

  • Outsourcing also means that you will be giving up control over your outsourced tasks or project. This has always been one of the main downsides to outsourcing.

However, it doesn’t mean that you will be giving up full control over your outsourced software development project as your outsourced team will still be reporting to you.

  • Communication is another main concern in outsourcing, this is most especially for offshoring. But with the help of advanced work automation tools like Slack, Asana, Kissflow, and more, working collaboratively with your team anywhere in the world has become easier. 
  • There will always be the possibility of the final software product not being able to meet your expectations. This is why you should choose an outsourcing provider that best fits all your software requirements. 

Remember that while outsourcing in general is very beneficial to all types of businesses, it may not always work for everyone. More so, a huge part of the success of your software development project will also depend on how you manage and work with your outsourced team.

Picture of OP360 Team

OP360 Team

OP360 is a leading provider of operational solutions, specializing in delivering tech-driven strategies and solutions that enhance business performance, which include customer support, back-office support, and content moderation.
The Ultimate Guide to Elevating Your Customer Experience
Discover how the powerful blend of AI and human expertise revolutionizes engagement, boosts revenue, and keeps you steps ahead of the competition.
The Ultimate Guide to Elevating Your Customer Experience
Discover how the powerful blend of AI and human expertise revolutionizes engagement, boosts revenue, and keeps you steps ahead of the competition. Download it now!
If you have an HR inquiry, please submit your request here.