Benefits and Drawbacks of Outsourcing Applications

Outsourcing, a process of delegating the business process of an organization to a third party or an external agency, leveraging benefits that range from low labor cost, enhanced product quality, and service innovation. When it goes beyond national boundaries and is managed by a company in a different country, then it takes the shape of offshoring.

Whether you’re a business owner, a top manager, or a dedicated developer, you of course want the business to thrive. Resorting to software outsourcing may seem like a wonderful idea. And usually, it is, as long as you’re aware of its benefits in general.

Moreover, it’s also important that before proceeding to engage with a software development company to know the drawbacks as well. Because, just like anything else, outsourcing apps also has benefits and drawbacks.

Outsourcing, the Benefits, and Drawbacks

Indeed, outsourcing could bring business benefits, but there are significant challenges and risks as well. Here, let’s break down everything you should be aware of to ensure the success of your IT outsourcing initiative.

The Benefits

1. Targeting what counts
Allowing someone, such as an outsourcing service provider, to carry the ‘burden’ of developing software means you get to focus on other things, such as content, distribution, marketing, service, and so on. Or you could entirely dedicate yourself to the future, like developing core strategic tasks. Once you outsource, you could decide to downsize your brand, or for instance, reconfigure it.

2. Cutting expenses
Lowering financial input while fulfilling business goals may sound like a dream come true. Software outsourcing is not necessarily cheap, but typically cheaper compared to hiring additional staff, purchasing your equipment, and getting an office space for new staff to work in.
Expertise and the use of the latest technology requires a significant investment; thus you should be wary of an outsourcer with ridiculously cheap services.

3. Having a fresh perspective
The ability to have a fresh set of eyes is a great idea all the time. But, consider having a dozen pairs of fresh eyes to see your process. Allowing someone from the outside to get an overview of your business could expose you to innovation, unexpected messages, and talent.
Being open about it and using it is a wonderful idea.

4. Time-Saving
One of the key pros of outsourcing software development services is that, not like most of the in-house teams, it meets deadlines. This makes business processes easier to handle.

5. In-house staff re-evaluation
Even if the nature of your software project is not in any way correlated with the nature of the work of your in-house employees, the fact that looking for help outside boosts the morale of your staff. It motivates them to work better, and give them the time to focus their efforts on things that truly matter.

The Drawbacks

1. Communication issues
When you outsource, you hire a developer from any country in the world. It sounds exciting and has a lot of benefits, but if not handled properly, it could also bring mixed messages, shifts in the deadline, cross-cultural misunderstandings, and other circumstances that you would rather avoid.

2. Risk issues
There is a lot of information that you need to share with the outsourcing software development company, such as your core principles and values, the database, and strategy. The fact that in a way our control choices are limited, and you’re never quite certain about the result, it may seem like outsourcing could jeopardize your business.
Nonetheless, as long as you look for an ISO certified outsourcing service providers, it alleviates almost all these concerns.

3. Adaptation problems
You must realize that as soon as the outsourcing developer begins work on the project, there would be an adjustment period. The interaction involves many unknown and new things for both parties. There may even be a time when you’d think that outsourcing was a bad idea and the project could be in danger.
Be realistic and be ready for the adaptation phase, then you would have no reason to panic.

4. Hidden costs
While companies outsource to save costs and receive a final product with exceptional quality, always there is a risk of getting a huge amount compiled of hidden charges. This is particularly true with offshore outsourcing.
Some companies hoax clients by giving out false overestimates and double-billing. Furthermore, hidden costs could also include meetings, phone calls, further consultations, and even travel expenses. It all piles up in the end, but when you’re in the midst of work, there’s no way for you to back out.

Outsourcing—the Best Practices

Go Agile
The main reason why Agile works for software outsourcing is that it provides you instruments in managing your project within an evolving environment. If the goal is incremental delivery, then definitely this methodology is for you.

Choose an outsourcer that fits your requirements
It’s never easy finding the right people. Furthermore, it’s more difficult to find the right outsourcing team due to the distance. Cultural aspects are critical for effective cooperation and differences could add more difficulties.
Learn more about the country where you want to look for an outsourcing partner. If unsure, opt for a destination with the same mentality to avoid misunderstandings and cultural gaps.

Look for potential teams
Google is a great help to find anything. Nevertheless, specialized platforms come in handy if you’re in search of specialists and companies that have been rated and vetted by others.

Evaluate the development team
As soon as you find the team you’re willing to partner with, proceed to study its portfolio. The portfolio gives insights into the sense of style and level of professionalism. Moreover, inquire if projects are released and the reason if not.

Make sure to check out references, don’t hesitate to ask and follow up. References could share feedback on the working style, attitude, successes, and failures of the team, which is valuable information before making a decision.


Whatever outsourcing software service provider you choose, make sure to get all the information about it. Usually, the portfolio is presented on the company’s website, thus check it out thoroughly. If possible, know about the current agenda of the service provider, as well as get feedback from previous clients.

Outsourcing software development has been a very effective activity for some time now. And with the present pandemic that the entire world is facing now, it has become an all the more sought-after process.

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Nancy Verma is an analyst in a Custom Software Development Company Tatvasoft Australia. She works in project creation alongside the creation and sales team. She is a risk-taker and, while working, loves to discover further possibilities.

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