Why Software Outsourcing is the Latest Trend in Software Development

Software Outsourcing

The software world is used to disruptive technology changing the entire landscape every few years. Software that was once in favor falls out of use and something entirely new takes its place. However, an equally important shift is now occurring in how software gets developed in the first place. In other words, the time has come to software outsourcing and consider offshoring as a better model for the future.

Here are some valuable points of why software outsourcing is the latest productive trends in software development.

Reasons for Offshore Staff Augmentation

Software outsourcing is defined by Gartner as procuring software development and other IT business enablers from suppliers outside the firm. With offshoring, businesses can outsource to partners located around the world, potentially thousands of miles away. This practice is popular among businesses in just about every industry due to a number of advantages it offers the businesses.

Reasons for Offshore Staff Augmentation

Reduced Development Risk

Many businesses are unable to manage their own software development for a variety of reasons. For example, they lack the expertise or focus. Management deems that running a development project internally would take the focus away from core areas or involve a high risk of failure to complete the work. Offshoring will reduce the risk associated with such types of project.

Lower Software Development Cost

Offshoring is also a solution to budget problems. Rather than develop locally, businesses often save money by turning to offshoring firms. These companies are located in some of the most favorable locations where business overhead and the cost of doing business is lower.

Access to the Best Talent

Sometimes, the cost is not the biggest driver of software outsourcing but, rather, the ability to access the best development talent. This will be especially helpful for businesses that need niche skills such as machine learning or business intelligence.

Successfully Evaluating an Offshore Solution

In the past, the advantages of offshoring were not always fully realized. This is because practitioners jumped in without optimizing for successful software outcomes.
The first critical step to successfully hire dedicated developers is properly evaluating an offshore solution.

Project Success Rate

Where possible, you should seek out information on an offshoring company’s project success rate. This is simply the share of total projects that have been concluded successfully, with a working solution that provided the required value to the client. You’d be surprised at how many businesses overlook a provider’s success rate and then complain later when their project goes wrong.


Technical Specialties

Software consulting shops have different niche areas where they do really well. It’s the rare development company that can do all things equally well. To evaluate an offshore software development company, ask them if they know how to create software in your field, then determine if there is a match between their specialty and what you need to be done. IT staffing with a company that is not as focused on your area of need often results in longer projects and lower quality of the product.

Avoid Common Pitfalls

In many cases, once you have selected the right offshoring provider, the battle is not over but has just begun. Now you must avoid a class of workflow mistakes that often result in botched projects or poor software quality. Avoid these, and other common mistakes, over the lifetime of your project to improve software quality.

Infrequent Communication

Software development is a uniquely collaborative activity. Tools like GIT and Mercurial make it easier for distributed teams to share work without using email, but communication is still a must. Never take a hands-off approach to your offshoring projects because you could end up with a bad product that could have been avoided with better communication. Working with a complete dedicated team ensures you can manage and direct an entire team for the best possible result.

Sporadic Software Testing

You should be testing the software product that your offshoring team is working on regularly. Not only must you run all kinds of automated and isolated testing, but you must schedule live product demos. Have your own team present remotely or in person to see how well the product is working. This lets you spot defects and shortcomings of the solution months before you enter the market with a half-baked solution.

Working as a team

Tech Jobs Offshoring, Risks and Responsibilities

Sourcing solutions globally do not mean turning a blind eye to local responsibilities or international geopolitical risk.

Risks When You Hire Software Developer Offshore

The most astute organisations have operations around the globe but adjust for the added geopolitical risk. For example, they invest in the right insurance and contingency planning in case their work is disrupted by adverse external events.

Support for Displaced Software Developers

To offshore effectively, you must be aware of the impact your actions have on the local business landscape. Sadly, offshoring often results in workers getting displaced locally. This could happen, for example, if you shut down your R&D activities and outsource the work to a foreign company halfway around the world. To be a responsible business, come up with plans to mitigate the adverse effects of local job losses, such as training programs and workers’ compensation.

How to Hire a Developer and Offshore Effectively

Offshore outsourcing offers many advantages for businesses. To realise the full benefits of this opportunity, however, your business must adopt a strategy that avoids problems while unlocking all the benefits. This process begins with selecting the optimal offshoring provider, then taking a proactive process management approach. Finally, approach outsourcing holistically, so that you are mitigating any adverse effects of outsourcing.

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