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When you consider that some of the world’s most successful software development companies – we’re talking Microsoft, Apple, IBM – outsource their custom software development, it becomes quite apparent that there are some substantial advantages in doing so.

Today’s tough times have inspired rapid innovation and if you want to adapt to, and capitalize on, rapidly evolving markets, custom software development has undoubtedly been on your radar. With 66% of technology projects ending in partial or total failure, outsourcing your software development projects seems like an obvious choice to stay competitive. 

5 Benefits of Outsourcing Your Custom Software Development

Outsourcing is a great option for businesses looking to achieve their digital transformation goals while reducing risks and maintaining a cost-savings approach, and more and more U.S. companies are beginning to look into these advantages.

We’ve outlined 5 additional benefits of outsourcing your custom software development below.


1. Staffing & Development Cost Reduction

A recent survey conducted by Deloitte in 2020 revealed that 70% of companies are motivated by cost reduction when outsourcing their software development projects. The time and high HR expenses associated with recruiting, hiring, training, and managing technology teams is huge factor in these cost reductions.

When you consider that these HR costs include things like benefits, paid time off, incentives and infrastructure needed for full-time company hires, along with the commitment of time and money needed to find and onboard a new employee, you realize the savings can be substantial. 

Utilizing IT talent from a software development partner keeps capacity levels in line with budget and staffing needs until the company is ready to take on the expense of new full-time hires. The flexibility to scale your outsourced software development team size from a quarter to a quarter or project to project is also a significant benefit. 

2. Faster Time-to-Market

With a business climate as competitive as today’s is, innovating quickly and wisely is essential. Being first to market can make an enormous difference in project success or failure. Even the best in-house teams can face project overload leading to capacity and priority challenges. This often results in late product releases. 

The ideal scenario when including an outsourced software development staff is an in-house team that retains the responsibilities of your core software products and your current customers, while the outsource team focuses on the management and performance of your new technology product timeline.

The real competitive advantage that lies behind the faster time to market is the skill level of the team that makes that happen. t is nearly impossible for companies to expect their in-house team to have a high level of expertise in every imaginable skill, language, and technology. However, software development companies are spending considerable time and money to keep their consultants current in the latest software innovations and technologies. This gives you endless possibilities for software being developed for your company.  

3. Flexible Capacity & Scalability

When a given project is going well and you want to accelerate its development, or you want to add additional features that weren’t in the original plans, outsourcing allows you the freedom to pivot quickly and efficiently. 

An increased workload or sudden project changes might require time-consuming and costly hiring and training exercises when using an internal team. This is not the case when working with an outsourced team as those decisions are handled on-the-fly by your software development partner, as their teams are built to be flexible and are ready to grow or shrink at any time. 

Even when projects that are being handled in-house require a little extra expertise or more resources, additional work can be outsourced to one or more vendors. Outsourcing gives companies the flexibility to respond to changes as they occur and take action to address them with a fast turnaround. 

4. Continued Maintenance & Support 

When it comes to software development, ongoing support and maintenance are a huge part of the mix. An outsourced software development provider is not only vested with the responsibility to create the custom software. Continuing support and maintenance are built into the deal, implying that the company is liable to provide ongoing support even after its implementation. 

As your business experiences are constantly changing, the support has to evolve as well. This will help the company modify and update to accommodate those changes. As is the case with most software development projects, there are bugs/glitches to deal with and updates to perform. Your in-house team may not always be qualified to handle many of these issues, but this continuous and consistent support from your outsourcing partner becomes an invaluable resource.

5. Mitigating Project Risks

Developing and releasing new software carries inherent risks such as code issues, very tight deadlines, inaccurate estimations, and unrealistic goals, to name but a few. 

When you outsource software development you mitigate the risks associated with developing software products by working with a team that utilizes a high-quality project management system, has a well-established and effective workflow, and has proven success in creating applications that generate consistent ROI. 

Make Custom Software Development A Sure Thing for Your Company

Collaborating with a software development partner that has years of experience and a proven set of skills, helps you reduce the common risks associated with building and implementing new technology. 

Finding the right software development partner can help your company obtain a competitive advantage through digital transformation and innovation. As you just read, you can increase efficiency, reduce costs and maximize speed to market.

From startups seeking end-to-end technology enablement to established mid-size and enterprise companies looking to bridge mission-critical skill gaps, we develop custom software and staffing solutions that are every bit as unique as the businesses they serve.

Bharat Sharma
Bharat Sharma