Nearshoring | November 7, 2019

The Charm of Software Development Outsourcing

Software development outsourcing is now a best practice in the technology industry. If the growth of your organization relies on software, and your office’s IT department is quite occupied, then you should definitely consider outsourcing the development of your software.

The Charm of Software Development Outsourcing

The Global IT markets, including software development outsourcing services, is expected to grow at a rate of 4% and reach $5 trillion come 2019. The reason for this astounding growth is that more and more companies across the planet are embracing software outsourcing due to the many benefits they get in return.

In this article, we will provide an in-depth examination of these benefits to help CEOs, CTOs, Project Managers, Delivery Managers, IT Managers, Technical Leaders, and other professionals understand why software outsourcing works well:

Improved Company Focus

By outsourcing software development, companies boost concentration on essential processes. This result is achieved easily given the fact that organization leaders will not have to overwhelm their in-house employees with tasks that do not match their skill level. As a result, it enables them to instead, focus their energy on more strategic objectives in alignment to the company’s goals. In turn, this streamlines all organizational processes and assists in the freeing up and allocation of relevant resources to functions that make the company run effectively.

Access to World-Class Capabilities

Access to global talent is yet another reason that businesses all over the world continue to embrace outsourcing IT. Given that companies get exposed to skilled labor from various parts of the planet, outsourcing helps organizations to expand their technical horizon and capability quickly. In turn, this results in improved competitiveness for the company.

Frees Internal Resources for Other Purposes

When a company outsources the development of software, it eases the pressure on in-house resources. In turn, this enables CEOs, or any other professional for that matter, to delegate the resources of their company to other essential tasks.

Streamlined and Increased Efficiency for Time-Consuming Functions

Each company has its fair share of time-consuming activities. So, to cope effectively, businesses are forced to match processes and operations that are not suited to each other, or worse still, find new workers.

By outsourcing IT development, companies can simply hire scalable teams for time-consuming tasks, especially during their peak period, to balance their workload and improve overall efficiency.

Maximized Use of External Resources

By outsourcing the development of software, businesses take full advantage of the resources available to outsourcing providers. This way, companies can leverage the power of relevant resources even if they do not have access to the same on their own.

Shared Risks with a Partner Company

Outsourcing software enables companies to share operations and components, thus helping in the mitigation of risk. In turn, this ensures that a business reaps maxim benefits, which helps it to attain long-term viability. 

Reducing and Controlling Operating Costs

According to a recent Deloitte report, 59% of companies use outsourcing to cut costs. Understandably, when a company outsources, it will take advantage of the difference in wages between developing and developed countries. Apart from that, outsourcing enables firms to save on worker salary and benefits. But even with that said, the use of outsourcing to save costs is losing importance yearly in favor of the other many advantages of the same.


You are now aware of the benefits your company stands to reap with software outsourcing. No matter what, it remains an excellent option for achieving digital growth through innovation while maximizing profit and reducing risk at the same time.

Read also: How Disruptive Technologies Impact on Nearshore Software Development Services

Read more7 phases of the IT outsourcing process

Senior International Business Development Manager

Business Development Manager with ten years of sales experience on international markets. At JCommerce, she is responsible for the development of the company's services in the Benelux countries and in France. In her private life, she loves reading (Scandinavian crime novels and professional literature about sales and negotiations), travelling and cooking.