Benefits of Outsourcing Software Development

Benefits of Outsourcing Software Development

Outsourcing in the 21st century is being used as a strategic measure to cut costs and drastically scale resources on demand depending on the needs of businesses and enterprises with a moment's notice. Many small businesses and corporates outsource their product development completely or augment their onshore teams with offshore resources to increase the speed of development and to decrease the time to market considerably. We are going to take a deep dive into some of the obvious benefits that a business can avail using outsourcing.

Concentrate on your core business:

Outsourcing your non-core processes to a qualified vendor helps you to focus on your core competence and reduce your workload and time considerably, which you could use to device strategies to acquire new clients, retain major accounts who need your constant attention and improve your core business processes, which could considerably improve your productivity and long-term revenue.

Cost at its best:

Outsourcing your work might reduce your software development costs up to 80%. Outsourcing allows you to maintain financial flexibility where you can shrink and magnify your outsourced workforce based on your project's needs at any given time. Hiring an IT staff is a tedious and an expensive process. When you opt to outsource, it not only reduces labour cost but it gets rid of a host of other expenses such as insurance costs, administrative costs and other benefits that a full time onshore employee might need.


Number of Projects successfully executed by them.

Types of Clients they have worked for.

Different Fields they have worked in.

Outcome of the projects.

Testimonials from their current and old clients.

Qualification and Experience of the Project Managers and their Team Members.

When you don't have the right resources, the outcome of your project maybe affected and it produces an impending danger to the quality of your project. You may not meet your client’s needs and in the process, you might even lose your client. So, its best that you partner with the right vendor who has the right resources and know-how for your project. Hiring the right resources for your project in-house might get difficult and it takes time, while a highly qualified outsourcing company has the essential resources in store already.

24 *7 Operations:

One phone call away!

Statistics have reported that 80% of US and European outsourcing firms have chosen India to be their go to place for outsourcing. Guess Why?

As many outsourcing companies are offshore, they have a different time zone and it gives you the added measure of using your 24hrs wisely. You are provided with the advantage where you can sleep peacefully by knowing that your vendor on the other end is trying to come up with a solution to your project's needs. You don’t need to put off your mission critical tasks till the next day, instead you can share it with your outsourcing partner and review it later. When you outsource your work to a vendor with a different time zone, it helps in gaining that much time that you might lose while you sleep.

You are not alone!

Outsourcing helps you in sharing any potential risks to your project along-side your outsourcing partner. You don't need to be burdened by any possible threats to your project, instead you can share it with your outsourcing partner who could help you in deriving a solution to your problem, however complex or challenging it might be. Outsourcing your work helps you to avoid and manage risks as your outsourcing vendor might have certain insights on how to handle and overcome those risks, based on their previous experience for that exact situation. One of the huge risks that you avoid is the long-term commitments that you might potentially make in terms of the infrastructure and human resources internally, as you can scale the team size up and down based on your requirements, when taking the outsourcing route.

Being Edgy is the new black!

Many small companies cannot match the in-house support services that of their larger counterparts. Outsourcing paves the way for these small companies to match the might of enterprises, by providing the necessary infrastructure and resources at their time of need at a very nominal price. Outsourcing allows you to stay one step ahead of your competitors who have not yet realized the benefits of outsourcing.

Outsourcing Statistics:

Deloitte (one of the leading consulting giant) conducted a global survey on outsourcing and found out that 78% of companies feel positive about outsourcing.This report is from 2016,

59 % of organizations felt outsourcing as a cost cutting tool.

57% of organizations felt outsourcing made them to concentrate on their core businesses.

47% of organizations felt outsourcing solved capacity issues.

31% of organizations felt outsourcing enhanced their quality.

More than 35% of organizations felt outsourcing as a means of innovation.

31% of IT services have been outsourced, and organizations will continue to do so for the years to come.

A recent survey has foreseen that IT healthcare outsourcing, for example, is expected to increase from around 35 billion U.S. dollars in 2013 to around 50 billion U.S. dollars by 2018, at a CAGR of 7.6 percent.


Businesses, small and large are always trying to find ways to optimize their operations. Outsourcing provides you the opportunity to exploit a combination of benefits such as: Quality resources, Extremely low costs and Quick turnaround times. It also helps you in boosting your productivity, in improving your product quality thereby amplifying your customer loyalty.

Before you decide to outsource, make sure that you have your facts straight. Deciding to go with outsourcing and choosing the right vendor Equator lets you maintain a distinctive competitive edge in the market over your rivals.

Hope you gained some useful insights about outsourcing. Please do leave your comments. Thanks for reading.

Posted by admin  Posted on 2017-08-08 

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