Software Development Outsourcing: Myths vs. Reality

May 29, 2023by Mihaela Binzari

The new post-pandemic reality is witnessing a smooth migration of the sourcing ecosystem from cost reduction needs to a more holistic approach. According to the 2022 Deloitte Global Outsourcing Survey, companies are seeking to fill the gap of unavailable talents with professionals that have expertise in the emerging trends. They are also increasingly oriented towards mutual trust, values, and transparency as part of the delivery process of complex end-to-end solutions.

75% of the Deloitte surveyed business and technology leaders mentioned that they chose to outsource their IT services in 2022. At the same time, 45% stated about trusting third parties for their engineering and product development. Extensively, companies seem to explore new outsourcing destinations, Eastern Europe included, and are taking into consideration elements like time zones, cultural similarities, and nearshore access when making decisions.


Outsourcing Software Development by Area


If your organization is also looking for strategies to keep the pace with the fast-changing markets through outsourcing, but it is still hesitant about it – it is time for some myth-busting discussions. In this article, we have compiled the most common outsourcing-related myths that we have met in our 15-years practice of successfully delivering solutions to our customers.

Outsourcing Software Development Myths vs. Reality

Myth no 1: There might be leaks of intellectual property.

Worries about third parties using your inventions, trade or technology secrets, and ideas are common. We have seldom sensed them during the first discussions with our past or actual customers, and we keep doing so in our initial conversations with various potential partners.

The conventional procedures of collaboration with outsourcing companies, however, involve signing contracts where the owner of the intellectual property is clearly stipulated. ISD’s legal department is even going the extra mile. We draft contracts that are subject to the legal frameworks and jurisdiction of the countries where our customers have their headquarters or registered offices.

Myth no 2: You lose knowledge and know-how at the end of the project.

Losing valuable knowledge about the product developed by the outsourcing development company is a significant risk, that is usually approached differently by enterprises. Solutions like hiring in-house teams or considering only local providers are often seen as safer alternatives to outsourcing partnerships.

We won’t deny it. It is true that collaborating with software development companies located in different parts of the world might leave you without any of the know-how gathered in the process. But it is not the case when all the processes are documented from the very beginning of your collaboration and all along the product development cycles. Moreover, if you legally establish that documentation is part of the delivered product, you have 100% back-up.

ISD, for example, has a well-defined handover plan followed thoroughly at the end of every project. It includes the knowledge transfer process with all the documentation, tools, and resources that must be shared. Our customers are always aware of this plan before collaborations start.

Myth no 3: You get a low-quality product.

It is usual for companies to believe that only an in-house team could understand their product in-depth and could own the necessary expertise for delivering competitive digital solutions. But as the above cited Deloitte report states, more and more C-level managers see outsourcing as a strategy to find talents with expertise in the emerging trends.

Developers from outsourcing companies are usually working on a variety of projects from different industries. They have an overview on different markets and trends from various parts of the world, and the ability to learn fast about new products. If you choose a reliable software development partner focused on delivering quality, then your project is in good hands.

Additionally, if you take a look at Moldova’s market, you will notice the fervent IT community developers are part of. They are in a continuous process of learning, sharing knowledge, mentoring other members of the community and thus, keeping the pace with the latest trends in terms of technology and of the industry overall.

Myth no 4: Communication is difficult and there is no culture-fit element.

When developers live in another country, it is difficult to work with them, as there might be cultural differences and they might not speak English. If this have ever come into your mind, we are here to share the opposite with you.

In Moldova, most of the IT community members are speaking English. As developers are working with customers from all over the world, they have gained a competitive cultural awareness of both Western and Eastern cultures. We have gathered more data about the cultural proximity of Moldova with Western cultures in this article.

Myth no 5: It takes too much time to start a collaboration.

Time is money, and starting a collaboration with an outsourcing software development company is a tricky, difficult, and long business with a lengthy onboarding. Did this thought occur to you? So did to several of our clients before working with us.

The truth is that you can start small. In our practice, we have built collaborations starting with 1-2 developers for a short period, and ramping-up gradually by increasing the team and adding more features to be developed.


Are there other concerns that put a brake on starting a collaboration with an outsourcing software development company? Schedule a call with Adrian, our Business Development Manager, to address them and why not, to find a personalized solution for developing your product.

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