What is Software Outsourcing?

October 21, 2022by Mihaela Bînzari

Software Outsourcing, or Software Development Outsourcing is a practice implemented by companies where an external software development partner is hired to fully develop a project or to extend an in-house team. The decision of going for a third-party is usually based on the necessity to reduce costs, the lack of in-house available talent and expertise and/or tight deadlines to custom software develop a product.

What are the benefits of software outsourcing?
Software outsourcing could bring in several benefits for your business that on the long-term, are going to help you upscale.

  1. Availability of skills
    Contracting outsourcing services reduces the risks for a project to be postponed or canceled. The lack of available skills on the market or employee turnover can be a real issue for companies to struggle with. Therefore, outsourcing comes as a great solution for finding asap the necessary skills.
  2. Cost & time efficiency
    Outsourcing services considerably reduce the cost software development projects involve, as companies avoid expenses related to hiring and payroll processes, as recruitment, onboarding, insurance, taxes etc. It allows to save time and resources and to start the projects in time.
  3. Increase competitive capacity
    When companies outsource, their capacity in terms of skills and technologies is growing faster, directly accelerating the time-to-market. Outsourcing represents a great solution when businesses aim to get competitive advantages on the market through innovative development projects.

Moreover, software outsourcing companies usually collaborate with businesses from all around the world and have a great understanding of the global audiences. When you rely on the right factors to choose a partner you are also more than likely to get professional insights and perspectives that will ultimately lead to the growth of your business. Exploring software outsourcing markets and digital hubs like Moldova, could give you access to university educated talents with top-notch skills with a great understanding of the Western and Eastern cultures, a dynamic IT community, and a convenient time zone that will facilitate your collaboration.

What services includes software outsourcing?
Software outsourcing includes several types of services. Choosing the one appropriate for your project depends on your business goals and necessities:

  • Extended team services will help you augment your in-house team with external experts.
  • Dedicated teams are going to help your business to fully handle the development of a project to the outsourcing company.
  • Fixed price services are the best option when you have a fixed budget and requirements.

If you still have doubts about the service that is going to boost your business, contact us to get our expertise and make the best decision for the development of your product.

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