In this technology-driven world, it’s hard to believe that a business doesn’t need software development services, be it a small grocery shop or a multi-billion dollar financial firm. But as we know, not every business is capable of developing their own software. Therefore, many choose to outsource their requirements to a specialized software development company. Since the company is versatile and possesses some years of experience, they can create amazing software out of your idea.

In short, this is what software development outsourcing is.

Let us assume that you want to develop a software application for your business. For that, you will need a team of professional app developers, but that would cost you an arm and a leg. The venting, hiring, training, and management of specialized programmers not only requires financial investments but also consumes a lot of precious time.

Well, would this be a good idea?

Hmm!! I guess no.

Instead of putting ground efforts, you can simply choose a reliable and experienced software outsourcing company. This company will be your third party who will be responsible to reduce your stress and create an app for your business. They will already have the required professional skills on board. For a much smaller investment, you could easily obtain their services for your software project.

As per the report by Statista, In 2019, the market size of information technology outsourcing amounted to 66.52 billion U.S. dollars. Another report from the market insight leader suggests that software development services, with a share of about 64%, were at the top of the outsourced IT services.

So, if you have understood the importance of software and you plan to outsource your requirements to the software development company, you qualify to read this comprehensive software development outsourcing guide. This article highlights the aspects of trends and reasons for outsourcing.

Let’s read it.

Table of Contents:

What is Software Development Outsourcing?

Software development outsourcing is one type of process to hire a software development services company that would take care of developing the required software using the resources that your enterprise lacks from its own location that might be far away from you.

Outsourcing has become a common practice in every industry. When it comes to the tech field, as per Statista, software application development is the most commonly outsourced IT function.


To understand it better, there are some resources you need to know why outsourcing is necessary.

1. Expertise

Since a software development outsourcing company is in the IT industry for a long period of time, they will have good expertise over various technologies and must be aware of the current trends as well.

2. Infrastructure

You might have adequate IT infrastructure to support your enterprise’s operations but not the relevant infrastructure like hardware, network, bandwidth, software development kits and technology to develop a software solution.


3. Talent

You might be the king of your own industry, but you will not have a team of experts and talented software developers.

So, if you are lacking in the above three resources, you should understand that you will have to outsource your requirements to an offshore software development company.

With software outsourcing, you get services under the remote operating models, which enable customer companies to work with the top IT talents all over the world who are dedicated to working on their projects.

What Are The Models For Software Outsourcing?

Well, there are three different types of models through which you can outsource your software projects to vendors across the globe. In this, the development centers can reside on-shore, offshore, and near-shore.

Let’s explain in more detail.

Onshore Software Outsourcing

Onshore software outsourcing refers to the act of customer companies working with the vendor (software development company) on the same premises. The primary advantage of onshore outsourcing is that you will find no virtual language barrier. So that would be much easier to communicate.

However, in return, it would cost customers a bit higher for development.

Offshore Software Outsourcing

Offshore software outsourcing means working with development teams in other countries. Well, this could be a cost-effective option due to low labor costs, and also online communication channels. An offshore software development company will manage software projects remotely.

Nearshore Software Outsourcing

Nearshore outsourcing companies work with customers in neighboring countries.

Why You Should Consider Software Development Outsourcing


Let us go through some points on how software outsourcing companies can be the best way to your success. We will also discuss why outsourcing software projects is a better option than hiring an in-house software development team.

Lower Development Cost

If you outsource your software development requirements to the top offshore software development company India, it boasts lower costs of living as compared to western countries like the USA. However, it also lets you save plenty of money if you own a startup or a small business. It also influences the overall costs of software development if you plan to hire a software development company in India.


The cost of the in-house software development can affect the company’s financial structure and its overall starting position. Therefore, outsourcing software development can be a cost-effective solution by saving you enormous upfront costs.

Organizations can hire software development outsourcing companies to overcome the costs of operations, training, hiring, and management. Moreover, they can also choose different types of engagement and pricing models as per their requirements. This means organizations only pay for the development of their software without any additional costs.

Global Talent

Finding an experienced offshore software development company is like online shopping. Ready with your requirements, pick up a category and hunt for it as long as you don’t find the experience as per your choice.

A software development company has a talented team of developers who are not only well-versed in writing code, but also make your software more user-friendly and interactive. In addition, they also have a team of designers and QA engineers who test your software at every stage of the development cycle and ensure quality. Outsourcing means having a global talent pool. They are well-versed in any technology, framework, and plethora of experience.

On the other hand, to hire in-house talent, you have to recruit all these skills for your development team, which will not just cost you higher but will also be a time-consuming process. So, when you outsource your project to the software development company, everything from project management, UI/UX design, software testing to deployment would be their responsibility to manage. So, you have nothing to worry about it.



The main thing about choosing an outsourcing software development company is that you can leverage flexibility in every manner. You can connect with your software outsourcing company only when and if needed. Moreover, by choosing this option, you are not geographically limited. Therefore, with an offshore option, you can choose any offshore software development outsourcing company located anywhere in the world.

Since you get the flexibility to hire a team from the world, you can select an outsourcing team in your budget and cooperation models which will fit your requirements. Irrespective of the location of your team, you can easily keep in touch with them using Skype, Trello, Zoom, Slack, and JIRA.

Stay Focused on Your Core Business

If you have an in-house team of developers on the same premises, you may divert your attention from the core activities of your actual business. But in software development outsourcing, you have to leave everything to the experts - development, coding, testing and deployment. This way, you can stay focused on your core business such as large sales, growth, expansion, operations, and goals.

Software outsourcing company helps reduce the workload of your employees and let them focus on the important tasks which are required to function in your business. This is a great benefit that is imperative for every business’s growth. Therefore, outsource your requirements and you can focus solely on enhancing your business and marketing your products.

Faster Development Time

Since you are approaching an outsourcing company, they are already well-versed in the various technologies and tools. Therefore, they don’t have to spend extra hours on training and hiring. Thus, it will save significant time to speed up the development process.

So, if you want your project to be developed in a given time frame, then software development outsourcing is the right choice for you. Specifically, this is highly beneficial for large international corporations, where the decision-making and approval process might take longer than usual.

Furthermore, you don’t have to spend your precious time on micromanagement. When you choose the outsourcing company, it becomes their responsibility to keep the agreed time schedule and deliver the final product in a timely manner. Therefore, it’s guaranteed that you will get your software in a shorter period of time than in-house development.


If you are choosing software development outsourcing, you don’t need to worry about any changes in the requirements from project to project. Whether your project needs a small team of developers or a full-scale team, you can negotiate this with the software outsourcing company. You can get the right and efficient team without having to worry about hiring or firing employees. Hence, you can have the flexibility to work on different sizes of projects.


Who Should Outsource and When?

Software development outsourcing not limited to the IT industry. However, any industry can leverage this model. Whether you own a small or medium-sized business and need a good software solution on a budget, then you can rely on the software outsourcing company.

As per the report, many enterprises are approaching outsourcing companies in India to develop their desired software in a given time frame.

You can choose the outsourcing company when you face two different scenarios as below:

1. Software Development

You can hire a web development company for developing desktop applications, enterprise software solutions, web and mobile applications, custom software development, and many more.

2. Software Maintenance

You can hire an outsourcing company to maintain, modify, and upgrade your software application. The main purpose is to improve the performance of the product and keep it up to date with the latest technologies.

What Challenges You Could Face?

When you outsource your project, it doesn’t end without facing some challenges that might seem like nothing to some but be super daunting to others. While as an offshore software development company, we work with startups, enterprises, CTOs, and different industries, we face some of the biggest challenges that are commonly encountered during software development outsourcing.

1. Poor Communication

Miscommunication is one of the critical issues companies face while outsourcing. Having assumptions is also a big setback in outsourcing software development. Here, communication plays a vital key when you know that your development team would be sitting across oceans.

So, while communicating with the development team, you must set clear guidelines and list everything down in the contract. You have to ensure to keep clear communication through some communication channels or tools.

2. Inadequate Planning

Another challenge you may face when outsourcing software development is inadequate planning. Here, you have to plan for everything from beginning to end. You simply can’t start with whatever comes to your mind or feel right. From choosing the right technology or framework to team members, have everything planned beforehand to avoid confusion.

3. Security and Performance Risks

As we know many companies become victims of data theft and security breaches. Therefore, they are in fear that hiring a software development company might lead to a security compromise. You may feel that the company might not come out with expected performance.

Well, to clarify your thought, we must tell you that such incidents don’t happen if you had conducted a background check of the outsourcing company. Reviews, feedbacks, and portfolios, all these matters when you choose a software development services company.

4. Improper Project Management

Another challenger a company may face while outsourcing their project is project management. In many cases, you are supposed to manage the entire team while in others you can get managed teams. It’s important that you give special regard to project management.

5. Control and Ownership

Well, we can say that it’s not a challenge, but it’s a popular misconception that an organization would lose or control the software development ownership of the finished product.

But let us clear the fog. If you are working with a professional and reliable web development company like Estatic Infotech, there are not any chances of getting ditched. We offer complete transparency and full engagement throughout the development process.


Why Choose Estatic Infotech As Your Software Outsourcing Partner?

Estatic Infotech is a renowned and versatile offshore software development company in India. As a matter of fact, India tops the list of outsourcing destinations. There are many companies across the world that have joined hands with Estatic Infotech and made their outsourcing partner. In fact, around 85% of the companies based in the US prefer Indian companies to outsource their projects. Whether it’s data processing, eCommerce management, digital marketing, software development, or any other IT software outsourcing services, India, precisely Estatic Infotech is the fit choice.

Here are some reasons why you should consider Estatic Infotech.

1. Large IT Talent Pool

The company consists of a plethora of talented developers who have great experience in different technologies and tools. We have a team of 150+ software engineers who offer you a robust and reliable solution. Therefore, you can easily find your suitable team of developers here.

2. Friendly Government Policies

The Indian government has come up with several policies to boost the IT sector and take it to the global level. As an IT software development company, we adhere to Indian government policies, it gets easier to satisfy the thirst of customers who are partnering with us from other places.

Precisely, the government has taken the “National IT Task Force” 108 point Action Plan to boost this sector.

3. Time Zone Flexibility

India is around 9.5 hours ahead of the USA, 4.5 hours ahead of the UK, 3.5 hours ahead of Europe, and 4.5 hours behind Australia. However, irrespective of time or zone, we offer you round-the-clock support and work at your call without letting you face any issues.

The overlap period allows for easy syncing for meetings with clients.

4. Cost-Effective Development

When you outsource software development to us, we will help you save a bunch of development costs. Outsourcing projects to India is far less than getting the same done by an in-house team. You can hire web developers from us at a lower cost. However, the price might go up based on the features, requirements, expertise, and technology. Yet, it will still come under your regular in-house development.

5. High Quality

People have a mentality that if the development cost is lower that means a company would offer you low-quality codes. However, Estatic Infotech offers you high-quality software development services. Our versatile team will give you a quality of code.

Final Take Away

We hope that you have got a clear idea of what, when, and how software development outsourcing can help you with your business. However, there are other questions that might arise in your mind like - whether to outsource or not, whom to choose, what’ll be the process, how to select the right software development company, how it will help you enhance your sales, and more.

To be successful, you need to choose the right software development company in India to make your business goals reachable. As a reliable and experienced software outsourcing company, Estatic Infotech has assisted many startups, large enterprises, CTOs, and organizations to build their software. Whether their objectives were to save the development cost or speed up the development, we have proven our expertise.

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