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Software development outsourcing can be described as the action of hiring an external company or agency, so they can help or work together with you and your co-workers, to develop some software project. It’s a popular way of using someone’s services, and many businesses are embracing this way of working. Outsourcing is also a practical action because the company owner doesn’t need to hire a team of specialists to work on some one-time project, or resolving a specific problem. Both sides can benefit from that – the company is saving money on human resources, and the outsource team is building up their portfolio, so they can have a relevant work experience behind them.

According to, every business at some point will need to improve their current software solutions or look forward to new ones, so they can achieve their goals, or increase the volume of work, and be relevant on the market. Nowadays, many companies are choosing this way of working, because it’s very practical and inexpensive for their budget.

Here in this article, we will list some of the advantages and disadvantages of this action.


1. They get more for their money


According to hiring a software development expert or team is a fixed cost because you can’t hire and then fire them after they complete the task. That’s why most of the companies are embracing outsourcing as a way of working together with the experts, and pay them for the completed project and hire them again in the future if there is a need for that. Many CEOs and HR specialists recognized the potential in this action, and it’s pretty popular in almost every business department. Even the smallest store needs some basic software so they can work, and they don’t really need to hire an IT expert to develop and maintain it for them.

2. You are choosing the skills you need


Hiring a company or a freelancer team who will work for you, allows you to choose the set of skills that works the best for you and your company. You are able to read their portfolio and see how they worked previously, and you can always merge them with other team or freelancer, so they can work together and answer to your demands. As long as they are hired, they will be paid for their work, and for the completed job, and after that, you can see what do you need next, and proceed with the work, without having to worry that you will have to fire someone or explain to them they and their skills are no longer needed.

3. You will save a lot of time


Most of these companies will complete the job even before the deadline you are giving to them. You will probably have a meeting or two until you explain what do you exactly need, and ask them if they can do that. After you choose the best offer, you can be calm and relaxed, knowing that you don’t need to check every step they take and that in the end, the work will be done without any mistake. Visit for more information.

4. It’s challenging and motivating


These companies will always have work to do. They will always be hired by some clients who don’t have an IT department in their company, or who need some software for their work. Their existence is good for the competition, and they are always trying to get better, so they can stay competitive in the IT market, which is huge.


1. Problems with communication


Since they don’t work in your office, you may have a miscommunication problem, because it’s not always possible to explain the challenges through a phone call or email. Also, if you hire a foreign team, be sure that their language skills are intermediate or upper-intermediate, so you can be sure they got what you were saying at the meeting. One of the possible solutions is hiring an outsource team from your country, or even the same city, so you can be close enough if you need to meet in person at some point, to resolve the communication barrier.

2. It may lead to recruitment challenges


If people hear that your company is practicing outsourcing most of the time, they will avoid applying for your vacancies, because they may consider it’s short-term, and they really need a real job. Also, you must be careful who are you hiring, check their background, and ask for a portfolio and proof of work. This information will show you are they worth hiring or not. Sometimes, when you don’t have enough employees for some tasks in your company, and you hire assistants from another company, it may decrease your morale, and the employees will never be sure when they will be replaced. So, you need to clearly detect and explain all of these challenges, so you won’t have problems you don’t really need.

3. Will you get the required quality?


There are thousands of examples when the completed job was poor, and the client never got the product or service they asked for. On the other hand, you need to be sure you exactly explained what do you need. As a person who pays, you and your team have a full right to monitor the process and ask for some explanations when something doesn’t look good as planned. We recommend you not to hire cheap and unknown companies to save money, because it may cost you a lot to fix everything they did wrong. That’s why you should always look forward to great software development companies, and be relaxed while they work on the tasks you gave to them.

4. Hidden costs may occur


Since you can’t predict some things, the company may charge you for an additional member of the team, or physical materials they needed to use so they can complete the job. This is just the opposite of your intention to save money on the project, and you should be aware that it may happen at every point in the working process.

In some countries, outsourcing is considered as a bad action, and they recognize it as a disrespectful behavior to the company’s employees. But, on the other hand, it’s a practical solution for those who have budget cuts, or work with a pre-determined amount of money, and need to plan carefully every cent.