Software Development

An End-To-End Guide On Outsourcing Software Development Projects

An End-To-End Guide On Outsourcing Software Development Projects

Irrespective of sequential ups and downs in the global market, software project outsourcing has become the global trend and inevitable need for modern businesses. Not merely startups, but even mid-scale to large-scale organizations are leveraging its potential benefits.

For non-IT industry businesses, it becomes challenging to hire, manage, and drive an in-house software development team. Especially when their requirement is not for the long run, or it’s just to fulfill the short-term/timely requirement.

Since today’s organizations believe in focusing more on their core operations and giving the stress of managing the rest to the outsourced/third-party companies. This continuously rising approach has been impacting the rise of software development outsourcing.

If we listen to Statista, worldwide IT outsourcing revenue is anticipated to reach US$587.30bn by the year 2027 with an annual growth rate of 8.26% for CAGR 2022-2027.

What Is Software Development Outsourcing?

Software Development Outsourcing is all about hiring a development partner to get your project done. In other words, it’s a process wherein businesses hire third-party providers to design, develop, and deploy their projects rather than managing their own in-house team.

Outsourcing software development projects helps firms in many contexts such as reducing risks, preventing additional overhead costs, and enabling access to seamless talents or resources.

Remarkable Benefits Of Software Project Outsourcing

Today, businesses seem more focused on managing and driving their core business practices and leaving the rest to outsourced companies, freelancers, or remote developers. Apart from this, there is a multitude of benefits of outsourcing software development such as:

  • Software project outsourcing helps businesses to reduce business overhead, operational resources, and additional costs in various terms.
  • It opens opportunities for businesses to access the pool of software development experts.
  • Enterprises can leverage software development outsourcing to fulfill their short-term or long-term software development requirements.
  • You pay only for what you get in return. According to your changing requirement, you can scale up your team and vice versa. Hiring an offshore software development company helps businesses to maximize their return on investment.
  • Instead of hiring resources and investing in time-bound projects, software project outsourcing helps to seamlessly manage their on-demand requirements in a seamless and hassle-free manner.
  • Outsourcing helps to not let your existing projects or ongoing works be compromised at any level or cost. Businesses can instantly kick-start their project with an outsourced team and by leveraging their expertise, they can reduce time to market.
  • Outsourcing the professional and industry expert team can help you acquire improved quality solutions while reducing the risk of uncertainty. Selecting the right developer(s) or offshore development company like ScalaCode helps to deploy the quality-assured solution with simplified navigation and seamless performance.

Considerable Software Development Services For Your Outsourcing Needs

Whether your requirement goes for a chunk of hiring or for end-to-end development, you can outsource your software development needs accordingly. 

Here are considerable software development needs that you can avail of:

  • Project Consulting
  • UI/UX Design
  • Web/App Development
  • Data Migration
  • API Development/Integration
  • Software Testing/Quality Assurance
  • App/Web Promotion
  • Support & Maintenance

How To Find the Right Partner for Software Project Outsourcing?

Analyze Your Requirements

Initially, you need to drive your own analysis to come up with your project requirements from interface design to functional navigation, data/app migration, targeted marketplace, competitor overview, and support & maintenance, and more. 

Your own analysis will help your outsourcing team to gain clarity on your actual requirements. Considering your final expectations, they will be able to deliver your anticipated solution.

Decide Your Budget

Setting your budget for your software development needs ensures your project scope and level of development. Considering your project requirement and budget, you can even get ensured whether software project outsourcing is a worthwhile option for you or not.

However, outsourcing is the way to cut down your costs, overhead expenditures, and resourcing costs. Make sure that your budget involves your project costing in every context.

Shortlist Outsourcing Companies

Now, leveraging all your online, offline, or connected efforts, you need to come up with a shortlisted outsourcing companies list. It’s time to interview them by asking about their potential expertise, experience, and values, challenges they handled, domain/industry expertise, and more.

Cross Check Their Technical Capabilities

To understand their technical capabilities, you need to learn the basic technology know-how first. For instance, the tech stack used while developing your project. Make sure whether the outsourcing provider will be leveraging the latest and competent technology stack or not. Moreover, ask them whether they will deliver a scalable solution to be expanded in later stages.

Know their Software Development Process

It’s crucial to perceive whether the outsourcing partner adheres to the standard software development process or not. How they will be able to overcome challenges and unforeseen circumstances. Do they adopt an agile working methodology to ensure implementing frequent changes and seamless customization?

Ask for Client Reviews & Case Studies

Asking for client reviews, portfolios, or case studies helps to gain in-depth insights into the shortlisted providers supporting you to make a smarter decision. This can also help you to understand the level of challenge they handle, whether they have developed a similar concept earlier or not, and how flexible they will be in terms of interaction, pricing factor, and support model.

Know Their Engagement Model

Never forget asking engagement/pricing models. Since every offshore app development company offers a different set of engagement models. A usual engagement model comprises Dedicated Team, Fixed Price, and Time & Material. Out of the available engagement models, you can choose your preferred engagement model addressing your core necessities.

Check About Flexible Working

While outsourcing software development projects, make sure that the outsourcing company should be able to adopt flexible working hours. Make sure that they are ready to work as per your flexible time zone to avoid compromised interaction with the development team or provider.

Interact With The Team

Before you hire the offshore development team, interact with the development team at once to know how flexible they are while discussing the requirement. Make sure there is no language and time boundation barrier or else it will become difficult for the offshore team to understand your requirement effectively.

Outsourcing Models To Choose From

While searching for an offshore software development company, you also need to decide on the available or offered outsourcing models. However, several outsourcing models can be seen in the market but the usual ones include Onshore Outsourcing, Offshore Outsourcing, and Nearshore Outsourcing. Now, let’s understand each one by one.

Onshore Outsourcing Model

The onshore outsourcing model refers to the model wherein your outsourced provider belongs to your own country from different geolocations. In this outsourcing model, you can enjoy the flexibility of the same culture, language, and working hours.

Offshore Outsourcing Model

In this outsourcing model, your outsourced partner belongs to a different country and is facilitated to serve your best potential project development. To ensure so, they comprise people who can speak and understand at least the English language to drive effective and smoother communication throughout the development.

Nearshore Outsourcing Model

Nearshore outsourcing model is the outsourcing model when it comes to dealing with the outsourced partner situated in a neighboring country. This can help you to ensure smoother communication combined with similar time zone flexibility. While hiring software outsourcing from a nearshore provider, you both remain in a similar zone which may help you to save additional costs.

So, it’s all incumbent on your own analysis and the strategic requirement that which outsourcing model could be a proven suitable deal for your business.

How Much Does It Cost While Outsourcing Software Development Projects

Before knowing your actual project requirements, your cost estimation cannot be revealed. Depending on customized needs, desired budget, time frame, and other potential considerations, your costing may vary. However, you can always enjoy the freedom of choosing your preferred pricing model wherein you can pay as per your decided model.

Things To Consider While Outsourcing Software Development

Team Expertise

It’s essential to select the right outsourcing development partner with an industry expert team comprising the right skill set and years of proficiency. It will be better to hire an outsourcing partner who is familiar with your English language and flexible to work in your time zone.

Make sure that the development team will be able to seamlessly undertake your project, perform customized development, and ensure a seamless deployment. To ensure so, you can ask the outsourcing partner for interviewing the development team in terms of their expertise, experience, domain exposure, and interaction flexibility.

Costing Factor

Well, the outsourcing concept is considered a fruitful deal due to reduced costs and operational overhead. Another compelling reason is fulfilling the short-term and long-term project development needs. Hence, considering your specific requirement and desired budget, seek the best quotes from your shortlisted providers and be cautious of any sort of hidden costing that may lead to additional investment.

Tech Competency

Enquire your provider about their tech competency. Ask them what sort of tech stack and technology is required in your project. To ensure their reliability, you can cross-check their portfolios, case studies, and client testimonials.

Intellectual Property Sign In

Never go without adequate documentation that reserves your right in terms of data privacy, defined costing, support commitment, and more. Make sure that you are signing an agreement mutually agreed by both imbibing your project requirement, development level, pricing policy, and more.

Another essential document that you need to sign is an NDA (Non-Disclosure Agreement) that binds the provider not to reveal your project idea, credentials, or any sort of data to any third party.

Quality Assurance

To drive effectiveness, scalability, and profitability, it is essential to acquire quality-assured delivery. Hence, ask your provider whether they develop your project with futuristic or easy to reusable code. 

Make sure that you clarify all the things in an initial stage such as time-taken in final project delivery and whether they provide post-deployment support to ensure reliability and profitability at scale.

How Outsourcing Software Development To ScalaCode Could Be A Trustworthy Deal?

So, after reading the entire know-how, you are better aware of how selecting the right partner for your software development projects outsourcing can ensure the success of your projects whereas going with the wrong one can lead to the failure of your entire efforts, time, and investment.

At ScalaCode, we have a team of experts from project managers to developers, UI/UX designers, QA analysts, and more to confidently undertake your project while adhering to a timely delivery and seamless support model. If you have a project to share and outsource, connect with us, we will reveal the best quote and help you save upto 60% of your overall investment while outsourcing our software development.

Final Words

Hope this end-to-end guide will help you to make smarter and more strategic decisions while finalizing software project outsourcing. We tried to uncover all the potential factors to support your crucial decision. Further, if you have a project to discuss, connect with us, and we can serve the best quote suited to your specific requirement, budget, and flexibility.


Mahabir is a founder and CEO at ScalaCode who is good at guiding startups, enterprises, and Fortune 500 companies through digital transformation. His leadership has resulted in the development of more than 1300 effective digital products including mobile apps, SaaS products, AI and blockchain solutions. Mahabir's passion for technology, adaptability to emerging tech trends, and visionary leadership qualities have positioned him as an influential figure in the pursuit of digital product investment.