April 9, 2020 Last updated April 9th, 2020 2,072 Reads share

Why Do Companies Choose to Outsource Software Development?

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When a company needs a new website, needs help to develop one for a client, or needs to keep on top of general website maintenance, it can be a bit challenging to decide how to manage these projects. Is it best to hire an in-house development team or go with software development outsourcing?

The Benefits of Outsourcing Software Development

Outsourcing to software development companies, such as BairesDev, is the practice of hiring an external business as a focused partner to perform and manage software development work. While some people may think that building an in-house software team would be a better choice, outsourcing can be incredibly beneficial for a number of reasons, including lower costs, flexibility, risk mitigation, and updated skills and talent.


Cost is typically the number one reason why businesses consider outsourcing their projects. There are a few major ways that it can save money for a company versus hiring an in-house team. For small and medium-sized businesses, finding the money to hiring the technical skills required for an in-house team can be very difficult. Initial infrastructure investments needed to begin building these kinds of teams can be significant, including recruitment expenses, cost of retainment, health insurance, payroll taxes, benefits, and all necessary hardware and software programs.

Hiring an experienced professional for in-house software development is also rather expensive in terms of salary. Choosing to hire a third-party team can help a company pay only a fraction of the cost otherwise, allowing a business to get the same amount of work done for much less.


Software development companies typically hire employees with a wide variety of skillsets and from many different niches within the tech world. Between user experience experts, testing professionals, back-end developers, front-end developers, and all professionals in between, software development outsourcing companies offer businesses access to a range of experienced professionals to get their projects done with vetted work.

When unique project requirements arise, chances are that a professional third-party company is going to already have someone on payroll with the skills and experience necessary to complete the task or find a solution.

Flexibility and Scalability

For a company that isn’t necessarily working in the realm of software, website, or application development, hiring a full-time developer can be a bit of overkill and simply is not practical for many businesses. This can be especially true when the project is a one-time thing, such as building a company application or redesigning and developing a website.

On the opposite end of the spectrum, when a company needs more skilled people to take care of tasks, move at an overall faster pace, and accomplish more goals at an expedited rate, an outsourcing company also allows for scalability on demand. This means companies save additional time as well as costs as there is no need for a hiring process. Instead, the third-party company merely pulls another team member into the project to take care of things.


Today’s demanding and expedited timelines means that there is not a minute available for a business to waste. An outsourcing company can help businesses save time by not only minimizing the workload for internal developers (if applicable) but also ensuring the on-time delivery of a product by the promised deadline.


High employee turnover can add a level of uncertainty and inconsistency to a company while preventing work from getting done and stalling projects. Outsourcing can help maintain a level of continuity while mitigating risks that sometimes associated with an in-house development team.

Outsourcing companies also face much higher liability than in-house employees. This means that the business hiring one faces much less of overall risk. If a third-party company does not meet the project requirements, due dates, or goals, they are responsible instead of a business’s own team members.


After the launch of a software product, the job still is not done. Continuous support and maintenance are required into perpetuity for the lifespan of the product to ensure that it remains free of bugs, performing as expected, and always updated with the latest security patches. Outsourcing companies typically offer quality support and software maintenance services to help keep products in top working order. Some even offer emergency services to assist should any problems arise.

Getting the Most From Outsourcing Development

Outsourcing offers many other benefits besides just cost savings. When a project is outside of a business’s core elements, it is incredibly beneficial to hire an outsourcing company to help strategically streamline overall company operations while gaining a competitive advantage.

It can help mitigate risks, maximize company time, allows for flexibility and scalability when needed, and opens up projects to a plethora of technical expertise that may not have been previously available. By choosing the right technology partner, companies can focus on their core services while still accomplishing all necessary development goals.

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Santiago Alonso

Santiago Alonso

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