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Can software outsourcing be sustainable, or is it a temporary solution?
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February 20, 2023

Can software outsourcing be sustainable, or is it a temporary solution?

In a rapidly changing post-pandemic environment, companies from around the world are looking for ways to achieve a competitive edge to effectively engage the recovering market. To meet further standards, they strive to develop and maintain savvy expertise and proficient staff within the best context. Such a condition puts outsourcing into the rank of the most addressable business strategies down the pike.

For this reason, business process outsourcing (BPO) tends to become a point-break of the resetting economies and a highly demanded service after all. As a cost-effective alternative, outsourcing provides a pile of benefits for the businesses, delivering efficient leverage tools by partnering with skilled professionals in non-core due. 

Global IT Outsourcing Concepts for Software Development Projects 

If managed properly, outsourcing dedicated teams and services turn out to be a source of outstanding value to the software development process. Therefore, the application of a successful outsourcing strategy leads to a progressive long-term partnership and win-win relationships as result. Being underestimated in most cases, outsourcing potential may become an issue later on in the contract settlement, while preparing a high-quality outsourcing plan will likely bring its fruits in the future. 

What is more, successful software project outsourcing is unreachable without establishing proper behavior between the clientele and outsourcer. Winning cooperation is only possible through applying an integrated supply chain model, where sharing a vision is key to mutual progress and desirable results. 

Why Partner With a Software Outsourcing Company

The first and foremost benefit of outsourcing projects is a significant cost reduction, thus, positive cash flow may be used to achieve more critical business goals. In some cases, outsourced assets reduce expenses even to 30-60 percent. 

The other reason why companies should rely on project management outsourcing services, in order to develop top software and meet project requirements, is the flexibility brought by the outsourcer. Hence, unit-priced scheduling turns the outsourced project into a variable subdivision with supreme operability. 

Offshore software development outsourcing is highly appreciated during seasonal, cyclical, and project works. The well-organized partnership lets the customer focus on the current strategic tasks while developing professionalism for outsourcers on the flip side. 

Advantages of Software Projects Outsourcing

In essence, dealing with a development outsourcing company is quite advantageous assuming financial, strategic, and technical business goals. Below are the most common benefits that motivate companies to employ project management and software development outsourcing services:

  • Cost reduction
  • Time-saving
  • Trained professionalism
  • Versatility and diversity
  • Increased efficiency
  • Increased revenue and ROI
  • Less workload for in-house employees
  • Multilingual and multicultural environment
  • Advanced technology
  • On-demand services
  • Flexible workload
  • Scalability and expansion opportunity

How to Improve Your Business in the Turbulent Times

The global impact of the pandemic and the following economic shakedown is unprecedented. It has affected all the businesses of all the industries. Although, many companies have survived and keep struggling with the crash. These are the adopters of the new digital age. 

The only way that made possible such a transition is the application of agile principles of doing business. Only the ability to react appropriately and respond fast to the market fluctuation distinguishes resilient companies from the regular ones. Business process outsourcing is one such move. 

Which outsourcing model to employ

To get more clear about the need of establishing an offshore partnership it is required to define what kind of outsourcing model to apply. There are four main types of outsourcing incorporation, each has its purpose as well as merits and demerits:

  • Staff augmentation 
  • Outsourcing of a dedicated team
  • Outsourcing project-based resources and/or services
  • Deployment of a complete research and development center

Staff augmentation assumes the employment of individual professionals in order to handle non-dues services as well as the support of the in-house operations. This approach doesn’t require substantial preparation and dedicated resource planning. Companies can fastly onboard and offboard a necessary contractor to fulfill the lacking skills. Staff augmentation is good for ad-hoc projects, micromanagement tasks, and service backup. 

Outsourcing of a dedicated team requires solid preparation and resource planning. Also, a remote team needs good project management and coordination. Such teams usually are composed of a team leader and the team itself. This model is a good approach to long-term projects such as mobile app development or web application development, with room for scaling and a flexible workload. 

Outsourcing project-based resources and services imply employing services from a high-level provider that obtains a certain degree of expertise, required to complete complex tasks as well as distinct projects. In major cases, project-based outsourcing is implied by the companies that know exactly what kind of product needs to be developed, i.e. mobile app, website, online marketplace, etc. 

Deployment of a complete research and development center addresses sophisticated business goals and appears to be a part of strategic expansion. Powerful R&D centers aim to hold on to a broad range of projects, often a full-cycle production. Outsourcing of the R&D center requires a set of productive tools and gainful management techniques to be put into practice. These may include a full cycle of talent acquisition management, internal communication processes, office (facility) management, finance management and compliance, as well as equipment procurement, and a comprehensive organizational dashboard.

Software projects outsourcing provider selection process

In major cases, outsourcing taps non-core business functions. The most likely candidates for outsourced positions are those with the lowest risk and greatest contribution to the company’s business goals. Developing an effective strategy through a reliable partnership requires careful consideration of the options available. 

Survival strategies for your business

Contingency and the rising global challenges, such as pandemics and the economic downturn, dragged people to redefine their nature and focus on new realms. The more organized the world becomes, the more evident threats are. In fact, there is no way around this, the only solution is a breakthrough. Meanwhile, strategy development is a crucial step in attaining a competitive advantage, but the strategy is only as successful as its implementation.  


Outsourcing makes sense in the case of a clearly established strategy. The key to a successful implementation of that strategy is based on understanding the company’s core competencies and business goals. To get an accurate forecast for your future software project outsourcing, contact our team.

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