Why is Outsourcing Software development a common practice?

Over the years, the internet has become the base of all things Business. With that, there have been several technological developments; one of which is Artificial Intelligence that plays a major role in business development.


Over the years, the internet has become the base of all things Business. With that, there have been several technological developments; one of which is Artificial Intelligence that plays a major role in business development in today’s day, because everything and every business now have an online presence. In order to develop Artificial Intelligence, it requires developing software.

Outsourcing Software Development

Did you ever think you’ll be able to download a movie on the internet that you could watch on the metro going to work? Or that you’d simply have to buy TV box packages for the rest of your life? It’s crazy how advanced technology has gotten over the last decade, so much so that every sector now needs the internet to conduct business because that’s where it’s at. Communication, Marketing, Software development, you name it.Why is Outsourcing Software development a common practice?

But here’s the thing, you may think that with the help of digitalization a business can do pretty much everything. That’s not true, however. Granted that companies have several departments to handle different aspects of the business, but it has become a trend over the past few years where companies outsource certain processes or departments to third party companies. And this has become an increasingly common practice in businesses of all sizes. You could run a multimillion-dollar company and outsource your IT department, or you can be a growing business. There are particular reasons for which Outsourcing is becoming common practice amongst the business community, and here’s why.

Why do companies resort to outsourcing their software development?

Speaking in particular about software development, that is one of the most commonly outsourced departments across the United States. It is all due to the era of digitalization, and software’s are the crux of it all.

Software development is a crucial aspect for businesses today because everything is digital, thus it requires the right skillset and testing to achieve maximum accuracy. Some companies usually don’t have employees with the exact knowledge and skill required, so in a case where a company is not equipped to develop or test the software themselves, they resort to outsourcing. This opens up a plethora of third-party options to choose from, who they think would be able to do a better job in developing and/or testing their software.

It is a more efficient option, in terms of time as well. Instead of going through an entire recruitment process to find the right candidates for the job, companies can simply hire a team on the outside who will handle the task. This saves money and time, two of the biggest advantages for any company; because it is better to take an option that allows you to reduce costs and save your time simultaneously, so that it may be allocated to focusing on other tedious tasks the company may have.

This ensures that not only will the company’s software be developed and tested, but all the requirements and deadlines will be met timely. It is looked at as one of the ways for expanding the company team without any additional costs coming onboard.

Most of the time when outsourcing, third-party companies are usually based in Asian countries, because that region is becoming a growing hub for IT. It is also cheaper to outsource work to a team there rather than in the US because of income disparities in the countries. Which means, once again, you get your software tested by highly skilled individuals, at a lower cost. This would, of course, be best suited to smaller businesses, but in fact, it is a very common practice among some of the biggest global companies. The feasibility is what makes Outsourcing a very viable option for all.

But Like All Things, This Practice Also Has Its Downside But like all things, this practice also has its downside.

Outsourcing any sort of work means that the company’s confidential information and details are to be shared with the third-party in order to get the job done, and that is one major cause of concern. This is where the issue of security arises. Sure, there are numerous options for companies to choose from, but it is crucial to make sure that the third-party which is selected is reputable and trustworthy, and that there won’t be an issue for breach of security.

As mentioned above that most of the outsourcing is done to Asian countries, the problem of time difference comes in play. However, this issue can be curbed by setting targets and deadlines to frequently review the work.

Supervision is another obstacle. Companies can set deadlines and targets for the third-party to follow, but one advantage of having everything in-house is that supervision is easy. Outsourcing makes it difficult as third-parties have their own rules that they follow which may not necessarily align with the company’s, but that is a sticky area as they are an independent identity. This could potentially also cause communication problems.

READ: Known the Pros and Cons of Outsourcing Software Testing

Regardless of the downside to Outsourcing, companies still resort to taking that route when it comes to software development in particular. That field is tricky with a lot of detailing involved being the baseline of all things digital, it is, therefore, important to get company software’s developed right, and with 100% accuracy. Most of the time companies lack the knowledge to be able to reach that accuracy or may not be equipped to develop or test them correctly.

It is then when it becomes important to round up a team that knows what to do, and what better way other than to outsource the task to a unit that possesses the skill set needed for this? Provided that they would, of course, do their due diligence in order to avoid facing any drawbacks. Some companies, on the other hand, look towards reducing their costs any way they can. So when the majority of them see it as a way of saving their time and saving their money, if the option is available to them, why not avail it?

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