Should I Outsource My Software Development Project?

Are you thinking about outsourcing your software development project to a third-party vendor? We’ve helped companies successfully outsource projects for over 20 years. Outsourcing has the potential to increase efficiency, reduce your time to market, and it can result in saving your business valuable time and financial resources.

Depending on your project and business needs, outsourcing may not be the right option. The answer to the question of whether to outsource your project lies in the details. Below we will walk you through when it makes the most sense to outsource and outline what questions you should ask to find out if it’s the best choice for your business.

What does Software Outsourcing mean?

Software outsourcing can be defined as the practice of working with a third-party vendor to help your business manage and accomplish all the tasks in a software development project.

There are many perks with bringing on the right third-party partner. Keep reading to find out some of the benefits your business could receive if you choose to outsource.

Why you should outsource your software development?

You have a development team in-house that could take on your software project. So why would you need to outsource?  In a nutshell, companies outsource because it saves them time, allowing their teams to focus on their priorities. It also provides the companies cost savings by not having to hire permanent employees if they are not needed long-term. What are some other pros to outsourcing?

Faster speed to market: If you have a smaller team or if your team’s capacity is maxed out, it could be challenging for them to take on a new project without sacrifice. What’s nice about outsourcing is you don’t have to pull your team from their current work, and you’ll be able to use third-party resources as an extension of your team to get the job done faster. For example, if you chose to build your project in-house it might take your team one year to complete it, but if you outsource it, that same project due to the resources it can be done in a matter of months.

Scale your team: Software development projects usually require a more substantial team infrastructure. Knowing what it will take to complete your project, you may be trying to decide if you are going to hire more people internally or work with an outsourcing team to help you fill in the gaps. Try thinking about it this way. Depending on your project’s needs and requirements, you might need to hire 1-3 of these types of positions an Android Developer, an iOS Developer, a Back-end Developer, a Designer, a Project Manager, a QA Specialist or a Data Scientist. Even if you don’t bring on all these positions, you’ll have to cover the salaries and benefits of the ones you do hire. Why spend the extra time finding the best talent and financial resources to hire if you only need these positions filled temporarily? If you outsource your project, you’ll be able to build the team you need without having to invest in internal staffing costs. Maybe your in-house team tried to take the project on or maybe you’re working with a third-party that is not delivering as expected, most third-party vendors are also able to come on board at any point in your project.

Access to specific skills: Maybe there’s a particular technology that your team may not an expert in? To do the project, your team would have to spend the time learning it, and what if they won’t use it very often? Outsourcing allows you to not only have access to the positions needed but also to specific areas of expertise that may be out of your team’s current wheelhouse. Bringing in help can make sure your team can stay focused on what they do best instead of having to take time out to skill up. If your team does have the manpower and bandwidth for a project, and they lack the knowledge, some outsourcing partners offer mentoring as an option.

Needed tools: Every tech project requires specific tools to make it efficient and effective. Chances are your team does not use the tools specific to your project daily, so why pay for more tools that only need to be used as needed? Your outsourcing team will have all the necessary tools to get the job done.

When not to outsource your software development

Some companies have enough resources and infrastructure to support their current and future project needs. These companies may decide not to outsource work to a third-party. Due to the continuous investment in training to keep staff expertise current, it is recommended that if your company chooses not to outsource, your core competency should include software development.

If you feel uneasy about a potential outsource firm, it’s best not to outsource to them. Continue your search. There are plenty of great partners out there that could bring you better long-term results. Even if you decide not to outsource, there could be some value in forming relationships with trustworthy vendors should a need ever arise.

Questions to ask when outsourcing

If you’re still on the fence about deciding if you need to outsource your project, run through this list questions to help you make your final decision.

What is your overall project budget? 

What is your project timeline?

What are your project goals and requirements?

What is your team’s capacity to take on new projects?

Do you have all the staff you need to complete your project?

Do you have the budget to hire?

Does your staff possess the necessary skills to complete the project efficiently?

Given your current resources, will your project launch on time? 

Making the final decision

In summary, there’re many added benefits to outsourcing, which is why many companies use this method as a resource. But there are also plenty of reasons businesses may decide to keep their projects in-house. At the end of the day, the choice is up to you. The best choice is the one that’s right for your business and project needs.

Whether you’re outsourcing your project or keeping it in-house, if you’re looking to keep your project on track, you’ll benefit from reading our checklist to making great software. Download this resource below.