All companies strive to be the best in their field. Just like you, everyone wants to gain a competitive advantage through improving customer service, reducing costs and harnessing efficiency. However, not all business owners have a massive budget to reach these goals. If you are one of those passionate businessmen who want to boost their businesses but only have a limited budget, you may want to consider software outsourcing. But of course, you must be fully aware of the process before you start. So, here’s everything you need to know about software outsourcing.

Defining Software Outsourcing

Software outsourcing or software development outsourcing is the process in which a company or an organization hires a third-party software contractor who will be responsible for the software related tasks. Instead of hiring an extended IT team, the company chooses to hire a third-party company to cut-down costs and minimize facilities. Also, this is a smart approach to give more emphasis on the company’s complex tasks and issues.

According to a study by Information Services Group or ISG, the yearly global revenue coming from information technology outsourcing can be estimated from $60 billion up to $70 billion. Hence, proving how much software outsourcing is truly effective in providing a business with a competitive advantage. If you are still doubtful about it, here are some of the reasons why software outsourcing is a must for your business.

1. Larger Number of Talents

Personally hiring an IT specialist will surely cost a lot of your time and money. You are definitely lucky if you can find the one with the perfect credentials and expertise like what you are hoping for. On the other hand, outsourcing is not just time-saving and economical but it will also give you access to a larger pool of talents from all over the world. You won’t need to worry about their development or deployment as the outsourcing company will be responsible for it.

2.Better Security

If your in-house team does not have an IT specialist, you might really get in trouble. An IT specialist is in charge of strengthening and maintaining software security. If you fail to have one in your in-house team, security flaws may happen and you will definitely face some troubles. Hiring a software outsourcing team will ensure you a better IT security as they have the complete set of people specializing in the field.

3.Regular Software Maintenance and Support

Software is not easy to maintain as bugs and modifications never stop. Getting an expert team who will handle it regularly is the best solution to make sure that your software is always safe, secure and effectively working.


By outsourcing your software needs you can save up to 30% on your operational costs. These savings can even multiply depending on the wages of the specific country where your software outsourcing vendor is in.

5.Accommodate Demands

There’s always a time when businesses are at their peak. And most of the time, the first thing that comes to mind to accommodate the demands is mass hiring new employees. However, you should realize that this kind of solution will only result in lower efficiency and greater cost. Though, If you will consider software outsourcing, you do not have to go to all those troubles. You can hire them whenever you need them without any commitment and basically balance the workload, plus save time and money.

These are only the common advantages of software outsourcing. If you know that your in-house IT team cannot handle all of your software needs, it would not hurt to consider software outsourcing to solve your issues.

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