Development Services

Benefits of Software Development Outsourcing

The global IT outsourcing market is projected to reach $393.8 billion in 2022, according to Statista. This is a huge market, with a growth rate of 8.8% annually. Let’s consider the fact that tech giants – Apple, Google, Amazon, etc. outsource several parts of their software development. There are quite a few benefits to outsourcing software development that make it worthwhile.

In the blog below, we will discuss how advantageous software development outsourcing is for you and your business.

The benefits of software development outsourcing are immense for your business. Credit: iStockphotos.

What is Software Development Outsourcing?

Software development outsourcing is the act of hiring a third party company to handle all the tasks relating to software development. Instead of using internal resources, the company reaches out to skilled experts and lets them carry out development projects.

Software development outsourcing is a segment of the rapidly growing IT outsourcing market. This segment alone generated $99.2 billion in 2020, and its revenue will be over $140 billion by 2026.

Those numbers are impressive, aren’t they? According to Deloitte, cost reduction is the top reason why organizations choose outsourcing over insourcing. Now, if the reduction rate was 15%, software development outsourcing would have already saved companies globally about $15 billion in 2020. Now, we’re talking!

5 Benefits of Software Development Outsourcing

The Top 5 Benefits of Software Development Outsourcing. Credit: vecteezy.

Cost reduction

Due to the pandemic, once again, expense reduction is a problem that every company must solve. Software development outsourcing is the ultimate solution here. By utilizing external talents through an IT partner, you can reduce the overhead costs of building a full-time team of developers. The reduction becomes even more obvious when you compare the hourly rate of a local developer in the U.S. or Australia to that of a colleague at the same level of expertise in India or Vietnam.


Time is money, and it is the most valuable resource. In this highly competitive market of today, your ideas need to be market-ready as quickly as possible. When it comes to developing a new project, even the best in-house team can fail to deliver due to overloading or a lack of necessary skills.

On the other hand, software development companies have dedicated resources of experts in different technologies. No doubt, they can carry out your projects at an unmatched speed compared to in-house development.

Flexibility & Scalability

Let’s picture this scenario. Your given project needs some extra functions or needs to be ready to market faster. As a result, it requires new resources (human, technology,…) What would you do with your in-house development team? Panic hiring is not the plan here while outsourcing gives you the freedom to do so quickly and efficiently.

Working with an outsourced development partner means that every change you make will be handled swiftly because their teams of developers are built to be flexible, easy to scale up or down to fit the clients’ requirements.

Quality Insurance

When you have a team of experts to handle your project, a high-quality outcome is what you expect. With the outsourcing process, not only that you can easily monitor the progress but also the IT partner has its responsibility to assure that the product comes out with good quality, is stable and fulfils all requirements.

In addition, for a product as unique as software, ongoing support, maintenance and support should be highly considered. These factors play very important roles after your product is up and running. A trusted software development partner will always be ready to help you keep up with the rapidly changing business landscape.


The best way to adjust your software to changes in the future? Be future-ready already! An experienced outsourcing partner with their expertise can bring what is the best to make your project as future-proof as possible. Therefore, you won’t have to update your product too frequently. Thus, saving time and enhancing user experience to always stay ahead of the competition.

Final Thoughts

In conclusion, software development outsourcing is the go-to solution to tackle many challenges in today’s business environment. Now, the question is how to choose your IT partner among thousands of companies all around the world. At DevScout, we provide you with the most suitable and effective solutions to turn your ideas into reality. Ready to scale up your business? Contact us through our contact form or send your inquiries to [email protected]!