Outsourcing involves the hiring or engagement of external service providers in order to complete a task or create a specific product. In software development terms, outsourcing typically refers to the engagement of external developers or dev teams in order to create a custom software solution for a specific purpose.

Software development outsourcing is commonly used to create highly specialized software solutions or to create custom software in a cost-effective manner. What are the benefits of outsourcing software development, though, and when will your business need to do so?

1. Why Outsource Software Development?

The primary reason a business may choose to outsource software development is cost minimization. While it’s true that engaging an external developer may be cheaper than retaining a full-time in-house developer, outsourced software development delivers a range of other benefits that improve business efficiency and productivity in the long-term. Outsourcing software development can:

  • Expand the talent pool available to a business
  • Create specialized tools and engage highly trained professionals that may be otherwise unavailable
  • Free up critical team member time that can be directed toward business growth or innovation

2. When Should Your Business Outsource Software Development?

Determining whether or not your business should outsource software development is a complex question. Before engaging external developers, it’s best to ensure that your business has identified a specific need for custom software as well as a primary goal that will be achieved by outsourcing.

If your business is prepared to set aside the time necessary to establish a communications and workflow framework with an external development team and is currently experiencing rapid growth or demand that necessitates a software solution, it’s likely time to consider engaging an external development team. 

When you’re ready to engage a software specialist, ensure that you take the time to conduct extensive interviews to ensure that potential developers are aware of the unique goals and requirements of your business.