The world economy is moving towards globalization at a prodigious pace. This has impacted business corporations worldwide. They are swiftly adapting to changes by enhancing customer experience and effectively managing costs. Amidst these changes, technology continues to thrive on dynamism and innovation. It is no surprise that the IT outsourcing services is at a whopping $ 92.5 billion and is all set to rise with more companies looking at leveraging business through the external teams` expertise. Besides, the incorporation of outsourcing as part of the business models is certain to highlight the growth trajectory and help businesses thrive in a competent domain.

Software development outsourcing is also growing in popularity as corporations globally are turning to vendors for business solutions. It significantly alleviates pressure on the in-house staff and minimizes business costs. However, there are challenges and potential drawbacks when the outsourcing partnerships are not effectively incorporated. This may lead to a decline in employee morale, erroneous codes, delayed deliverables, and lower and disappointing ROI. If managed effectively, outsourcing could be the best solution to augment business growth and streamline the revenue flow. Businesses today are opting for software outsourcing development services owing to the many benefits that it has to offer.

Major Factors That Drive Businesses To Outsource Software Development Services

software development services

The most viable factor to choose outsourced services is cost reduction. Oftentimes, it is cost-effective to outsource the services to a third-party provider than to hire an in-house team of developers. Outsourcing has thus become one of the major strategies that managers employ to meet business goals. Some of the attributes of outsourcing that help businesses excel are explored below:

Minimize Business Costs:

This is one of the major factors that drives companies to choose software development. According to research by Deloitte, approximately 59% of companies outsource in a bid to reduce costs. Businesses benefit from reducing costs and they strike a balance between precision and affordability. They also save on not investing in expensive software applications, hardware and other supplies reducing the overall expenses. Besides, offshore software developers offer impeccable services to companies at affordable pricing and this adds to the overall revenue.

Flexible Solutions:

Software outsourcing services may be customized, based on the business requirement. The flexibility thus offered is apt when businesses are running projects on a limited budget. It provides the expertise of skilled developers while also minimizing the project costs to augment business growth.

Access to New Talent:

The idea of outsourcing has many advantages and one of them is that the business gets access to diverse talent. Access to skilled software developers from around the world ensures that business is streamlined and the in-house teams devote time to drafting, designing and implementing new projects.

Effective Management of Resources:

Once businesses choose a third-party developers` team; they can focus more on expansion and other priorities. This helps them focus on core business elements and invest judiciously. A thorough knowledge of the security policy and probable employee lawsuits is ideal to ensure that the wealth of resources is well maintained and any rising challenges are addressed at the earliest. A third-party vendor ensures the smooth functioning of the fundamental business aspects as the external resource is unbiased and focused on delivering the best deliverables.

Focus on Core Business Competencies:

Software development services ensure that businesses focus better on the core competencies and reap the desired business results. The in-house staff may also invest time and get trained to acquire new skillset. Besides, the business corporations may also invest time and resources on marketing and brand building with optimal customer service. Implementation of the earmarked tasks also becomes tangible.

Minimize the Turnaround Time:

Software development outsourcing offers a plethora of advantages to help businesses focus on important aspects and reap the desired business results. For projects that are ruled by tight deadlines, availing the expertise of a third-party team, ensures that the costs are minimized and a dedicated team gets to work on a fixed timeframe.

Minimizing risks

There is always a certain degree of risk associated with development of new products, especially for start-ups and SMEs. There is not only a lack of guarantee of success but also involves high expenditures on hiring and training employees that could aggravate the risks of losses. Therefore, outsourcing software development services can help organizations minimize these risks by utilizing dedicated expert support to increase chances of project success and improve ROIs.

Access to specialists with knowledge and expertise: 

Outsourcing software development services can provide organizations with new resources who possess subject-matter expertise and are abreast of latest developments in technologies. It provides access to a network of specialists who ensure round-the-clock support, allowing organizations to focus on core operations.

Finding an outsourcing partner you can trust

Trust is a vital factor for organizations when considering outsourcing. They need to be able to trust an outsourcing service partner in terms of transparency, data security and quality of service delivery. It is important to establish a level of trust using effective communication tools and building a nurturing environment in which concerns can be voiced easily. A successful software development project can be achieved by gaining a deep understanding of business requirements and scope.


Loopholes in contracts and software agreements can prove to be challenging in the process of outsourcing. It is important to accommodate essential terms and conditions in agreements and NDAs to eliminate scenarios in which such loopholes could be misused.

Project Management Quality

Organizations will need to prioritize quality of services while considering different outsourcing partners. Issues related to quality can arise in the project management process due to lack of communication and ill-defined processes. Service providers will have to assure organizations of quality services related to technologies, methods and tools in handling issues that arise.

Challenges That Occur with Software Development Services

software and app developement

Lack of Communication:

Effective communication is key to business success. However, owing to linguistic and cultural barriers, the work output may get hampered. This may be addressed by scheduling regular meetings to ensure better professional understanding. The misinterpretations may be handled effectively with thorough understanding of the challenges.

Perils of Working with an Unknown Team:

Software development services come with a set of promises and perils. In instances where the vendor software company experiences database leak, the business information could be in jeopardy. It could adversely impact the revenue. Data breach often has dire consequences, reinforcing the need to choose a reliable software service provider.


Outsourced services may not always live up to your expectations and owing to some discrepancies there may be a few shortcomings in the overall output. This may be avoided by choosing a reliable software solutions provider through references, testimonial and client interactions. Test projects are a great way to asses the reliability and performance factors of the chosen service provider.

In a bid to stay competitive, most businesses invest in the software outsourcing service providers that offer the best service, innovative software solutions and precision-driven deliverables in quick turnaround time and prior research can help choose the provider, best suited for your business.

Major Pitfalls To Avoid When Outsourcing Software Development

outsourcing software development

Research and more Research:

Not researching the market thoroughly through streamlined processes are certain to have calamitous consequences and result in dismal results. In addition to research, it also helps to have a detailed knowledge of the leading vendors and agencies that offer outsourcing services. A know-how of the outsourcing market ensures that you take decisions that are best for your business. Besides, a thorough revaluation of the business requirements will also enhance the project output. Online feedback, reviews and testimonials further augment right decision making.

Ambiguity and Miscommunication:

Lack of understanding of what needs to be accomplished is one of the factors that can impact the business output. Knowing your business goals, and having a defined workflow will add more clarity to the project. Work on improving the familiarity of the industry, users and competitors and imbibe the most suitable mode of communication to steer clear of ambiguity.

Modern Trends and Updates:

Lack of thorough knowledge on the latest innovations and services may oftentimes lead to wrong business decisions. Choosing outsourcing companies that are not in sync with modern trends and updates may impact the project results and impose troubles in the end result. This may lead to a drift with how you strategized and how the project was executed. Choose a partner that has invested in technical upgrades and implementations to help leverage business output.

Costs Involved:

The biggest advantage of outsourcing is to minimize costs and if not handled with precision and research, the cost factor could also jeopardize your project results. Putting experience and expertise over minimal costs will help make prudent decisions and give you the desired output. Have a responsible budget plan and never risk quality. Ensuring that a project breakdown is in place will help prevent additional and unnecessary costs right from the inception.

Not being the Main Stakeholder:

Despite opting to outsource software development services, make sure that you are a major stakeholder to balance out the business goals. A tech savvy person from your team can be the advisor to ensure that the quality of the service is not compromised.

Short Term Projects:

In the long run, short term partnerships often come with a set of flaws resulting in disaster. A short-term project may lead to hasty and erroneous coding, quick and unplanned deadlines and average output. This reinforces the need to choose long-term partnership for outsourcing the software project as it augments the contract and deliverables.

Undermining the Importance of Quality Assurance and Testing:

The importance of testing the project while its underway will ensure there are no bugs in the end. In addition to regular software testing and quality assurance, ensure that the software services are in tune with your business goals.

Business corporations may avoid the pitfalls of software outsourcing services by choosing a reliable vendor. Focusing on the bigger picture ensures that the projects are seamless and the deliverables are met. Outsourcing also ensures that the software creation demands are met and all the business goals are fulfilled.

Best Practices To Adhere To While Opting To Outsource Software Development Services

outsourcing software development services

Leveraging technological platforms to enhance business and foster business coordination is one of the requisites to reap the desired results while outsourcing software development services. Hiring new talent is always a challenge and when it comes to an outsourcing partner, the challenge only gets bigger. Choosing a vendor who understands your business goals and strives for excellence is one that can give you the desired output.

Invest in the Right Resources:

Another outsourcing best practice is to add a little extra expertise and fund on better resources to ensure the smooth functioning of the business. Choose companies that have the flexibility to make changes and deliver with quick turnaround time.

Choose Quality Services:

Business corporations should tweak the potential project risks that may lead to project failure. Choosing companies that have robust teams and offer high quality project management systems will help in developing effective workflow. This ensures success in creating software application and can yield the desired ROI.

Realistic Expectations:

Setting realistic expectations is one of the most important practices that can enhance the results and minimize failures. A realistic milestone with achievable output will ascertain the best results in the existing infrastructure.

Optimize Costs:

Optimizing costs and strategizing the budget ensures that any hidden costs that may result due to fluctuating market conditions, miscommunication and complex processes may be addressed effectively.

There are some common pitfalls in software development services that include communication barriers, quality of the codes, inability to understand the business goals and more. But most businesses still prefer to outsource, as it is cost-effective, flexible and reduces the common expenses that occur due to investment in an in-house team or advanced technology, hardware and training and development.

The talent may be sourced online, thereby minimizing cost and time. Besides, the repository of testimonials and reviews facilitates hassle-free selection of the right vendor. This is especially important as advertisements for hosting interviews may be way too expensive for small and medium business corporations.

That is not all; outsourced software development service authorizes businesses to avail services from world renowned specialists, irrespective of the geographical distances and other glitches.  37% of businesses outsource and the percentage will increase in 2020 reinforcing that outsourcing is a good option to ensure deliverables and enhance revenue.

Since we live in an age that is dominated by software application and services, business corporations ought to stay tuned to the advancements and progress to cement a strong foothold in the highly competent domain of software development.  Relying on an external team to create a product of higher value can add momentum to your business. Optimizing costs, reducing the turnaround time and ensuring IP protection will continue to lead the way as business corporations spruce up to choose best third-party specialists for software development services.

Who We Are What Makes us an Expert:

We are a team of technology enthusiasts who know what it takes to provide precision-driven services that can add value to your business. As one of the leading providers of custom software developments services, FlatworldEDGE is empowered by a robust team of experts, that help deliver quality products through flexible solutions and a collaborative approach.  At FlatworldEDGE, we also have a prolific client-base, spread across the globe, and we endeavor to deliver what we promise.

Our services are not restricted to specific domain or technology and we ensure flawless IT consulting services through the platform of your choice. Besides, our complete spectrum of services will help achieve business goals in a reduced timeframe. At FlatworldEDGE, we strive to provide end-to-end and cost-effective software development solutions. What makes us unique is that we are an integral part of your project and are happy to have your feedback from the inception stage to post -development support.