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Updated by MalcomRidgers on Sep 11, 2020
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6 reasons to outsource software development

Learn 6 reasons why your company should consider outsourcing software development.



Over a third of small businesses outsource at least one business process, while 52% plan to, according to a 2019 Clutch survey. The survey also found that information technology (IT) was tied for the most commonly outsourced service among respondents, along with finance and accounting.

Of course, small businesses aren’t the only organizations turning to IT outsource services. Tech giants like Google, Slack, Skype, IBM, WhatsApp, and many others have all used software development or IT outsourcing at one point or another, and many still do.

Should your business imitate them and use an IT outsourcing company, too? Here are the top reasons to outsource IT and software development.


You’ll gain back time to focus on core business functions

Technology development and maintenance can eat up a lot of time. This can be especially true if you’re just getting your startup off of the ground. If you’re focusing on the software aspect of the business, it means other areas, such as marketing and finance, are not getting as much of your attention. Plus, chances are you and your team members have many different skill sets, and not all of them fall into the tech category.

When you use IT outsource services, you’ll be able to focus on core business processes like strategy and fundraising. Meanwhile, a dedicated team will work on the technical aspects of your organization. Everyone can play to their own strengths — meaning you’ll achieve goals more successfully and quickly.


You’ll increase efficiency and expedite time to market

Since you’re streamlining efforts by using an IT outsourcing company — one that will be solely focused on your software and technology — your processes will be more efficient. You won’t have to be closely involved with software development, and the IT outsourcing services will be dedicated to this area. Ultimately, this generally means you’ll speed up your timeline and reduce your product’s time to market — a huge advantage for any business and its product.


You’ll have access to skilled developers

Often, businesses turn to an IT outsourcing company because they don’t have the necessary talent in house. You need skilled workers who are up to date with the latest technologies, and sometimes that requires going outside of your organization — even your country. Through IT outsourcing, the world is your oyster — you could partner with developers in Argentina, Ukraine, India, or somewhere else entirely. These workers often have skills and expertise that you may not be able to find closer to home.


You’ll gain the experience of specialized experts

On a similar note, IT outsource services often have dedicated expertise in a specific industry or niche. Choosing a partner who has experience in your field can be advantageous since they will know what works best, as well as potential pitfalls. For example, an IT outsourcing company that specializes in financial services will be aware of potential cybersecurity threats that could impact your mobile banking app.


You’ll cut down on costs

Between hiring, onboarding, benefits, and a full-time salary, an in-house IT team can be expensive. You’ll mitigate many of these costs through IT outsourcing. For one, you’re eliminating onboarding and benefits costs altogether, since your partner company will train its employees, as well as provide tools and resources. While you will have to spend some time and money on the hiring process, it won’t take nearly as much investment.

Moreover, the fees for IT outsourcing services are generally significantly less expensive than the salary of a full-time employee, especially if you use nearshore or offshore services in countries with developing economies.


You’ll have better security

Cyber breaches are a real threat and can compromise your entire enterprise. You may not have access to in-house professionals who have proper training or expertise in cybersecurity, but through the outsourcing of IT, you can find professionals with the know-how to protect you. No matter what the type or size, every business needs security. Not only will IT outsourcing services help you patch up holes, but they’ll also work with you to identify weaknesses and devise systems for addressing them before an attack occurs.

There are many IT outsourcing benefits, from leveraging the knowledge of experienced professionals to cutting costs. Before you hire a partner, make sure you carefully vet them to ensure the best fit for your business. You should also work with them to address your chief concerns and priorities. This will allow them to better meet your needs and enable you both to work toward meeting your ultimate goals.