How To Outsource Software Development? Steps By Steps To Consider


Software Development

With the development of technology daily, it is difficult for small and medium enterprises to keep up with that rapid change. Therefore, they tend to use outsourced software development services. 

These outsourcers have the capacity and capacity to provide businesses with the best software. So, the question is how to outsource software development. The following article will give you the most detailed answer to this question.

What Is Software Outsourcing?

Outsourcing software development is understood as outsourcing a software development company. They will help your business with software engineering and development. 

All are done by a team of engineers with background knowledge and practical experience in this field. 

Using outsourced software development services gives your business many benefits:

  • Access to large resources
  • Improve work efficiency
  • Optimize costs to the lowest
  • Reduce risks

According to reports, by 2021, companies providing outsourced software development services will reach $109 billion. And this number is expected to continue to increase, with an estimate that it can reach 141 billion USD by 2026. 

It has proven that businesses today have an increasing need to use outsourced services. They are trying to optimize the cost and improve the quality of work. 

Why Do Companies Outsource Software Development?

There are many reasons why small and medium businesses tend to use the services of outsourced software development companies. Here are 6 main reasons why these units choose to outsource services.

Reduce software development costs 

Software development speed is many times faster than you think. The daily change will be difficult for you to keep up with technology without enough capacity and finance. 

Therefore, outsourcing services is considered to be the best solution to help businesses optimize costs. You will not spend any money to train personnel, which is very expensive but does not bring the expected high efficiency.

Save time and cost for professionals.

Hiring a professional is challenging. Instead, why not use an outsourced software development service? Using this translator will save you a lot of time. They have the potential to help you develop the best software.

Build a high-quality software development team

You can ultimately find high-quality software development with an outsourcing service. Then, the money you spend is entirely worth it. Each member is highly qualified, allowing them to research and develop your project at its best.

Scalability and flexibility 

Any software development project needs to be built with a system that can change dynamically. That allows you to deal with arising tasks and upgrade technology whenever needed. 

Centralized management

Using an outsourced service will help eliminate some management tasks because any software development team is centrally and strictly managed. You will not need to worry too much when ordering a complex system without experience.

Focus on core business

It is one of the main reasons why businesses use outsourced software development services. Because these outsourcers can focus on your core business, helping you achieve the desired results.

How To Outsource Software Development?

You cannot deny the benefits companies providing outsourced services bring businesses. Yet, you will not be able to outsource a successful IT company without a complete strategy. To simplify strategy building, you can refer to the 5-step process below:

Step 1: Define your goals

Defining your goals significantly affects the formulation of your strategy. 

There are so many stakeholders in any project that you can’t expect them to be involved in every project step. They can be customers and company management.

To be sure that your project has clearly defined goals, you can give your ideas to your team members. or another member you know in your business.

Step 2: Prepare resources and documents. 

In this step, you must clearly define your budget and expectations about the outsourced software development project. Then, outsourcing companies can help you navigate and offer the best solution for your business.

Step 3: Define your technology stack

Since all software development is done remotely, you must ensure that the company you hire has a technical profile that meets your requirements. 

So, you can create an all-inclusive list of resources for your project. It will undoubtedly be very effective.

Step 4: Bring an experienced engineering leader.

Building a team of outsourced software engineers starts with a manager with sufficient background knowledge and work experience. Also, they can ensure the responsibility and coordinate all work more effectively.

Step 5: Manage Project Scope and Budgets 

Budget, time, and scope are central elements in the outsourced software development process. Budget management needs to be shared by all parties. It needs to be appropriately distributed over the project phases.

Software Development Stages

To develop successful software, you need to ensure that they are flexible to extend, maintain, and upgrade. 

So, doing software development step by step in the technology life cycle will help you to ensure the last 3 criteria. And here is an example of a software life cycle that will go through 5 stages:

  • Gather requirements
  • Design
  • Build
  • Test
  • Deploy
  • Maintenance


Hopefully, this article will help you understand how to outsource software development. Before contacting outsourced service providers, you need to make sure you have a complete strategy in place. 

Only then will these units be able to provide you with the best service. Outsourced software development services today will optimize costs and minimize complex management tasks.