Outsourcing Development Services: Leveraging the Benefits 

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June 23, 2023

Outsourcing development services is currently on the rise. Businesses of all sizes have been increasing the percentage of IT budgets spent on outsourcing from 6.3% to 8.7% per year (Market Watch). That is because a couple of software outsourcing benefits that businesses cannot ignore. In this article, we will explore these benefits in detail, shedding light on why outsourcing has emerged as a game-changer for businesses worldwide.

Why need IT outsourcing?

Before outsourcing came

Before outsourcing development services became prevalent, companies relied heavily on in-house teams or contracted local software development firms to build and maintain their custom software applications. Resource limitations, longer development cycles, and increased costs were the common problems these companies often face.

In reality, a manufacturing company, ABC Corp, wanted to develop a new inventory management system. They have to pay the cost for their in-house development team. After all the processes of the project have been successfully put into operation, while the in-house development team doesn't have too much work left, the company still wastes their money to maintain that team. All these take a heavy toll on human resources, time, and effort for both the team and the company.

IT market has grown leaps and bounds 

To address these challenges, outsourcing development services has come to the rescue. The landscape of software development has transformed significantly. Outsourcing development services has brought numerous advantages. This approach allows businesses to tap into a global talent pool of software developers, gain access to niche tools and technologies, and focus on their core business operations that have never seen before. Outsourcing development services have revolutionized the software development landscape, offering companies a cost-effective, flexible, and scalable approach to meet their development needs.

Understanding software outsourcing development services

Software development outsourcing services is the business practice where a company enlists the expertise of a third-party software development company to handle various aspects of the software development process. Not only bring cost-efficiency by eliminating the need for in-house development teams, the business also can connect a global talent pool of highly skilled developers and teams with expertise in various technologies.

Benefits of software outsourcing development services

  • Cost savings

 One of the very first-in-mind reasons for software outsourcing of businesses is to reduce the costs and this is a very smart decision, especially for startups or small businesses. The cost of outsourcing IT services is often 60% – 70% lower than that of building a working structure within your business. The outsourced resource does not require you with a lot of costs such as taxes, health insurance, social welfare, and so on. What is more, the cost of software development services diversifies between countries, in Asia, the cost of the same performed labor is further reasonable compared to European countries.
  • Flexibility and Scalability

Most software development projects are short-term, and thus it is impractical to hire an in-house developer for such. However, outsourcing software development gives you the flexibility of hiring developers on a need basis. Also, it is very difficult to accurately estimate beforehand any unexpected situations occurring midway through the project. To tackle this issue, outsourcing development services is the best solution as developers can be added or removed from your project as per your requirements. Once the project is complete, you have no obligation to keep them around unless you need support services or have another project you want to execute.  

  • Access to Globa​l Talent

Outsourcing development services opens up a vast pool of global talent. Businesses can tap into specialized skill sets, knowledge, and experience that may not be readily available in their local talent market. By partnering with an outsourcing provider, companies gain access to highly skilled developers, designers, and engineers who can bring fresh perspectives and innovative solutions to their projects. This global talent pool offers diversity and expertise, allowing businesses to leverage the best practices and cutting-edge technologies prevailing in different regions. Collaborating with international professionals enhances creativity, fosters cross-cultural collaboration, and drives overall productivity

  • Faster Time to Market

The time it takes to get a product to market can make or break a business. Getting your product to market before your competitors can provide a significant and long-lasting competitive advantage. When you are building an in-house team from scratch, a huge amount of time can be wasted on hiring, and then training, new recruits. With an outsourced software development team, businesses can scale up their development capabilities quickly and effectively. This allows them to focus on getting their product to market as efficiently as possible.

  • Focus on your Business

Outsourcing development services allows businesses to concentrate on their core competencies. By delegating the technical aspects to an outsourcing partner, companies can redirect their internal resources towards strategic initiatives, such as product innovation, market expansion, and customer engagement. Outsourcing non-core activities like software development frees up time and energy that can be invested in crucial areas that directly impact business growth. This enhanced focus on core competencies enables companies to stay competitive, differentiate themselves in the market, and drive sustainable success.

  • Risk Mitigation and Expertise

Collaborating with an outsourcing provider can help businesses mitigate risks associated with software development projects. Established outsourcing companies often have proven methodologies, quality assurance processes, and risk management strategies in place, honed through their extensive experience. Their expertise helps mitigate project risks, improve development efficiency, and ensure successful project delivery. Outsourcing partners are also equipped with the latest industry knowledge, keeping abreast of emerging technologies and best practices. This access to expertise helps companies leverage cutting-edge solutions and stay ahead of the curve in the fast-paced world of software development.


Software development outsourcing can be a game-changer for businesses seeking to leverage the benefits of advanced technologies, cost-effectiveness, and global talent. The key is to find the right software development outsourcing partner who understands your project requirements and can deliver high-quality software solutions that add value to your business.

These services along with software development consulting are provided at BHSoft. At BHSoft we help companies on their outsourcing journey. As a reliable IT company, we have a solid team of experts who are Cesium Certified Developers and successfully implemented hundreds of projects. Specializing in software development, technology consulting, and 3D&4D Services, etc We help you to get your project done. Contact us for further discussion and get the best out of our services!