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Software Development Outsourcing: Pros & Cons


Dec 31 2019

Software development outsourcing has made a crucial change in the tech world. Many mobile and web apps that we use on a daily basis wouldn't be here if there wasn't software development outsourcing. There is certainly not enough money and resources for every single project to be made in-house. Some realized that before others, but nowadays almost everyone outsources software development.

Today, you can start and grow a business without any significant investments. Sometimes your startup can’t handle all the tasks, so that is where software development outsourcing steps in. Many say that they are satisfied with the service provided, but there are some that weren't. With this having in mind, in this post will be going over the advantages and disadvantages of software development outsourcing.

There are two points of view in software development outsourcing that we will be reviewing in this post. The first one is the client’s side since they are mostly looking for the best price-quality ratio & fast service. Another one will be the company’s point of view because they are most likely to look for motivating hourly wages & easy-to-work-with clients.

How many people do you need?

As we sometimes said, if you can’t do all the tasks in-house, software development outsourcing can be handy. Let's say that you hire 2 or 3 developers. Obviously, they can get the job done much faster, which is a big time saver. However, you would ask yourself “Is this expensive?”. Well, depending on what your goal is, you will eventually expand operations, and the capital exceeds expenses. Keep in mind that time is money & software development outsourcing saves you both.

How Software Development Outsourcing actually looks like

Why consider software development outsourcing in the first place?

Often when having a startup company, you won’t be having access to skilled senior developers. Well, there is another outsourcing benefit that is useful here. People from Balkans are young, educated, English-speaking, qualified and very experienced.

The best thing is that they are fully trained and you can access their skills and knowledge anytime. Having a proven software development outsourcing company by your side might be very useful for you in the future as business is growing. You better be ready!

Is software development outsourcing good?

Here quality features both as an advantage and a disadvantage in this discussion. Some outsourcing companies are more motivated by their profit rather than doing a good job. By cutting down costs, the quality can be weakened. That is exactly why you want to go with the proven software development outsourcing company rather than the cheapest one.

In most cases, the project has a fixed budget and the only way to stay within budget is to decrease expenses. That may mean that your product will lack the standard that consumers expect. Remember that the only way to build a world-class software product is by hiring world-class senior software developers. So, if you want to build a high-quality product and stay within a budget at the same time, software development outsourcing is your best bet.

Expenses of software development outsourcing

Software development outsourcing is considered cheaper, but you must be aware of getting ripped off. In the beginning, make sure that you carefully read the contract before signing anything, in order to avoid any hidden costs. Anything that is not covered by the agreement will be an additional service that you will eventually pay as an extra charge. Also, you will pay a lawyer to review the contracts you signed. Some companies are famous for ripping their clients off, so you want to be careful and choose who you cooperate with very carefully.

Some companies like to attract clients with low prices and make big promises when it comes to the quality of the product and the timeframe itself. People who decide to go with such companies usually end up with useless software products that other companies don't want to make their hands dirty with. The money and time will be wasted and the code you get can only go to trash. The only way out from this kind of situation is to deal with the loss and start again from scratch, but this time - smarter.

Software Development Outsourcing in Practice

"There is only one thing more expensive than software development itself, and that is developing a BAD software."



  • good price-quality ratio
  • fast service
  • saving time
  • focusing on core areas
  • not hiring more people
  • access to a larger talent pool
  • cultural exchange
  • cost savings
  • ability to start many projects at once


  • presence on the markets where you are not physically present
  • the whole world is the market
  • working on the big projects
  • networking
  • business trips
  • experiencing big and interesting projects
  • getting a better price in bigger markets
  • hiring more people
  • easy penetration into the global market



  • risk of choosing a bad partner
  • time difference
  • language barrier
  • lack of control
  • communication issues
  • problems with quality


  • huge competition
  • devaluation of services by firms from third world’s countries
  • flexible working hours
  • time difference
  • language barrier
  • risk of not getting paid

In summary, software development outsourcing seems to have both positive and negative impacts. The positive side is that you can hire experienced software developers, who will help your business grow. The downside is that you might experience a lack of quality if you are not careful enough.

Based on this discussion we think that outsourcing will definitely be good for your business at some phase. However, we advise you always to read the contract carefully and not to rush when hiring!

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