How To Get Start With Software Development Outsourcing In 2024

How To Get Start With Software Development Outsourcing In 2024

The traditional approach of hiring in-house development teams – with rates ranging from $385 to $850 per hour—has become unsustainable.

With project sizes ballooning from $500,000 to over $100 million, it’s clear that a different approach is necessary for most businesses.

This is where the revolutionary solution of software development outsourcing comes into play.

For those questioning the viability of sustaining development efforts while keeping costs manageable, software development outsourcing not only facilitates significant cost reduction but also accelerates development speed, allowing companies to focus more on their core business activities without compromising on the delivery of high-quality software.

By partnering with these companies, businesses gain access to a global talent pool, courtesy of offshore software development hubs like India. These software outsourcing companies are repositories of specialized expertise and innovative solutions.

In this guide, you will be equipped with the knowledge to choose the right software development outsourcing partner and understand the different models of engagement that can tailor-fit your project’s needs.

What is Software Development Outsourcing?

According to a report by Statista, software development is among the most commonly outsourced IT functions today.

But how does it work?

Software development outsourcing involves engaging a third-party service provider to manage software development projects. This can range from creating bespoke software tailored to a company’s specific needs to overseeing business operations technology or even developing and maintaining client-facing applications.

The versatility of software development outsourcing allows it to address a broad spectrum of needs, from web and mobile application development to software testing, maintenance, and general IT support.

Software outsourcing companies offer a pool of highly skilled professionals who can kick-start your project immediately, ensuring that development is both cost-efficient and timely. Furthermore, partnering with offshore software development hubs like India can magnify these benefits, offering substantial cost savings while accessing a global talent pool renowned for its technical expertise and innovative approach.

Benefits Of Software Development Outsourcing

Expanding a software development team internally can significantly strain a company’s resources, but there are a lot more advantages:

Global Talent Access and Cost Efficiency

Software development outsourcing provides access to a global talent pool, a solution to the limited local talent available to many companies. According to industry insights, software outsourcing companies generate 50% of the total global outsourcing value, showcasing the economic advantage of tapping into cost-effective, high-quality resources from regions like India, Brazil, and Eastern Europe.

Focus on Core Business Functions

Outsourcing software development frees up vital internal resources, allowing businesses to focus more intently on their core functions—a strategy adopted by a substantial number of companies. A notable 49% of respondents cite freeing up resources to concentrate on primary business objectives as the chief reason for outsourcing.

Market Growth and Revenue Impact

The global IT outsourcing market has experienced substantial growth, with revenues reaching $460.10 billion in 2023. This figure reflects the critical role that outsourcing plays in the technology sector, supported by 76% of executives in business and technology sectors who report their companies’ active participation in IT outsourcing.

Strategic Adaptation and Innovation

The increasing trend towards outsourcing, especially in app development, indicates a strategic shift in corporate tactics. With 34% of organizations adjusting their strategies to leverage software outsourcing opportunities, there is a clear movement towards external collaboration to drive innovation. Conversely, only 9% are looking to develop software with in-house teams.

Enhanced Project Delivery and Time-to-Market

Outsourcing accelerates project timelines and enhances delivery efficiency. Companies that partner with experienced software outsourcing companies benefit from their ability to execute projects swiftly, ensuring faster time-to-market.

Scalability and Flexibility

Unlike in-house teams that may require time-consuming and costly scaling, software development outsourcing companies are equipped to promptly address changing needs, thanks to their broad talent networks and adaptive project management practices.

Choosing the right software development outsourcing company is crucial for the success of your project. At Sphere Outsourcing Corp, we understand the challenges businesses face when embarking on software development projects—whether it’s aligning with industry standards, integrating new technologies, or managing cost efficiencies.

Why Sphere Outsourcing Corp. is the right choice for your software development outsourcing needs

Dedicated Team

Each project is handled by a dedicated team tailored to meet its specific needs and goals.

Comprehensive Expertise

We offer a full spectrum of services, including:

Web and Mobile Development: Cutting-edge solutions that drive engagement and efficiency.
Quality Assurance: Ensuring the highest standards are met with every product release.
Digital Design: User-centric designs that enhance user experience and functionality.
Cybersecurity: Robust security measures to protect your applications and data.
DevOps: Streamlined operations to enhance collaboration and speed up deployment.
AI/ML: Advanced artificial intelligence and machine learning capabilities to keep you ahead of technological curves.
Salesforce Development: Customized Salesforce solutions that optimize your business processes.