Pros and Cons of Outsourcing Software Development

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The market size for global outsourcing reached $85.6 billion in 2018. 

The numbers don’t lie, outsourcing is and will continue to be an incredibly valuable alternative for businesses looking to get certain tasks and responsibilities managed – all without having to spend unreasonable amounts of money.

Software development isn’t the exception, and outsourcing it has alluring benefits. Though it’s always important to know its drawbacks.

Here are the pros and cons of outsourcing software development:


Outstanding cost-efficiency

We placed this benefit first on the list because if we could only list one, this one would be it.

If you’re considering outsourcing, it’s because you’re looking for an affordable way to carry out software-related tasks, while keeping quality as high as possible.

No matter the size of your business, hiring tech specialists in-house can be extremely expensive and burn your budget like a wildfire.

Outsourcing allows you to quickly gain access to a team of prepared specialists that is much more cost-efficient due to their lower wages or increased efficiency. 

You don’t even need to deal with the costs of setting them up. They’re already there, waiting for you to give them a task.

Access skillsets that aren’t available in-house

Sometimes, certain tasks are out of your team’s hands. By outsourcing your operations, you gain more reach when it comes to handling harder tasks or tasks that require certain skillsets.

Getting an in-house team that is as talented as an outsourced team usually costs much more. That means outsourcing software development is not necessarily just about lowering costs, but also about increasing quality.


One of the biggest problems of an in-house team is that you need to constantly feed it – with money $.

Even after the project you’re looking to get done is finished, you still have contracted employees that expect a payment every month.

There’s more flexibility with outsourcing. The typical rules don’t apply.

You can charge to get a project completed, and won’t have to pay even after it’s done.


Communication restrictions

Outsourcing Software Development is not all butterflies and rainbows. There are a few disadvantages that are worth considering.

One of them is the communication restrictions:

Different time zone

If your headquarters are in Washington, and your outsourced software developers team in India, there’s a time difference of 10:30 hours. This can pose a communication environment that slows down development or that creates problems down the line.


Language can also be another barrier that causes misunderstandings or simply makes communication harder. 

Unexpected outcomes

Since you’re not directly overseeing the third-party team you’re working with, you may not have as much visibility on how the project is being directed and developed.

This is especially a problem when the end-product is not shown until it’s finished. You can end up in the terrible experience of receiving something that’s completely or slightly different from what you expected.