Guide to Outsourcing Software Development

Whether you are starting up or already into business, there will be a requirement for building some software to automate some of your business activities. Digital transformation of businesses is not a luxury but a change that no one can escape.

If you do not own your own software development team or you want your team to dedicate their resources to some other projects, outsourcing the project is something should be looking up to.

Outsourcing software development is the process of letting someone outside your business or corporation build your software solution.

Table of Contents

Outsourcing Software Development
Outsourcing Software Development

What is software development outsourcing?

Outsourcing, as you are probably aware, is the process of delegating software development to an individual, a software team, or an external firm. It offers a number of advantages, the most notable of which is that it allows you to tap into a talent pool of highly competent software engineers with experience and expertise who may not be available within your own organization.

Furthermore, outsourcing software development can save firms a significant amount of time and money by freeing up current personnel to work on other key business issues.

Most significantly, hiring a specialized software developer or software team ensures that your project has access to the most up-to-date technological solutions.

Moreover, for many firms, the software outsourcing team becomes a helpful extension.

What are the different types of outsourcing?


This kind of outsourcing entails entrusting your project to a single developer or software team based in your country or city. While working on a complex software development project, this type of outsourcing allows for regular face-to-face meetings. Although convenient, homeshoring is frequently costly.


The most common type of software development outsourcing is nearshoring. It entails selecting a development team in a country that is close to your own and convenient in terms of location and cost.

Nearshoring’s popularity stems from the fact that it checks several boxes in terms of skill sets, costs, similar cultures, time zones, language, and currency.


Offshoring is a type of outsourcing that has been less prevalent as the world has become more digital. Offshoring refers to outsourcing software development to countries like China and India.

For enterprises, it frequently comes with a different price. Different time zones, language hurdles, extended transportation periods, and customs issues can all pose significant challenges to your core companies.


Onshoring is the process of bringing work that has previously been outsourced or offshored back to a software developer in your own country. This decision may be made for a variety of reasons, including a new collaboration opportunity or a desire to be more involved in the software development process.

How do you successfully outsource software development?

It is a highly subjective question. For startups and corporations, they like that their partners be in manageable time zones so that their workflow does not get distracted.

In terms of cost, I personally feel that software solutions from the Indian sub-continent are way far cheaper than those built-in some European countries.

The best answer to this question is to outsource to someone who fits your requirements and you are comfortable with.


Outsourcing software development can be of several types. To name some of the popular ones: homeshoring, nearshoring, onshoring, and offshoring.

I hope this post helps you in one way or another. If you are looking for someone to outsource some of your projects, kindly get in contact with.

Leave a Reply

Discover more from BHUTAN IO

Subscribe now to keep reading and get access to the full archive.

Continue reading

Scroll to Top