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Home » Glossary » Software Outsourcing

Software Outsourcing


What is software outsourcing?

Software outsourcing is the process of contracting IT professionals specializing in software development. 

Software outsourcing providers, particularly BPO companies, usually offer custom software solutions according to their clients’ requirements. 

IT outsourcing has been an ongoing trend in the past and will continue to be among the top outsourced services in the coming years. 

In fact, as per Statista reports, the total revenue from the public cloud market is valued at 482 billion USD. The software as a service (SaaS) market reached over 145.5 billion USD in 2021. 

Today, the IT industry predominantly leverages outsourcing. Outsourcing software development provides several benefits to companies of all sizes and industries. These benefits include cost savings, increased productivity, reduced risk, and greater security.

What is software outsourcing?
What is software outsourcing?

Types of software outsourcing

Outsourcing the creation, testing, or maintenance of a software product can be done in various ways.

Onshore software outsourcing

Onshore outsourcing is the practice of client organizations collaborating with software development teams based in the same country or region.

Offshore software outsourcing

It is the process of developing software for use in your nation using the services of a team situated in a foreign place.

Nearshore software outsourcing

Nearshore software development firms are in countries with similar time zones or those with minor time differences.

Importance of software outsourcing

Companies greatly benefit from software development, particularly corporate software and mobile app development. These tools help streamline their internal and external processes. 

When you outsource your software development, you have rapid access to a pool of highly skilled candidates. This enables your organization to begin application development more quickly.

Hiring skilled software developers reduces the risk of errors. These software developers provide high-quality software solutions customized to your target consumers in less time. 

IT decision-makers and company owners are increasingly turning to outsourcing providers to make their organizations more agile and efficient. Companies can focus on their more critical tasks and keep long-term strategic initiatives on track.

If you want to elevate your business, consider investing in software development in tandem with digital marketing.

Why you should try software outsourcing

One of the leading trends in software development has been outsourcing. Even experienced software engineers opt to acquire the assistance of outside developers. This helps them protect their projects against data breaches and reduce the chances of hacker assaults.

Here are some key reasons why well-established organizations should consider software outsourcing: 

Onboarding costs are lower

The procedure for hiring a new team member is complicated and time-consuming. Outsourcing software development skips this step and ensures that you have experienced professionals committed to completing your requirements.

Time management is more efficient

Being agile to market is critical in a competitive digital economy where there is little tolerance for error. 

Your product will be ready for consumers in no time if you have a specialized software development team. And this is not just your regular team; these people are adept in terms of project management and are also dedicated to building agile solutions.

Domain knowledge is available

Entering new markets is incredibly challenging for organizations. Robust software outsourcing firms with interdisciplinary extended development teams provide a range of framework competencies. These competencies include JavaScript, React Native, and.NET, allowing them to position your company for future growth.

It increases customers’ engagement

With the help of software outsourcing, you may enhance customer experience on your website and application. In turn, your valued customers will choose to stick to your brand rather than your competition.

Why you should try software outsourcing?
Why you should try software outsourcing?

Top outsourced IT services 

IT outsourcing has a wide range of services and specializations. Besides software outsourcing, below we have outlined other commonly outsourced IT services: 

Web development

Web development is the process of designing, developing, and managing websites. It includes web design, web publishing, web programming, and database administration.


Web hosting is a type of online service that allows you to publish your website or web application on the Internet.

App development

Software and application development creates and maintains applications, frameworks, and other software components by conceptualizing, specifying, designing, coding, documenting, debugging, and resolving problems.

Technical support

Technical support is the action given to a user who needs assistance with a specialized product or service, whether it’s hardware equipment or software

Database development and management

Database development and management covers database design, access, implementation, application development, and management and data analysis for business intelligence.


Outsourcing telecommunications include building infrastructures or implementing programs to facilitate the smooth electronic exchange of information across long distances for voice, data, and video transmission.

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 3,900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

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