Here’s Why Enterprises Need Software Development Outsourcing

Since the transition towards Globalization 3.0, the outsourcing and shared services (OSS) industry has played a key role in the business sector. With a consistent increase in demand and technological advancements, the OSS industry expects to surpass US$1 Trillion in the next 5 years, according to Deloitte. And it is rapidly transforming the way businesses worldwide operate. 

IT Outsourcing (ITO) has even become one of the most talked-about practices in OSS for helping businesses grow and improve enterprise resilience.

Despite that, some enterprises are still hesitant when hiring software outsourcing services. For them, this is associated with loss of jobs and delegation of vital tasks. They’re worried that this could lead to a negative effect on company culture or even have a costly encounter with the wrong tech partner.

Companies are rapidly shifting their focus away from merely contracting out tasks. Instead, they are looking to work in partnership with specialist outsourcing providers to bridge the skills gap, streamline processes and maximize productivity.

Ammar Al Malik - Managing Director of Dubai Outsource City

So, should you outsource or not?

Most growing businesses are bound to face this question sooner or later. So, let’s discuss why enterprises need to work with outsourcing software development companies in 2021.

What Is Software Outsourcing?

Simply put, outsourcing is a contract agreement in which a company hires or subcontracts another specialized organization or individual. In the case of software outsourcing, the third-party service provider is usually called an IT partner.

The outsourcing company handles and assists the development of software projects. They carry out all the required business tasks or functions at scale. These tasks could involve day-to-day management and operation of IT assets and processes. It may include mobile app development, custom software, IT staff augmentation, applications maintenance, and more.

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Why Should Enterprises Outsource Software Development?


Outsourcing has grown into a global multi-billion dollar industry over the past decades. In 2019, IT outsourcing represented the vast majority of the OSS market, with an estimated figure of 58.2%.

The 2020 State of Software Development stated that 22% of organizations say increasing development capacity is their top challenge presently. 

It seems more enterprises are now partaking in software outsourcing services. If you haven’t yet, it might be time you do the same. Here are some reasons why enterprises need to partner with an outsourcing software development company.

  • Enhance services, customer experience, and performance quality.
  • More time and energy to focus on your core business strategies.
  • Fast-tracks your digital product development.
  • Greater flexibility to scale a team as the need arises.
  • Access to a pool of the most talented development teams.
  • Access to the latest global trends and innovative technologies that drive business growth.

These are just some of the reasons why enterprises need software development outsourcing. Knowing the benefits that outsourcing provides will help you decide if this could work for your business.

When Should Enterprises Outsource Technology?

The right time to outsource will depend on the company. Here are some of the situations when an enterprise should outsource technology. 

  • Gain Competitive advantage against competitors
  • Validation of IT decision making and budget allocation
  • Reliable partner for delivering projects on time 
  • When your company is growing fast
  • When you need more hours in the day to dedicate to other tasks

Recommended article: Why your Software Development Will Fail.

How to Choose a Software Outsourcing Company?

Outsourcing could make or break your project. You need to choose a software outsourcing company that’s trustworthy and fits your business needs. To help you make the right decision, here are some factors to evaluate:

  • Projects completed in the past.
  • Software development model and methodology.
  • Technologies adopted.
  • Maintenance plans.
  • Skilled leadership.
  • Start with a Discovery before investing in developing.

Want to learn more about IT Outsourcing as a business strategy? 

Sign up here and get a free copy of our Guide to Overcome the Challenges of Bargain Software Development. 

You’ll learn the secrets of successful projects, how to grow and scale faster, the reasons why outsourcing projects fail, what to expect from a development partner, and how to choose one.

We help enterprises of a variety of sectors, such as healthcare, financial, governmental, construction, B2C and more. Take a look at our customer stories here.

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