Software Outsourcing 101: How to Find the Right Software Development Company

The technological landscape is changing at a fast pace and a large number of businesses are undergoing digital transformation.

This trend has been on the rise since the COVID-19 pandemic that forced businesses to switch to digital solutions because of remote working. In fact, the majority of businesses that relied on manual processes previously have realized the importance of digitally-driven software solutions.

With the rising number of organizations embracing digitization, the demand for bespoke software development services has also increased significantly. Businesses require a software partner that is well-experienced and capable of building a software system from the ground up that address their unique requirements, which most commercially available off-the-shelf software solutions fail to do.

Developing a new custom software application from scratch is an overwhelming assignment, especially for those who lack the technical know-how of application development. Therefore, many business owners opt for external help in the form of software outsourcing. There is a wide range of outsourcing options that are available today; the development work for a project can be outsourced to freelance software developers or professional bespoke software development companies, and there are a plethora of choices available for businesses.

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Regardless of the outsourcing method and the type of software project, trusting a third party with the development of your software solution is a risky process that requires a thorough examination. This guide is for business owners who are starting their software outsourcing journey and trying to find a suitable software development company.

Important Variables to Consider When Finding a Software Partner

Here are some of the most important variables you need to consider before starting your outsourcing journey. These are factors you need to take into account when searching for the right development partner for your software.


The cost of software development should be one of the main factors steering your software outsourcing decision, especially if you have a limited development budget. Depending on your requirements, technologies, software size, and choice of platform, the cost of development can fall anywhere between a few thousand dollars to a million dollars.

Cost is also an important factor to consider when deciding between recruiting freelance software developers versus hiring a professional software development company. The cost of hiring freelance developers is comparatively lower than the price a software company might charge you because of their low per-hour rates. With a freelancer, businesses can select the specific skills they need for a given project, rather than paying for a full-time employee with a broad range of skills. This can save businesses a considerable amount of money, as they only need to pay for the services they actually require. One of the best methods to pay your freelancers is paying them by the project, but make sure you communicate clearly so that there are no misunderstandings about how they will be paid. However, freelance developers are individuals that are usually specialized in a particular area which means they are not ideal candidates for a complex project. A software company, on the other hand, offers a complete range of development lifecycle services including project management, UX design, testing, business analysis, and consultation, which is ideal if your project is extensive and technically complex.

The cost of hiring a company also depends on the region. For instance, a software development company in London will cost you significantly higher than a company in India that offers low-cost services. Software service provides in developing countries offer inexpensive and affordable software development rates, mainly because of the low cost of labor in the region. This is a reason why offshoring became a popular choice, especially for businesses with a limited development budget. However, offshoring has its own set of drawbacks which we will discuss in the upcoming points.


When searching for a software provider for outsourcing, it is important to hire someone who has experience working on projects similar to yours. A project portfolio of the provider is good to consider to get an idea of the clients they have worked with previously. You can verify their experience by asking them to provide client references or you can find customer reviews and testimonials on trusted rating and review platforms such as Clutch and Manifest. A portfolio will give you an overview of the size of projects that they have worked on and the industry verticals they have served in the past.

Quality of Service

Quality of service is another important factor to consider because a low-quality service will result in a sub-standard software product. Most people associate the value of service with its price, assuming that the higher the price of the service, the better the quality of end results will be. This is mostly true when it comes to bespoke software development. If you only focus on the affordability of software development rates, then you would have to compromise on the quality of the software product. It is advisable to come up with a realistic budget, so you don’t have to compromise on the quality of the work.

Pool of Talent

The success of software development outsourcing depends heavily on the skills and expertise of the development team. The quality of work and the talent of the developers reflects in the finished product; therefore, it is crucial that you choose a company that has the best talent pool to offer. During your initial discussion with a company, it is important to ask them about their lead resources and their skills and areas of expertise. You can also request the company to provide the resumes of the developers and other resources that will be assigned to your project, so you can vet their skills and only select professionals who are well-experienced.

Differences in Culture, Language, and Time Zones

This is an important factor because it establishes the communication and collaboration process between you and your service providers. Regardless of the scope and complexity of the software project, it is crucial to have a clear line of communication with the development team so they can understand your vision of the software and implement it correctly. Differences in language and culture can create communication barriers that can ruin the outsourcing experience for you. Similarly, differences in time zones can also hinder your ability to easily collaborate with software providers. It is always advised to choose a software company that is operating in a region that is closest to you in terms of language, culture, and time zone.

Legal Policies and Regulations

Legal policies and regulations of the country where your software provider is located are important with regards to security and protection. As a client, you should prioritize the privacy and security of your software application, especially if your software will be handling sensitive information. Local laws in your provider’s country ensure that the finished software product adheres to certain standards of data privacy and security. For instance, a software company in the UK or European Union falls under the General Data Protection Regulation (GDPR). Therefore, it is under the obligation to build technological products that comply with the terms of GDPR by protecting personal data, handling it responsibly, and storing it securely.


With the rising trend of bespoke development and software outsourcing, we hope to help businesses that are starting on their outsourcing journeys. Successful outsourcing depends on finding the right partner, and we hope this guide helps businesses find the right outsourcing partner for themselves.