8 Crucial Factors to Consider Before Outsourcing Software Development

When developing a software, you can choose to do it in-house or outsource it. Luckily, software development outsourcing is not a new concept.

For one, it allows many IT companies to cater to various clients. Second, it will enable them to boost their production without hiring new developers or buying new tools. Third, outsourcing allows companies to produce apps and tools that are beyond their in-house skills.

Still, you need to consider a couple of factors when it comes to software development outsourcing.


We do not suggest that you always hire the lowest bidder. But you should not overpay for the services you do not necessarily need, either.

Instead, look for a cost-effective outsourcing partner that can provide the services to your clients. If you notice that you are receiving inquiries about Android app development, consider partnering with an app developer or two.

Another thing to factor in is their per-project and retainer fee. That’s because some clients only want something built for them, while some are looking for build and maintain. That way, you can also determine which outsourcing partner can help you make the most out of every project.


Before anything else, ask yourself what software development tools you need for a project or a task?

This allows you to have well-defined software outsourcing goals. The thing is, most software development projects fail because they lack clear goals, to begin with.

When you have detailed specifics of the project and what the software does, you can quickly identify your need for hiring a third party.

What skills do you need from the outsource team? Compare the skills of your current team, and then see what needs to be filled in for the upcoming project.


Another step that you need to consider before outsourcing is how a third party establishes a connection.

Offshore outsourcing means that you’ll be delegating things to an overseas company. Hence, it is essential to know how they keep their clients updated. This includes knowing what log-in access they need and how they will turn over a finished project.

Luckily, technological innovations make it easy for us to connect and communicate.

We can now schedule Zoom meetings with our clients to know their needs. Similar apps can also come in handy when demonstrating how newly developed software works. And we can use email or instant messaging apps to update them now and then.


Another essential thing to know about a software development outsourcing partner is whether they have the expertise.

The initial thing you can do is to find out what services they provide. Next is to check what their past clients say about them. And we suggest that you go beyond the Client Testimonial section on your website.

Check their LinkedIn page and look at the Recommendation section. It can give you an insight into how they cater to their clients. If you know someone from one of their past clients, ask how the development company performed.

It would be best to hear it straight from them.

Lastly, interview them. Ask them questions like, “What methodology do you use when working on a software project?” Find out whether they provide the services you are looking for and if they cater to clients you want to outsource.


The ability of a service provider to adjust to certain situations is also crucial.

And by “adjust,” we meant whether they could cater to sudden requests (as long as it is within reason) or if they can shift from per-project to retainer basis.

That way, you do not have to look for a new outsourcing partner if these needs arise.


You want an outsourcing company that you are comfortable working with. And one of the excellent ways to find such companies is to understand the company culture of the provider. You can do an ocular inspection in their office, for example.

This will give you insight into their working atmosphere, and have a chat with one of the employees.

Similarly, you can also check their social media pages and what they post online. If they also do blogging on the side, make sure to carefully read their author box since it might contain valuable info about their skills. This gives you an idea of what their company culture is like, as well as their values.

Remember that company culture plays a significant impact on the entire partnership and the project. This impacts the project’s outcome, depending on how your outsourcing partner operates.

It can also affect how every team member interacts with another since some may have a different approach than others.

If a particular area of a project contradicts the company culture, this could lead to disagreements and resentments in the long run. This can also affect the team’s motivation to work on the project.

Quality assurance

Your software development should play a massive role in your business, and chances are, you wanted it to be unique. Your software must not only be fit for its purpose but worth the price as well.

Ideally, your software developer should walk you through the steps you need to take to ensure the quality of the project.

Then, the process that needs to be done if you’re not so satisfied with the outcome.

It will help if you also look for the developer’s terms and conditions. That way, you’re sure that you won’t be stuck in getting substandard results.


Another critical factor that you need to address if you are outsourcing software development is security.

That’s because you will be handing them confidential data, which is risky for your business and your customers.

Make sure that the provider you work with has strong security standards in place. Before you sign any contracts, make sure that you check for security and protection measures.

Final Thoughts

Choosing a software development company to be your outsourcing partner can be a significant decision. That’s because you will be entrusting some of your clients to them.

Hence, you will need a partner that can efficiently cater to their needs.

That said, always keep the factors listed above in mind. Always consider these factors when outsourcing a software development project.

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