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How to make Software outsourcing work for small Companies?

Posted By Praveen Joshi on 11 May 2018
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Software outsourcing has been a buzzword for almost as long as software development has existed. The great debate of "to outsource or to not outsource" continues even today, but no one can deny the importance of software outsourcing. For the big corporations and MNCs that do outsource their software development services to external partners, things have worked out really well. However, does software outsourcing lose its relevance when it comes to small companies? Well, it does not.

Small businesses and startups almost always face the same difficulties that large companies do when it comes to software development. This is why software development outsourcing has continued to advance in the market over the past few decades. A recent study suggested that 56.3% of the startups are currently outsourcing software development. Let’s take a better look at how software outsourcing benefits small businesses.

Need of outsourcing for small companies

Some benefits apply for small and large companies alike, while others are tailored specifically for the needs of small businesses:

1) Talent acquisition

If you are set to develop the bespoke software among other things, you also need a great team. You’ll need the best project manager, operational manager, business analyst, QA manager, software architect and the best process analyst. You will need to set up a hiring process that is capable of capturing the best talents, along with ensuring that there is enough work so that they are continuously engaged in projects (which will be the case only if you are completely into software development). Software outsourcing saves you from a lot of that trouble by simply delegating the tasks to people who are already experienced in it.

2) Infrastructure

You need the man, so you got the man. Now, you need the machine. Apart from hiring talents, you will also need the infrastructure that supports the agile software development outsourcing process. It includes everything from the office desk to the software licenses. Again, not worth the money if you don't develop software often. Outsourcing the software development to other parties works well because they have the necessary environment and infrastructure for developing the software.

3) Technology

Completing a task with the tools is still achievable, but what if you need to develop your tools? Technological innovation in the 21st century follows an exponential curve, and utilizing the latest technology is quite imperative. However, developing a new technology is far from easy. Apart from a host of professionals who know what they are doing, huge funds are needed for R&D. A much cheaper and simpler option is to simply utilize the technology of those who already possess it. This is what even tech giants like Google and Facebook do, so small companies should have no problem following this path.

4) Continuous support

Offshore outsourcing software development is not just limited to developing the software, it goes beyond that. Post-deployment support is often overlooked in the software development process, but it is quite vital in the grand scheme of things. Any bug or unforeseen complexity might put your entire operation in jeopardy. However, offshore outsourcing comes with a 24x7 support which ensures the clients have the help they need whenever require.

Choosing the outsourcing level

Like any business, offshore or nearshore outsourcing companies are not all at the same level. Some can handle only a single project, while others can take care of an entire MNC. If you follow the Cost vs. Benefit analysis, then a medium-size outsourcing company should fulfill your needs. There are two reasons behind it:

  • A Medium-sized outsourcing company would not overflow your budget, unlike a large one. In the long run, it will still cost you considerably less than what it would have if you had developed that software in-house.
  • At the same time, it will also have the necessary workforce and infrastructure to meet your entire requirement and deliver what you need. A small outsourcing option might help your compromise on that front.


Despite the myth surrounding it, bespoke software development services outsourcing is not something reserved for the big guns. Any business, big or small, can reap benefits by delegating the software development process to external companies. In the long run, the advantage speaks for itself.

Praveen Joshi

Praveen Joshi

Praveen is a seasoned IT Solutions Leader and Director at RSK Business Solutions, a technology-driven IT Consulting Company that specializes in Bespoke Software Development, Agile Consulting, Mobile App Development, Smart Sourcing, and much more. For the last 17 years, he has been delivering quality custom IT solutions that help businesses achieve their goals.

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