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Top 8 Reasons to Outsource Software Development

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There is no way you can have a successful business in the modern world without using technologies. And companies have three main alternatives here: gathering an in-house team, hiring freelancers, or contracting an outsourcing company.  As we see from the practice, the last option is the most beneficial in the majority of cases.

What is IT outsourcing?Basically, it’s using external human resources for software development. Why do companies choose to outsource work? Well, there are a number of reasons to outsource IT services. In this article, we’ll discuss top 7 of them.

#1 Cost-effectiveness

No matter how much money your business makes, wasting financial resources when there’s a more cost-effective solution is always a bad idea.


Hiring an in-house team for web development is not cheap. Not only must you pay salaries to your employees at a market level existing in your home country, but there are also many other labor-related costs such as taxes, insurances etc. As of June 2019, the average salary for software developer in the USA constitutes $80,018 per year (Glassdoor).


Also, if you opt for an in-house development team, you should set aside money to cover recruiting & HR expenses. These include, for example, payments for job ads on different platforms since most job boards charge money for their services, as well as headhunter agency fees. Of course, you may utilize resources of your internal HR department. But, if you want to find real talent for your development project, you’ll need at least some basic involvement of recruiters specializing in hiring tech professionals.

Operational costs

In-house developers must have space where they can work. And as an employer, you’ll also have to provide them with the necessary equipment and furniture. So in case you stick with the decision to hire an internal team, you’ll have to think about additional operational costs you’ll bear.

IT outsourcing frees you up from all of the above problems because:

  • You pay only for the actual time developers work on your project.
  • You don’t have to maintain the whole team full-time.
  • If you opt for the offshore development, developers’ hourly rates will most likely be much lower than in your home country.
  • You don’t have to bear any additional costs associated with recruitment and employment.
  • You don’t have to rent additional office premises for a development team; neither must you buy computers, desks, chairs etc. for them.

#2 No hiring stress

Recruiting professional software engineers for a development project might be a nightmare. Not only must you find people who have the necessary expertise, but you also should think about ensuring good conditions of employment so your in-house developers stay with you at least until a software product is released. Not to mention the difficulties associated with the integration of new team members in the ongoing project if someone you found decides to change their career path and leave your company.

Hence, the absence of hiring stress is one of the main reasons why companies outsource. If you choose a reliable development company for outsourcing IT services, you can be sure that there are always highly experienced programmers to make your project progress flawlessly. And you don’t have to think about recruitment and the related problems at all.

Also if you are dealing with the freelancers you never know when they decide to quit and left you with half-finished project. Moreover some of them may not be able to do both writing a code and doing its review. You need separate specialists for this mission. Also it is harder to identify the level of technology knowledge and experience of a freelancer if you personally do not have any technical background. On top of that, you do not have any guarantees that your project idea is safe. Some freelancers do not offer NDA. And the company you are choosing to outsource your software development to will always make sure that your idea and project are totally safe and protected.

#3 Faster start of a project

Information technology outsourcing allows for the faster start of your project. Gathering an in-house team that meets your needs may take ages. And since the time is money in the business world, there are rarely the cases when a slow commencement of a project is justified.

IT outsourcing provides you with the opportunity to start the development work as soon as possible. The time to market is minimized and that’s why outsourcing is considered to be especially beneficial for fast-growing and dynamic businesses. The only thing you have to do is to find a trustworthy software development company. You may use such reputable platforms as GoodFirms to make this task as simple as possible.

#4 Agile project management

Agile methodoly is probably the biggest advantage you will appreciate if you consider working on your project together with software development company. It offers better velocity and adaptivity and allows to consider and implement changes to your project in the process of the development. So all improvements will be added as you go and not in the end of the development right at the release. This is very convenient because you can shape your idea in the process and make you solution even more advanced than you initially wanted.

Also software development companies offer CTO and Project Manager services if you do not have these people in your company. And they also can work with your professionals if needed. As to Altamira, we use Scrum to manage our projects and we consider it to be the most effective methodology by far. For many years it helps us to perform timely releases and better control over the projects. Freelancers may not offer you Scrum methodology and in this case you will not be aware of all crucial processes which, in turn, may influence the quality of your solution.

#5 Lower risks and better skills set

Another great advantage of outsourcing IT company is the lower risks as compared to other alternatives. Freelancers are considered not very reliable in terms of the declared level of expertise and meeting deadlines, while the competency of an internal team is usually limited to a number of pretty much routine tasks they perform most often.

At the same time, if you outsource information technology services, the risks are mitigated. First of all, IT outsourcing companies comprise professionals specializing in different technologies, so the team working on your project is able to see the big picture and address most issues at the early stage. And, secondly, they know how to establish efficient workflow within the development project, so there are no delays and the process goes seamlessly.

Let’s take Altamira – our team has more than 9 years of experience in software development. We have professionals of different categories in our team (Junior, Middle, Senior). And their hourly rates start with $19-38 only. They have experience in working with the following technology stack:

Mobile developmentBackend development Frontend development 
  • Java
  • Swift
  • Kotlin (Android)
  • Flutter (multi-operational – one app for both Android and iOS)
  • Yii2
  • Laravel
  • WordPress
  • OpenCart
  • Symfony
  • Silex
  • Codeigniter
  • Python (Django and Flask frameworks
  • Angular 2+
  • Vue.js
  • ionic (hybrids for mobile devices)
  • Pure JS (animation, etc.)
  • React.js
  • Ember
  • AngularJS

So we can say for sure that it is possible for our team to handle a project of any complexity because we have enough skilled and experienced members in our in-house team. The freelancers cannot offer you such high level services because mainly they work either alone or in small groups and with limited number of technologies only.

#6 Work with a cohesive team

presentation, business meeting

This reason is related to the previous one. Yet, we want to outline it separately as it’s one of the most important but the least obvious. It goes without saying that effective communication is essential for the success of any project. And information technology outsourcing gives you an opportunity to hire experts who are already used to working together. This means that they know specifics of each other’s styles of work and, thus, can easily adapt to them if needed. Consequently, there are much fewer misunderstandings and if any issues occur, they are resolved in a timely manner.

Some IT outsourcing companies subcontract freelance developers to perform separate tasks on clients’ projects. As a result, the quality of a final product is compromised. So when choosing an outsourcing partner, make sure that only in-house programmers will do the work.

#7 Flexibility

When thinking about pros and cons of outsourcing IT services, flexibility is one of the greatest benefits. First of all, you may choose the developers specializing in technologies you need for a specific project. Secondly, you don’t have to pay them for the full-time work — only for the hours they spend to complete certain tasks. This advantage is especially applicable if a project is not very big or there have to be breaks between its stages.

And, finally, by outsourcing information technology you can select separate IT functions you want to delegate to the external team. For example, you may have outsourced IT support, outsourced web development etc.

On top of this, you can opt for hiring a dedicated team that will work only on your project(s) if you need developers for a long term.

#8 Better focus on your business processes

Freeing up management time is also a reason why some companies choose to outsource IT. A development team may use different methodologies, for example, Waterfall or Scrum, so the ways they work will also be different. However, there is always a person you can contact directly to find out how the process is going. At the same time, only your minimum involvement in a project is required — just to make sure that your team and you are on the same page. Hence, you can stay focused on your core business processes rather than managing software development.


Outsourcing implies that you are hiring the whole team and delegating your project development to them. This team does everything starting with marketing research and ending with development, testing and release. Outstaffing is when you hire tech takes who work in a certain company to expand your own team and complete a certain set of tasks. Both approaches help to save costs, speed up the development process and receive high-quality solutions.
There are two main pricing models – Fixed price and Time and Material. Fixed price means that you agree upon the total price of a certain scope of work beforehand and your expenses will not exceed the agreed cost of the project. Time and Material implies that you will be billed for the time and expenses related to your project as they occur. The second model is better as you can make changes related to the project on the go and receive more advanced solution as a result.

How to outsource App Development?

When it comes to the mobile or web development project, there are indeed no reasons not to outsource. Outsourcing IT services is the option that will save your money without compromising on the quality of a final product. On top of this, you can start your project fast and have a support of highly experienced professionals throughout the whole process.

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