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  • Writer's pictureDaniela Vidal

4 Benefits Of Outsourcing Software Development

Updated: Sep 11, 2023

In today’s world, there are many reasons why businesses choose to outsource their software development services. Read on to discover more about them!

What is outsourcing software development?

Outsourcing software development means that you hire an outside company to write code for you. This saves money and allows you to focus on other aspects of your business.

If you’re unfamiliar with outsourcing, think of it as hiring a freelancer who will work for you on projects you assign. They’ll do the coding, design, testing, and deployment for you, obviously, depending on your specific needs.

Why do companies outsource Software development?

To outsource software development is an excellent way to have very qualified people working for you with a lot of advantages. I'll tell you some of them in this blog.

Benefits of outsourcing software development

1. You can focus on other Business tasks.

  • If you are a Tech startup, and your core business is not technology but for instance delivering food, selling books, entertainment, or even if you are an MSF (a term that refers to a range of financial services that can be offered across the mobile phone, according to The World Bank) your really need the time and the labor force to lever up the business, finding investors, improving the value proposition and finding customers.

  • You don't need to spend time and money setting up the development team, looking for new talents, and making the recruitment process and testing because that's a process that has been done by the company you hire.

  • If you are a start-up you probably just need a team for a specific job and updates, hiring a software development company will prevent you from having a team with idle capacity.

2. You have more control over your project's timeline and budget.

  • An offshore company means that your outsource software development company is based in another country. For American companies, this model of outsourcing is way less expensive than hiring an onshore company.

  • One great way of knowing a rough timeline and budget is the methodology of Story points, used for some companies, I’ll explain how it works:

  • First, your company list the development requirements (User Stories)

  • Second, the software development company extracts the list of tasks demanded by each requirement.

  • Third, each task is scored on different dimensions such as design, implementation, and testing.

  • The scoring is done according to the complexity of the task and is placed in one of the categories: low, medium, or high complexity.

  • Finally, based on deep knowledge about the average performance in SPs/Sprint of the different developers' profiles (Junior, mid, senior), the budget, the number of resources, and the duration required to execute the project are estimated.

Outsourcing software development - story points methodology
Outsourcing software development - Story Points Methodology

3. You can outsource any part of your project.

Let's be honest, having a team with experts in every subject we need is very expensive. Outsourcing is an excellent way of having specialists that help you to think out of the box in your project in the short or mid-term.

If you need help with any part of your project, you can hire an outside company to do it. Whether you need help with web design, programming, graphic design, or anything else, some companies specialize in these services.

You can outsource every part of your project to different companies depending on the expertise you need, for instance, you can be an American-based company hiring a Colombian company for writing code and a Ukrainian company for graphic design processes, the possibilities are endless.

4. You can work with an expert team that has years of experience in their field

Working with an experienced team of software developers will allow you to get the best results from your investment. Instead of just sending your ideas and requirements, you can work with an expert team that will help you to refine your idea and build software with the features you need.

You will be able to see the progress of your project in real-time, which will allow you to make changes as needed. This will also give you the opportunity to have your questions answered, which will help you to be more efficient in your work.

If you outsource your software development needs, you may receive better results than if you hired a team directly. This is because agencies typically have more experience with the process of developing software. They also have access to a wider range of talent.

In addition, if you choose your outsourcing software development company in South America and is not needed that the talents who work with you speak fluent English, you have access to high-quality talents with lower prices, and thanks to the agile methodologies as SCRUM, you can communicate with only key bilingual interlocutors who can be the scrum master or a lead engineers.


  • You will receive a quality product that meets your needs.

  • You won’t have to spend time learning how to use the tools needed to complete the task.

  • You won’t have to worry about finding qualified employees who understand what you need.

  • You will have access to experts who can answer questions as they arise.

In conclusion, we can say that if you have a start-up with high technological value but you don't have the budget to have your group of developers or you don't want to lose the focus of your business, outsourcing software development is a great investment for you.

Also if you are a US company and you want to be more efficient at a lower price it can be very useful to look for Latin American outsourcing companies.

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