Programming Outsourcing In 2023: A Complete Guide and Benefits



Programming outsourcing is like hiring an expert team from another company to help with your tech needs. It’s a smart move for many businesses because it can save money, bring in expert knowledge, and speed up work. With the internet connecting us all, it’s easy to find and work with talented coders from anywhere on the globe.


Outsourcing is becoming more popular. Over the next four years, the IT outsourcing business is expected to grow by $98 billion. For small businesses, 37% of all IT tasks are being outsourced. With trustworthy outsourcing software companies offer a larger pool of competent developers, and offer competitive costs.

This guide discusses the disadvantages and advantages of outsourcing software development.

What is Programming Outsourcing?

Programming outsourcing refers to the practice of hiring an external company, team, or individual to handle specific programming or software development tasks instead of using in-house resources. This can range from developing a complete software application to managing certain components of a larger project. This can be done for various reasons, including cost savings, access to specialized expertise, or to manage overflow work that cannot be handled by the internal team

This could be a fantastic option if you’re a startup with limited technical resources or want to cut costs. Even if you don’t have a tight budget, outsourcing can be a cost-effective way to meet your consulting demands while smoothing out your business operations. It also prevents experienced software developers from being poached by high-paying corporations like Google or Facebook.

Outsourcing also provides you with greater flexibility. Clients can engage competent specialists for various project components and the resources that the project will require by outsourcing software developers through a business like Bestarion. The flexibility to distribute needs and coding requests across your team of developers promotes maximum efficiency, allowing you to focus on what is most important to your business. Your responsive staff is eager to tackle new problems and is committed to producing a high-quality product.

When outsourcing software developers, you can outsource non-essential programming functions to free up time and resources for your in-house team during peak production seasons or time shortages. 

Read more: In-House Recruitment vs. IT Staff Augmentation

Why Do Businesses Outsource Programmers?

The two most significant issues that tech companies face are capacity and knowledge sharing.

Outsourcing provides access to a global market with virtually limitless human resources. A third party can assist when your in-house team needs more experience or personnel.

Buffer, for example, is a social media management company. They develop their software in remote teams. 

Outsourcing is a great choice, even if you don’t own a tech company.

Businesses require assistance with website development, apps, analytics, and reporting. Software outsourcing opens up a world of developers to meet your needs.

You must ask yourself one simple question: why is outsourcing beneficial to your business?

The Advantages of Programming Outsourcing

Outsourcing has many advantages, including cost savings, quick turnaround, and access to cutting-edge technology.

Here are ten compelling reasons to consider software development outsourcing.

1. Cost Savings

One of the primary reasons companies outsource is to reduce costs. Outsourcing to countries with lower labor costs can result in significant savings, especially for large projects.

Salaries are often two to three times greater. Consider the expense of placing an advertisement, conducting interviews, shortlisting, and training. There’s also computer hardware, an ergonomic chair, and adequate lighting. Software bundles like Adobe Creative Cloud are also costly.

The statutory rights of employees must also be addressed. Sick days, time off, it all adds up.

When you outsource, the cost is all-inclusive and can save you tens of thousands of dollars.

2. Quick Development

Employing a broader talent pool allows you to complete your project ahead of schedule. More developers equal faster release cycles.

There are established development cycles that your in-house team may not employ.

We, for example, employ the Agile framework. Programming is accomplished in short sprints, allowing you to work with prototypes in weeks. Significant concerns are identified early on, saving time and money.

Outsourcing gives you access to thousands of developers all over the world.

3. Strategic Planning

Is your company well-versed in project management? If you don’t, find someone who does.

You should be able to sketch out your requirements and then watch them evolve into milestones. An intelligent strategic planner will keep you involved at all process stages. Their planned reporting tools will show progress and indicate potential problems.

4. Saving Time

Consider the time it will take to establish your in-house team. Add to that their training and daily schedule modifications. Remember to configure their systems and add their accounts to the network.

Suddenly, weeks have passed, and your project has gathered dust.

The lead-in period for outsourcing is short. You compose the brief, upload your requirements, and get results in hours.

5. Better Testing

Unit testing is a pain. All scenarios need to be considered and checked. Reporting must be carried out and shared.

Most in-house programming teams are unable to deal with all of those factors. If only you could access thousands of highly skilled testers who could double-check everything.

You can do it using software development outsourcing!

6. Global Technology Market

Programming involves several types of development. Your projects range from online applications to native Android apps and older systems.

Outsourcing allows you to select the industries you require. Choose companies that specialize in React or Angular, for example. To assemble the ideal development team, narrow your alternatives to your budget.

7. Reduce Internal Workload

In-house development is required for some large projects. Your clients may request that your employees work on their projects. If daily concerns emerge, your personnel can resolve them instantly.

But what if another project arrives? Your crew becomes overburdened, and production suffers.

Outsourcing software helps to alleviate this strain. You can take work knowing you can handle it, allowing you to expand your firm.

8. New Technologies

Is your new web app written in native code or on a hybrid platform? Is your in-house team knowledgeable in both?

Why not make use of the latest technology available through outsourcing?

9. Concentrate on Your Core Business

Programming consumes a significant portion of a business day.

You can concentrate on the rest of your business by pushing it out. Outsourcing will free up time for you to manage your budget, provide better customer service, and pursue new leads.

10. Risk Management

Outsourcing software developers might be seen negatively. What if everything goes wrong? Which firm can you rely on?

The same is true for an in-house team.

If a staff member fails to fulfill expectations, you must let them go. But you’ve already spent money on hiring and training and must do it again.

If a third party does not work out, try another. The procedure can be completed in days rather than weeks. If you need to replace a resource quickly, a good outsourcing firm will provide you with options.

Read more: Outsourcing Software Development Challenges and How to Solve Them

How to Outsource Your Programming: Step-by-Step

These steps are consistent with Bestarion but can also be used to outsource your programming department. Remember that these steps can be used for partial and complete programming outsourcing.

To begin the outsourcing software developers process, complete the following steps:

1. Make your Expectations Clear

Always try to build and negotiate a comprehensive plan with your possible programming outsourcing partner. Budget, milestones, deadlines, and overall company programming objectives should all be included in this criteria.

Look elsewhere if the budget, timeline, or another requirement still needs to be satisfied. Outsourcing programming allows you to save money and operate more efficiently. The key to productive cooperation is establishing upfront goals and communicating them effectively.

2. Provide a Detailed Job Description

Along with your list of business standards, including the skills required, how you prefer to be compensated, the estimated workload, whether a one-time project or a long-term partnership, the desired developer experience level, marketplace visibility, your preferred qualifications, and any other pertinent information. Be transparent and honest about your expectations of your outsourcing provider.

3. Identify the Best Cultural Fit for Your Firm

You will finally select a small outsourcing company in the United States, North America, a neighboring country, or anywhere else. Time zones, workplace culture, and language differences can impact your relationship positively or negatively. Before proceeding with an engagement, weigh the benefits and drawbacks of the proposed team.

4. Visit the Outsourcing Company’s Headquarters (if possible)

Spend time at your outsourcing partner’s offices to observe the organization’s working conditions, management style, and general quality. Meet with the project team you’ll be working with to see how well they work together and how they’ll collaborate with you on your outsourced project.

Try to grasp the team’s project-tracking approach and ensure it is regularly shared with you. A visit like this can sometimes make or destroy a partnership, so commit to it if you can.

5. Conduct a Quick Preliminary Review with the Team

This is an outgrowth of number four, but perform a brief preparatory review while presenting to the team. Assess team members’ communication skills, skill levels, and how well they display them. Also, ensure that your planned pay offer is free of flaws.

6. Examine your Personnel Statistics

Avoid firms or development teams with high personnel turnover rates; this could be a red flag. Insist on finding a project team that has worked together for a reasonable time and has developed a rapport.

7. Verify each of Your Developers’ References

Don’t rely on rumours. If possible, speak with your prospective outsourcer’s long-term customers and clients, particularly other organizations in your industry or those that have employed the same services from the outsourcing company. In addition, request recommendations directly from team members you may be hiring.

8. Create a Detailed Schedule of Deadlines and Timetables

Create mini-deadlines within the project you want to outsource and need your outsourcing team to provide you with frequent and planned updates and access to contact lines if they need to ask questions directly. Companies that use an agile methodology will include this in their sprint schedules.

9. Comply with the Law When it comes to Outsourcing

Check that any outsourcing relationship with a company or team complies with state and federal regulations, privacy laws, and industry-specific rules like the Health Insurance Portability and Accountability Act (HIPAA), which provides data privacy and security provisions for keeping medical information safe.

Consider how your company’s taxes, deductions, and fees may change if you outsource to another company. Maintain a paper trail so you know the situation come tax season.

10. Evaluate your Outsourcing Company’s Business Expertise

Seek an outsourced brand partner who understands your business, not simply the technology you want to outsource. An outsourcing company that understands the business case for the software, coding, hardware, and how it will be used daily for the project is in a much better position to build a superior product or application quickly. Ensure that your employees and the outsourcing provider are on the same page.

11. Be willing to Accept Additional Assistance

Recognize additional sources, help, or skills from the original outsourced organization. Consider hiring a programming outsourcing firm that provides valuable services such as business advice and knowledge, financial advising, marketing, and advertising expertise, as well as the necessary standard IT outsourcing guidelines and support.

These added relationship features not only reduce the number of vendors you’ll end up dealing with in the long run (which means fewer additional partners to worry about bureaucratically), but they can also create a long-term partner with a thorough understanding of your business and a vested interest in your overall success.

12. Focus on Benefits that aren’t just Cost Savings

Consider how a programming outsourcing business might affect your return on investment (ROI) by bringing your project or product to market faster, improving your customer service objectives and goals, or other essential reasons.

It’s important to note that some outsourcing attempts are different, and some of these phases may differ.

Pain Points in Outsourcing and How to Avoid Them

Outsourcing may appear intimidating, but it does not have to be. Here are some concerns you may have and advice on how to avoid them.

  • Language barrier: ask to speak to your primary support contact via video conferencing.
  • Cultural differences: choose a team that has similar cultural values to your team.
  • Delivery deadlines: include delay penalties for overdue work.
  • Switching developers: demand a dedicated team and ongoing proof
  • Quality assurance: ask for their client list, then contact them for feedback.

Outsourcing programming is similar to project planning. To increase your chances of success, lay the groundwork early on.

Read more: Staff Augmentation vs IT Project Outsourcing: Pros, Cons & Differences.

Questions to Ask Your Outsourcing Company

Make a list of questions to ask before hiring a third party. As an example:

  • Can you provide some samples of your work?
  • What will the cost of each stage of development be?
  • Who will be my primary point of contact?
  • How do I get in touch with you for help?
  • What if I don’t like what you’ve done?
  • How quickly can you get started?

Read more: How To Handle The Top 5 IT Staff Augmentation Challenges.

Are you ready for your programming outsourcing?

The answer to why firms outsource should be evident by now!

There are numerous advantages to outsourcing your software development to a third party. However, you must ensure that you select the right team.

As demonstrated by the 15+ years we have under our belt, Bestarion has successfully shared its suite of outsourcing services with many happy clients. Bestarion is fully committed and dedicated to providing best-in-class engagement models to outsource programming and other IT-related tasks for all client needs. The main goal is to provide the highest value to our clients through a portfolio of outsourcing offerings that are robust and custom-made to suit your needs.

Please get in touch with us today to explore your programming outsourcing needs.

I am currently the SEO Specialist at Bestarion, a highly awarded ITO company that provides software development and business processing outsourcing services to clients in the healthcare and financial sectors in the US. I help enhance brand awareness through online visibility, driving organic traffic, tracking the website's performance, and ensuring intuitive and engaging user interfaces.