Feb 10, 2023
by Alexei Falco

Software Development Outsourcing: Your Guide To Success In 2023

Outsourcing software development has emerged in the wake of globalization and the interconnection of countries through technology. Outsourcing opens up new horizons and potential for businesses.

The IT sector is a leader in this area. Most often, outsourcing is exercised in this field - 35% of all outsourcing services market belongs to the IT sphere.

Explore what software development outsourcing is and why it is so demanded in our guide to software development outsourcing.

What is Software Development Outsourcing?

Software development outsourcing is trusting part or the whole project to a third-party dev team or hiring third-party employees to achieve specific results. The outsourced development team completes the work remotely without being employed in the project owner’s company.

Two software development outsourcing models can be singled out based on the business needs and goals: project-based and dedicated development team models.

Project-Based Model

When a project or specific tasks are trusted to a third-party development team is the case of the project-based outsourcing model.

Dedicated Development Team Model

When a company has talent gaps and hires third-party specialists to achieve its goals, this is a dedicated development team.

When to Outsource Software Development

In some circumstances, the decision to outsource software development can be a silver bullet. If your company fits the context outlined below, outsourcing will likely be a winning option.

Budget and Time Concerns

Hiring an in-house team consumes both time and money. These two components are essential matters for a startup when every penny counts. It may become a winning option to Outsource software development for startups and companies that want to save time and money on employment and onboarding.

Yet, working with an outsourced software development team will allow you to focus on other business-related aspects since the vendor’s project managers manage the team. All you need to do is check the results.

Lack of Talents

The reasons behind the need to increase the development team may differ. However, a situation where there’s an urgency to hire temporary workers to achieve the desired results may be what you’re looking for.

Also, it’s an excellent option to outsource software development for industries beyond the IT field that don’t need a permanent in-house IT department.

When the develop[ment seems to be stuck, and you don’t know where to navigate it or how to improve the current state of things, IT consulting services is also a branch of outsourcing services that may become a lifesaver.

Improved Security is Required

Data must be secured - fact. However, protecting the data may be challenging for the dev team as it requires special knowledge and skills.

Here comes outsourcing. Trusting security to professionals will save you from losses resulting from data leakages.

Advantages of Using Outsourced Services

Outsourcing holds many strengths; each can find something specific to their project and the services provided. However, a few will be relevant, perhaps not to everyone, but to the majority of cases.

Lower Costs

Reduced cost is the reason No.1 for choosing to outsource. Since you don’t employ an in-house team but contract a vendor’s employees, you don’t have to care about personnel hiring expenses. You pay for the services. All the rest is the vendors’ responsibility.

Simple to Scale

The ability to scale the team easily and quickly is another massive advantage of outsourcing. Upon request, the team can be scaled up and down as soon as a need arises.

Global Talents

Outsourcing provides an opportunity to hire talent from around the world. What are the perks? First, you get access to a stronger pool of developers and other specialists. Secondly, you had the opportunity to hire fairly talented people at a lower rate because software development outsourcing prices vary from country to country. We'll go into costs later in this software development outsourcing guide.

Lower Risks

Perhaps quality and meeting deadlines are significant worries when it comes to software development. But when working with an outsourced team, meeting the deadline and delivering the best quality product is your concern and a priority for the team. Their rating, and therefore their income, depends on the result.

Broader Technology Stack

Anyway, the expertise and knowledge of the in-house team are limited and may not be enough to implement the idea. Outsourcing companies can offer you project completion services or provide you with employees who are proficient in and put into practice the latest software development trends.

Outsourcing Software Development Process

Celadon has been in business for providing outsourcing software development services for quite a while. The experience of working on various projects has helped us to build the roadmap of software development.

The software development outsourcing process consists of 5 stages:

  • Discovery;
  • Design;
  • Development;
  • Testing;
  • Deployment, and Post-Deployment.

Each chain element is essential and cannot be excluded from achieving excellent results. However, when it comes to outsourcing, you can entrust part or several parts of the development cycle to outsourcing.

Outsource Software Development Cost

The cost of outsourcing software development may go up and down, relying on hourly rates.

The high hourly rate isn’t always an indicator of proficiency and high-quality services. The main cost-changing factor is geography.

For instance, contracting software developers from Eastern Europe is cheaper than from the US. The US has the highest hourly rate, while the lowest one is in India.

Why the hourly rate varies so greatly from country to country? The answer is pretty straightforward - the cost of living in a country.

The Software Development Costs Across Different Regions

North America:

$100 - $250

The UK and Western Europe:

$70 - $200


$70 - $200

Eastern Europe:

$25 - $80


$10 - $30

Reliable Software Development Outsourcing Provider

If, after weighing the pros and cons, you do decide to seek outsourced development services, celadon is the solution to get your goals accomplished.

We have been providing various types of outsourcing services since 2016. Despite the concerns in outsourcing software development, our team works hard to dispel them by bringing the best software. In fact, Celadon delivers solutions that help clients reach new heights and achieve their desired results and more.

Do you have a need? We have the solution. Contact us to find out how we can help you.

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