What Is Outsourcing?


Outsourcing is the process of seeking external resources or services, often for tasks that a company might lack the internal capacity or expertise to handle. In software development, outsourcing involves engaging an external partner to handle specific tasks or components of a project.

Types of Software Development Outsourcing

  • Onshore Outsourcing: This involves outsourcing services within the same country or region.
  • Nearshore Outsourcing: Refers to outsourcing services to a neighboring country on the same continent.
  • Offshore Outsourcing: Involves outsourcing services to a distant country, typically on a different continent.

Advantages of Outsourcing

  • Expertise and Efficiency: Access to specialized skills and technology not available in-house.
  • Focus on Core Business: Outsourcing allows internal teams to concentrate on primary business functions.
  • Reduction in Operational and Recruitment Costs: Eliminates the need for maintaining a full in-house team and the associated expenses.

Challenges in Outsourcing

  • Data Security Risks: Potential threats to confidential information and data privacy.
  • Risk of Low-Quality Deliverables: Possible issues with the quality of work received from external sources.
  • Reduced Project Focus: Concerns about the outsourced partner's commitment to your project.
  • Risk of Subcontracting: Possibility of your project being passed on to third parties.

Drop a line

We’d love to know more about your business and how we can help. Let’s connect!

  • United States, +1 (415) 799-11-13
  • Belgium, +32 (466) 90-10-63
  • Sweden, +46 (812) 11-14-80
  • Ukraine, +38 (066) 710-79-76