5 Reasons Why Software Development Must Be Outsourced by Startups

4 min readMar 31, 2022

In recent times, globalization has effectively taken down several barriers in the IT domain. It is possible for users to now easily get a product from any part of the world. Businesses have gathered that outsourced product development can benefit in many ways such as fetching quicker results and also at minimal costs.

Outsourced Software Development: An Overview

Outsourced product development basically involves an entrepreneur or a startup contacting a specialized company to develop a software product for them. Almost every industry right requires software products for some other purpose.

Thus, the global demand for outsourced software development services has shot up rapidly in recent years. Today, we will learn the reasons for this rise in demand for outsourced services.

How the Demand for Outsourced Software Development Has Increased?

Here are a few prominent reasons why companies prefer to outsource software development.

Cost Savings

On top of the pile is obviously cost. Prior to outsourcing gaining popularity, several companies used to develop their own products. It was seen as a competitive factor. However, they get down to differentiate it with many aspects like marketing, services, and prices.

This gave them the idea that smaller firms can be more efficient than bigger ones when it comes to developing a new software product. The first benefit is that these smaller teams are hired from other companies and they represent lower costs.

As the organization needs to develop new products, there was no need for a big infrastructure to store these products. Another cost factor that must be considered here is that of hiring in-house employees. On any day, hiring a development team and managing it can be costlier than simply outsourcing a project to an already existing team with experience.

The big catch in this scenario would be that the company cannot be sure how these in-house developers fare until they have seen them work on a few projects. In outsourced companies, however, developers are experienced and none of them expects the client to pay them directly.

This helps companies manage their resources in a sublime manner and there is no misunderstanding from the initial requirement to the product that is delivered.

Offshore Production Benefits

This is nothing but hiring developers or a company from another country to hire your products. For instance, if you own a company in the US, you can easily hire a company from India to do the job for you.

This saves the resources for companies in many ways as the labor cost in many countries is substantially lesser along with the infrastructural costs. Thus, the final product will have a low production cost. It drives the price to be competitive in the market compared to other products of the same caliber.

However, finding the ideal outsourced company is not as easy as it sounds. It requires entrepreneurs to carry out extensive research to find a team with the perfect blend of skill and experience.

Reduced Development Time

There is a broad misconception that suggests outsourcing can hinder software development in many ways. However, when a company avails services of a third party that specializes in product development, they have access to fast operating teams.

Not only do they have the experience of creating new products, but they also have the efficacy that is required to deliver client requirements. This reduces the time to market and substantially better returns.

Software Innovation

Software innovation is a significant benefit as it allows users to handle the support plan along with future updates. It means one probably will not need to have an expensive IT area within the company.

Any organization you hire can take charge of outsourced product development and integrate it with the new product as they know how it works and also its functionalities.

High-Quality Products

The reason why specialized companies experience the success and growth they do is that they prefer building new technologies according to what is trending in the market. For instance, if SaaS products are trending right now, these companies will emphasize more on that more.

These companies also look to constantly improve the products or upgrade them based on market trends again. Thus, any product developed by an outsourced company is likely to give you more profitability.

Software Development at 91Social

At 91Social, we help businesses bring their vision to life by helping them create top-quality software products to boost their organizational growth. We have a team of immensely talented, skilled, and experienced developers who possess a tremendous knowledge of every industry and are familiar with all the latest tools and technologies that can be used for development.

To discuss any possible synergies, reach out to us through our website.




We provide technology services to businesses. Our mantra is to help businesses 'Go Digital'.