Why Does Outsourcing Product Development is the Right Choice?

Initiating a different product development company is a difficult task. It requires fortitude to persevere new products in spite of adversity. We understand that this may come as a surprise given you a seemingly constant emergence of brand-new modern invention engineering start-ups. The unfortunate fact is that you see represent just 10% of ideas or implementations in the in-house product development companies when it comes to software engineering.

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Initiating a different product development company is a difficult task. It requires fortitude to persevere new products in spite of adversity. We understand that this may come as a surprise given you a seemingly constant emergence of brand-new modern invention engineering start-ups. The unfortunate fact is that you see represent just 10% of ideas or implementations in the in-house product development companies when it comes to software engineering.

One reason is founding a new software development company entails numerous procedures and practices, and most new technical companies lacks in affordability and degree of professionalism necessary to acquire and grow a business off the ground. Fortunately, there are alternatives – among them product development outsourcing services is an ideal one.

Outsourcing project or software development outsourcing is an approach where you contract out project operations like financials, compliance, or auditing from external parties and reach the final milestones.

Employing an external developer individually or software development company to assist you with your milestones lies under the term “software development outsourcing”.


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The practice assists user activities listed under certain software development projects, keeping project domain and scope preserved. Other than this, engage an external resource for your project completion to avoid extended deadlines. Moreover, Software Development Outsourcing assumes the responsibility of functionalities while assuring eminence and presenting superior-standard capabilities and reaching your milestones swiftly.

The complete utilisation of telecom operators to supply IT-reliant internal operations, such as product engineering, enterprise applications, and case studies, is known as information technology outsourcing (ITO). In a broader sense, product development outsourcing refers to contracting components of tasks that would normally be conducted privately coming from external vendors or telecommunications companies. Today,

What is the reason behind the demanded, market value of outsourced product development? There are various reasons; key causes behind Outsourcing Product Development becoming the first choice of every start-up are enclosed in this post. Let us jump in broadly.

What does exactly mean by the service of Outsourced Product Development?

Software development outsourcing opens opportunities for business collaborations with an external software development company with the intention of meeting and fulfilling all project-related responsibilities assigned to an internal team.

Software outsourcing transfers the project control to an outsourced expert for project improvement. This technique is important to enlist assistance—a tactic to please the client with your brand while ensuring satisfied project deliveries—while leveraging a referral network.

What is the Difference Between Outsourced vs. In-House Product Development Services?

In-house development of software integration covers precisely the internal team of a software development company. Nothing influences the work models of outsiders when an in-house team delivers the project or product after development. The in-house team may or may not support the entire project development; the team can be responsible for a single chunk of the project or only one phase of SDLC.

Outsourced product development covers exactly the external team or an individual freelancer. Like the in-house team, outsourcing product covers everything assigned but with no interaction with the internal team or internal working models. This approach solely belongs to the remote work module. Let’s make this distinction a bit straightforward through this table.

In-house Development Team vs. Outsourced Development Team

CharacteristicIn-house Development TeamOutsource Development Team
Recruiting CostHighLow
Staffing TimeOverwhelmingFrequent
Development CostHighLow
Tech-Talent AvailabilityModerateHigh
Working FlexibilityRestrictedUnrestricted
Communication LevelSuperiorMeeting arrangement is crucial
Project ManagementSuperiorSuperior
Hour zoneSimilarDifferent
SecurityHighDepends on Luck

Top Products That Outsourced Product Development

Why Outsourcing in Software Development is a New Norm?

You can reduce developing product (software) costs. Suppose an average in-house developer salary is 2.7 times additional to the base salary. With outsourcing saving, 2.7x on each external employee would lead to large bucks.

Furthermore, reduce hiring mistakes perfectly. What is that? Look, when searching for an external software developer, your firm invests at least three months in the hiring process. The three-month cost you will risk in these months would be 30K USD Dollars on average with no profitable outcomes.

Likewise, maximise in-house productivity and scale up your portfolio. Upon project outsourcing, you can meet the customised and on-demand services required by your clients.

In addition to this, you can maximise your tech skills and budgeting just by dragging your business scale up. Besides your productivity, never compromise on core functionality. If your client is demanding a development which is out of your forte, hit your smart device buttons which are already in your hand and rent freelancers.

Finally, partake in international standards by incorporating a Faraway team. Remote working is a new norm! Tomorrow is digital most expert belief, and one way of digitisation is outsourcing – remote working. Don’t invest in recruiting; simply search for a freelancer; & hire him/her for your job from any location.

Read more: How to Build a Cloud-Based SaaS Application

Who and What Industry or Sector Should Look for Outsource Product Development?

Type of Industries or SectorsMostly Outsourced Services within the Sector Percentage of demand (%)
3D Rendering Industry3D Designing Service
3D Drafting Services
3D Modelling Service
3D Printing Service
3D Scanning Services
Education IndustryAppointment Setting
Course Registration, along with the Enrolment Assistance
Lead Generation
Student Information System Management
Travel and TourismBPM Services
Virtual Assistant Travel Agent
Business Travel Outsourcing Services for Website
Customer Care
Telesales (Online and Offline)
Fares and hotel
Reservation database management
Pharmaceutical Industry
Pharmaceutical OutsourcingClinical Data Entry
Clinical Data Management
Customer Service
Order Taking and Processing Management
Pharmaceutical Auditing
InsuranceAccounting Services
Claims processing
Commission Management
Data entry and recording
Insurance Agency Management
Lead Generation
Policy Management
Retail24/7 Customer Support
Order Processing Management in Retail
Technical and Practical Service Outsourcing
Digital Marketing and Digital Support
Supply Chain Solutions
Revenue Management
Data Entry
Logistics Monitoring
Real EstateCustomer Services
Leasing Consultation
New, second Home Trades
Property Business
Compliance and Accounting Management
Residential Auction Staffing
Telemarketing and management of e-marketing

Source: Small Business Outsourcing Statistics in 2019

What are the Potential Benefits of outsourcing product development?

1. Multidisciplinary Knowledge

When you pick up a venture with a new or multidisciplinary area that in-house team hasn’t worked on before, you can seek for an outsourcing product development company or a freelancer who can help you meeting client requirements set.

2. Quickly Onboarded, Outstanding Team

With rapidly transforming technology, outsourcing a software development company is the best, genuine, frequent and onboarded solution that ensures 100% quality deliveries. Your in-house team may not qualify these changing requirements. Therefore, getting help from an (offshore) outsourced team is the best option.

3. Single-Minded Concentration

After contracting with a freelancer, you would assign only a single sort of task within in your company’s operating team. In addition, we all know very well that concentrating on one task makes our work viable and outstanding. So, while intending for an exceptional result, hiring external support has no exception.

4. Product – Success Attitude

Rather than making yourself responsible for every errand, you can get a response team and become confident in the presence of your clientele about your upcoming product development plans. As outsourcing is totally dependent on profiling, and no subcontracted company or an individual freelancer will deliver integrated products with faults.

5. Time Administration

As soon as a company outsources new product development, the outsourcing company is responsible on behalf of meeting product deadlines. You provide them with a deadline while assuring timely deliveries. Time for the tip…

When you get 30 days for software development and you need support in a small part of your integration, let the external team or person know about deadlines while keeping some days complementary for yourself. Let them know you have 20 days to submit your software product. Keep your remaining 10 days assigned to quality assurance, testing and use cases so you turn up flawless milestones.

6. Time to Market

Since product marketing consumes most of the life-cycle time, working on its advertisements amid product developed can be initiated. How could this happen? Outsource some part of your integration and continue the rest yourself. Or outsource the marketing aspect by letting your partner know about key features of your client’s intended product while proceeding with a product development by-hand. With this way, saving product marketing period and maximising productivity in a short period could be gained.

7. Cost-cutting measures

Engaging an in-house software crew is expensive. From recruitment to making an employee permanent till resignation, you compensate for everything that may lies in between the working period. This may include transport, medical, utility, rent and other expenses in allowance. The Good news is you can saving compensation amount is quite easy with outhouse developers. You exactly compensate for what you get – for the required job you have assigned.

8. Allow You to Concentrate on Your Core Business

With outsourced product development, avoid compromising on core functionality. If your client is demanding something that is not your business forte, hit smart device buttons in your by-hand mobile & rent freelancers or an outsourced software development team. While externals look after your project integration, you can completely focus on business development goals, revenues, profiling etc. in order to acquire a certified as well as authenticated trademark.

9. It is ideal for small businesses or new ventures

New start-ups mostly face issues with property acquisition, hiring, rents and bills and resource allocation. With all these expenses, it becomes difficult for them to hire an individual for each task. They don’t hire primary bodies only for full-time employment with an outsourced approach while leaving the rest.

10. Protection and Generation of Intellectual Property (IP)

Hiring an onshore team is no more the only way of generating as well as shielding intellectual property. Whenever a new firm gains traction, it is common to hire at minimum a few in-house engineers. Furthermore, there are numerous measures, such as continued innovation and no joint tenures, to protect business IP while operating on offshore working models.


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The Sum Up!

Outsourcing development isn’t the solitary way to construct a software-dependent product, although it is unquestionably advantageous in countless situations. We propose attempting an offshore outsourcing strategy for organisations in order to save time & expense, have access to an international labour pool, & achieve a rate-expertise ratio.

Are you seeking a dependable software product development firm to help you develop a feature-rich, user-friendly software promptly keeping budget constraints bound? Reach out to our website to grow your firm and get the benefits of new product development with software development phases.

Do you want to get in contact with latest product development experts?

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