When to Hire an Agency for your Software Development?

February 15, 2023
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In this digital era, organizations are adopting more efficient ways to meet software-related needs. The undeniable reason is due to the ease of outsourcing a software development team which enables businesses to hire the best team locally as well as remotely.Outsourcing has been around for a long time, as companies and individuals always look for cost-effective means to handle certain business processes. In the past, businesses used to outsource only a few and mainstream things like customer support, accounting, hiring, etc. But now, software outsourcing is at its new peak.[lwptoc title="When to Hire an Agency for Your Software Development Needs?" skipHeadingLevel="h1,h4,h5,h6"]Businesses around the globe have come to realize the benefits of outsourcing. In 2019, the worldwide market value of IT outsourcing is USD 92.5 billion. This significant amount of cash outflow shows that many organizations are keen to make transitions and are already transferring Software development operations to external parties. As a result, these external teams have turned to act as business partners instead of just software vendors.

Why Do Companies Outsource Software Development?

Cost-cutting, focusing on core business functions, and solving capacity issues are the primary reasons that make companies outsource a software development team. Below are the statistics that show the percent of key burdens handled by software outsourcing.

Visual representation of Why do companies outsource

Challenges (Percentages % based on Priority and Weightage) in Managing Software Project Development at your own:

visual representation of factors causing challenges in software development

Software Development Outsourcing Trends Emerging in 2021

The outsourcing industry continues to evolve at a rapid pace, and like every year, there are specific trends that have been expected to perform well in the upcoming year and have already started giving results, such as:

Robotics and AI

The singularity is near. AI and Data Science are becoming the priority of almost every business owner when it comes to filling IT voids. The dependence of our world to rely on AI to automate processes is increasing day by day. There is a prediction that by 2040, almost 50% of the job roles in the US will be replaced by robots. In the context of outsourcing, businesses have to deal with the problem of maintaining the balance between assigning recursive tasks to machines and non-recursive roles to humans.

Also Read: Software Outsourcing – What Is It And How To Do It Well?

Social Media

In the ongoing era, almost everyone is active on social media platforms. For instance, Facebook alone has 2.3billion active users for now. It becomes easier for outsourcing companies to find their potential customers and interact timely. Whether any company that sells software provides outsourcing services, it has a rich presence on social media platforms. In the modern times, Internet-driven world, any business or individual who wants to search for any opportunity or resource uses social media to check for rating and the best alternative available to them. The modern social platform’s algorithm works in such a way that it automatically connects you with the support or service you are wandering for.

Cloud Computing

Dealing with storage issues is one of the most costly and critical parts of any software project development. The new world is making it mandatory for organizations to deal with an ocean of data to find valuable insights and patterns. Even if you are an entrepreneur, you need to save every detail of your customer and business process while ensuring its safety. This is where IT outsourcing companies come into action.With cloud computing, businesses can rent out IT infrastructure to utilize the server and storage space of third-party providers, without having to invest a large amount of money for developing their technology or server.


Software outsourcing has removed the curtains from new and obscure corridors for the upcoming talent of the IT world. It has also helped the businesses in several ways the most prominent one from them is “cost-cutting.” By doing so businesses can invest their time on more crucial and core business issues rather than opting for a lengthy process of hiring, managing, and motivating a whole new team. Get in touch with us for consultation if you are planning to outsource software development for your business or agency.

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