OnyxTec IT Solutions

In a rapidly changing technological landscape, Outsourcing has become essential for the growth of the company.

This approach not only aids in cost reduction but also allows the companies to concentrate on their core competencies.

But what specific benefits does this model offer? How does it transform organizational challenges into opportunities? Curious to know! 

Let’s explore the advantages that come with outsourcing A software product development, unveiling its role in reshaping business technology strategies.

But before we plunge into it, let’s have a glance over what is outsourcing.

What is an Outsourcing A Software Development Product? 

Outsourcing A Software Product

Software development Outsourcing means handling information processes to an external service provider. This involves developing software solutions or initiatives specifically for a brand or business.

The Outsourcing Institute (USA) defined it as “the use of external service providers to deliver IT services, such as 


    • Application development and maintenance

    • Infrastructure solutions for non tech businesses

    • Software as a service (SaaS)

    • Mobile and cloud solutions 

    • Internet security, and

    • Associated IT management services

11 Advantages of Outsourcing A Software Product


    1. Cost Efficiency

    1. Access to the Global Talent Pool

    1. Focus on Core Business Activities

    1. Faster Time-to-Market

    1. Continuous support and development 

    1. Scaling and Flexibility

    1. Enhanced Quality 

    1. Use of Latest Technologies

    1. Risk Mitigation

    1. Improve Work Relationships 

    1. Advance and flourish

Detailed Insight on Advantages of Outsourcing Software Products

In 2023 Outsourcing software development experienced a 70% growth, with a 34% increase in app development. This is because of the advantages that outsourcing possesses.  Let’s examine those benefits in detail:

Cost Effectiveness

One of the main advantages of outsourcing product development is cost savings. Because in outsourcing you only have to pay for the series you need. 

Companies that handle everything in-house will inevitably have to charge their consumers more for these services. However, software Outsourcing companies allow you to save money on things like 


    • Rent

    • Utilities

    • Payment of employees.

Access to the Global Talent Pool

The software subscriptions and licenses that are necessary can be quite costly. As a result, small businesses often lack the essential resources to implement all the required services and systems.

Therefore, these enterprises should pursue the outsourced teams having technical expertise. 

Remember that each team is different based on the size of the project. However, the following are the crucial positions:


    • Manager of projects

    • Analyst for business

    • Programmers (both front-end and back-end)

    • UI/UX designer 

    • QA Specialist

But, as per your project requirement, you can scale up and down your external team.

Focus on Core Business Activities

Dividing your attention between numerous business-related activities might be distracting. 

So, outsourcing helps  companies concentrate on their primary objectives which include 


    • Development of product 

    • Marketing 

    • Customer service

Faster Time-to-Market

In the fast-paced world of mobile apps, it’s essential to keep up with the market. But for this, you need a cutting-edge tool and a team of professional software engineers.

With outsourcing, you can get both things in hand without paying overhead. So, hire a third party to speed up your software development processes. 

Continuous Support and Development 

One of the benefits of outsourcing software is that you can hire app developers from different time zones and get round-the-clock help. 

Note that outsourcing comes in many forms, such as 


    • Nearshore software outsourcing 

    • Overseas software outsourcing.

Nearshore software outsourcing involves employing local developers. Whereas, offshore software outsourcing is about remote, time-zone-difference organizations.

So, based on your convenience, get the most suitable location for your team. But remember, the cost of the outsourced teams depends upon their location. Here is the market rate that outsources teams usually provide concerning geographic location. 

Location  Per-Hour Rate 
US $75 to $150
Western Europe $60 to $200
Eastern Europe $20 to $65
South America  $30 to $60 
North America  $100 to $200 
Latin America  $30 to $50 
Australia  $100 to $150 
Asia  $25 to $50 

Looking to create your product while staying within budget? Contact us for assistance.

Scaling and Flexibility 

Improving your proficiency with technology is often essential as your organization expands. 

But sometimes it can be challenging and expensive to locate the appropriate personnel.

Therefore, hiring an outside firm is beneficial as they advise you on scalable and adaptable solutions.

Enhanced Quality

Quality is one of the most important things that determines how well current software works. 

Many computer systems have millions of users, thus even a small software error can cause a huge issue.

But you can resolve this issue through the practice of outsourcing. Because the outsourcing service provider has the potential to raise the bar for final products. 

Use of Latest Technologies

Using the most up-to-date technological stack is crucial for customers working on modern IT projects. 

So, finding experts with substantial backgrounds in this field is essential. 

Numerous employees lack the skills to keep up with the annual changes in technological infrastructure. But with outsourcing, you can get an edge because outsourcing brings advanced technology and IT experts with it. 

Risk Mitigation

Starting a new software project can be scary for many companies. 

They worry about things like losing important data or delays because of unexpected problems. 

To avoid these risks, you can work with a well-known company that outsources software development. 

This can help lower the chances of facing unforeseen setbacks.

Improve Work Relationship 

Outsourcing software development can improve working relationships by bringing in new ideas and specialized knowledge. 

It can also make in-house teams more efficient by reducing the stress of too much work. 

Moreover, this collaboration creates chances to learn and gives people the freedom to work in a productive setting.

Advance and flourish

With the help of professionals, there is an excellent chance to grow and flourish. 

These outsourced individuals can give you advice on how to grow your business. 

Moreover, they cannot only point you in new directions but also carry out your plans perfectly.

Outsourcing Vs Inhouse hiring 

  Outsourcing  In-House Hiring 
Hourly Rate  It depends upon Complexity of app Outsource partner locations  You have to pay the annual salary with an estimated rate of about $110,000 to $160,540. 
Human Resource  Management Responsible  No responsibility at all because every operation is handled by outsource partner or team  Hiring Building and managing the team Paper work etc.
Pay  Solely to the outsource individual  To the entire team 
Expenses of holidays, annual leaves or sick leaves, etc.  0$ Approximately of about $4800 to $8000
Termination  Easy to terminate  Must require 14 days or one month notice period.  

Wrapping Up: Advantages of outsourcing a software products

So, outsourcing comes with the number of advantages listed above. But to get the most out of it, you need to choose the right outsourcing software development team. 

Out of numerous teams in the IT world, finding the best one can be challenging. However, making your struggle super easy, Onyxtec provides you with the best outsourcing facilities.

We offer the whole software development life cycle, thoroughly assessing the client’s problem and determining the appropriate solutions. Moreover, timely delivery, quality assurance, and budget-friendly demand are what set us apart. 

So, why settle for less when you have a formidable rival in town? 


What are the types of outsourcing? 

Outsourcing comes in various forms, some of which include


    • Process- Specific outsourcing

    • Professional Outsourcing 

    • Logistics Outsourcing 

    • Business Process Outsourcing

    • Manufacturing Outsourcing

    • Project Outsourcing

    • Multi-Sourcing

What is the difference between outsourcing and insourcing? 

“Outsourcing” means hiring a third party to execute your task. Whereas, the term “Insourcing” describes business processes that take place inside an organization.

11 Advantages Of Outsourcing A Software Product (A Comprehensive Guide)

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