How Small Business Can Utilize Software Outsourcing for their growth

How Small Business Can Utilize Software Outsourcing for their growth

Written by Deepak Bhagat, In software, Published On
May 18, 2021
Last modified on August 23rd, 2022

Outsourcing is an act of business where external companies take care of one or more aspects of your business requirements. Though it is beneficial, it is hard to complete the project if you get involved in it without any prior knowledge.

In this article, we are going to talk about the advantages of software outsourcing and how small businesses could accomplish their objectives without any setbacks. But, the question is: why do small businesses need to outsource their software development project?

Need of outsourcing for small companies


How Small Business Can Utilize Software Outsourcing for their growth2

Software outsourcing is beneficial for all kinds of companies from startups to large enterprises, but how are its advantages specifically for small businesses are discussed below:

Access to global talent

When you sign up for the software outsourcing services, you get immediate access to the top talented team of professionals who hold expertise in their relevant field. The chance of finding such a level of experts in the domestic market is minimal.

Additionally, you don’t even have to invest more of the time and effort to find these experts. Because the development company to whom you will outsource your software project will take care of it.

Better outcomes

To tell you the truth, even if you decide to develop the software on your own. You need to hire the development team for it and you need to take care of their requirements as well. After investing so much money and time also, the quality of the developed software will be of question. Because as we discussed, the availability of experts in the field is rare in the domestic market. So the average developer will just develop an average software.

But that too isn’t the problem, the problem is that you have developed an average software at the cost on which you could have easily got two of the world’s best software from an outsourcing company.

Round-the-clock support

Most businesses make the mistake of believing that the software development job gets completed once the company delivers the product. But the truth is that the software development services don’t end at the delivery of the product.

It must remain to continue through support and maintenance of the product via regular updates, patches, bug-fixes, and many more. And this type of support service is automatically taken care of by the software outsourcing company.


How Small Business Can Utilize Software Outsourcing for their growth1 (1)

Small businesses have very limited capital and other resources. And if you decide to build the software with an in-house development approach, then the burden of the costs can take a heavy toll on your business. At the very first you need to set up the infrastructure for software development, subscribe to the technology frameworks that are used to develop software.

After that, comes the long and complex process of hiring the relevant staff for software development. And then again the cost of buying relevant office equipment for the staff. Even after all this, your work won’t be completed in a month, you need to pay monthly salaries to your staff.

Imagine, instead of incurring so many costs, why not just hand over the entire project to the software outsourcing company. They charge very little in comparison to the costs you would have to incur on yourself if you decide to go for in-house software development.

Foundation of Partnerships

When you work with a trustworthy software development company, the chances are that your collaboration may result in a long-term business partnership. Your small business can gain benefits from the possible upsides of software outsourcing when you complete your software development project with the outsourcing agency.

This will also enable your outsourcing partner to know more about your mode of work and your business which can eventually empower them to deliver better results to meet your business requirements.

Expanded Focused on the Core Business

By outsourcing the software development project, small businesses can focus on their core activities, whatever they may be. When they need a software application to enhance their productivity, they should leave the job of software development to the specialists. And small businesses should focus on manufacturing quality products or delivering quality services with continuously improved customer care.

When you outsource your project, you save a lot of money and resources for your business that might have gone if you would have opted for an in-house approach. Now, you can invest this saved capital and resource in your core business which could help you drastically improve the company’s growth and its market position. This will result in increased revenues.

How to outsource in small business

How to outsource in small business

By now we have discussed what small businesses could gain from software outsourcing. Now, let us look at how they should do it.

Gather the necessary details for outsourcing

The first and foremost step is to analyze which part of your business can be outsourced. You need to gather information about how outsourcing works and how your services will be delivered. Getting the basic information will help you decide which companies out there have the best potential to do your job for you.

You also need to prepare a budget for your outsourcing project. And you need to get all your business requirements to be documented so that the outsourcing company would be clear about your needs from the start.

Locating the best vendors

After you have gathered the necessary details for the project, start looking around for the software companies. Mind that, all these companies will claim to be the best but you need to select a partner that will be most suitable for your business. For that, you need to look at their portfolio, i.e. their previous work.

Have they worked in your industry before?

Have they dealt with similar companies before?

Have they developed a similar product before?

You can always bother the outsourcing companies with your questions. This will help you and the company gain some clarity. They will understand your requirements and you will get to know whether they are suitable for the job you wanted to get done which in this case is software development.

(Tip:- you can also ask for the contact of the outsourcing company’s previous clients and talk to them about the services and everything else. It will be insightful)

Manage the entire project outsourced

When businesses outsource, they generally develop an “out of sight, out of mind” attitude. As a business owner, you need to remember that outsourcing companies play a vital role in the success of your business. Because the quality of their work will affect the quality of your work which would eventually affect your business.

So, after you outsource your project, stay in constant touch with your outsourcing partner and ask for regular updates on the software development process. Some companies deliver the products in several sprints. So, in such cases, your feedback would be essential.

In short, for the success of the software development project, small businesses should continuously exercise team communication and product quality control.


Though software outsourcing is a trend, there is so much confusion regarding its successful execution. Moreover, the problem is that many businesses are running into it blindly without any clarity of their business and product requirements. And the common mistake they make is not doing enough background checks on the software outsourcing company with whom they are collaborating.

Small businesses need to invest their time and money in a project that leads them towards success. And I have written this article to help you with your software outsourcing so that small businesses could avoid the pitfalls of the development project.

I hope that reading this post has been helpful to you. However, if you have any queries, share them in the comments section below.

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