Why Outsourcing Software Development Works: 8 Benefits Of Outsourcing

Many companies consider outsourcing some of their work. What is outsourcing and how does it work? However, they do not make the final decision due to a lack of confidence to assign another company their tasks or projects. You may be contemplating outsourcing in order to save costs or improve efficiency. However, before outsourcing any aspect tasks of your organization, you should be aware of the benefits and drawbacks that outsourcing may offer. Check the lists of outsourcing advantages and disadvantages below to see if you should contract or avoid outsourcing specific processes, and evaluate what influence each would have on your organization.

Today, Outsourcing Vietnam will present Why Outsourcing Software Development Works: 10 Benefits of Outsourcing. Let’s explore the article below.

1. Benefits Of Outsourcing Software Development

Advantages Of Outsourcing Software Development

Cost-savings – 

Outsourcing assignments or projects allows you to save money related to hiring, recommending, training, and hiring employees in your company. The main goal of foreign companies is to provide customers with the best possible material handling solution at a reasonable price.

Furthermore, you will not need to equip your workers with essential materials to provide software development services.

In addition, the costs of software development services vary widely from country to country. Especially, outsourcing software development in Vietnam costs is 50% lower than competitors from India and China according to Innotech.


Software development takes less time when you outsource tasks to another company. The employee will have to work to deliver the product to you for the time set. And this one is one of the biggest benefits of outsourcing.

Collaborating with outside the company allows you to do projects much faster and more efficiently.

Additionally, the time you spend finding a suitable IT company to outsource your work is shorter than the hiring process. You don’t have to spend time searching for new developers, then hire and train them to suit your project needs.

Take advantage of experts


When the in-house team doesn’t have the right experience to come up with the required solution, outsourcing gives the additional knowledge and power to complete the task. So, this is one of the benefits of outsourcing.


Hiring a full-time in-house developer for short-term projects doesn’t really work out. You will have to keep your employees busy during the year with new projects. Or you’ll have to pay them salaries and other benefits even if they don’t actually work. However, outsourcing gives you the option to hire dedicated software developers for a project. You can keep them for future projects or choose another developer if you want. In addition, outsourcing specific projects will help avoid costs associated with hiring, training, and retaining new employees.

Technological Advances

By outsourcing projects, you can take advantage of the technological advancements of external vendors.

Technology is changing every day. Current technology trends may be obsolete the next year. As a result, businesses are trying to gain a competitive advantage by starting to look for outside suppliers when their projects require complex skill sets or know-how that they don’t already have. or they are technologically ineffective.

Reaching a broader market

Look at this as outsourcing as an enormous opportunity for your business to grow in new directions that your capabilities cannot meet. Working with highly qualified developers allows you to improve your performance and reach a wider global audience.

Lower risk

If you outsource to a software outsourcing company with a top-level project management team with the tried and true process for software delivery and maintenance, it will help minimize the risks involved in not doing a quality project high on time.

Focus on your core business

Focusing on your core business and let the expert developers handle your software development. In the long run, this will help your company grow and expand much more efficiently and quickly. You spend more time on product marketing, branding, focusing on your business’s strengths, and overcoming weaknesses.

2. Disadvantages Of Outsourcing Software Development

Disadvantages Of Outsourcing

There are many benefits of outsourcing, but it does include handing over direct management of a company function or process to a third party. As a result, it entails some risks. The following are some of the disadvantages of outsourcing:

Lack of control

When a company decided to outsource software projects, there are still doubts regarding the trust aspects. In addition, an outside company often has different values, missions, business goals, and management systems, which may also affect your concern about project control

Hidden cost 

Take note that any details that are not included in the contract will cost an extra fee to do so. When you decide to outsource, you must be prepared for unexpected expenses and related negotiations. Therefore, be wise and learn carefully before signing an outsourcing contract.

Risk of exposing confidential data

Every relationship between the company and the outsourced service provider is built on trust. It might be hard to trust an external outsourcing software development company. So, be careful not to disclose confidential data to the software development company, as this could cause problems for your company.

The time zone differences


Outsourcing can be problematic if there is a cultural deviation with the partner company and/or the development team with poor English skills. Time zone differences, including a limited working day overlap, can also lead to communication crashes when expectations are not set appropriately. However, different time zones allow you to work almost continuously.

However, when you focus on what you do best and outsource the rest, your company will clearly benefit from that solution.

Nowadays, outsourcing to Vietnam is an effective strategy for any type of business that wants to leverage high-quality human resources at an affordable cost. In addition, there is no longer a language barrier when most of the high-quality software developers in Vietnam are proficient in using English to communicate. If you are looking for a Vietnam software outsourcing company, we are proud to be one of the leading outsourcing providers in Vietnam. Not only offering software outsourcing services at an affordable price but also help thousands of global IT partners hire talents. Have any projects to developed, reach out to us then we will get back to you within 24 hours.


There’s a simple reason it became a trend. This modern business strategy combines low-cost software development with seasoned professionals. The success of any project is important to both the client and the company itself. Now you know many benefits of outsourcing for your business, if you want to know every detail about the software outsourcing field, click here for more information: Understanding the meaning of Software Outsourcing 

See more: Vietnam software outsourcing: Opportunity or Challenge?

If you have any questions about our article, don’t hesitate to contact us. We are willing to answer all of your questions.

Thank you and best regards.

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