Jess

Comms at WakeUp Labs

November 29, 2023

4 reasons why businesses outsource software development

Learn how external tech development can help your business grow with these four key reasons.

These days, businesses of all sizes – from startups to large companies – are taking advantage of the latest technology solutions to help them remain competitive in their industries. Outsourcing software development is a great way for businesses to optimize and accelerate their growth, while minimizing costs and risks.

In this blog post, we’ll take a look at four reasons why businesses should consider outsourcing software development projects: scalability, access to a talented global pool of developers, cost savings and risk management.

Table of Contents
1. Cost-Effective Staff Augmentation.
2. No Need for In-House Tech Teams.
3. Vital for Idea Validation.
4. Overcoming Technical Challenges.
Bonus: Enhancing the Software Factory - Client Relationship


With IT services comprising a substantial 72% of global outsourcing contract values and a compelling 83% of technology leaders contemplating outsourcing for their cybersecurity needs, the strategic advantages of outsourcing development are evident. Whether you are in the financial sector, where a staggering 72% of organizations choose to outsource mobile app development, or in healthcare, adopting a measured 31%, the impact is substantial.

According to a Deloitte Global Outsourcing Survey, around 65% of respondents benefit from outsourcing development by focusing on core business functions, and 63% cite substantial cost reductions. These statistics, coupled with the outlined reasons for outsourcing, underscore the significance of this approach.


Now, let's take a closer look at the main reasons businesses are increasingly turning to development outsourcing:

1. Cost-Effective Staff Augmentation.

Leveraging the staff augmentation methodology facilitates the swift assembly of highly qualified teams, ensuring efficient project completion within fixed timelines. This approach seamlessly addresses challenges by allowing collaboration in teams without the necessity to allocate internal resources that may not be accustomed to this in-house approach.

2. No Need for In-House Tech Teams

If you do not want to establish an in-house tech team, external tech support is the solution. By having a Chief Technology Officer (CTO) or a product-focused individual manage the relationship with the external tech support, you bypass the challenges of recruitment, screening, and cultural alignment.

3. Vital for Idea Validation

After confirming the viability of your idea, it's time to get to work. During this phase, connecting with the right talent for development is crucial. However, specialized teams required for the task may not always be readily adaptable. This is where opting to outsource becomes a strategic move to bring your idea to life. It is particularly beneficial for trying out specific features and creating a Minimum Viable Product (MVP) to swiftly validate concepts.

4. Overcoming Technical Challenges

Gain external expertise to efficiently address complex technical challenges. Avoid prolonged resolution times by accessing expertise that may be time-consuming to develop in-house. Additionally, these resources are challenging to find in the market, especially during periods when you are uncertain about how long you will need them.

Bonus: Enhancing the Software Factory-Client Relationship

To foster a successful partnership between a software factory and the client, clear communication is key. Establishing a point of contact, whether it be a dedicated representative or a Chief Technology Officer, ensures effective collaboration. Regular updates, transparent progress reports, and aligning expectations contribute to a positive and productive relationship, ultimately leading to successful project outcomes.


In conclusion, outsourcing software development can provide many benefits to your business. From lower costs than staff augmentation to the ability to validate ideas and navigate technical challenges without needing an in-house tech team, the opportunities are significant. Plus, when you outsource software development projects, you're getting direct access to a variety of different skills common amongst developers - which can elevate both the pace and the quality of your products or services.


With these points in mind, it is clear that if you're looking to get the most out of your technology investments then outsourcing is definitely worth considering - and in some cases essential. So don't settle for anything less than the best - reach out to us today and let's talk about how our expertise in development outsourcing can help you reach your goals.