Benefits of Outsourcing Custom Software Development

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    Benefits of Outsourcing Custom Software Development

    Time to Read – 4 min 32 sec


    When a business finds itself impoverished for a particular time or cannot offer services as per client requirements, it’s time for them to upgrade their existing setup. Companies find it challenging to develop the software in-house or choose outsourcing services for their custom software development.

    Well, to clear your confusion and help you select the best services, we have prepared this guide. After going through it, you will understand software outsourcing and why it’s beneficial for your business. Outsourcing can save a lot of resources, time, and opportunity cost of brainstorming new ideas.

    Before moving to the benefits of outsourcing, let us start with some basic terms. Do you know what software outsourcing means?
    Well, the term implies – “when a business delegates its custom software development projects to another third-party company, it is known as outsourcing.”

    Advantages of Choosing Custom Software Outsourcing Services

    1. Skilled Workforce / Outsourcing custom software development enables access to a skilled workforce

    Custom software development outsourcing gives the ability to an organization to gain access to highly skilled software professionals.

    Outsourcing simply means you are free to choose the best custom software development company from the market to fulfill your company’s needs. As a business leader, it isn’t ideal to indulge deeply in recruitment, training, and scaling a workforce.

    It’s always a safe bet to vouch for the best-in-class custom software outsourcing development services and let them build in line with your business requirements.

    2. Emphasizing Core Business / Outsourced Custom Software Development offers you the liberty to focus on core business functions

    R&D is the core of many business work models.

    We are living in the advanced technology era where companies are focused on empowering their core business strategies and functions with the modern-tech.

    To balance business strategies and software development at the same time would be like exercising a tug-of-war for many organizations and business leaders.

    Outsourcing custom software development will not only bring a perfect balance to your in-house team but also will offer the liberty to focus on core business functions.

    3. Cost Saver / You can save a considerable amount of costs with the right custom software development outsourcing partner

    An outsourcing company may be located in another part of the world, but they will get your work done at a reduced price without compromising quality. Here, you can save on a considerable amount of costs as compared to the costs involved in building an in-house team.

    Organizations cutting their costs in half is one of the most significant benefits of custom software development outsourcing.

    4. Reduce Time to Market / With outsourced custom software development you can reduce time to market

    In business, time is money.

    More than 94% of companies use outsourcing in their various business operations.

    Also, in-house software development can be delayed due to various reasons, and this delay can result in lost business productivity.

    Custom software development outsourcing will help you effectively reduce the product’s time to market with a great margin. Considering the expertise in building projects in a similar space provides them an advantage to achieve the results for you and within lesser time.

    The software development company will accelerate your project as per requirement and assign the tasks to highly experienced developers.

    5. Minimize Business Risk / You can mitigate incurring business risks with custom software development outsourcing services

    When you have lots of internal business projects, it’s not a good idea to scarify quality and productivity.

    With the development services from a custom software outsourcing company, you not only reduce the risk of hammering the core business function but also empower the onset of your custom software development effort.

    You get to leverage the years of expertise and experience that the custom software development company has earned over the years. And, this ultimately reduces the incurred risks and contingencies that may occur during your project.

    Models of Custom Software Development Outsourcing

    1. Location-based Models

    – Onsite / Onshore
    – Nearshore
    – Offshore

    2. Relationship-based Models

    – Staff Augmentation
    – Managed & Dedicated Team
    – Project-based

    3. Contract-based Models

    – Time & Material
    – Fixed Price

    Customized Software Outsourcing Trends in 2023

    1. Growth of AI / Role of AI in Custom Software Development Industry

    Computers around the globe are getting digitized and smart. Advanced AI trends in the computing world have allowed computers to think about themselves. According to some research around the world, 8 out of 10 companies are investing in artificial intelligence.

    Furthermore, artificial intelligence has scope in the field of custom software development also. With AI technology, developers can make modern and unique websites or applications and convert ideas into reality.

    Today, the AI algorithm in software ensures your groceries are delivered to your doorstep and even drive your car without human intervention.

    2. Increase in Cloud Computing Technology

    Cloud computing is one of the most rapidly growing software development trends in today’s scenario. A lot of companies are moving towards cloud computing as they are migrating their operations online. The demand is increasing every year, as companies are handling a large amount of data.

    Companies worldwide are spending billions and millions on cloud computing services, which has emerged as one of the largest developed trends in 2021. Moreover, companies are moving towards the cloud due to additional security features and reduced business costs.

    3. The Rise of Cybersecurity

    As malware and ransomware attack is at an all-time high, the demand for cybersecurity has increased. Organizations around the world are struggling to have the best security on board for their data protection. A phishing attack can cost millions to an organization, and along with government agencies, every online company is at risk of being exploited.

    Ethical hackers always look for loopholes in the software and gain access to valuable information. Cybersecurity is essential for every business, either big or small if they are operating online.

    4. Robotic Process Automation

    Robotic process automation is another exciting software in demand. It refers to the use of software for automating complex business operations. RPA helps in reducing the overall cost of the project and even reduces the chances of human error.

    In the manufacturing, retail, and e-commerce sectors, robotic process automation plays a significant role in – order management and logistics management processes.

    5. The IoT Technology

    The Internet of things has emerged as the most demanded technology in the past few years. IoT applications can be seen more commonly in electronic appliances and smart devices. IoT enables devices to communicate with each other and exchange information.

    6. The Rise of Blockchain Services

    Along with AI, and IoT on board, blockchain is also the fastest emerging technology in the world. Blockchain applications are endless in creating the most decentralized business application to perform smart contracts.

    In custom software development companies, blockchain can develop vast financial applications and only payment applications. Due to the ever-rising demand for blockchain in the industry, it is one of the biggest global trends in 2021.

    7. The Rise of Edge Computing

    In the last decade, edge computing has been on a steady rise. With the significant boost in its popularity, it is not hard to admit that edge computing is one of the most popular trends in 2021.

    More than 50% of developers have edge computing as their priority in the custom software development process. Edge computing is combined with technologies like ML and AI to make the impossible trends possible.


    The custom software development outsourcing industry is at its onset of growth. The software development market is expected to grow at a CAGR of 11.7% from 2022 to 2030.

    With the wide range of benefits that outsourced custom software development has to offer, companies are inclined toward engaging with the best in the market instead of building an in-house development team.

    We at Integrative Systems bring along 20+ years of experience in custom software development.

    If you are looking for a custom software development outsourcing company, feel free to reach out to us at [email protected], and we shall get back to you within 1-2 business days.

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