7 Key Reasons Why Companies Outsource Software Development

7 Key Reasons Why Companies Outsource Software Development

“Why outsource?” 

This question has been discussed in boardrooms, debated in executive meetings, and contemplated by small business partners. Outsourcing is regarded as a key strategic move by 92% of global companies.

In other words… If you’ve been pondering this approach for your business, you’re in good company. Let this article present more information on why outsourcing software development could benefit your business.

As staffing experts, we know the ins and outs of outsourcing. We’ll share factors of successful outsourcing, key reasons why companies outsource, and insights to help you make the best decision for your business. 

Does Outsourcing Software Development Really Pay Off?

The answer is a resounding yes. 

Outsourcing allows companies to focus on core business activities while leaving software development to expert professionals. This strategic approach allows you to accelerate your software product development, reduce costs, and gain a competitive edge against your competition.

The more important question is…

How do you know if your outsourcing effort is successful?

Outsourcing software development can be a smart move for many companies, but how can you tell if it's really paying off? Let's explore some key indicators that will help you gauge your outsourcing success.

Met project goals and objectives

One of the first signs that outsourcing pays off is when your project goals and objectives are successfully met. This means the software you wanted to develop is delivered on time and within budget. 

Delivered high-quality results

Your outsourced team should provide high-quality software that functions well and meets your standards. If you receive software riddled with bugs or doesn't meet your expectations, it's a red flag. 

For instance, frequent error reports and customer complaints indicate the substandard quality of an outsourced eCommerce website development.

Saved costs

59% of businesses outsource software development as a strategy for cost reduction. So, take it as a good sign if you see a noticeable decrease in your business expenses. After all, software development project costs aren’t a joke.

Met timelines

Time is money, and delays can be costly. It's a positive sign when your outsourced team consistently delivers projects on time or before schedule. A development project can take about four and a half months to complete.

If, on the other hand, you frequently experience delays that disrupt your business plans, it may be time to reevaluate your outsourcing strategy.

Satisfied clients and users 

Ultimately, your clients and users are the ones who determine whether outsourcing pays off. If they are happy with the software you've provided, it's a win. But did you know that despite the many companies that outsource software development, only 17.8% were satisfied?

Positive feedback, repeat business, and high user ratings are clear indicators of success. Conversely, if users complain about functionality issues or poor user experiences, it's a sign your outsourcing efforts are not working as intended.

Achieved return on investment (ROI)

ROI is a critical metric for assessing the success of outsourcing. You should see a positive return on your investment over time. 

For example, if you invested $50,000 in outsourcing software development, which leads to increased revenue or cost savings of $100,000, your ROI is 100%. It shows that outsourcing has paid off and is a valuable strategy for your business.

Outsourcing can indeed pay off, as long as you’re outsourcing right. Keep a close eye on these indicators to ensure it continues to be a successful strategy for your business.

7 Reasons Why You Should Outsource Software Development

Are you considering outsourcing your software development needs? It's a smart move that can benefit your business. 

1. Reduce software development cost

Cost is often a significant concern when it comes to software development. Hiring a local team can be expensive, involving recruiting, training, and providing office space and equipment. That is unless you do remote staffing with companies like MultiplyMii, which is the same as hiring an in-house web developer minus the additional operational costs.

Outsourcing helps significantly reduce these expenses. You only pay for the services you need, whether for a single project or ongoing development work.

2. Bring in domain knowledge

When outsourcing your software development, you tap into a wealth of domain knowledge your in-house team may lack. Outsourcing firms specialize in various industries, so they understand your field's unique challenges and requirements.

Imagine you run a healthcare startup and need to develop a secure telemedicine application. By partnering with a software development firm experienced in healthcare, you gain access to experts who understand the regulatory compliance and security measures necessary for your project. This ensures a smoother and more successful development process.

3. Save time on hiring specialists

Time is a luxury many businesses don’t have, especially in the technology industry. Building an in-house development team takes time and effort. You must advertise job openings, conduct interviews, and onboard new hires. It takes an average of 7 and a half weeks to recruit a software developer. 

Outsourcing eliminates these time-consuming tasks. You can quickly access a team of experts with the required skills, saving you precious time and allowing you to kickstart your project sooner.

4. Gain access to world-class talent

You won’t be limited to the talent available in your local area if you outsource. With outsourcing or offshore staffing, you can work with world-class developers, designers, and engineers worldwide. 

But this doesn’t mean finding a skilled software developer will be easy. After all, it’s no secret that there is a tech talent shortage. You may want to team up with companies that know their way around these staffing challenges, like MultiplyMii, and help you save up to 80% on labor costs.

5. Increase the flexibility of scaling your project

The flexibility offered by outsourcing is invaluable. You can easily scale your project up or down according to your business needs. 

Need more developers during a busy season? No problem. Want to reduce the team size after a project's completion? It's as simple as notifying your outsourcing partner.

This adaptability ensures you always have the right resources for the job without the burden of maintaining a large in-house team during lean times.

6. Work with a managed team

Outsourcing firms typically offer project management services, ensuring your project stays on track. You won't have to worry about overseeing every detail, as your outsourcing partner will handle it.

Imagine developing a complex eCommerce platform. An experienced outsourcing partner can handle project management quality assurance and ensure the project adheres to deadlines, leaving you with peace of mind and more time to focus on your business's strategic aspects.

7. Focus on your core business

Lastly, outsourcing software development lets you concentrate on your core business activities. Instead of being bogged down by technical details and development challenges, you can devote your time and energy to growing your business.

How To Choose Your Outsourcing Model?

Many companies today are outsourcing to streamline operations, reduce costs, and access specialized skills. But when it comes to outsourcing, choosing the right model that aligns with your business needs is crucial.

Project-based model

The project-based outsourcing model is like ordering à la carte. You define a specific project or task, and the outsourcing partner delivers it within a specified timeframe and budget. This model is excellent for short-term projects or one-time tasks that require a specialized skill set.

Imagine you run a small eCommerce business and need a new website design. You can hire a web design agency for a fixed fee to create your website. Once the project is complete, your engagement with the outsourcing partner ends.

Dedicated team model

If you're looking for a more long-term partnership, the dedicated team model might be your best choice. In this model, you hire a team of professionals who work exclusively on your projects, becoming an extension of your in-house team. This model is ideal for businesses with ongoing needs and wanting to maintain complete control over their projects.

For instance, a software development company needs to scale up quickly for a big project. They hire a dedicated team of software developers, QA testers, and project managers from an outsourcing partner. This team works exclusively on their project, ensuring continuity and efficient collaboration.

Remote staffing model

The remote staffing model offers flexibility by allowing you to add remote skilled professionals to your existing team. Depending on your requirements, you can hire remote experts without adding more to your operational costs. This model is perfect for businesses that need to fill skill gaps or meet fluctuating demands.

Take hiring a remote software developer in the Philippines as an example. By tapping remote staffing companies like MultiplyMii, you won’t have to worry about overhead costs. You can also let us handle sourcing until onboarding your perfect candidate.

Want to know how much you stand to save with us at MultiplyMii? Hint: It can go higher than 70%! Download our FREE salary guide!

Where To Find Software Development Outsourcing Providers?

If you need software development services, you don't have to limit your search to local options. Some providers can help you meet your software development needs. It’s only a matter of which suits your business needs.

Remote staffing firms

Consider remote staffing if you prefer a more hands-off approach to finding software development outsourcing providers. 

Companies like MultiplyMii will look at your specific needs and help you match with the right software developer. We can also help you craft an accurate job description to better search for the most qualified candidate for your project.

Online marketplaces

Online marketplaces are like virtual hubs where businesses and freelancers come together. These platforms offer a wide range of services, including software development. Some popular online marketplaces for finding software development outsourcing providers include:


Upwork is a well-known platform for hiring freelancers for various tasks, including software development. You can browse profiles, read reviews, and see past work to find the right fit for your project.


Similar to Upwork, Freelancer connects businesses with freelancers worldwide. You can post your project, receive bids, and choose the developer that suits your needs.

Outsourcing websites

There are dedicated websites specifically designed for outsourcing software development projects. These websites focus on connecting businesses with skilled developers. 


Toptal is a platform that connects businesses with top software developers and designers. They have a rigorous screening process to ensure you get high-quality talent.


Crew is a network of vetted freelancers who specialize in various areas, including software development. You can find experienced developers for your project here.

Tech-specific platforms

You can turn to tech-specific platforms if you're looking for developers with expertise in a particular technology or programming language. 


GitHub is a platform where developers collaborate on open-source projects. You can find developers who have contributed to projects similar to yours.

Stack Overflow

Stack Overflow is a Q&A community for programmers. It also has a job board where you can post your software development project and find skilled developers.

Business Directories

Business directories are valuable for finding software development outsourcing providers. You can find comprehensive lists of companies that offer software development services. Examples include…


Clutch is a business directory. They provide reviews and ratings for software development companies. You can easily compare different providers and their client feedback.


GoodFirms offers a directory of software development companies, reviews, and ratings to help you make an informed decision.


LinkedIn is a professional networking platform that can be a goldmine for finding software development talent. You can search for software developers, check their profiles, and even ask for recommendations from your network.

Networking and industry events

Don't underestimate the power of networking and industry events. Attending conferences, meetups, and webinars related to software development can help you connect with potential outsourcing providers.

With software development outsourcing, companies can optimize their operations, boost productivity, and achieve sustainable growth in today's competitive marketplace.

Find Skilled Software Developers for Your Development Projects

Even with high demand for software developers, don’t settle for anything less.

Instead, tap the best remote staffing company to help you find qualified developers for your project.

Through MultiplyMii, you can connect with talented remote Filipino professionals who possess technical prowess and can bring dedication and hard work to the table.

Enjoy our tried and tested recruitment process and tap our vast network of passive candidates.

Navigate the competitive market for tech talent and turn your ideas into results with our team.

Begin your remote staffing journey: Book a discovery call with us today.

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