Software development outsourcing: all the pros & cons

When it comes to developing complex software applications or apps, many companies rely on the help of professional service providers. Software development outsourcing is often the first choice, especially for projects that require specialized expertise. Regardless of whether you want to have an app developed, develop a digital product tailored precisely to your company or optimize internal processes, e.g. by means of a sales app, contact us for a personal and non-binding consultation.

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What is outsourcing in software development?

The term outsourcing in software development describes the outsourcing of complete or partial software development projects to external partners. Instead of building up their own team of developers, designers and project managers and employing them internally, companies commission specialized agencies. This can include individual components such as frontend or backend development or even the entire project management.

The exact scope of activities that are outsourced varies depending on the project. Companies that cover certain functions such as UX/UI design internally often prefer approaches where only the actual writing of the application is undertaken by external experts. Companies that have no or very limited in-house resources, on the other hand, are usually looking for a complete solution where an idea is turned directly into a finished digital product.

As an experienced app agency, we have extensive experience with both approaches and can adapt to your individual needs.

The great competence of the team and the high quality of the delivered results have helped to increase the app traffic tenfold and raise our average App Store rating to 4.5 stars.

Marcel GleisLeasingmarkt.de

Which software development projects are suitable for outsourcing?

In principle, any software project can also be implemented externally. Working with external software specialists makes the most sense in these cases:

Mobile app development

In contrast to projects that focus solely on the further development of websites, app development requires expert knowledge. Whether iOS app, Android app or cross-platform app development: app projects require special expertise in the areas of user experience (UX), system architecture and agile development. An experienced outsourcing partner can shorten the development time and identify and solve potential problems at an early stage.

Web app development

Web apps and progressive web apps in particular are becoming increasingly popular (progressive web apps vs. native apps). However, the technical implementation is also complex and here, too, collaboration with a professional partner often leads to better results.

Cloud solutions

Scalable applications that access cloud infrastructures are often complex and require specialist expertise in AWS, Azure or Google Cloud. Existing systems also often need to be integrated. It is therefore advisable to always bring experienced cloud architects on board.

Applications with integrated AI & machine learning features

The integration of artificial intelligence (AI) and machine learning algorithms into digital applications is one of the major trends. Outsourcing to specialized teams is an efficient way to successfully complete such projects and bring AI apps and applications to market faster.

Is outsourcing cheaper than in-house development?

The question of cost is of course always a decisive factor when it comes to deciding between outsourcing and in-house development. Outsourcing is often seen as a cost-saving measure - but is it really always cheaper? A brief comparison of the main cost points:

External project costs: the direct costs for a software development project are quickly clarified. These can be measured very precisely on the basis of cost estimates.

Indirect costs: In-house development incurs many indirect costs that are often not so easy to measure: in addition to salary costs, cost items such as time and recruiting costs for setting up your own team, office rent, expenses for hardware and software licenses, social benefits and, if necessary, training must also be taken into account.

When is outsourcing really worthwhile?

Outsourcing makes particular sense if you want to scale up quickly, need specialist knowledge or simply don't have the capacity for the lengthy recruitment process. A careful cost-benefit analysis should take the long-term perspective into account:

How high are external project costs compared to the actual costs associated with setting up your own team?
Would you be able to find suitable talent quickly and retain them in your company in the long term?
Can risks and quality requirements in software development be adequately controlled?
Will your business goals be achieved faster and better by working with an external partner?

What are the risks of software development outsourcing?

Outsourcing important development processes that could potentially have a major impact on the economic success of your company to third-party providers is a step that needs to be carefully considered. The following risks must be assessed and minimized:

✓	Quality control & communication with remote teams: In projects with external partners, there is always a risk that requirements or objectives will be misunderstood. This risk increases particularly with offshore providers who primarily rely on development teams working in other time zones and where there is often a language barrier. Cultural differences are also more easily noticeable and many companies have had to realize that “Yes, that works.” can take on a whole new meaning in practice.
✓	Security risks & data protection (GDPR-compliant work): Especially when it comes to sensitive data and applications, security must be a top priority. Look for a service provider that guarantees GDPR compliance and state-of-the-art security standards.
✓	Dependence on external service providers: One point that can never be completely avoided is limited knowledge transfer. External software specialists naturally work at a level that makes it impossible for less technically savvy project partners to follow all development steps exactly. This is quite normal, but can lead to a strong dependency relationship. In order to be able to plan the costs for this in particular, it is important that you understand how high the costs for ongoing maintenance and regular updates of your digital product will be directly before the actual project is awarded.

Advantages of software development with Hybrid Heroes

Born in Berlin

Berlin is undisputedly THE city of tech talent in Germany. A fact that benefits us and you!

25+ Heroes

Our cross-functional team consists of many creative minds and experts from different departments. What we always have in common: Our enjoyment of teamwork, our passion for tech and design and our willingness to keep learning new things.

10+ years of experience

Since 2015, we have successfully implemented over 100 apps for corporations, medium-sized companies, start-ups and research institutions.

Long-term client relationships

Over many years, we have gained the trust of numerous customers and maintain long-term, trusting partnerships.

No subcontractors or offshoring

Our mantra is: If it says Hybrid Heroes on it, it's only Hybrid Heroes inside.

Cross-platform

We were one of the first agencies to specialise in cross-platform app development, using innovative app development frameworks to create apps for the iOS, Android or browser platform.

We look forward to your project!

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