The software application development outsourcing market has outstretched from $45 billion to $85 billion in just the last five years. These numbers significantly show that both startups and enterprise-level businesses are embracing the idea of outsourcing software development services through IT outsourcing companies with open arms.
IT outsourcing involves farming out or sub-contracting certain IT functions to independent companies, third-party organizations or individual developers. There is no need for an in-house team unless you want it -that is the beauty of outsourcing IT solution requirements to a software development company. Let’s dig deeper into it and find out the many positive aspects of outsourcing software development services.
Types of Outsourcing Software Development Services
The type of software development outsourcing is categorized by where the development is executed and is often location-based and relationship-based. Broadly, there are three types of outsourcing agencies mentioned along with their advantages:
Onshore outsourcing
When you obtain software development services from a service provider outside your company but within the same country, it is known as onshore outsourcing. If you choose onshore outsourcing, you are open to advantages as such:
- Easier to communicate
- No cultural difference
- Same time zones
- Easily accessible
Offshore outsourcing
When software development operations are performed in another country altogether is known as offshore outsourcing. Offshore outsourcing software development companies are usually from a different time zone and in most cases are opted for because the costs are comparatively very lower. Here are the benefits of choosing offshore outsourcing for your project:
- Global pool of talent
- Highly expert team
- Lower costs
- Wider range of services
Continue reading: How to identify an ideal software development company
