Software development outsourcing

What is Software development outsourcing?

The market size for global Software development outsourcing reached $92.5 billion over the last year and the term “outsourcing” can be heard everywhere today. As well as any outsourcing, IT outsourcing assumes solutions of tasks, which are not included in the basic spectrum of activity of this company, by a third party contractor. In this case, the customer company can get the most complete and qualitative set of services in the field of informatization without the need to maintain its own department. When using development outsourcing, companies rely on the professional advantages of third-party suppliers of high-tech services. 

At first sight for an HR manager or other employee who has never faced a search for developers that everything is not so bad. For example, having studied popular recruiting sites, it may seem that the number of job seekers is many times higher than the number of open positions. However, it is not that simple.

In our experience – out of 200 applicants who are initially selected by HR-managers based on completed questionnaires, only 5% meet the requirements.

Choosing software development outsourcing companies

There are several reasons why businesses choose software development outsourcing companies instead of doing all development in-house. We analyze situations when outsourcing is not only economically more profitable but also greatly simplifies, accelerates and improves development process quality.

  1. Development is not a core business of the company. In this case, it is definitely easier and more profitable to outsource software development than to hire a staff of programmers. 
  2. Lack of software development expertise. You have a certain staff of specialists, but they do not have enough expertise to solve the task at hand.
  3. Programmers’ workload. In other words, when there are not enough resources and you need to start working on a new project in a short time. 

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Outsource product development

Intelligent product development outsourcing helps IT products take off faster, with fewer risks and costs. At the same time on different phases of outsourcing in product development, different formats of outsourcing are more effective.

Moreover, product development is an intensive activity that requires a lot of attention. If top management’s attention is spent on the in-depth details of product development, then market analysis and marketing activities that directly impact the success of the company will not get top priority. In the long run, this will affect the profitability of the company. If your managers have no expertise in managing remote teams – it’s not a real problem as project management outsourcing is a well-known service we provide.

At Tagsoft, we have a huge experience in the end-to-end outsourcing software development of various software products for applications such as SaaS, ERP, CRM, CMS, inventory management, eCommerce, ad serving, and more. We create dedicated teams for product development, QA, and providing HR outsourcing services for building remote teams and even remote R&Ds.

Outsourcing product development services:
  • Outsourcing web development;
  • App development outsourcing;
  • Outsourcing it service;
  • SaaS development outsourcing; 
  • HR outsourcing;
  • Project management outsourcing.

App development outsourcing

You can hire people on a full-time basis, but this represents a significant risk: you can not be completely sure that your application will worry users. If this does not help, you will be stuck in a department that will be of little use to you and will cost a lot of money. That is why it is better to work with professionals who have experience in delivering quality products to their customers.

When you plan to outsource the software development of your application, it is important that your goals are clear to the developers so we could become your “partners”. You should also decide whether you want the application to be available on iOS, Android and even Windows

At the beginning of the process, you need to decide, analyze, and find out what you want before you start searching for developers, or you just could afford to fail even before the beginning. It is very important that you take the time to research similar applications and note what you want your application to do: 

  • Do you want your application to have integration with social networks and 3rd party services? 
  • Do you plan to build an app with strong back-end logic or it would be a stand-alone app? 
  • Are there purchases within the application? Do you understand that PlayMarket and AppStore will charge you for each payment? 
  • Do you want to develop several versions – free (light) version and a premium version of the application? 
  • Do you want it to be native or cross-platform?
  • Do you have a tight schedule or strict deadlines your app should meet?
  • Do you have documentation in case your server is already developed?

You can read more about our customer’s stories here

Outsource website development

Now more and more contacts with customers are made online. If a business is not represented online, its chance to find clients and develop is minimal.
Our team helps you to decide if you need to outsource software development.

Have you encountered one or more problems from the list?

  • You need a website or web system, but you cannot develop it yourself;
  • Your business is expanding extensively and does not have time to respond to growing customer demands;
  • The growth phase is only planned, and future site is an important part of this phase;
  • The business already has a website, but it was developed several years ago and does not meet modern requirements and business needs;
  • Existing sites need to be improved or maintained.
  • In all these situations, it is worth considering the outsource websites development and launch of new web tools that will support and promote your business online.

Outsource development team

The possibilities of using the Outsource development team, which deals with web-development, are limited only by the set of examinations, which are owned by the team members. Our team consists of different specialists, namely full-stack developers, frontend developers, back-end developers, project managers, and designers. Our team can develop a web site of any complexity, integrate it with other systems – payment systems, CRM, email, delivery service. 


What do we offer?

  1. Professional team. First-class developers are our pride. For more than 10 years of work, we have built a strong team that is capable of implementing a project of any complexity level.
  2. Deep knowledge and huge experience. Science-intensive technology, high-tech development and a combination of advanced techniques – we use all means to achieve optimal results.
  3. Personal service. Each customer is provided with a personal manager on board in the Outsource development team, who helps coordinate all processes for successful project delivery.
  4. Transparent reporting. No surprises. You always know exactly how your project progresses.
  5. Long-term cooperation. We do not just make projects. You can count on us every time you need professional outsource development services.
  6. Reasonable prices. Our clients deserve the best combination of price and quality. We understand that budget at the start – is one of the important issues for you, so we are ready to find the way you save money and focus only on the things that really matter and don’t spend money on others.

Benefits of Software Development Outsourcing

Very few businesses can keep a whole team of developers on staff: usually these are large corporations or IT companies. For smaller companies, a team of developers on staff is not justified. It is more reasonable to invite developers-outsourcers.

Deloitte conducted research, and found the following top benefits of outsourcing software development:

  • 59% –Reduced investment in non-capital assets, save budget funds by paying for development work piece by piece;
  • 57% – Focus on core business
  • 47% – Solve capacity questions, flexible reaction to marketing and company changes (reorganization, restructuring, mergers, acquisitions);
  • 31% – Improve service, using the rich experience of an outsourcing company providing work services, the opportunity for the organization to learn from its service provider; 
  • 28% – Gain access to expert talent and knowledge, the use of highly qualified outsourcing professionals with extensive experience that would be too expensive or unsustainable to hire;
  • 17% – Manage business environment, accelerate organizational transformation

How to choose Outsource development companies?

To develop any successful software product, you must know how to choose an outsource software development company that shares the product development strategy, values, aims of its customers, and has some entrepreneurial mindset to download. This can best be defined by a strategic, long-term relationship with customers.

For our part, we can formulate some basic tips for selecting and entering the contractor into the project:

  1. Always conduct a test period. To evaluate the quality of programming and the level of responsibility of the candidate, two or three slips during the week will suffice.
  2. To build up the team gradually. It is not necessary to connect all necessary specialists at once on a project, it is better to start with one or two people for core development and then grow your team. Experienced outsourcing teams, by the way, are also interested in entering projects smoothly so it’s a win-win situation.
  3. To communicate directly with developers, discussing professional questions. About design patterns, load control, development methods, signs of bad code, and so on.
  4. Portfolio. It is not always possible to objectively assess the implementer by the cases, as a significant part of the projects may be under NDA (details cannot be disclosed). Nevertheless, you should pay attention to this point and request the available works. You can see several projects that were outsourced here.

Working with outsourcing development companies

What does it take to organize a competent dedicated team or a fully functional development center? 

  1. The high level of technical competence of performers – experience, skills, and knowledge of specialists involved in the project implementation, first of all, affect the success of its implementation. Own developments and serious expertise in various technological spheres help the outsourcing company to form efficient teams consisting of highly qualified engineers.
  2. Ability to establish communications – general actions on the development of software products or fulfillment of user requests will require the organization of transparent and mature communication processes.
  3. Maintaining work ethics and a high level of responsibility of the outsource employees for the quality of the program they create. This is creative work, so team members must be really passionate about their own business and treat it, which is called the soul, for the qualitative implementation of the project.

Sometimes it can be difficult for future clients to start working with outsourcing development companies, especially if it is the first time or there is a negative experience in the past. To solve this problem in most cases, the methodology of organizing an engineering team for new customers, developed by the software outsourcing service provider, helps to achieve success in project implementation.

What to look for in your outsource development companies

If you do decide to start working with an external team, here are a few things that they should have:

  • Sufficient experience in program creation;
  • A staff of qualified specialists;
  • An innovative approach to each project;
  • Application of effective business models;
  • Proper process organization in terms of communication, budget, planning, control, forecasting;
  • The ability to deliver good results even under difficult working conditions.
  • Good communication skills and direct communication with the team.

 The most correct approach to know what to look for in your outsource development companies should be based on the most effective world practices and be well-tried out when implementing projects for different clients engaged in different areas of business activity. The extensive experience will help the company, offering outsourcing services, to successfully implement each new project. Aspiration for self-improvement and application of the newest technologies are also essential conditions for success in work.

In conclusion – to solve a specific problem, you need to select the optimal solution. There are no universal approaches to project work. If you need consultation or want to evaluate your project, please contact us


Do you still have questions about choosing an Outsoursing Company?


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