Debunking Top Software Outsourcing Myths still existing in 2022 Harshal Sonavane November 22, 2022

Software Development Outsourcing has been a part of the IT business for a long time. However, many organizations are still undecided about whether to outsource or develop digital products in-house.

 As a software development outsourcing company, we frequently deal with the consequences of software myths. False assumptions and preconceptions stymie collaboration and product development. Some clients have unrealistic or stereotypical assumptions. Others are wary of making critical judgments and are hesitant to do so. 

 We clarify the most popular myths regarding Software Development outsourcing development for all of us in this blog. We hope that this blog post clarifies what outsourcing is all about. Cheers!

1. Software Development Outsourcing is for Big Players only

It makes no difference what size you are. Despite the fact that outsourcing companies prefer larger clients, they do not turn away small enterprises. The biggest customers of BPOs are small and medium-sized businesses (SMEs). Even small businesses can benefit from Software Development outsourcing. Because it’s critical for businesses to deploy their MVP quickly despite a lack of resources or capabilities, outsourcing some jobs may be necessary. You may always outsource IT-related tasks and focus on other things in a better way, whether you’re an established company or a startup.

Small businesses benefit from Software Development outsourcing because they can get up and running faster, more efficiently, and with better quality, all while managing their budgets and other important tasks. According to surveys, a significant number of small enterprises have outsourced a business process in the last few years, and the majority of them plan to outsource even more after COVID-19. The primary difference between large and small businesses is their motivation for outsourcing: the former seeks to reduce expenses, while the latter seeks to increase productivity. So, while the reasons for this may differ, the advantages still exceed the concerns.

2. Software Development Outsourcing is Expensive

The first and most widely held misconception about custom software development is that it is too costly. In reality, organizations claim to have worked with software development firms largely to save money. 

“Research says you can save up to 58% of the development cost by outsourcing software development instead of getting it built in-house.” 

Furthermore, keep in mind that an in-house team necessitates additional funds for employee benefits and training, as well as infrastructure investment. Your in–house team is also compensated depending on their time in the office, which has been proven to be inefficient. Hiring entails a variety of costs, including training, compensation, infrastructure, and more, as well as the ongoing annoyance of managing human resources around the clock.

But on the other hand, the Time and Material Model, which is commonly used in Software Development outsourcing projects, assures that your money is wisely spent and corresponds to the performance. An IT Outsourcing Company has all of the necessary resources on hand, and the client only has to pay that amount for the task at hand, not for any other costs. This makes it a reasonable choice with cost savings and, of course, a convenient option. There could be instances when outsourcing software developers could sound more expensive than hiring in-house developers, but this happens extremely rare and would be justified if the product requires extreme customization, expertise, time and efforts. Cloud-based apps, agile methodologies, and selecting a front-end framework for the software are just a few aspects.

(Read: How to Hire a Software Development Company?)

3. Quality is compromised

We’ve grown accustomed to the idea that superior quality comes at a hefty price. That’s why gaining excellent outcomes for a low price seems odd. Is it obligatory that a lower price implies a lower level of quality? That’s a bit of a stretch. You can’t compare quality and pricing in Software Development outsourcing because they differ from country to country and area to region. It is purely determined by the value of a region’s currency. Regardless of the region to which you outsourced, a software product maybe even better if you have chosen the right candidate for the task. As a result of the easy availability of experts without probably going into debt, outsourcing software development not only saves money but also gives you access to the finest developers.

You can acquire superior end-products with unmatched quality for less money by outsourcing IT-related work. All you have to do now is make sure the job is being taken care of by the proper person with considerable experience and competence. As a result, assuming that Software Development outsourcing produces low-quality services and results is false on all accounts. Choosing the best outsourcing service provider among the rest is the best approach to lessen the danger of receiving low-quality products.

4 . There is a potential Privacy and Security breach

Many people believe that Software Development outsourcing businesses can see through a company’s genuine image at first glance. It may sound frightening, but this is the worry that most businesses have when outsourcing. Trust is the foundation of any successful and long-lasting commercial partnership. Outsourcing companies work by winning their clientele’s faith, which they may do by being honest and truthful. Fortunately, the law and technology are on your side too. 

It is the responsibility of Software Development outsourcing companies to use this information in the best interests of their clients. Outsourcing companies place a high premium on the security and safety of a company’s data. To limit the risk and stress of disclosing personal information, businesses must pick the correct Software Development outsourcing work provider. Checking their policies on privacy and intellectual property is another technique to ensure that your chosen offshore company does not pose any risk. They must also use preventative technologies and be able to monitor data flow. It’s also a good idea to see if they provide such training to their staffers.

5 . Outsourcing is Time-Consuming and lacks Productivity

Of course, a custom software development company may not be able to offer next-day completion because it normally builds unique software for particular clients rather than for the bulk. However, contrary to another common custom software development myth, most custom software development businesses guarantee an acceptable timeframe for deploying custom software in your company. However, the notion that Software Development outsourcing takes time is an old one. In fact, outsourcing may result in a significant increase in company productivity and efficiency.

It has even been statistically demonstrated, and as a result, software development outsourcing will provide larger returns for a lower investment, making it a global trend. Software Development Outsourcing, rather than being a time-consuming task, saves your company valuable time that can be used in processing other important elements of your business, allowing you to use your time more profitably and effectively without having to worry about a lot.

(Read: In-house Development Vs Outsourcing: Overview of Pros and Cons)



To sum it all, up to your question– Is it better to have an in-house core tech than to outsource? — You must realize that assembling and managing an internal development team takes a significant amount of time and resources. This is due to the fact that you must interview people, aboard them, offer them insurance and other perks, as well as obtain offices and provide PCs, laptops, and other hardware to your in-house development team. Instead, you might outsource the creation of your tech product to a professional software product development company. Software Development Outsourcing software development offers companies immediate access to better software developers with the necessary training and expertise. Apart from that, outsourcing your software product development to a growing country like India provides you with cost-effective software development.

We at Incentius, a technology and professional services company that specializes in product engineering, take our Software Development outsourcing services seriously and devote the necessary resources to produce the finest solutions for clients. For further information, please contact us.