8 Benefits of Outsourcing Product Development Maybe You Don’t Know

Vy Le

Vy Le | 07/04/2023

8 Benefits of Outsourcing Product Development Maybe You Don’t Know

The economic recession in 2022 is the source of the simultaneous personnel reduction when large and small companies have to restructure the personnel scale to optimize costs. To solve the human resource problem and face the present reality, especially in information technology, many business managers choose outsourced product development companies as a new technology solution instead of building an in-house IT department. Based on many advantages such as cost reduction, time-saving and software product quality maintenance, etc., the form of outsourcing is predicted by economists to continue to grow globally with an expected increase of about $731 billion in 2023. This article will help you understand the term outsourcing product development and its benefits.

Outsourced Product Development Meaning

Outsourced product development means the process of hiring an external outsourced product development company or dedicated team to design, develop, and deliver complete software products. This process involves seeking help from a third-party provider through a contractual agreement for them to take on various aspects of software product development outsourcing.

Outsourcing software development is a widely used practice in many countries because of the various benefits it brings to businesses. Not only well-used in India, China, and Ukraine, many emerging countries, such as Poland, Romania, and Vietnam, are growing their technology industries and are becoming popular outsourced product development services destinations that have large numbers of experienced developers, and the cost of labor is significantly lower than in developed countries like the US or the UK.

When Will You Need an Outsourcing Product Developer?

When Will You Need an Outsourcing Product Developer?

Lack of Technical Experts

Information technology is a vast array of programming languages such as Python, Ruby, PHP, Kotlin, Go, etc. Making a good product requires the coordination of the whole development team. Each role involves unique skill sets that take years of experience to master. However, it is difficult when the company’s in-house team does not have anyone specializing in software projects. The lack of technical expertise can cause the quality of the company’s products unreliable. At this point, outsourcing a whole product outsourcing team would be a good idea. These talented engineers can bridge the gap between a business idea and the development process with the expertise available. By applying all the expertise and experience in software products, the outsourcing product development team can boost business performance and skyrocket sales to deliver outstanding results - something the in-house team still needs to work on for hours.

Optimize the Use of Turn-key Software Solution

The growing information technology era has brought people many convenient intelligent solutions to support the company in achieving business goals soon. However, software solutions only maximize their use value if appropriately implemented. And outsourced developers are the experts who understand these advanced tools better than anyone. The quick deployment times enabled by turn-key solutions can be beneficial for outsourcing product development services as it allows them to deliver results quickly to their clients. The scalability and flexibility of these solutions also enable the project manager to create customized applications and integrate them with existing systems and processes.

Eliminate HR Problems

The primary function of the recruitment department is to find talent. However, recruiting is difficult for positions requiring highly specialized knowledge, such as IT. As mentioned in the previous part, technology is a comprehensive operation that requires much wisdom. Although the number of software developers increases yearly, the labor market still has to witness many cases of lack of technical specialists because demand is more significant than supply. To outsource product development to the best technical specialists during a hiring process whose expertise is ideal for covering project needs, interviewers must update the latest technologies and software trends. However, conducting professional training programs for recruiters to hire in-house developers is much more than a waste of time while all departments have their functions. At this point, outsourced product development services will be the optimal solution to solve all these problems and gain access to the business idea.

Utilize Offshore Developers

Offshore software development. Yes. This is a very cost-effective solution that not many people recognize. These resources are typically available at lower rates than domestic solutions and can be hired quickly as the pool of potential applicants is more expensive. Still, self-approaching offshore developers can be challenging, as identifying suitable talent often requires considerable research and effort. Outsourcing software product development companies, fortunately, have none of these hattricks. The third-party vendor often has more established pipelines for finding and hiring offshore developers than a dedicated team. They usually have large talent pools of pre-screened and qualified developers to draw from quickly, making onboarding offshore teams much faster. And offshore in-house developers themselves can provide more flexibility in terms of cost and engagement outsourcing model. This can lead to a faster-outsourced product development process and a higher-quality core business output.

Enhance Specialized Capability

Working with familiar partners does enhance the workflow, but not necessarily creativity. If an in-house team has been working together for an extended time, they may become complacent, cease to push each other to think outside the box, and come up with a new business idea. By conducting an outsourcing product development process, companies tend to access the world’s leading product developers who are up-to-date on technological advancements and gain much knowledge from them. Besides, bringing these technical specialists from outsourced product development companies can give businesses new insights and perspectives into projects that may benefit the core business.

Shorten Time to Market

Regardless of the communication barrier is considered the biggest objection to hiring offshore developers, outsourcing to offshore software developers is less complicated than managing an in-house team. You don’t need to be hands-on or coordinate the workflow amongst the outsourced team since they are all software development experts. Besides, the time zone difference, which seems to be a disadvantage, is also an advantage. Because of this between countries, the time in-house employees take off is when remote developers work and vice versa. With the help of tools like Agile methodology and ERP solutions, companies can rest assured about remote work monitoring when everything is caught up on schedule. This creates a smooth workflow during business processes and a more agile and flexible response to customer requests, leading to faster project completion times.

Save Budget in Many Ways

According to Deloitte, 70% of businesses surveyed cited cost reduction as a primary motivation for outsourcing. In-house staff is more expensive than an employee in a product development outsourcing company. There are many complicated fees that a company has to pay for a self-employed position, such as salary, infrastructure costs, benefits, insurance, training, etc. Meanwhile, software product development outsourcing models are much more cost-effective when they are usually hired under the contract signed from the beginning and do not incur additional costs. Outsourcing specialized engineers from a product development outsourcing company can sometimes be remote workers. With practical experience from many previous projects, they not only ensure the quality of work but also save costs for customers.

In addition, the software engineers provided by the third-party vendor also save costs incurred when the HR department of the client company encounters some unexpected situations, such as candidates quitting their jobs mid-way or candidates unsuitable for recruitment needs. Consequently, the company must spend time, money, and effort to start the recruitment process from scratch. This helps the company to limit the cost of risk management.

Focus on Key Competencies

It is common that a position has to take on many different tasks, mainly in small-sized companies. However, overworking is unsuitable for your business when it significantly contributes to reduced work performance. Developing a new product but making an error in the first step will make the consequences left behind very heavy. Outsourcing product development will be the solution to help other positions in the company have their working time. The smooth coordination between the departments that are not heavy on the workload will bring the best product quality. By assigning product development to a specialized company, in-house personnel has time with their core business, creating value and profits.

Typical Types of Outsourcing Product Development Services

Custom Software Development

Custom Software Development

Custom software development is a type of software application made for specific needs and fulfills the unique project specifications of a company. This kind of product software development usually involves the process of designing, coding, and testing. A good custom software product’s final result is flexibility and scalability.

However, self-building software is a complex story. It requires an in-depth understanding of the company’s requirements, substantial in-house tech input, and support in software development. To ensure business goals and stay up-to-date on the latest technologies, which can be incredibly challenging in rapidly changing areas like web programming, hiring developers from outsourcing product development services is an intelligent substitute solution.

Mobile App Development

Mobile App Development

The mobile app development has been fast-driven by the growth of mobile devices, with consumer increasingly using their phone to access information and services. That is why companies nowadays try to access this software development. By definition, mobile app development is creating software applications that operate on mobile devices such as smartphones and tablets. The use of the mobile application can be diverse due to specific needs.

However, creating a mobile app can be difficult due to the complexity of programming languages and frameworks, which only a dedicated team can do. Suppose your company’s IT department has none or does not have enough skilled developers. In that case, the hiring manager should consider to outsource product development as the best new technological solutions to hiring outsourcing software remote developers. An outsourcing software development partner can assist businesses in UX/UI designers, quality assurance testers, and project managers while cost reduction and time shortening.

Web Development

Web Development

Web development is considered the process of building websites and web applications. It encompasses several aspects, including web design, front-end development, back-end development, and full-stack development. This is one of the outsourcing product development services which is an essential part of modern-day business operations, as a website or web application could be the primary way customers interact with businesses online.

Because of the complication of this software product, the company’s website should be built by a team of professionals. By outsourcing web development to a product outsourcing service, companies can focus on their core business operations and leave the website development to the experts.


It is undeniable that outsourced product development brings businesses a lot of technical benefits. However, for the product to achieve maximum quality, the customer must consider the required factors of an outsourced product development team. As an outsourcing software product development company with a history of over 20 years, Orient Software offers customers a complete set of services that are always ready to serve. Contact us for more details about our services and products.

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