Top 5 Fears While Outsourcing Software Development

19 October 2021 Writer: Lera Grechanik 474 views

Challenges and risks… do they appear with outsourcing software development? Of course, they do, even though the total amount of benefits is much bigger. If one changes to dig into the fears, the journey might seem endless. That is why we have decided to have a closer look at the article on the top-5 fears related to outsourcing software development and draw you a roadmap of how to overcome these fears. 

The first and foremost is delegating fear. If you are among the ones who feel uncomfortable when it comes to the need of delegating this or that task, this point is just for you. Because when it comes to software development, the fear of delegating the task to someone not known can become a stopper, not just an important issue. The companies think not just twice, but three and even more times before they decide to choose an outsource in terms of software development. Along with the fear, there’s an understanding that software development of high quality is the key to business success. 

We won’t break the ice for you or something like that because if you are reading this article you already know that we are living in a technological world, filled with innovations and new discoveries, and outsourcing software development is just one of the trends, flourishing because the market needs it. As a rule, the companies do not have talents inside of the firms when it comes to development. It is technical work, requiring a certain set of skills and experience. That is why not any business possesses a team of professionals. Their goal is more about the business and marketing, not about having technical stuff in hand “just in case”. That is why if the business owners want to have a properly designed and supported product, the best way for them will be to hire outsourced developers, having relevant experience.

1. Software Development Cost

Lack of budget, irrelevant costs, overpriced services... Sounds familiar? We are sure that it does. To get a project completed will cost a certain sum. To have a project to be completed successfully will cost even more. Here we come to one of the reasons why outsourcing is popular - it is simply cheaper to hire some professionals for a couple of months than to have a whole team in the company, especially if the projects are set on the agenda from time to time. 

But if the calculation is wrong, there’s a risk of going out of the budget. And even if it’s ok with the initial calculations, if the additional factors causing cost increase are not included in the list, the company will most likely go out of the budget too. 

The cure here is to include potential costs and calculate related risks from the very beginning. However, choosing the right software development model can do its deed too, reducing the overall budget. To understand which software development model will be the best one, evaluations should be conducted. As a bonus profit, the correctly chosen model will help to make sure that the project was completed within the budget. 

2. Quality of Software Development Services

For the software development quality, it is one of the key points, we would say the main one. Before coming to the idea of outsourcing, a lot of companies face issues related to poor quality and have relevant concerns in the end. The vendor, providing a product within the budget, is good. But the vendor, providing the product within the budget and with high quality is priceless. malfunctions are a direct consequence of the poor quality of the software itself, so the profit and performance are affected. It is true that even a minor issue can lead to potentially huge losses for the business. 

Is there a way to overcome this fear? Of course, it does. The way for you as a business owner is to choose an outsource company, possessing all the needed skills in their skill and technologies list. Another option is to lick the well-known quality with a good reputation from the beginning. 

In any case, do not skip collecting as much data about your potential partner, paying close attention to their past projects. If the company has a similar project in its portfolio, it will be perfect. Use this technique and see all the favors it can do for you. 

3. Data Security & Intellectual Property

In the world of data, security issues have risen to completely another level of importance. The fear is related to the risks of handling the sensitive data to some third party you hardly know and who can replicate your project, becoming the first ones in the promising niche. This fear is the most prominent one so it is critically important to check all the information about the company you are about to work with. 

The way to protect the data you want is to work on a contract basis. If the company insists on working without the signed contract, be careful. It is a bad sign. A company which things about its reputation, will be the first one who offers to work within the terms in the contract. However, a non-disclosure agreement is an important thing to sign too. Spend some additional time to prepare a contract with the lawyer and the fear related to the security issues will be overcome. 

4. Communication Gap

Hiring a vendor, in most cases, the client does not have the relevant skills and experience. Here comes the fear of a so-called communication gap when one simply can’t track the process or check the relevance of provided data. However, not being on the same page with the company that is working on your product can lead to delays and postponing the product delivery. But we have a piece of advice for this case too. 

Before starting working on the product, do your best to understand the plan they have prepared for the product, clarify your role in it, dig into the process details as much as you can from your level of perspective. Ask questions and clarify the details. The team should provide you with clear answers to the questions. Check, if you haven’t done it yet if the company has successfully delivered and running software at the moment. here the “Past projects” section will come in hand. 

5. Objectives & Timelines

Delivering the product in time is important regardless of the niche and the market segment the company works in. But this point is critical for startups because they try to get into a new niche and be the first ones there to get the best shares. But even if your company is far from a newly established startup, it will do you a lot of good if you clarify the deadlines and set the timing with the vendor before the work begins. 

When the product is ready, check it with your own hands. Is it user-friendly enough? Does it provide all the user experience your target audience needs and requires? Are the requirements you have set in the very beginning fulfilled? To make this final step easier, think beforehand and compose a product requirement document. This you will have some requirements to compare the final product with.


More and more companies choose to hire an outsource team for delivering the software for their business. As a result, the face of outsourcing has changed greatly. Now it is a way to deliver a high-quality product, not having a constantly working team in the company. However, it is an option to save costs without quality losses, which is important for any business. Now you know the risks, know how to overcome them, and are ready to start using this game-changing strategy for your business.

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