Software Outsourcing Myths

In this world where the demand for business software solutions is increasing day by day,  software development outsourcing is known as a major business optimization driver. The annual growth rate of the IT outsourcing market is 4.5% which means that the industry will reach up to $397 billion by the year 2025. Though the majority of the businesses are approaching software outsourcing companies, there are firms that are still reluctant to work with external specialists. And the only thing they fear is losing control over the project, important information, and getting low-quality products. Besides this, there are many misconceptions that businesses have about outsourcing software development. In this blog, we’ll learn about all those myths and see how software outsourcing can be helpful to various organizations.

1. Outsourcing Service Providers Myths Busted!

Myth #1: Can I Lose Control Over My Project?

It is obvious where this misconception is coming from. Many companies are unable to gain the trust of third parties, especially the ones which aren’t located within the country. Also, not to mention that different locations mean you may find the price high or low depending on the country. 

Now, generally speaking, you will come across outsourcing service providers offering a full estimation of cost with no hidden charges in advance. So fret not, it is not actually that problematic. Simultaneously, it is the duty of your chosen software development company to keep you posted regarding the work progress and offer detailed documentation at regular intervals. Companies worry about losing control because of poor communication. But there are skype, Google Meet, and other tools which make communication smooth and seamless. So nothing can stop you from having full control over the project. Nowadays companies are utilizing project management tools so that other participants can also take part in the software development process.

Myth #2: Outsourced Development Services Might Result in a Low-Quality Product

Another common yet crucial myth is that choosing outsource software development services always results in delivering low-quality products. Outsourcing providers like India and other developing countries have low prices and tax rates, if such companies quote a low price then it doesn’t mean that product will be of poor quality.

Low-quality products are just one of the common myths and not the result of outsourcing but it could be the result of poor skill possessed by the software developers of the offshore development team and this can be possible even with your own in-house development team.

Myth #3: Outsourcing Takes More Time Than In-House Development

Another myth about outsourcing development companies is that businesses most of the time think that in-house project development can be conducted at a much faster pace instead of the time taken by outsourcing companies. The outsourcing team is way more experienced in their field and if they happen to deliver cheaper development services then it doesn’t mean they will compromise on other factors such as time is taken.

Business owners must trust their outsourcing partner, after all, they are reputable companies. In fact, at times it becomes very easy for experienced outsourcing companies to understand small business requirements and come up with an outcome. 

Myth#4: Outsourcing Comes With Language and Cultural barriers

Generally, businesses that want to outsource their projects, often worry about cultural and language differences. Hiring an offshore software development team seems difficult, so now businesses try to hire experts from places where people understand and speak English comfortably. For instance, software development outsourcing services providers from places like India and China are well-versed in the English language. So businesses from the UK, US, and Australia can hire them without any issues.

Myth#5: Outsourcing Compromises Data Security

For any company, the biggest concerns are its privacy and the risk of a data breach. And this is why they think twice before hiring an outsourcing company and giving them access to the business’s data. But the top outsourcing service providers ensure the company’s privacy and data security by following standard regulations like General Data Protection Regulation (GDPR) when it comes to data processing for EU citizens and HIPAA (Health Insurance Portability and Accountability Act) while creating health apps. If outsourcing companies do not do that, they might lose the trust of their clients and this can damage their reputation.

Myth#6: Outsourcing is Limited to Large Businesses

The majority of the outsourcing companies don’t only offer their services to a certain size of business. Though it is known that outsourcing companies work more with bigger clients, they also work with small and medium-sized businesses. Mostly small firms are the clients of Business Process Outsourcing (BPO) service providers. And this is why organizations have the required potential to grow and they might need long-term services.

2. Conclusion

Myths in outsourcing arise due to the lack of understanding. In the past, there weren’t so many outsourcing software development companies but now the table seems to have entirely turned. So what are you waiting for? If you still have any doubts, feel free to mention them in the comment section below.

Itesh Sharma

Itesh Sharma is core member of Sales Department at TatvaSoft. He has got more than 6 years of experience in handling the task related to Customer Management and Project Management. Apart from his profession he also has keen interest in sharing the insight on different methodologies of software development.


  • Leave a message...

    1. Jimmy

      Great Article. This article helped me to clear all my misconceptions about outsourcing. If anyone has doubts about outsourcing, then they should read this article.This article should also cover the cost aspect because it is also an issue for small businesses like me.