How To Outsource Software Development? Complete Guide For Outsourcing!

Outsource software development is becoming more and more popular nowadays. Does your company have business ideas, but yet no clue on how to outsource? Let’s follow these step by step to achieve successful outsourcing!

Software outsourcing is basically to hire a third party software contractor to do technology-related work. With that being stated, outsourcing will help businesses minimize costs, enhance customer service and maintain product quality in an effective manner. It also focuses on your core competencies given a limited budget.

Software development outsourcing, thus, provides businesses with a competitive advantage by minimizing costs, enhancing customer service and maintaining product quality with narrow sources.

So that, outsource software development can be a fantastic way to improve your company’s performance. These guidelines will bring you tips for the decision-making process on how to make outsourcing work.

In the few past decades, this sensation has brought many opportunities for outsourcing companies in Asia (India, China, Vietnam, etc.). Many views outsourcing as an ongoing major trend in the business world. In today’s economy, you can outsource software development for nearly any part of your software products. But should you? To help you get started, here’s our handy guide to outsourcing everything.

Outsourcing or not?

In fact, a successful outsourcing strategy will reduce time-to-market, access to world-class technology and cost-savings for your company! Despite that, an offshore strategy without carefully defined business objectives can lead to higher IT costs. Moreover, unfocused outsource software support can waste resources or even cause loss for business.

After all, the first step worth take is a paper with your breaking into four columns: What is outsourcing? Why there’s a need for outsourcing? How to outsource in easy steps? Where can I find outsourcing firms?

For example, you need to upgrade your website, but don’t have enough time to develop or hire web developers. The best task is to contact the software outsourcing company.

Obviously, there are many advantages of outsourcing software development:

  • Reduce Cost — You can access to quality outsource companies at a lower cost.
  • Increase Productivity — Outsourcing shows an increase in your productivity, customer loyalty, level of quality, business value, profits, and much more.
  • Improve Work Quality — You can focus on primary business tasks with the help of outsourcing software development.
  • Access To Skilled Expertise — As described, one of the primary reasons why a business should outsource is skilled expertise.
  • Delight Your Customers — Outsourcing can help you get benefits from increased customer satisfaction and thus creating a stream of loyal customers.

How to choose an outsourcing company — Step by step

Before making the final decision, you also need to take certain factors into consideration. In this article, AgileTech Vietnam would like to introduce to you necessary steps you should make when choosing an outsourcing partner. Hope this will help you find the right outsourcing solution and develop a successful project.

Identify the best approach to outsource

Firstly, break down your goals and discuss these within sectors in your company, then externally with the outsource software development you choose to hire. You can start by answering some simple questions like:

  • What is your business need?
  • What is your target when outsourcing such as cost/timeline target?
  • Why you should use software outsourcing services?
  • How to find best solution to achieve your desired outcomes?

Once you have identified the tasks you want to outsource, then it becomes easier to find the right outsourcing software company. Selecting which activities to outsource and evaluating the benefits that you can leverage is what a beginning quite takes.

Research the best countries to outsource

Ideally, you should choose the outsource software development with English capability. These countries create large skilled developers for you to choose from. Another factor for outsourcing to consider is time zone. Find ways to best collaborate with workers given a huge gap of time difference.

There are many software outsourcing companies in Asia, and that number continuously grows through years. Some of the major countries for outsourcing are India and China. However, we also recommend the top IT outsourcing destinations in emerging and developing Asian countries.

When it comes to outsource software development, the similarities between Asian countries are low labor costs and a large pool of IT talents. Besides, there are factors that differentiate some countries from others and make them stand out.

Locate an outsource company

Project experience


Flexibility support


Now that you have a list in hand. Let’s make the calls. Talk to the outsourcing partner and discuss your requirements. Choose those who respond to you clearly and understand your needs!

Outsource contract and start outsourcing

The next step you should take is to contact the agency you previously reviewed for past work and clients. Ask them about their work process, the technology, IT solutions or management experience…

One more important thing you must ensure is pricing and key components in the contract with information clearly stated. Your contract will specify the services that will be provided, the timeline for the provision of those services, and payment for the services. Once you are done with this, you can sign and start outsourcing.

How to set up a dedicated development team?

Choose the right outsourcing model

Fixed cost model

However, there are also drawbacks. If you underestimate the budget, the project may come out poor as the vendor can severely cut down costs to meet the established.

Flexible contract base model

Dedicated team model

Choose reliable partners

Have a look at their work history

Effective Communication

Get started with your team

  • Check websites that provide the company category ranking, rating and reviews like the
  • Check out their work progress on sites like GitHub, Quora,… to fulfill your expiations and product requirements.

Outsourcing mistakes you need to avoid

Don’t need management

When outsourcing, time tracking solution is always a good idea to keep an eye on the costs and how freelancers are spending the time. Don’t hesitate to provide feedback on what you like and don’t like.

Looking for cheap

Misunderstanding the cost

Considering cultural factors

Further, success depends to a great extent on your overall attitude toward outsourced team members. Adaptation also goes both ways. You must also understand their culture and embrace their differences.

Is it better to choose small or large outsource software company?

Firstly, in small companies, there are fewer than 50 staffs and large ones include 100 or more workers. In each kind of outsource company, cost, location, previous experience and more aspects the key which can influence on your choice.

How do you choose your software outsourcing company? It’s all depends on the project or just idea you have in mind. After that, the question “Is it better to outsource payroll” could be considered.

Let Go!

While many businesses find it difficult to outsource, many popular global companies like Github, Skype, and Slack have done it before. outsourcing can boost business growth and efficiency. You will earn more, work less, and be able to contribute more to the world with your own unique abilities. Are you ready to outsource software development?

If your answer is yes, then follow the 4 aforementioned steps for successful outsourcing experience.

About Agiletech

If you have any questions about outsourcing, please ask them below! We’ll do our best to answer each one, and may even write another post on the most frequently asked questions about outsourcing.

At AgileTech Vietnam, we have expert Project Managers along with excellent teams who have delivered the best products to customers in more than 10 countries, mostly in the U.S, U.K, Germany, France, and Singapore. You can contact us at or (+84) 936 281 059 for more information.

A quality outsourcing/offshoring company in Website/Mobile Apps, Blockchain services, AI - big data services. Visit our website:

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