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Why companies should outsource software development

Ari Lew  |  Jan 3, 2023  |  

Why Outsource Software Development

(And How to Find a Trusted Partner)

Many software development executives and IT directors are currently experiencing recruitment bottlenecks or anticipate them within the next few years, according to a McKinsey study. As a result, startups and SMBs looking to reach the next level of growth have moved to outsourcing their software development needs. 

By outsourcing software development, businesses can save money on finding and employing full-time, experienced engineers, designers, product managers, and more, allowing them to focus their sights on other critical activities and operations. In this way, they can leverage trusted partners with experience bringing software products to production. 

That said, to experience the full benefits of outsourcing software development, it’s essential to choose a partner that is able to deliver projects that exceed requirements and quality standards, are delivered on time, and have stayed within budgets. 

An overview of outsourcing software development

Outsourcing software development is the process of hiring a third-party service provider to manage software development projects instead of using in-house teams. When a company outsources application development services, it allows them to save time, money, and effort that they would be spending on a full-time IT department. 

In terms of operational costs, outsourcing software development can yield significant savings compared to in-house development teams. With that being said, for every benefit there is an associated drawback, as global software delivery models can be complicated initiatives that require substantial effort from the client side. Very rarely do projects get delivered perfectly with little oversight and direction from the client. 

For this reason, it’s recommended to work with a partner who is able to provide access to the right talent while minimizing the client-side involvement in the administrative or bureaucratic tasks that are essential for the project’s success.

Below, we provide an overview of the benefits of outsourcing software development, while also highlighting how a partner with the right expertise and project structures can help unlock these benefits. 

In this way, businesses gain access to a vast talent pool of developers, and lean structures that deliver semi-autonomously to unlock the true value of an outsourced software development engagement.

Cost savings

Saving on costs is the main reason that companies choose to outsource. In fact, a Deloitte survey found that 70% of executives claimed to outsource for this reason. By outsourcing software development services, companies can save money they would have been spending on full-time staffing and only pay for the specific work performed. 

Financial savings also represents a key reason our partners work with us. At Asymm, we offer a nearshore development staff augmentation model that is cost-effective and allows access to a pool of highly-skilled software development professionals in geostrategic locations across Mexico. 

We achieve this thanks to our strategic position in San Diego, CA. Located close to Mexico, we can offer nearshore software development services and nearshore staff augmentation, allowing our clients to save significantly on IT costs and gain a competitive advantage with our leveraged talent pool and efficient recruiting resources.  

Resource maximization

Partnering with the right software development outsourcing provider will bring reliable, experienced, and dedicated teams on a per-task or project basis that can get started quickly with minimal lead time, training time, and a proven track record with similar projects.

At Asymm, we make it possible to maximize resources with highly-skilled developers with outsourced web-development, nearshore mobile application development in Mexico, DevOps and CI/CD services, automated and manual testing, machine learning development, and more. As a team, we are capable of full scale software engineering projects from start to finish – or augment teams with specific skill sets and engineers as required. 


The time it takes to bring your product to market has long-term ramifications. A McKinsey & Company study found that releasing your product six months late can result in 33% less earnings over the next five years, compared to a “on-time” scenario.

Outsourcing software development services allows companies to easily access required development staff and services, providing accelerated timelines for speed-to-market or speed-to-use for their software product. 

At Asymm, our professional team and access to an extensive talent pool allows us to accelerate product plans and rollouts for our clients. This is especially valuable for startups and enterprises alike looking to outsource software development to bring their product to market quickly and acquire customers. Since our founding, we’ve helped numerous companies and startups bring products to market and close successful financing rounds. 

Access to talent and technology experience

Partnering with the right software development outsourcing team will give you access to the modern technology for software projects. 

At Asymm, our team of software developers have extensive experience with some of the latest and most commonly used web based technologies. With senior developers available in Mexico, Asymm provides projects and solutions for clients with the most up-to-date technical languages, frameworks, architectures, and development methodologies.

Advanced scalability

Rapidly growing companies need to develop products quickly in order to scale and acquire market share and new customers. Many companies need to scale their IT support at various stages of the development cycle. Expanding internal teams to meet needs that are constantly changing can be costly, time-consuming, and burdensome. 

By partnering with a software development outsourcing provider like Asymm, you can avoid scalability problems and gain access to talent pool and capacity to meet demand and scale your engineering organization. 

Quality engineering and assurance

One of the most important criteria for the success of modern software applications is quality. Even a minor malfunction in today's competitive market can result in serious problems. Bugs can lead users to reduce usage time or find another solution entirely. For internal users of an enterprise application, the results are similarly negative, leading to frustration and a decrease in productivity. 

We provide clients with a wide range of software development services, including software product design and development, Devops and CI/CD, infrastructure and hosting, manual and automated testing, and much more to cater to diverse and changing needs of companies looking for solutions and services. 

What is a software development partner?

If a company decides to outsource its software development, it will need a partner to help it deliver any large project successfully. Partners can come in a variety of forms, but most commonly they are outsourcing agencies that minimize the costs and time associated with sourcing and hiring developers on your own. 

Common reasons a company decides to work with a software development partner include: 

  • A lack of resources currently available to carry out the planned project.
  • The project has an established end date and hiring permanent developers isn’t financially viable.
  • The experience among current developers is lacking in certain areas to carry out the new project.
  • The project decision-maker isn’t confident they can deliver the project internally on time and on budget.

Choosing a partner

When it comes to outsourcing software development, not all partners are created equal and it’s important to take a systematic approach to establish expectations on both sides and find the best collaboration agreement. 

1. Project assessment and scope

The first step is to outline the project’s main objectives before bringing a third party into the fold. Break down these objectives into smaller goals, with outlined benchmarks or KPIs to determine progress. 

When doing this, assess the role that outsourcing will play in terms of the skills necessary to complete the project, how much can be handled by current employees, and the project’s overall budget. Remember to also look at your current tech stack and what new tools will be necessary to carry out the project and also factor in the ongoing maintenance costs once the project is complete, which amount to roughly 15%–20% of the initial built cost.

Once this is done, refine the scope of the project as much as possible at this stage. Having mock-ups and visual layouts will be useful when bringing partners on board and will streamline the recruitment process. Note that these estimates will undoubtedly change as the planning process progresses.

2. Project time frame

Next, decide on the project’s ideal timeframe based on the goals created in the previous stage. When it comes to choosing a partner, discuss the timeframe with them to get their opinion. It’s not uncommon for the partner to ask to reevaluate the project timeline based on their experience with previous builds. 

While establishing an accurate timeline can be difficult to do accurately, even with extensive development experience, it serves to establish baseline expectations with the partner. Furthermore, by estimating the project timeline alongside the partner, it’s easier to gauge whether the initial budget estimates for recruitment are accurate or need to be reassessed before committing to the project. 

3. Outsourcing approach

As mentioned before, there are three types of outsourcing: onshore, nearshore, and offshore. Onshore is when a company sources workers from within their own country or region, and is generally the most expensive method of outsourcing. 

For greater cost benefits, most companies either decide to go for nearshore outsourcing or offshore outsourcing. At Asymm, we are strong proponents of nearshore outsourcing, as it allows for increased savings, access to strong talent, and easier collaboration (as there is little-to-no difference in time zones.)

For more information on nearshore outsourcing and how it can benefit you, please consult our article on the subject. 

4. Partner comparisons

With a strong initial idea of how the project’s scope, budget, timeframe, and outsourcing approach, it’s now time to begin comparing partners. When doing this, judge each option on the following criteria: 

  • How do they react to your plans? Do they claim to be able to deliver? Do they offer insightful feedback? 
  • Determine quality vs. cost. Freelance marketplaces may represent initial savings, but the costs – both financially and in terms of time – can quickly mount. 
  • What services do they offer beyond sourcing developers? Getting access to the best talent at the best price often involves overcoming bureaucratic hurdles. It’s important to find a partner that is prepared for these technicalities.

5. Hiring your partner

Having followed this approach, it should be easier to determine which partner is best suited to the task. All that’s left to do is prepare the contract and remain consistent with its conditions throughout the duration of the project.

 It may be that, during the partner-identification process, your partner identified a number of issues with the initial project plan. For example, accessing nearshore talent may take longer than hiring onshore talent, disrupting the initial time frame. 

Once the contract has been signed, it is often necessary to reevaluate the plan alongside the partner to establish realistic needs, expectations, and timeline.

Ready to partner with Asymm?

At Asymm, we specialize in facilitating operations between US technology companies and Mexico’s talent pool. When working with us, we orchestrate the administrative, legal, operational, and compliance responsibilities that are required for the nearshore software development market. We work directly with you to identify your needs and source the talent that’s familiar with agile methodologies to bring your project to life. Want more information on how we can help you to outsource your software development project in a cost-effect way that delivers results on time? Reach out to us today.


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Written by Ari Lew

Ari is the Ceo and Co-founder of Asymm. With a passion for product design and media, Ari oversees the UX/UI practice at Asymm and leads client success at the company.