The Real Cost Of Software Development Outsourcing: The Complete Set Of Factors To Consider

The Real Cost Of Software Development Outsourcing: The Complete Set Of Factors To Consider

Any startup, whether it is app development, blockchain development, or web dev, is concerned about the costs related to the development of the project. Let’s be honest; money is the major concern when we talk about the development of a project. Well, that is where software outsourcing comes in. Let’s talk about the cost of software development outsourcing and the factors that affect these costs.

Why Software Outsourcing

Depending on the development, there are plenty of reasons why companies tend to move towards software development outsourcing. It can be a single buy, a complete project, or optimization. Nevertheless, there are reasons why companies are doing it and why they should do it.

Lack of Skills and Expertise

The main reason why companies nowadays prefer outsourcing software development and the cost of IT sourcing is they want to develop something that is not possible in their own country. Mostly, it is related to the developer’s skillset.

The chances are your project requires ruby development. But, a ruby developer is not available in your country. Like this, your development stage needs a QA officer. But, no such entities are available in-house. Issues like these are the reason why firms look out of the country to develop their software.

Speedy Hiring

Companies, especially those that are a startup, don’t have time to locate the developers. For them, time is money. They need to gain momentum to get the market share. Outsourcing enables such companies to hire developers without needing to go into long processes. If you outsource your project to a full fledge outsourcing team, you will have to focus on other parts while they locate and assemble a team on their own.

Optimization of Development Stages

Software development is not a one-man job. It requires focused coordination between different teams like UX/UI, QA, Engineering, and marketing. If the coordination is not solid, the whole project can go sideways. If you outsource your project to another development team, they will ensure that the development stages are perfectly aligned.

QA services

Let’s be honest; it is not possible for a company to test and troubleshoot every and every feature of the software, even if their team consists of 200 developers. Moreover, startups cannot even think of testing features because they have to launch the software in the market across every continent. This is where your software development outsourcing firm comes in. In the total outsourcing software development costs, not only will they develop the project but will make sure it is from even a little glitch.


Here comes the most interesting part. Companies can put in a large capital with outsourcing techniques because they don’t have to invest in the infrastructure. Moreover, the hourly rate of outsourcing developers is lower compared to that of local developers. Hence, it is cost-saving.

Outsourcing Software Development Costs-What Affects The Prices

Every firm out there knows that the biggest perk of software development is that the developers are fast and efficient. But what are the factors that affect the development costs? Before determining the costs of the overall project, read about the list of given parameters that can make your project costs go sideways.

Complexity Of the Project

The thing that affects the software development outsourcing prices is the complexity of the project. If you want multiple screens with state-of-the-art features, be ready to pay for more than a single screen. See, the development of such projects requires complex skills, infrastructure, efforts, and time. So, if the project is complex, the cost of IT outsourcing will be more.

Experience Level

It is for sure that a senior web developer will cost you more than a junior-level developer due to the fact that the senior one has more experience. However, senior developers will produce a bug-free code, enabling you to save costs on testing and troubleshooting. It is recommended that if your project is small, you can hire a junior developer. If not, always go for a senior developer who has industry experience.

Outsourcing Model

There are two different types of outsourcing models that you can opt for developing the software.

  • Freelance platforms
  • Hiring Agencies

Freelance platforms are cheap, where you can get a developer for $8-$29 on average. However, these platforms are not reliable since you don’t employ developers. They can vanish in a second, leaving you hanging in the bushes.

As for hiring agencies, they are a good fit, ensuring reliability and productivity. However, hiring agencies come with a price. Moreover, they have no team leads, only recruiters and managers.


Software outsourcing costs also depend on the location and can vary by a significant amount. Outsourcing firms from developing countries will always charge less compared to developed nations. If you are looking for low outsourcing development costs, we recommend you go to countries like Pakistan, Ukraine, Estonia, Portugal, etc.

Final Verdict

Getting the real costs of software development outsourcing is kind of hard because it depends on many factors. And if these factors are not considered, they can have major consequences. So, whenever you are determining these outsourcing software development costs, make sure you are taking every factor into consideration.

Also Read : Attention If You Have Insurance The Property For More Than Two Years


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