Are There Any Risks to Outsourcing Software Development?

Outsourcing software development has been a practice by many companies for a couple of years. It provides a level of convenience that no other outsourcing service could ever do. Since software development takes a lot of time and effort to be successful, it’s good to have the option to outsource and get some help. However, outsourcing and other IT staffing solutions do have risks that could turn the right decision into a wrong one. Here are some of the common risks associated with outsourcing software engineers to work on your new product.

Unclear Purpose and Goals

In any project, people who are unsure of their purpose and their objectives for working on the project can easily derail any progress you’ve made. Working with software engineers that are unfamiliar with your culture, processes, and work habits can be quite a challenge already. But working with them and not knowing what your goals are is a recipe for disaster. To avoid this, it pays to set clear business goals and, if possible, a detailed strategy to achieve them. This will help your outsourcing partner to set the right expectations and goals for their teammates.

Communication Barriers

On more or less the same note, communication still remains one of the biggest problems when outsourcing. Working on a project requires extreme cooperation and flawless communication between teams, and that could be a problem when working with other professionals not originally part of your team. While communicating on-site or in a face-to-face discussion isn’t always possible, they need to have the right tools to help them communicate effectively. There’s also the need for setting clear guidelines on communication and coordination to help everyone stay on the same page.

Inconsistent Priorities

Prioritizing which software elements you want to develop first can also become troublesome if your team and your outsourced staff don’t align on this matter. Is it capability, functionality, or features that should be prioritized? To avoid any conflict or risks, it’s recommended to maintain a sequence of work that is shaped by priorities the business areas have endorsed.

Poor Project Management

Project management is key to carrying out development projects. However, poor leadership either on your team or the outsourcing team can result in the failure of the project. This means it’s crucial to appoint a person in charge that is capable of taking responsibility for a complex software engineering project.

Hidden Costs

It is common knowledge that outsourcing can reduce software production costs and waste. Although this is true, it can also jeopardize the project if not handled properly. As a general rule, you should look for development teams based on talent and always put experience over lower cost. You don’t want to be too cheap in hiring agencies and vendors as it can lead to poor quality or delays. These are “hidden expenses” that could cost you a lot of money since the development will take longer. Hire a team that can deliver their work in a timely manner, even if it costs you a little more money than hiring a cheap development team.


Avoid all these pitfalls of outsourcing by choosing a vendor that suits your requirements the most. You should always look at the bigger picture and make sure that an outsourcing firm actually helps you save money rather than cost you even more.

At Technical Paradigm, we employ a strategic approach to cater to your workforce needs. We implement customized IT staffing solutions that are flexible and effective. Our recruitment services are designed to find talent that will help you reach your goals in as little time as possible. To fulfill your IT staffing requirements, work with our recruitment experts. Contact us today to get started.

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