Should You Outsource Software Development in 2023? - Hire Remote Developers | Build Teams in 24 Hours -
  • Home
  • Blogs
  • Should You Outsource Software Development in 2023?

Should You Outsource Software Development in 2023?

Does your tech startup need to change its recruiting policies? Should you outsource software development in 2023? 


Does your tech startup need to change its recruiting policies? Should you outsource software development in 2023

Why would anyone hire remote developers? The phrase “outsourcing software developers” is no longer something new. In fact, this concept has now been upgraded to that of distributed teams ever since 2020’s pandemic made remote work the norm. According to studies, the number of startups opting to outsource software development will increase by 70% in the next year. Sadly, businesses judge outsourcing software development by its cons rather than the benefits. 

What is software development outsourcing?

In the context of software development services, outsourcing is the practice of assigning the development project to an external company. Hence, a third party is involved in the software development outsourcing process. 

In this process, there is no need for in-house facilities or staff. IT services constitute 72% of all global outsourcing contract values. (ISP) Why do you think that is? The answer is simple. One observation is unanimous with most companies that outsource software development in 2023. There is more productivity among remote software developers.

 How? Remote work continues to intrigue businesses. Plus, there are numerous stats and facts which prove this. According to Global workplace analytics, employees favor remote work because it increases productivity and reduces stress. This article contains all the information to guide you through hiring remote developers.

When to outsource software development in 2023?

You’re probably wondering if you should hire remote engineers at this point or not. Mostly, companies tend to worry about reliability and quality issues, but really, it’s all about making an informed and logical decision after research and checking. 

We talked about how software development partnerships were something that many businesses were considering in 2022 amidst tech talent shortages and a global recession. Why should you outsource software development in 2023? Let’s find out below!

Time is less

Do you feel the pressure of deadlines coming closer? The burden of managing multiple projects at the same time can be stressful for the team lead and members. The best solution would be to outsource some extra work or lengthier tasks. 

Especially if you’re a startup founder who needs to make a strong impression on the client, the answer to your problem is outsourcing software development. As a result, tasks become more streamlined. The best software development outsourcing companies will know how to manage projects effectively. 

Need more talent?

Training employees can be a hassle, especially if there’s a time crunch and low funding. For example, you might get a complex project that requires a skilled software developer. In these circumstances, hiring an on-site developer might be expensive. 

A more viable option would be to hire remote software engineers through a software development outsourcing company. You can post a software developer job description and find verified profiles! With this approach, you can create dedicated development teams. 

Security constraints

Did you know that the average cost of data breaches surpasses $4 million for many organizations? Maintaining cybersecurity is risky and expensive at the same time. Instead of spending thousands of dollars on training employees, the better choice would be to outsource software testing services. 

You can involve professionals who are experts in cybersecurity and bug detection. Hence, it saves the startup from the worries of losing sensitive information. 

Low on the money!

From utility bills to training costs of employees and rent, these are the monthly expenses of running an office space. These costs can become worrisome, especially for a startup founder looking to grow his business.

Entrepreneurs are rethinking their office setups after the COVID pandemic. The tech world is moving towards remote and hybrid solutions.

Software development outsourcing models

According to Buffer, 97% of people recommend remote work to others. As a startup founder, you can’t miss out on the benefits of outsourcing software development in 2023. Before hiring remotely, there are some basics that you should know.


The outsourcing company or freelance software developer takes responsibility for the project. They need to finish the project according to your specifications. A capable individual or company will provide you with regular updates and sign a contract. 

Staff augmentation model

In this outsourcing model, the client is mainly responsible for the project. You hire remote developers because you want to improve project progress with the help of distributed teams. 

Outsourced manager

Both the client and the development outsourcing company share the responsibility of the project. When it comes to roles, both parties have their goals to fulfill. Hence, their tasks do not intermingle with each other. The outsourced manager oversees the duties of his team. 

The specialist model

The client project manager or in-house team supervises the project given to the outsourcing software development company. Also, the payment might be monthly or hourly, depending on the agreement. 

How to Outsource Software Development in 2023: A Guide

Three in four CFOs plan to shift at least 5% of previously on-site employees to permanently remote positions post-COVID-19. Who said outsourcing development is about making haphazard decisions? With planned preparation and an onboarding strategy, you can hire remote developers or freelance software engineers on your team. 

Goals and specifications

Before outsourcing software development in 2023 or beginning the project, be clear about milestones. You can not rely on baseless actions -there needs to be logic and discussion. Research is an integral part of the software developer hiring process. At this stage, the company cannot overlook these considerations:

  • List of objectives
  • How will the service provider offer more advantages?
  • What kind of remote software developers are you looking such as junior frontend developers, freelance ios developers, etc?
  • Look into customer experience, reviews, packages, etc. 

Secondary Sources for Studies

Primary sources mentioned above would be information that gives you an insight into the services and data about the company. For instance, researching a business with a positive experience in the remote work model would be another example.

Secondary sources are more about reading about clients, their observations, and their experiences with a specific software outsourcing company. One can learn so much about the benefits of outsourcing software development. Always use the following tips.

  • How long has the outsourcing company been in the market?
  • Take a look at previous software engineer job descriptions!
  • What kind of remote software developers do most clients hire from a particular company?

Create a list of finalists

Let’s say you’ve come up with a suitable job description to hire remote developers for your startup. What would be the next step? Where should you post it? At this point, it is better to select a list of companies and dig deeper into their merits. Begin with a longer list. Take ten names and then shortlist 4-5 suitable ones for software developer outsourcing. 

  • Make pointers of requirements and tick which services match the most
  • Keep your tech team in the loop
  • Always think about budget
  • Is investing in a particular offshore software outsourcing company worth it?

Physical visit or video call

Relying on online information is just not enough! There are so many factors that come into play, reliability, communication skills, experience, etc. If it is an offshore software development outsourcing, schedule a video call. Software development is a time-taking affair. Therefore the provider and client must be on the same page. Don’t take it as an assessment of software engineer skills only. It is a test of the compatibility of the two parties. 

If an outsourcing firm is not open to immediate contact, that’s your red flag. The best software development outsourcing companies will work on developing trust with the client. Online job boards such as Gaper are excellent examples of this.

Once the recruiter fills out the online form and mentions the business name, tech stack, and more details -they can schedule a call with the CTO. This option shows that the supplier is ready to guide the client. Plus, you get two weeks to check if the developer or outsourced team is the right fit for your enterprise.

Assessment of competencies

If it’s a freelance software engineer or a software development outsourcing firm, you need to work out if there is an understanding between the two. Prepare a questionnaire and be open about what kind of skills you need. Before you hire remote developers, remember to include these concerns. 

  • How will the company in question maximize your productivity?
  • What is their corporate culture dynamic?
  • Can they relate to a project like yours?
  • What additional services can they offer?
  • How essential is team management?
  • What tech stacks and programming languages are they familiar with?
  • Who will be in charge of the team?

Establish quality benchmarks

Imagine the human body working without a brain. How can a team function without any set of standards? Learn about their working norms, work ethics, team culture, and if a code of conduct matters to their organization. This knowledge exhibits their loyalty to work and sticking to the rules. To outsource software development in 2023, the startup founder and the service provider should pay utmost attention to regulations and safety procedures. What are some of these factors, let us find out. 

  • What steps do they take to ensure that code is readable?
  • Does software testing and checking for errors matter to them?
  • How essential is it to maintain consistency?
  • What mechanisms does the outsourcing company use to streamline processes?
  • How do they incorporate customer input into their way of working?

Take a look at how they’re communicating.

As recruiters, we often hear how a lack of communication disturbs project progress. Good communication is the key ingredient to optimal deliverance. If you’re engaging an outsourcing firm, ask them how they maintain effective communication within their team. It is even better to plan meetings and tasks. You’ll be shocked to observe the positive impact on work deliverance.

  • Learn about the service provider’s method of better communication
  • Do not shy away from expressing the views and vision of your startup
  • Try to find similarities so that you can work out a strategy
  • Be straightforward about your team’s strengths and weaknesses

Evaluate security and legal situation

Finally, you’re on the same page. What will happen next? Many startups tend to ignore this but delving into the contract details is necessary. Discuss the contractual terms with the software engineering outsourcing company. There is more to the legal agreement than just the terms.

  • Project deliverables
  • Deadlines
  • Trial period
  • Potential reasons for the breach of contract
  • Payment i.e. web developer hourly rate, remote developer team cost

Examine the company before you outsource development in 2023

Coming back to the contract, before signing the startup founder needs to ensure that it works in favor of their business. There should be in-depth checking when it comes to the commercial aspect of the project.

  • Is there any additional fee
  • Check if the package covers all the required services
  • Does it highlight the project scope
  • Evaluate each software developer individually, and involve a tech expert from your team if necessary
  • Remember to analyze and check software engineer duties
  • Cost-benefit analysis is a must
  • Are they offering a risk-free trial

Hire vetted software engineers from in 2023

If you are having trouble hiring software developers, or you are not familiar with the process of evaluating and vetting them, set up a quick call with us to hire your tech team within 48 hours.


Your startup is your brainchild. Therefore, any comprise on talent and services should be out of the question. Never ignore the criteria that you’ve set for your startup. If you wish to outsource software development in 2023 or hire remote developers, finalize a firm that prioritizes project success and team management.


Is software development going to be outsourced?

Studies mention how 70% of companies will outsource software development in 2023. However, the tech staffing report also highlights that companies will outsource at least 36% of their software developers. More and more hr leaders are beginning to recognize the benefits of offshore software development outsourcing. Therefore, the future of IT outsourcing seems bright. 

Will all tech jobs be outsourced?

Outsourcing is not a new phenomenon. It has been around since the 90s. Some factors behind the rise in the number of tech roles are technological advances and the popularity of Silicon Valley in the US. The current value of global outsourced services comes in at $92.5 billion. $66.5 billion of this amount comes from IT outsourcing. (

Is coding becoming saturated?

Thanks to the constantly changing tech world and developments in computer science, there is no chance that coding will ever become saturated. Technology is replacing more redundant and repetitive posts, thus creating potential opportunities for coders. Plus, there is a higher need for coding experts.

Will software engineers be replaced in the future?

The internet is brimming with a mixture of views. However, the demand for software engineers will remain the same for a while. It depends on what direction artificial intelligence takes. Humans will decide how AI will take over tasks. However, developers might use AI to optimize coding. For now, the answer to this question is a definite “NO.” 

What is the future of software development?

According to a LinkedIn article, software engineering is a “promising career” choice. The demand for software engineers keeps increasing as startups and businesses value how tech tools can help in growth and expanding customer base. Another great thing about this particular field is that innovation never stops. Some future tech trends will further boost the demand for software developers.

  • Artificial intelligence
  • Blockchain technology
  • API design
  • Reactive programming
  • Cloud services

Hire Top 1%
Engineers for your
startup in 24 hours

Top quality ensured or we work for free

Developer Team @2023 All rights reserved.

Leading Marketplace for Software Engineers

Subscribe to receive latest news, discount codes & more

Stay updated with all that’s happening at Gaper