Who are Outsourcing Companies and What Do They Do?

There is a widespread belief that globalization has now reached such a level that narrow specialists are extremely unprofitable for the business economy. But this statement is completely wrong. The more specialized a company or a person is, the more professional and knowledgeable they are. If a company does not have specialists in certain sectors, then more often outsourcing comes to the rescue. We will talk about software outsourcing because the IT industry is experiencing a shortage of real specialists who can cope with tasks of varying complexity. Let’s find out more about what outsourcing companies are, what they do, and what advantages they have.

What is Outsourcing Company: Put It Simple

Software outsourcing is one of the varieties of engineering services in which certain applications necessary for companies to successfully carry out their business activities are developed, accompanied by their support, testing, and further maintenance. All of this work is performed by specialists employed by a particular external company – the outsourcer.

An organization that takes up such a critical task as software outsourcing should be able to intelligently set up dedicated engineering teams and application development centers, and take the right approach to the process of testing and maintenance of the developed software.

The task of creating, testing, and controlling software is quite complex. Software outsourcing specialists must have the necessary experience and knowledge, be able to communicate effectively with the client organization and be ready to use new solutions. The development team must be mobile enough, capable of scaling quickly and getting started promptly.

How Does the Outsourcing Process Work?

A software development outsourcing specialist must have considerable experience in organizing dedicated teams and software development centers, as well as in testing and further product support. In the process of work it is possible to apply one of three variants of outsourcing:

  • The customer is provided with temporary employees. The client receives highly qualified specialists who are necessary for the software development project but manages its implementation and the team independently.
  • Creating a basic dedicated development center. When choosing this option, the service provider gives the customer the resources they need but manages the specialists personally. At the same time, the processes used by employees are selected and controlled by the client organization.
  • A fully functional development center is created, which means that the outsourcer provides standard software development services, selects the processes, and manages them personally.

What Services Do Software Outsourcing Companies Offer?

At the beginning of a software product development project for an organization, users are often surveyed to determine their requirements for the new product. The business processes of the client company are then analyzed. If necessary, members of the outsourcing company consult the customer’s team on technical questions.

Next comes the important step of developing a general concept and prototype of the future product.

After that, experts decide on the design and begin to create the program. The outsourcing firm carefully monitors the level of quality of its employees at all stages of product development. After testing the software is introduced to the client.

When the project is accepted, the outsourcer can continue to deal with the developed product within the framework of the maintenance contract and if necessary to further optimize it. But before that, the product must be installed and configured, and integrated with the programs already installed in the enterprise.

An example of such a company could be IDAP. This outsourcing company with over 5 years of experience helps its customers create unique software solutions. The team also follows all points of working with the customer. They communicate with customers, create a work plan, work out functional requirements for the project and then begin development.

What are the Benefits of Outsourcing Companies?

The advantages of software outsourcing are:

An unlimited number of acquaintances

In such a company you may work on one project for a year and then move to another project with colleagues you have never met before. You can go on a business trip, meet other developers there, and so on.

Career growth 

Outsourcing companies are constantly growing and finding new clients, acquiring new projects with them. Each project needs a team of specialists. If you improve your professional skills and constantly evolve, you will be offered tasks and projects that match your knowledge. It means they will be more difficult and responsible.


Outsourcing has projects from completely different fields, on totally diverse stacks. There, you will get a project matched to your interests, and you can apply all your experience and knowledge.

Continuous learning 

With so many different projects, you benefit from a wide range of knowledge. The client may have an unknown infrastructure that you will have to learn quickly, or a position will open up where you urgently need a candidate with specific knowledge. Plus, outsourcing companies are often interested in training their employees so they can grow professionally while staying with the company.

The opportunity to implement your ideas on new technologies 

When a project does not have clear terms of reference from the customer, employees can suggest ways of solving problems on their own. They are sure to be listened to and accepted by clients. This way you can implement your ideas and test them on a real project.

The Bottom Line

Software development outsourcing gives the clients of profiled companies a lot of significant advantages, among which is the access to modern technologies and new resources, optimization of IT processes, cost reduction, etc. For successful project management the company, providing this type of outsourcing has to have its own clear worked out approach, at the basis of which one should have transparent communication with the customer, openness, stable teams consisting of highly qualified IT specialists, possibility to scale working groups and readiness for the quick start of the projects.

A huge advantage of outsourcing software development is the absence of the need for significant changes in the organization of the product creation workflow. Most service providers are ready to use the tools used by the customer’s team, offering their changes and additions only when some processes are not covered by them, or when optimization of the approach used is required.

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