What are the challenges of outsourcing software development?

What are the challenges of outsourcing software development?

Amidst the growing IT companies, there is obvious line of competition running along the process of grabbing the new customers and market. This competition is to save the cost of development, while maintaining the quality and relying over the best resources. The best option comes out to pick the best resources out of the world and hire them over the project basis or hourly work rate.

This way the latest development methodology can be adopted and followed without spending the resources over training and development and maintaining the IT infrastructure for startups. Outsourcing software development is one of the most preferable options for custom software Development Company, but it also comes with a number of challenges alongside.

The challenge is to monitor the process. Companies choose to outsource the IT services onshore, nearshore or offshore, where onshore is less recommended for being less profitable. Before finding out the challenges of outsourcing development, let's have a look at some of the benefits:

  • Lower cost through offshore because of lower rates.
  • Best pool of talent.
  • Increased focus on business strategies.
  • Lower investment on infrastructure.
  • Access to better skill, infrastructure and leadership.

We have analyzed companies, diving deep into the outsourcing with and without paying attention to warning flags. Every single company to ward off the risk of project being failed follows the warning flags. There are few challenges that fall into three dimensions.


Not all challenges fall within the ambit of IT. There are few business challenges that stakeholder senses and these are managed by adopting the newer and better strategically resources.


Management challenges are common pitfalls of the outsourcing. They are sensed by the higher and lower both level of management.


These challenges rise with the wrong choice of outsourcing partner, wrong architecture of the apps, and selection of framework.

Business challenges

Undefined metrics

Business must stay clear to the expectation from the solution. When the processes are outsourced to custom software developer offshore, the clarity of the goals are often misinterpreted and hard to decipher second hand. The software development objectives need to be aligned with the business objectives.

Lack of team engagement

What stays the benefit of in-house development for a custom software development company becomes the drawback of outsourcing. Team engagement is the necessary pivot for the effective custom mobile app development, and this lacks when the software development is outsourced to third party. It stays a huge challenge in front of managers to keep team engaged.

No contract

The software outsourcing to third party is an extension to your team's capacity. When the third party is hired for custom software development, a contract is signed between them, which essentially demand the transaction of any good or service for the exchange of money. This does not work well with the frequently changing job environment. Therefore, it is recommended to maintain the covenant relation, where you and third party vendor work for the same goals.

Management challenges:

Unrealistic expectation

Always there comes a saturation point where the management feels the difference between the goals achieved by the management and third party. It is recommended to timely update the strategy and find a palatable compromise. Unrealistic expectation can assist in derailing the healthy relation.

Decentralized focus

The right party gets the stake of project, but sometimes the assignment forgets to take account of proper attention to the running process. The leader needs to have some focus over the project with the timely direction of proceeding for next steps.

Blur milestones

Again focusing over the custom mobile app development strategies, the agile development needs to have the clear understanding of the milestones for early development products. The concept of MVP products become blur when the software development is outsourced for long.

Less interaction

The adoption of iterative development and continuous development need the proper interaction between the client and the development team. Outsourcing to third parties reduces the collaboration between the team. Additionally, the offshore outsourcing widens the gap of time coordination because of different time zones. The managers need to address the challenges.

Technology challenges

Insufficient skills

Most of the times, the third party vendors or custom software developers sitting offshore come out to have the less skills and less prowess over development framework. The continuous learning, certification and skill development must be the integral part of your company's development strategy. In addition, noticeably the contract must be signed after the proper assessment of the skills of development team.

Ill management of the operations

The emergence of DevOps arose because of the lack of coordination between development and operation. Working together, the development is simulated with the operations and efficacy of product is increased. While outsourcing the development work, the operational task by a mobile application development company left unprecedented which creates a huge gap between both? This technological challenge must be met.

Unpredictable quality

The agile development methodology pushes the demand of early product development. This emerges the habit of overlooking the product quality. Moreover, the outsourcer has no idea of, what quality assurances are required.

Technical debts

The outsourcing leaves the companies, who are with poor management in technical debts. The technical debts are the term used for requirements of the company that need to be fulfilled for keeping the application capable to run. Sometimes, the approach used by the companies to filling the technical gap is not sufficient, that leaves the company in no better situation.


Technology always encourages for the better development strategies for a mobile application development company. As earlier mentioned, the outsourcing is the extension of capabilities and not the pitfalls. Therefore, the critical eye is needed for the contract. Technology is not an expense; it is an investment that needs to be very calculative. Mitigating and coping with the challenges can yield the higher results to the company for your investment of time and money.

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