The Pros And Cons Of Outsourcing Your Company’s Software Development

Software development diagram

No matter what type of business you run, you will need to rely on software solutions for a number of your business operations.

That means that even business owners who know nothing about technology, and who run businesses that have nothing to do with technology, must work very closely with technology. If this sounds like you and you recognize your company’s need for software development, then it is only understandable that you should consider hiring an outsider to do the job. However, it is important that you first thoroughly examine both sides of this option. Here are the pros and cons of outsourcing your company’s software development:


Hiring new employees. Outsourcing is a very simplified solution to the ages-old problem of how to manage a variety of business operations that aren’t necessarily central to the business purpose. For example, if you run a catering business, then it probably doesn’t make a lot of sense to go through the long and tedious process of hiring an on-site software developer.

Shopping for contractors on a global scale. When you outsource a job as important as software development, it is imperative that you shop around for high quality professionals who can provide for you exactly what your business wants and needs. By outsourcing, you open up a door to a world of possibilities–literally. That means that when you spend your money on software development (which is quite a hefty expenditure), you can make informed decisions when it comes to choosing the best fit for the job.


Loss of managerial control. It goes without saying that when you outsource any aspect of your business operations, you lose managerial control of that aspect. It simply is not possible to stand over the shoulder of a software developer who is hundreds of miles away.

Confidential company information. When you hire a contractor to develop software for your business, it is likely that you will have to provide sensitive information about your business if you want software that is customized to your business (and isn’t that the point?). This clearly puts your business in a vulnerable position if you are harboring trade secrets that your business success relies on.

As you can see, there is a lot to think about when it comes to deciding whether or not to outsource your company’s software development. Before you make that all important decision–and especially before you put any of your money into a software development project–consider all of these pros and cons of outsourcing so you can be sure you are making the right choice for your business.

About the Author: Blossom Hamelin is a software developer who works with small businesses. She recommends you get started now if you want to find a company you can trust to finish your project from start to finish – looking at local contractors and larger groups like SmartBear.


Image courtesy of Stuart Miles /

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