Navigating the Lifecycle of Software Development Outsourcing: A Comprehensive Guide

Hrvoje Š.
7 Min Read

Many businesses are turning to outsourcing for various elements of their business including internal operations and software development. According to Fortunly, 78% of business and technology companies outsource their cybersecurity, software development, and IT infrastructure services. 

Improving speed and efficiency while reducing operational costs are just some of the reasons why many companies are considering software development outsourcing. So, how do companies protect their interests and ensure outsourcing best practices?

In this comprehensive guide, we’ll explore the lifecycle of software development outsourcing and how your business can avoid the pitfalls. 


What is Software Development Outsourcing?

Software development outsourcing is the process of working with a third party to create custom software solutions for your business. Software development outsourcing services make sense for growing businesses that want to remain competitive and keep up with trends while reducing in-house costs. 

There are various types of software development outsourcing including the following: 

  • Offshore outsourcing
  • Onshore outsourcing
  • Nearshore outsourcing
  • Multisource outsourcing

Businesses can choose from many different outsourcing models depending on their preferences and how they manage their teams. Staff augmentation is an excellent way to complete a project if you prefer to have a professional company handle the hiring and onboarding process. 

Why Outsource Software Development?

The reality is that there are lots of options for businesses looking to start a software project. Connecting with an experienced software development company can give your business access to highly skilled software developers that fit your requirements. 

Outsourcing your software development gives you time to focus on the growth of your business while the experts realize your software goals. 

When to Consider Outsourcing Your Software Development?

If your internal team is not meeting the company’s software development needs, it may be time to speak with an outsourcing service. Outsourced software developers can focus on strict deadlines and help your business get back on track. Professional software developers possess the skills and expertise to complete tasks in the most efficient way to develop software strategies and improve workflow. 

Where to Find the Right Software Development Outsourcing Partner?

Your chosen partner should understand outsourcing best practices and your company message. During the selection process, you should analyze their capabilities and study their previous work to identify if they are the right fit for your business. 


The Software Development Outsourcing Lifecycle

The lifecycle of outsourcing software development can seem confusing if you are new to the process. However, the following steps will briefly explain how the process can benefit your business and why you should utilize external software developers. 

Planning and Analysis

Careful research and planning is the first vital step in the outsourcing lifecycle for software development. Defining your vision and providing clarity for your software project is important before approaching potential outsourcing services. 

Choosing the Right Outsourcing Partner

Evaluate the capabilities and experience of your short-listed partners before making a decision. Ask for information on managing outsourced projects and how they complete projects to ensure they can communicate effectively and work well with your team. 

Project Kickoff and Team Onboarding

After you select an appropriate partner, you can start your software project and begin the onboarding process. Make sure you provide clear deadlines for your project and encourage open communication between your team and the outsourced developers. 

Design and Development

Your design and development teams will work together to transform your ideas into reality. Check that your chosen partner provides adequate security measures to protect your intellectual property. Software developers such as Giraffe Software will facilitate meetings between your internal team and the outsourced developers to ensure your project is running smoothly. 

Delivery and Deployment

Software developers will test your custom software and begin the transition period to implement it within your business. Project management in outsourcing allows you to monitor this process or pass this task on to an external party. 

Maintenance and Support

Ongoing maintenance and quality assurance will identify any issues that arise with your new software and rectify problems. Your development team will monitor and follow the latest trends to keep your company up-to-date and relevant. 

Review and Feedback

Evaluations and feedback occur after the development and launch of your software project to discuss strengths and weaknesses and improve the software in the future. You can discuss your initial objectives with your team to communicate any changes. 

Managing the Relationship with Your Outsourcing Partner

Choosing the right outsourcing partner in the first instance is the most crucial step in successful software development. You should send continuous feedback to your partner about their services so that they understand your needs and objectives. They should offer ongoing support to build trust and security within your relationship. 

What Comes After Scaling and Evolving Your Outsourced Software Development?

Trialing software outsourcing can lead to other outsourced projects and processes in the future. Utilizing highly skilled specialists can shorten the project timeline and reduce the costs of developing new software.  


The outsourcing lifecycle can seem complicated if you’ve never used external services for your business operations. By working with talented professionals from a reputable outsourcing company, your business could flourish without the financial burden of hiring new employees. 

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