10 Software Outsourcing Challenges And How To Overcome Them

Software outsourcing  challenges comes with its own set of development. But before we look at the challenges, let’s first understand the types of software development outsourcing models. Outsourcing, specifically the outsourcing of software development services, mostly falls into three categories Offshore, Onshore and Nearshore.

Software outsourcing challenges

Offshore model

Building a software development team in another part of the world can be challenging. As long as only high performing developers matter and other aspects such as the difference in time zones, language and culture do not matter, the offshore model can work without much hindrance.

Nearshore model

The team is available during similar working hours and is easily reachable for consultations and meetings when needed. It enables businesses to save costs and deliver high quality software without the hassle with the help of an agile software development framework.

Coastal model

Onshoring means having a full-fledged in-house IT team for software services. Software engineering services are available for development, testing, deployment, and help businesses implement a high-quality product and stay on budget. Before deciding to outsource software development services, they must be aware of the following issues.

Trust issues

While it is true that outsourcing software development services costs less, it is somewhat difficult to find the right solution for your project. Outsourcing involves sharing sensitive information, so every business should be cautious about security, data breaches or any personal or vital company data.

Communication gap

When outsourcing services, it is vital for the company to be clear about what it wants and it is absolutely essential that the other party service provider understands the needs of the company.

Understanding the scope

It is very important for every business to clearly communicate its project scope to developers or software development service providers. Lack of proper clarity can lead to developers going over budget or delivering low quality products.

Project management process

From the moment a project idea is born to the time it is implemented and tangible results are visible, project management is an inevitable process. Developers should have a clear plan to follow, and project requirements and expectations should be communicated well enough to avoid going back and forth.

Ownership challenges

Say there is no line manager involved in the outsourcing process, there will be no accountability on both sides, leading to waste of time and money.

Project delays

Outsourced projects can very easily miss a deadline due to reasons such as an unrealistic schedule and constant changes in project requirements along the way due to a dynamic market.

Project management

When the software development process is outsourced to third-party vendors, you will not be working with your internal team, but with an external company.


A reliable outsourcing vendor is a company with a sufficient track record to prove their expertise, positive feedback from their clients, and a dedicated team of professionals to guide you every step of the way.