Last updated 2022-11-05 03:50:45

What Is Outsourcing?

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Software outsourcing is an arrangement where a company partners with a third-party company to develop software rather than relying on their in-house team.

Companies are increasingly looking toward software outsourcing to access top talent, greater flexibility, fast turnaround times, and of course, cost savings.

With software development outsourcing, you delegate the responsibility for all or a part of software development activities to a vendor. It helps cover the lack of internal resources or expertise to support your business growth and digital transformation initiatives.

Use Cases and Examples

A more famous example comes from Slack. In 2012, founder Stewart Butterfield had an idea but didn’t have the experience or resources to make that vision a reality.

Butterfield worked with an outsourcing firm to build and design its first mobile and web app. This allowed the workplace chat startup to get to market fast and start scaling the business.


While it’s critical to look for an outsourcing company with the resources and expertise to deliver innovative solutions, it’s people and relationships that power transformation.

Software outsourcing is an extension of that. Companies need to look for partners that are up to the challenge.

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