The Truth Behind the Dominance of Software Outsourcing
                     The Truth Behind  the 
Dominance of Software 
Outsourcing
7 Major benefits of IT outsourcing 

4 best practices for finding qualified  software vendors
Software Outsourcing Benefit 1
Huge international talent pool at your disposal.
No more local in-house labor limits and software developer talent shortage.
Software Outsourcing Benefit 2
Dramatic increase in ROI as a result of cost-efficiency.


World-famous IT hubs like Armenia offer qualified software developers at 3 
times  lower prices compared to IT giant countries.


Hiring in-house developers are much more expensive than hiring dedicated 
software  developers from an outsourcing company.
With Dedicated Software Developers from 
Outsourcing Companies You Save on:
Employees’ health insurance
Paid sick leaves, day-offs, vacations, etc.
Space rent
Necessary technical equipment for work
Utility fees
Paid training
Software Outsourcing Benefit 3
Opportunity for easy and fast scale-up.


If you need more IT specialists or software developers along the SDLC,  you 
can skip the expensive employee recruitment process and hire  more 
professionals directly from your software vendor.
Software Outsourcing Benefit 4
Faster implementation and quick results.


If you outsource you have an opportunity to choose between several 
engagement  models, file a precise SOW document, and leave the rest to 
your qualified  software vendor.
Scope of Work Document Accelerates and  
Facilitates Multiple Software Outsourcing 
Processes Like:
Providing precise time and cost estimates
Starting software development and implementation process
Spending additional money on unplanned Events
Software Outsourcing Benefit 5
No worry about finding new employees.
Employee recruitment is a tough and time-consuming process. It is  hard to 
find the right professionals and help them quickly adapt to a  new working 
environment.


If you work with a software vendor that has a complete IT team, adding  up 
more professionals like QA specialists, project managers, UI/UX  designers, 
and software developers with different tech stacks is not a  problem.
Software Outsourcing Benefit 6
Easy office task enhancements
You get rid of the continuous task of adjusting the software  development 
process to your in-house team members’ sick leaves,  vacations, maternity 
leaves, or likewise situations.
Software Outsourcing Benefit 7
No responsibility for the developers’ professional and personal  growth.
Your software vendor is THE ONE to provide high-quality software  
development services.

If you choose your software outsourcing partner wisely, you get all  these 
amazing benefits.
How to Choose a Qualified Software Vendor?
Although risks are much lower in software outsourcing, it does not  mean 
they don’t exist.

Software outsourcing has its pitfalls too. Not every software  outsourcing 
firm is a good match.
4 Must-Know Tactics in Choosing a 
Software  Outsourcing Firm
The cheapest is not always cost-efficient
Communication is the key
Reputation is important
Time and price estimation should be rational
Choosing a Qualified Software Vendor: Tip 1
Looking for the cheapest option should not be a priority.

Find a balance between cost and quality.
With minimum costs, you will probably get junior specialists or students 
who may use your project as a possibility to learn how to  code.
Pay a Bit More & Get Quality in the Desired  Timeframe
Not too cheap & not overpriced is THE KEY

Example: Armenian software developers are usually well-educated and  
practiced in offering the best cost for the highest delivered quality.


An average hourly rate for an Armenian software developer is between

$25-$50. 
Choosing a Qualified Software Vendor: Tip 2
Pay close attention to the communication process right after contacting  
the team. Ask yourself:
How long does it take to get an answer from the team?
Are they precise in their words?
Do they offer online meetings?
Do they make an effort to explain all the details?
Most Software Outsourcing Firms Use 
Project  Management Tools
Jira, Trello, and Slack are great tools for transparent communication.
You can track:
How the developers work 
How much time they spend on each project
Estimate the tasks, make daily reports, and the like.
Choosing a Qualified Software Vendor: Tip 3
Check your possible software vendor’s portfolio.
Ask the company to share their case studies. 

They will certainly be  shown on the website as well but do not forget about 
projects with  NDAs.
Check the Reviews of  Reputable 
Directories and Awards
Search for articles about the company or check their reviews on  
reputable websites like:
Clutch.co
GoodFirms
OnlineDegree
Euro-Asian Startup Awards
TopDevelopers
Remember about Reasonable Estimation
Compare your possible software vendor’s cost estimations with the  
market rates.


If your project is underestimated you will end up with unexpected  
additional costs, and running out of budget.


To avoid this, check twice if the estimation is fair and accurate with no  
pricing games.
Read the Whole Article with an In-Detail  
Representation of This Subject on 
CodeRiders’  Blog
https://www.coderiders.am/blog/software-
development-outsource-vs-insource
In the era of information, your business 
will be out of the competition if  it is not 
represented online.
Why not take a chance and choose affordable ways of solving your  
software solutions?


CodeRiders offers its custom approach to every company. Find out  
what's yours now by visiting our website www.coderiders.am

or say hi to us via [email protected]