{"id":3790,"date":"2023-05-05T22:50:06","date_gmt":"2023-05-05T14:50:06","guid":{"rendered":"https:\/\/thekeyfact.com\/?p=3790"},"modified":"2023-10-23T22:24:06","modified_gmt":"2023-10-23T14:24:06","slug":"the-benefits-and-risks-of-outsourcing-product-development","status":"publish","type":"post","link":"https:\/\/thekeyfact.com\/the-benefits-and-risks-of-outsourcing-product-development\/","title":{"rendered":"The Benefits and Risks of Outsourcing Product Development"},"content":{"rendered":"\n<p>Short time-to-market, cost-effectiveness, and a few other similar factors are the major reasons IT businesses consider exploring outsourced product development services. However, just as it is advantageous, outsourced software product development also has its associated risks, including but not limited to privacy concerns, cost uncertainties, etc.<\/p>\n\n\n\n<p>So, the big question is, should you consider&nbsp;<a href=\"https:\/\/procoders.tech\/blog\/how-to-outsource-product-development-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">product development outsourcing<\/a> or hiring in-house developers? To answer, it\u2019s important to understand how beneficial the former is over the latter or vice versa.<\/p>\n\n\n\n<p>In this article, we have carefully examined the top benefits and risks of outsourcing product development, helping you make a better-informed decision as an IT startup owner or co-founder.<\/p>\n\n\n\n<p>Without further ado, let\u2019s dive right into it!<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/thekeyfact.com\/the-benefits-and-risks-of-outsourcing-product-development\/#Top_4_Benefits_of_Outsourced_Software_Product_Development\" title=\"Top 4 Benefits of Outsourced Software Product Development\">Top 4 Benefits of Outsourced Software Product Development<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/thekeyfact.com\/the-benefits-and-risks-of-outsourcing-product-development\/#Risks_of_Software_Product_Development_Outsourcing\" title=\"Risks of Software Product Development Outsourcing\">Risks of Software Product Development Outsourcing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/thekeyfact.com\/the-benefits-and-risks-of-outsourcing-product-development\/#Final_Thoughts\" title=\"Final Thoughts\">Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Top_4_Benefits_of_Outsourced_Software_Product_Development\"><\/span><strong>Top 4 Benefits of Outsourced Software Product Development<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1.<\/strong>&nbsp; &nbsp; &nbsp;&nbsp;<strong>Short Time-to-Market<\/strong><\/h3>\n\n\n\n<p>How soon your software product can get to the market significantly determines how successful such a product will be. And outsourcing can help you achieve a very fast time-to-market. When well-managed, outsourced product development companies can help deliver your project faster without compromising quality, thanks to their limitless resources and experience.<\/p>\n\n\n\n<p>More importantly, while you\u2019ve outsourced the development, you can focus your energy more on monetization and other strategies to remain ahead of the curve, especially with the industry becoming more competitive than ever.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2.<\/strong>&nbsp; &nbsp; &nbsp;&nbsp;<strong>Access to Talented Product Developers<\/strong><\/h3>\n\n\n\n<p>While this largely depends on your IT outsourcing product development partner, outsourcing your software product development process typically allows you access to more experienced developers with better expertise. It&#8217;s worth noting that if your project requires specific skills, such as RoR (Ruby on Rails) development, your outsourcing partner can be a valuable resource,\u00a0<a href=\"https:\/\/sloboda-studio.com\/ruby-on-rails\/\">providing RoR development<\/a>\u00a0expertise.<\/p>\n\n\n\n<p>Since they are not working in-house, you can pool an outsourcing team worldwide comprising project managers, UI\/UX designers, software developers (back-end and front-end), QA engineers, etc. You only need to inform your outsourcing company of the required roles for the project, and you can be sure of having a team of talents to work with.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3.<\/strong>&nbsp; &nbsp; &nbsp;&nbsp;<strong>More Flexibility<\/strong><\/h3>\n\n\n\n<p>Developing a software product involves many phases, from pre-development to post-development. Every one of these phases may or may not require your involvement. But you will enjoy better flexibility in choosing how involved you want to be when outsourcing.<\/p>\n\n\n\n<p>This may also depend on what you believe will work best for your company. You can limit your involvement to routinely tracking the project progress and associated development costs. This way, you can prioritize your focus on other aspects of ensuring optimal market acceptance when the software product eventually launches.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4.<\/strong>&nbsp; &nbsp;<strong>Cost-Effectiveness<\/strong><\/h3>\n\n\n\n<p>New product development outsourcing can help you save a lot of money. Generally, employing an in-house team costs more than outsourcing. Beyond costs, the efforts required for onboarding, supervision, etc., are incomparable.<\/p>\n\n\n\n<p>Outsourced software product development allows you to leverage the differences in available resources and labor costs worldwide. It also helps you avoid the risks of budget restraints and unnecessary expenses on rent, utilities, etc. With zero overhead costs, you can maximize your profit margin!<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risks_of_Software_Product_Development_Outsourcing\"><\/span><strong>Risks of Software Product Development Outsourcing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1.<\/strong>&nbsp; &nbsp; &nbsp;&nbsp;<strong>Unexpected Costs<\/strong><\/h3>\n\n\n\n<p>This is otherwise known as the risk of \u201chidden charges.\u201d Product development companies offer different pricing models, which may be a Fixed Model, Time and Material Model, Dedicated Team Model, etc.<\/p>\n\n\n\n<p>However, regardless of the model you receive, there is always a risk of unexpected costs. This may include but is not limited to unplanned plan adjustments, unexpected software upgrades, and so on. You wouldn\u2019t want your project abandoned halfway and will be left with no option but to pay these extra charges.<\/p>\n\n\n\n<p>But you can avoid this risk by having a comprehensively binding contract before the start of the project. Ensure it includes the scope of the project, everything your project involves and the associated costs, delivery timeline, and so on.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2.<\/strong>&nbsp; &nbsp;<strong>Limited Control<\/strong><\/h3>\n\n\n\n<p>While the flexibility of involvement may be a benefit, some consider it a risk. Outsourced software product development reduces how involved you are in the entire process. The risk here is that your outsourcing vendor may miss out on some of your requirements so they can do things their way. Again, this largely depends on the product development outsourcing company you work with.<\/p>\n\n\n\n<p>The best way to avoid this is to clearly define your requirements and conditions before starting the project. This way, you can be sure you and your vendor are on the same page.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3.<\/strong>&nbsp; &nbsp;<strong>Privacy Concerns<\/strong><\/h3>\n\n\n\n<p>You cannot work with an outsourced software product development company without sharing your business\u2019 confidential details with them. While it is important to do so, it also raises privacy and security concerns.<\/p>\n\n\n\n<p>Of course, you must sign Non-Disclosure Agreements with these companies, but is it always enough? Hence, ensure you extensively review any company you want to work with, examining their track records and how they handle their clients\u2019 data.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span><strong>Final Thoughts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Outsourced software product development can significantly help you get your software product to the market without needing to break the bank. But, of course, it also has its associated risks. Understanding these benefits and risks is very important to make the right decision.<\/p>\n\n\n\n<p>Should you have further questions? Don\u2019t hesitate to reach out via the comment section below!&nbsp;<\/p>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Short time-to-market, cost-effectiveness, and a few other similar factors are the major reasons IT businesses consider exploring outsourced product development services. However, just as it &#8230; <a title=\"The Benefits and Risks of Outsourcing Product Development\" class=\"read-more\" href=\"https:\/\/thekeyfact.com\/the-benefits-and-risks-of-outsourcing-product-development\/\" aria-label=\"Read more about The Benefits and Risks of Outsourcing Product Development\">Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":3791,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[206],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Benefits and Risks of Outsourcing Product Development - thekeyfact<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thekeyfact.com\/the-benefits-and-risks-of-outsourcing-product-development\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Benefits and Risks of Outsourcing Product Development - thekeyfact\" \/>\n<meta property=\"og:description\" content=\"Short time-to-market, cost-effectiveness, and a few other similar factors are the major reasons IT businesses consider exploring outsourced product development services. 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