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Guide 101 To Identifying The Ideal Outsourcing Software Development Company

By Joey Ricard - December 15, 2022



Outsourcing software development is a proven strategy to optimize cost, access a larger pool of high-rank talents, and boost efficiency. 

Partnering with the ideal outsourcing software development company gives non-technical leaders instant access to the latest and evolving technologies and tools to boost productivity and growth!

In this tech-driven world, where businesses, especially those that lack the necessary resources and expertise, are struggling and competing hard to grow fast and deliver top-notch software solutions to users, outsourcing to a software development company is gaining traction faster than ever. Today, software outsourcing is a hot topic among software development companies, not just in the United States but also around the world.

But with so many software outsourcing companies being out there, ready to deliver software development services, it does get confusing for businesses to choose the right one to get what is promised and meet your requirements!

And that is why we have discussed the main identifying factors to help you select and outsource to a software development company that will be the perfect match for your software development requirements!


Most Popular Countries For Outsourcing Software Development

Lower costs, a well-developed IT market, a high-quality infrastructure, and the ability to communicate in your preferred language are the most important factors to consider when determining the best countries to outsource software development! 

Other elements, such as cultural differences, also matter to some businesses, along with language preference. These can range from official holidays to significant cultural differences that may prevent certain people from working with you.

Time zones are another consideration when looking for the best countries to outsource software development. Many businesses find ways to interact with employees across time zones. Just make it a point to consider how you plan to work with people in different time zones before you begin looking. For example, are you willing to get up early or remain late at work to attend Skype meetings? Is your project low enough on your priority scale that a delay in communication is acceptable? Or do you want time zones to collide so you can talk in real-time with people?

You are ready to start looking for partners in the best countries to outsource software or web development once you figure out the specific outsourcing needs of your company!

Presently, some of the most popular countries for finding the right nearshore software development or offshore outsourcing software development company are:

  • Croatia
  • Philippines
  • Pakistan
  • Russia
  • India




Over the past few years, India is becoming the most favorable destination for high-quality software development. Plus, India is the second largest English-speaking country in the world, making it a perfect place for outsourcing to an offshore development company

Despite the country’s low literacy rate, the Indian Government prioritizes mathematical research and technological progress, which plays a critical role in creating a lucrative tech talent pool here.


Selecting Offshore Development Company Based On The Cost 

One of the main reasons for opting for an outsourcing software development company, especially offshore, is the low cost of outsourcing.

In the United States, the average hourly rate for programmers ranges from $75 to as high as $250, based on how much experience the developers have or whether it’s a development studio or a consulting firm.

But when you outsource the same software development projects to offshore companies, preferably in countries like India, you save a lot on the outsourcing cost, and that too, without compromising the quality of the project.

outsourcing software development company

The mention of quality brings us to another common misconception people often have when opting for an offshore outsourcing software development company. They assume that low labor cost indicates a lack of technical knowledge or non-skilled workers. But that is not the truth!

There are companies like Klizo Solutions that have a dedicated recruitment team to filter out the best and most skilled candidates with excellent technical education. They do not hire anyone and everyone but only those most suitable for the tech job role!

Plus, like an ideal outsourcing software development company, along with finding the best from the talent pool, they also train and build talent for the most demanded skills in the market, such as DevOps, Node JS, MongoDB, Python, Blockchain, and SaaS development environment.


Related Read: Why Partnering With Software Development Companies In 2022 Makes Sense


Ways To Identify The Right Outsourcing Software Development Partner

Identifying the right software development outsourcing partner is indeed troublesome! 

But once you manage to do so, there is no stopping you from gaining a competitive advantage through innovation and digital transformation, reducing risks, and maintaining a cost-effective approach. 

So without any further ado, let us get started with the different yet effective ways to identify the right software development outsourcing company!

Does The Company Have A Legal Name? 

Now that you have selected the country and considered the labor cost, the next step to selecting from the outsourcing software development options is checking whether the company has a legal name!

The legal name of a company refers to the officially registered name of the business entity and usually ends with Pvt. Ltd., LLP, etc. The company uses this name on all its paperwork, tax forms, and other official works.

The name of a company is one of the very first things that a potential client like you notices about the enterprise. When a software development company has a solid legal name, it means you can take your next step towards opting for its services without and trust it since it is not fake!


What Type Of Employees Does The Company Has?

Are their employees full-time? Or is it that their employees are under contract or a pack of freelancers? 

Another major point that you must pay attention to when trying to identify the right software development company is the type of employees the outsourced software development company has!

While full-time employees are permanent employees of a firm, dedicated to delivering the best in what they do to make sure the company considers them an asset to the organization, freelancers or contract-based employees share a very different relationship with the company. 

Freelancers get hired based on projects, and to them, the software development company they are working for is just one of the many clients they have, which means they may not give their complete dedication the way a full-time employee does to their employer.

outsourcing software development company

Remember, full-time employees always have the upper hand when it comes to expertise compared to freelancers or contract-based employees since some skills, ethics, and technologies that the company works with can only be learned in a full-time working environment. Plus, full-time employees don’t leave between projects, which ensures stability. 

An outsourcing software development company with full-time employees has dedicated people to handle a specific project which a company with freelancers lacks. So naturally, an outsourcing partner with a team of full-time employees can match and deliver your project requirements better than one with contract-based employees or freelancers.


What Does The Software Development Contract Say?

Whether you know it or not, software development fits into the category of intellectual property. 

So when you plan to connect with an outsourcing software development company, you must know whether the software development contract issues the “Intellectual Property” rights to you as an owner.

Usually, any intellectual property created within the sphere of software development makes the creator of the achievements made throughout the development process the owner of its rights. But that is where the IP contracts come in!

outsourcing software development company 


When you outsource software development to a company, know how they allocate the IP rights. Based on what you want, you either have sole ownership of the source codes, or you will pay only for the software license.

Remember, an outsourcing software development company that gets its outsourced projects done by contract-based employees may lack the proper IP agreement. So, do enquire whether their contract-based employees are under IP issuance.

In companies with full-time employees, the employer generally owns the intellectual property created by the employees during the course of employment.


Does The Company Have A Legal Presence In Your Country?

Have you ever thought of checking whether the company you are outsourcing to has a legal presence in your country or whether it is in a country that has better legal representation than yours? 

Knowing these things will help you narrow down the options and identify the right outsourcing software development company.

For example, if the company you’re planning to outsource your software development requirements to is in India, there is a high chance you will get the best software product for the most competitive prices.


outsourcing software development company


Why? Because apart from the labor cost being low in India, the Indian Government is constantly improving its policies to support software development outsourcing to India through various exemptions in IT investments and tax benefits.

Therefore, when you partner with an online platform developer or a software development company that has a legal presence in both your country and another country with better legal representation, you get the best outsourcing deal!


How Trustworthy Is The Outsourcing Company?

Check the reputation and the experience a company has before you partner with it for software or saas development services!

The last thing you should do is become the first client of any outsourcing partner unless the outsourcing software development company matches your major criteria! Partnering with an outsourcing company with a good track record and a reliable base of satisfied clientele is always a better decision.

Look for the following information before determining the right outsourcing partner:

outsourcing software development company

  • How many projects has the company completed to date?
  • How long has the company been in business?
  • What are the different types of projects the company has worked on?
  • How many clients have they had for longer than a year? 
  • Testimonials from previous clients and the number of recurring clients
  • Does the company excel in any particular software development niche?
  • How wide and versatile is the tech portfolio of the company?


Knowing about the history of the company, the countries it operates in, its years of experience in the industry, and its market reputation can help you determine its quality of service and know whether you can trust the outsourcing software development company.


Does The Company Use Repo Controls For Managing Code?

A code repository is an archive containing the code developers work on for a particular project. If the software is a house, then a code repository is the land the house gets built on.

While software development companies use it to ensure better and successful development and maintenance process, easy and quick resolving and tracking of code-related issues in the future and improve security, how much access they give to their clients tend to vary.

outsourcing software development company



So, make sure whether the outsourcing software development company you are partnering with uses a code repo and whether and how much access it gives you to the code repo controls. 

Based on your requirement for access to the code repository, make sure your outsourcing partner gives you the desired access(full access/ only viewing access/ tracking access) to your project. 


How Responsive Are They?

It is important to know and understand how they communicate with their clients or how responsive they are. Especially when opting for an offshore software development company, seamless and robust communication is the key to ensuring absolute transparency in project development. And how can you determine that? Simple! By analyzing these points – 


  • Do they proactively reach out to their clients?
  • Do they use agile and scrum methodologies to keep you involved in the project?
  • Does the software development outsource company has a proper hierarchy that does not lag?
  • Do they give you extended access directly to their team of developers or QA experts?
  • Do they conduct regular meetings, virtual or in-person?


Remember, it is better to look for an outsourcing software development company that works as your partner toward achieving the success of your business and is not solely focused on task fulfillment!


How Capable Are They Of Handling Big Projects?

Do you think your software development project requirements are pretty big? Then make sure the outsourcing software development company fits your requirements.

For example, look for how big the outsourcing company is or whether they have the resources or manpower to match your requirement. If the resources you need are way more than the outsourcing company can offer, choosing it won’t be a good choice.

Check out the outsourcing company’s previous projects and confirm whether it has previously worked on or delivered large-scale projects before you hand it one!


Does It Offer Post-Development Support?

Are you expecting a software development partner who can support your software project technical support after the final product is delivered? Then make sure to find out whether the outsourcing software development company offers post-development tech support.


outsourcing software development company


Also, check whether they can support the project after completion or give you a breakdown of the resources needed and the timeline to get it done the way you want.

For example, as a reputed agency of expert software and online platform developers, we not just build outstanding tech solutions keeping in mind the requirements and specifications of our clients but also offer complete support even after the product is delivered!


Connect With The Right Outsourcing Software Development Partner Today!

Partnering with the right outsourcing software development company helps businesses access modern technologies and drive innovation without causing undue pressure or strain on their existing resources.

Even Google, the multinational tech company, is known to have outsourced its software development, software maintenance, and customer support process (for AdWords) to other tech vendors. Over the years, companies like Microsoft, Alibaba, Skype, Basecamps, etc., have opted for software development outsourcing companies.

And now that you, too, have known how to identify the right offshore software development company, why not connect with us?

We, Klizo Solutions, can be the strategic partner you are looking for to help your business leverage the latest technologies and the finest of talents! 

Let us have a quick discussion to understand your outsourcing development requirements and know how fast we can fulfill them!

Author Joey Ricard

Joey Ricard

Klizo Solutions was founded by Joseph Ricard, a serial entrepreneur from America who has spent over ten years working in India, developing innovative tech solutions, building good teams, and admirable processes. And today, he has a team of over 50 super-talented people with him and various high-level technologies developed in multiple frameworks to his credit.