The IT outsourcing services market is on a rapid growth trajectory, with revenue predicted to soar beyond $800 billion by 2029. This surge is fueled by the unique flexibility of software development outsourcing and other outsourcing services, which aren’t one-size-fits-all solutions, but rather customizable options tailored to meet the specific needs of each business. One of the primary benefits of outsourcing is the significant cost savings it offers. By reducing overhead costs and allowing businesses to allocate resources more effectively, outsourcing becomes an attractive option for scalability and efficiency.

In this article, we dive into the reality of outsourcing and uncover its biggest advantages as well as challenges.

Introduction to Outsourcing

Outsourcing software development has become a cornerstone strategy for businesses aiming to boost operational efficiency, enhance customer experiences, and scale rapidly in a competitive market. By choosing to outsource software development, companies can collaborate with an external service provider to access specialized skills that may not be available in-house. This approach not only reduces overhead costs but also provides immediate access to world-class talent, allowing organizations to respond quickly to changing business needs. The global outsourcing market is expanding at an unprecedented rate, with the IT outsourcing sector projected to reach $1.149 billion by 2032. As a result, more companies are choosing to outsource software development to achieve significant cost savings, improve business efficiency, and strengthen their core competencies. By leveraging the expertise of external teams, businesses can focus on their core operations while benefiting from the flexibility and innovation that outsourcing brings.

Benefits of software development outsourcing

Outsourcing software development offers significant advantages: companies can save time and cut costs compared to hiring developers for an in house team, streamlining the process and reducing operational expenses. These benefits are well-recognized by companies that decide to choose this business model. And what are the unique benefits of outsourcing software development with NATEK? Below, you’ll find insights based on feedback we’ve gathered from our Customers over the years.

Expertize & Partnership

One of the key aspects that truly distinguishes our approach and is consistently praised by the companies that partner with us for their projects is the extensive expertise we’ve accumulated over our years in the IT industry. This depth of knowledge enables us to navigate complex challenges and deliver solutions that not only meet but exceed our Clients’ expectations. By staff outsourcing you can integrate specialized technical experts into existing teams to enhance digital strategies. Experienced professionals in outsourced teams bring diverse perspectives and problem-solving skills to software development projects, ensuring high-quality results and efficient delivery.

Accountability

When you outsource your software development, you need a Partner whose one of three main Values is Accountability. With clear communication and dedicated project management, you can trust that every detail will be handled with precision. Outsourcing companies like NATEK acts as an external service provider, offering resources and expertise to enable internal teams to concentrate on core business functions. Working with a managed team or external team streamlines the development process, reduces management burden, and ensures project milestones are met efficiently.

This means you can focus on your core business, knowing that we’re fully committed to delivering the high-quality results you need, while managing any challenges that come up along the way. Here are the results from a survey we conducted with 28 of our clients in 2023, highlighting our commitment to every partnership.

Elastic approach

Clients of outsourcing services consistently value the ability to provide the right materials, Experts, and knowledge exactly when they need it most. For larger companies, where multiple projects often run concurrently, this flexibility is crucial. For example, if our Customer suddenly requires additional support for an ongoing project, NATEK is ready to step in. Our Talent Acquisition Team can quickly tap into a Talent Pool tailored to the new demands, often within just a few days, to provide your project with the best Experts on the market. IT Outsourcing helps fill skill gaps by providing access to skilled professionals and staff augmentation services. Outsourced teams and development teams can be quickly assembled for specific projects, providing a software development team that adapts to changing needs. These outsourced services enable businesses to scale operations and achieve cost savings, allowing internal teams to concentrate on core functions and adapt quickly to changing demands. Compared to building in house teams or relying solely on in house developers, outsourced teams offer much faster and more efficient solutions for scaling and meeting project deadlines.

NATEK offers both managed services and staff augmentation to meet different project needs. As an outsourcing company, we provide flexibility and agility to respond quickly to internal needs and operational challenges. Selecting the right outsourcing provider ensures efficiency, scalability, and cost savings. Utilizing an outsourcing team enhances efficiency while maintaining oversight and communication. Project managers play a critical role in evaluating the effectiveness of staff augmentation strategies. Outsourcing the development process for software development projects enables companies to focus on core business while saving time and resources.

Our commitment to Partnership, Expertise and Accountability ensures that our cooperations are long-term and constantly thrive. We’re dedicated to delivering exactly what our Customers need at every stage of our collaboration, making sure they receive a product that not only improves their business but also allows them to discover new and unexpected areas for expansion.

How does the process of outsourcing tech talent look?

Throughout the project, we maintain close collaboration with your executives and business owners to ensure high satisfaction. Collaborating with an IT outsourcing company like NATEK offers numerous advantages, such as access to a wide range of software development services and new technologies, alleviating workload, minimizing risks through expert IT support, and enhancing security for company data. Outsourcing companies provide cost-efficiency and access to top IT talent, addressing challenges like the shortage of skilled professionals and the need for flexible, agile solutions in IT services. This approach gives your business a significant advantage in adapting to market changes and leveraging the latest innovations. Using agile methodology, we provide the flexibility needed to adapt to evolving requirements and deliver solutions that truly meet your needs.




Time Zone and Geographic Advantages

One of the significant advantages of outsourcing software development is the ability to leverage time zone and geographic differences to your benefit. By collaborating with outsourcing companies located in strategic regions, businesses can establish a 24/7 development cycle, accelerating project timelines and ensuring continuous progress. This global approach allows companies to gain access to a vast pool of skilled professionals, regardless of their physical location, ensuring that the best talent is working on your project. Outsourcing to regions with favorable labor costs can also result in substantial cost savings, while dedicated teams and established processes guarantee high quality service and timely delivery. By taking advantage of geographic diversity, companies can improve business efficiency, meet tight deadlines, and maintain a competitive edge in the fast-paced world of software development.

Product Quality and Innovation

Outsourcing software development is a powerful way to enhance product quality and drive innovation. By partnering with a good software development company, businesses gain access to experienced developers and specialized expertise that may not be available internally. These outsourcing companies are equipped with managed teams, established processes, and a focus on delivering high quality results tailored to each client’s unique needs. With access to cutting-edge technologies and innovative solutions, companies can ensure their products are not only robust and reliable but also ahead of the curve in terms of functionality and user experience. The collaborative approach of dedicated teams ensures that projects are completed efficiently, on time, and within budget, all while maintaining a strong emphasis on quality and innovation. This commitment to excellence enables companies to stay competitive and continuously deliver value to their customers.

Software development outsourcing - customer success stories

What are some of the examples of NATEK successfully providing our Customers with our outsourcing solutions? The insights shared here are drawn from our Specialists’ hands-on experience over years. These success stories demonstrate how our IT outsourcing services have enhanced business efficiency and managed IT infrastructure for our clients.

Scaling to meet critical aviation needs

A global technology company that powers the travel and tourism industry, whose systems operate 24/7, processing over 60,000 transactions per second, was faced with rapidly changing project requirements. The company needed to quickly scale its development Team for a high-stakes project involving flight coordination, including balancing airplanes with cargo, passengers, and fuel, as well as managing take-off procedures and ramp supervision.

To meet this challenge, NATEK managed offshore outsourcing to provide experienced Software Developers. Their responsibilities included resolving bugs, tackling complex algorithm improvements, and contributing to the development of new software features.

With NATEK’s expertise and seamless collaboration, the project stayed on track, with all objectives met within the scheduled timeline, ensuring smooth operations for one of the world’s largest industries. Additionally, the client avoided the high costs associated with acquiring software licenses and managing employee benefits such as health insurance, reducing internal administrative burdens and overall expenses.

Empowering global leader with market intelligence user interface

An international leader in providing critical information, analytics, and solutions across industries such as aerospace, defense, automotive, energy, and technology, embarked on a major project to create and maintain a cutting-edge business and market intelligence platform. The goal was to create a product that offers seamless access to comprehensive industry analysis, in-depth market research, and economic forecasts from over 2,000 globally renowned experts.

NATEK’s Experts played a key role in designing and developing the presentation layer of the mentioned web application. They were also responsible for formalizing User Stories and Defects in line with business requirements and actively participated in code reviews.

The result? A powerful, user-friendly platform that exceeded the initial expectations. Our successful partnership continues to this day, driving further innovation and growth.

Creating a precious metals trading platform for a global financial leader

A division of a multinational financial services holding company and a leading global private bank and wealth manager, needed a robust platform for trading precious metals such as gold and platinum. They sought a cutting-edge solution to streamline and enhance their trading system.

NATEK Team stepped in to develop innovative solutions for their precious metals trading platform, leveraging Java (J2EE) technology. Our Experts created web services integral to the platform’s operation and ensured smooth deployment of these services.

Thanks to our expertise, the platform now supports seamless and efficient trading, empowering our Customer to maintain their leadership in the global financial market.

These outsourcing solutions have contributed to our clients' sustainable growth by enabling them to adapt to market changes, mitigate risks, and achieve long-term success. Strategic outsourcing with NATEK supports ongoing, balanced growth even in challenging business environments.


How to prepare for outsourcing of the software development project?

To successfully develop new software, the development team must first understand your needs. The initial meetings, workshops and requirement collection phase are critical to the project’s success. Thanks to them, we can craft detailed specifications, provide accurate estimations, and determine the team size required to deliver our Customers with the desired software solution. This approach also allows us to establish a realistic budget and project timeline. Additionally, outsourcing infrastructure services can enhance IT operations, including cloud and software solutions, ultimately improving efficiency and security for organizations. These outsourcing services provide specialized expertise and resources, enabling organizations to focus on their core competencies while adapting quickly to changing demands.

However, during the requirement collection phase, you may face challenges such as:


  1. Lack of software expertise: Without the right expertise, it can be difficult to define how the software should align with and support your business goals.
  2. Lack of understanding: Sometimes, the internal IT team may not fully grasp the business workflows or the software's impact on the areas it will be used.
  3. Lack of time: When there's pressure to implement the software quickly, it can be tough to thoroughly capture all necessary processes and conditions.


It is also crucial at this stage to clarify intellectual property ownership and protections to ensure your rights are safeguarded throughout the outsourcing process.

But with an experienced Team such as NATEK, no obstacles are insurmountable. Our Specialists can conduct a comprehensive business analysis to ensure that all your needs and expectations are clearly defined and understood. This solid foundation will serve as the basis for a successful agreement and project outcome.

If you’re considering software development outsourcing, make a bet on a company that prioritizes your business needs and contact us! Tell us what you need by sending a message to NATEK Sales Prospection Team Lead Andrzej Osman at andrzej.osman@natek.eu or go fill out our Contact form to begin our cooperation and #growITwithus!