A Complete Guide to Outsourcing Software Development in 2025
The IT outsourcing sector is expected to reach its maximum by 2029. According to Statista research, this market share will be about $812.75 billion in five years. The same ever-growing tendency is proved by the Precedence Research survey. IT outsourcing market size is expected to reach $1 trillion by 2030.
Genius published one more catchy article with relevant statistics related to this very topic. According to the most outsourced services worldwide, software development (ITO) is in the first place.
Almost the same CAGR percentage is mentioned for customer service (BPO) and infrastructure management (ITO). Professional consulting services, together with fintech & accounting digital transformations, are also on-demand in 2024. The popularity of these directions is not going to change in 2025.
Software development services are outsourced worldwide via various cooperation scenarios, such as offshore contracting, freelance agreements, and project-based hiring. Most people in business are not interested in in-house devs - outsourced teams or tech individuals are in favor of small, middle-size, and flagship companies.
The main reason is the lower costs possible with software development outsourcing services. Additionally, consumers get access to more flexible human resources and the tech stack they need for their projects. But it is critically important to pick sides with the best-matching format of outsourcing depending on the company’s size, budget, and other details.
Where to Start: Three Common Types of Outsourcing to Consider in 2025
According to the Clutch classification, there are three common types of outsourcing applied to software development projects. The main criterion is the location of the specialists attracted. Select one of the following formats:
- Onshoring (local tech experts to outsource, usually from the same country or even region);
- Nearshoring (searching for competent tech specialists in nearby countries with zero language barrier and guaranteed culture fit);
- Offshoring (outsourcing takes place worldwide and can attract software engineers from Asia, the USA, or Latin America if the client is based in Europe, for instance).
The onshore format of outsourcing is more applicable to businesses around the globe. But everything comes individually. Offshoring is great for cutting local price tags for IT services, making all the workflows round-the-clock due to different time zones (while your in-house devs progress with one range of tasks and outsourced - with others), and many more.
Standard Outsourcing Software Development or Try Staff Augmentation?
Usually, experts define several popular outsourcing models to take into account. Among them are dedicated teams, project-based contracting, and staff augmentation. All these three formats are more flexible than standard outsourcing, where devs join your company with third-party project managers. You cannot control all the processes. The idea is to deliver the required final result - tech solutions, developed apps, optimized software, improved IT infrastructure, etc. That is why most people in business choose staff augmentation mixed with the positive features of dedicated teams and a project-based cooperation model.
The right software outsourcing services can augment staff as well. Let’s check all the benefits this approach can bring to your project:
- Fast collaborations - the augmented staff integrates into your in-house team immediately. No third parties mean quick alterations and optimizations. Sometimes, intermediaries are useless, aren’t they?
- Lower costs compared to standard outsourcing with long-term contracts signed with project managers and attracted specialists (full-cycle developers, dedicated teams, training staff, recruiters, etc.).
- Adaptable environments for new workers. As standard outsourcing requires the external management body and technicians with their own culture, priorities, and habits, augmented devs should adapt to the rules of the in-house team. At the same time, CTOs and team leads should conform to the needs of new specialists for a stress-free microclimate and favorable working conditions.
- The strategy of staff augmentation is more flexible than standard outsourcing. Suppose you have any changes related to the project scaling up or other market conditions. In that case, it is possible to correct anything - the number of developers, type of tech specialists, their loads, etc. Outsourced onshore & offshore developers have fixed service agreements. Only renegotiations for adjustments can take place (but this needs to be revised).
High-level quality and expertise are guaranteed for any variation of outsourcing, including staff augmentation, dedicated teams, and project-based contracting. You may select even a hybrid model to meet your requirements and your potential software developers’ expectations. Follow our complete guide to enjoy your experience while choosing a proper software outsourcing partner, or just hire tech individuals according to your own working conditions.
Software Development Outsourcing: Complete Guide for 2025
Let’s start with a review of the latest trends related to IT outsourcing. It does not matter which model or cooperation format you will select for your company. Keep track of the trendy approaches to adapt your strategies according to hot topic solutions applying for software outsourcing in the context of development services.
Top 4 Trends of IT Outsourcing in 2025
To sum up, the success of your outsourcing experience depends on the approach you use for each stage while searching for a best-matching candidate. Boost your progress with modern digital tools, artificial learning, and apps for better management, task tracking, planning, etc.
Pick Sides with the Proper Outsourcing Destination
Do not be limited to the local talent pool. Nowadays, it is reasonable to outsource globally. You can find skillful developers in other countries and arrange stopless workflows due to different time zones.
Elitex represented a list of top destinations in the context of searching for your trusted outsourcing partners in 2025. European devs, especially ones from Eastern Europe (Romania, Poland, Ukraine), are still in favor. The IT experts from this destination are talented and have high-grade technical education & accessible hourly rates for their development services.
Additionally, pay attention to Indian devs and Asian tech specialists. But be sure that a language barrier does not take place. European developers speak English fluently, so you should not worry about your communication.
4 Steps to Find a Reliable Outsourcing
Partner in 2025
Standard software development outsourcing is about external specialists to attract together with third-party project managers. Be ruled by these four steps to find a trusted partner for this purpose:
- Start with your goals. Define the number of developers, programming skills, and competence you need. Specify all the details first. These insights will be necessary for any outsourcing agency with which you will cooperate. Or try to outsource yourself with the help of the Wild.Codes optionality.
- Get ready with service agreements, contracting, and security. For example, you should protect your intellectual property. Prepare an NDA to sign and other documents to show external IT specialists your leadership and responsibilities.
- Communicate with your potential partner and discuss your goals, security measures, terms, and budgets. Do not forget to specify languages, preferable time zones, technical expertise, and other aspects.
- Ask about intermediate outcomes. You should check the outsourcing partner’s progress while estimating the number of candidates selected, screened, and invited for the interview.
10 Tips for Successful Outsourcing
Experience in 2025
To make your experience hassle-free, follow these recommendations:
- Pick sides with your objectives and deliverables. Only well-defined goals can help you develop a correct outsourcing strategy and meet your terms, budgets, and requirements. Make a precise plan with roles, tasks, roadmaps, and expected deadlines for final results.
- Regular communication matters. From the first moments you start your outsourcing to cooperating with external developers, keep in touch and have an open dialog. Who knows, may be your project-based workers will join your in-house team and convert into reliable devs for other tasks.
- Focus on agile methodology. If you are interested in iterative progress, exceptional flexibility, and faster adjustment, it is high time to try this approach and boost your progress according to all the business needs.
- Do not neglect cultural fit. The best candidates you are going to outsource are ones who have the same values and beliefs. Enjoy excellent collaboration and a deep understanding of your business needs with like-minded devs you hire.
- Control quality at any project stage. Even when it comes to outsourcing, manage all the procedures to be sure that your partners, recruiters, team leads, augmented staff, freelancers, or any party involved are on the right way.
- Work with potential challenges via preventive measures. For example, different time zones can be a true benefit if you arrange all the workflows in a 24/7 format. Data security risks can be escaped with the help of well-thought protocols, and certifications like ISO, GDPR, NDAs, etc.
- Think of SLA and IP rights in advance. Define service legal agreements and intellectual property items before protecting your company and interests. Trusted outsourcing partners will understand your seriosity and liability-driven steps.
- Develop an exit plan. Sometimes, you need to change your outsourcing partner and external specialists. You need to plan your actions if this scenario takes place. This way, you will have a transitioning period with zero stress.
- Explore engagement and retention models to know how to attract talented devs even without the help of outsourcing partners. Let your perfect match stay with your team and convert his/her skills into ready-to-use solutions your business needs.
- Do not be limited to standard outsourcing strategies. AI vetting and tools with machine learning & AI-powered recruitment platforms like Wild.Codes can save your time, cut down employment costs, and guarantee favorable candidates to interview and hire.
As a man sows, so shall he reap. Hard work will bring fruitful results. But today, it is possible to simplify most of the tasks people get used to perform manually. The thirst for innovations, digitalization, and optimization of your workflows can make a difference. Start today with the implementation of remarkable solutions!
• PHP expertise;
• Database management skills;
•Jungling traits, methods, objects, and classes;
• Agile & Waterfall understanding and use;
• Soft skills (a good team player, high-level communication, excellent problem-solving background, and many more)
• OOP & MVS deep understanding;
• Knowledge of the mechanism of how to manage project frameworks;
• Understanding of the business logic the project meets;
• Cloud computing & APIs expertise.
• Reasonable life-work balance;
• The opportunity to implement the server-side logic via Laravel algorithms;
• Hassle-free interaction with back-end and front-end devs;
• Strong debugging profile.
• Using HTML, XHTML, SGML, and similar markup languages
• Improving the usability of the digital product
• Prototyping & collaboration with back-end JS experts
• Delivery of high-standard graphics and graphic-related solutions
• Using JS frameworks (AngularJS, VueJS, ReactJS, etc
• Clean coding delivery and timely debugging & troubleshooting solution delivery
• UI testing and collaboration with front-end JS teammates
• Database experience
• Building APIs while using REST or similar tech solutions
• Collaboration with project managers and other devs
• Delivery of design architecture solutions
• Creation of designs & databases
• Implementation of data protection and web cybersecurity strategies.
• Both front-end and back-end qualifications
