Jan 1, 2023

8 min

Bulletproof Programming Outsourcing: The Ultimate Guide 2023

Back in 1989, managers of Eastman Kodak Co. made a pivotal decision to cut down their internal IT expenses. They signed a contract with IBM Corp. and delegated it to create a new data center. Since that remarkable date, programming outsourcing has become a norm in practically every sphere of business. Moreover, the new reality of a rapidly digitalizing economy in pandemic and post-pandemic times is closely interwoven with global outsourcing models.

So, what are the tendencies of 2023? In the article, we are going to reveal the key trends of the "new normal" of the post-pandemic economy, explore the inner mechanisms of modern practices in outsourcing programming, and carefully review the related peculiarities of outsourcing in 2023.

written by:

Alexander Arabey

Director of Business Development

What is Programming Outsourcing?

Programming outsourcing is the process of hiring a third-party company to handle all or part of your company’s programming needs. This can include anything from software development, to website design, to quality assurance and testing. The idea of programming outsourcing has become increasingly popular in recent years, as companies seek to tap into global talent pools and save on costs. Let’s find out what exactly this practice has in store for us today.

remote development team

The “New Normal” of the Post-COVID World

Today, we are witnessing the emergence of a new paradigm of employer-employee relationships. The long-cultivated idea of physical co-location of human resources, previously the only source of creating a “truly genuine” format of the workspace, is now extinct, let us face the truth. And we'll also mention that back in the days, offshore labor resources were intuitively regarded as kind of “outsiders” in comparison with an in-house team.

But in 2022 it was ok and even more comfortable to interview candidates online or to sign a contract without an actual handshake. A culture of remote work is ingrained within a wide range of companies: 88% of companies worldwide implemented their teams to work from home.

Moreover, for modern companies these days, it seems ridiculous not to use the benefits of the global talent pool and stay limited within the borders of the local economy. Business owners suddenly turned to resources of the global outsourcing market: the Google search “remote team” in COVID-19 time boosted whooping 1150%. Thus, we can assume here that this “new normal” reality has caused the massive growth of demand for outsourcing and respectively programming outsourcing worldwide.

development team

Why Outsource Programming in 2023?

Why do businesses outsource programming now? At first, let’s have a brief look at the tendencies just a couple of years ago. In the Deloitte Global Outsourcing Survey, the researchers noticed some important features of the outsourcing market of the pandemic world in comparison with the tendencies before disruptions and lockdowns. Just three years ago, companies stated that the main reason why they chose to outsource was the need for innovations and talents which could not be found locally. It means that primarily they expected some exclusive skills and knowledge from a development team. The issue of cost reduction was important, but it ran second.

What do we see in the changing environments of COVID times? The dominant goal for business owners is cost reduction, which is essential for 70% of companies surveyed. Flexibility, innovations, and agility stepped aside from their leading positions until better days. In order to survive and benefit from the harsh reality of lockdowns, disruptions, and severe restrictions, firms focus on optimal budget reduction, and programming outsourcing provides this necessary support for development.

Companies that have already introduced outsourced products into their workflow state that they are going to expand these systems. The global market for business process outsourcing (BPO) is expected to reach $492.4 billion by 2028. And as many BPO processes require incorporating new technologies, such as RPA, cloud computing, AI, IoT, 5G, and others, it leads to a constant increase in the usage of modern top-quality IT technologies.

development company

Outsourcing Programming: Tips and Tricks in 2023

What particular advantages can be achieved by launching projects with programming outsourcing resources? We’ve chosen some of the most important ones.

1. Mind the Cost

As we’ve already mentioned, cost reduction is the issue that worries the majority of businesses today. But how does programming outsourcing still enable these cost savings for clients in 2023? The rates for computer programming keep on demonstrating huge differences, with the highest ones in North America and Western Europe. The spending amount for developers from Central Europe, the Asian region, or South American countries is much smaller. For instance, in Belarus, programmers usually get salaries about 78% less than those in the USA. And this enables impressive cost savings for the development process to overcome the negative effects of the pandemic

2. Be the First to Adapt

One more typical feature of present days — rapidly changing regulations and rules. And the increased necessity of business agility and the ability to adapt become a crucial matter for reliable functioning, which can guarantee customer loyalty and provide ongoing development. Right here, an outsourcing company that specializes in software development is an ideal clue for fast transformation. That can be achieved by the means of quality technical support as it helps to save time for expertise and hiring required team members and provides project management assistance.

3. Dive into the Talent Pool for Innovations

Global talents have never been in greater demand than now. Business owners note that trials in hiring and retaining solid talent are indeed the biggest obstacle for their businesses going forward. Rather than relying on limited inner resources and familiar technologies, an outsourced development team with corresponding talents for particular tasks can inbreathe new perspectives into current projects, as well as provide ongoing benefits for progress and business improvements.

As a matter of fact, a constantly growing demand for programming outsourcing has led to a significant shortage of developers and other IT specialists globally. And the ability to be open to the world’s talent pool can help businesses to succeed in the hunt for talents and innovations.

4. Concentrate on Rationality

Disruptions and numerous lockdowns of 2021 have revealed the urgent demand for project sustainability to guarantee a stable workflow. Sharing responsibilities with an outsource programming company saves required resources for working on the main projects despite all difficulties. It enables concentration on the main goals by delegating IT service tasks to professionals.

outsourcing company

Outsourcing Programming 2023: Threats to Avoid

Alongside numerous prospects that outsourcing programming opens, there are some disadvantages and threats which have appeared on the front-side these days. It became urgently important to avoid the most crucial ones from the perspective of 2023.

1. Make Security Your Priority

Since the beginning of the pandemic, the cybercrime rate has increased by 600% as a whole. There has almost never been a single day without a news report about some services being hacked into. So, is it still safe to outsource project management or software development and open sensitive information to a third-party development team or just a freelancer? In addition, even for an in-house team, which works remotely, it is really important to protect company information from hacking.

Tech security is becoming one of the top reasons for making decisions on programming outsourcing in 2023. Some ways to avoid leakage of the company's sensitive information can be an NDA (Non-Disclosure Agreement), remote work on customer servers or computers, signing a Data Access Policy, etc. That is why only a responsible IT outsourcing company with many years of experience and special concern in achieving high-security standards is the best choice for both top-quality IT products and maximum security.

2. Ensure Accessible Control

Delegating business processes to an outsourcing company requires well-organized controlling processes. It is just impossible to drop into an outsourcing programming office for an inspection, as it may be located in the other part of the world. And the main disadvantages here, which were revealed by 2021 pandemic-related economic upheavals, indicate a growing demand for well-organized outsourced services from reliable companies. Most team members working for such partner companies usually have a decent command of English skills. For example, Belarus is ranked #38 in the current English proficiency index list.

Also, it's essential to make sure that an outsourcing company is able to adapt its operating hours to the working hours of its customers. It is clear that such adaptation is better achievable when time differences between the countries of outsourcing partners are as small as possible.

One more threat that restrains accessible control of outsource programming is the lack of complementing company culture in terms of style, speed, decision-making, and even the basic organizational structure. So it's essential to ascertain that a partnering IT development company shares modern values and will fit your culture of project management.

3. Comprehensive Pricing

Remember the main motive behind outsourcing? Cost savings and profitability are leading in the list of requirements. However, troublesome outsourcing programming may lead to hidden costs and uncertain final prices. So, choose a vendor with a clear approach to cooperation models. For example, for some projects a fixed price approach is the best decision, others may require a dedicated development center, team augmentation, or TaaS models.

4. Guarantee Sustainability

The decision of sharing responsibilities via outsourcing can face serious disruptions caused by the inability of outsourcing companies to cope with the pace of work and the lack of skills and specialists. In other words, it bites off more than it can chew.

One of the features of the "New Normal" of the post-pandemic world the gig character of the workforce can help to complete a tiny routine project quite effectively. But when it comes to large and complicated projects and establishing sustainable service of top quality, it becomes a critical matter to find a responsible programming outsourcing team.

Key Points

Well, the world will never be the same as it used to be before the pandemic struck. The year 2022 showed us the prospects of business development in close integration with programming outsourcing strategies. They can help to overcome drastic results of disruptions and lockdowns. Thanks to outsourcing, business owners can achieve cost reduction, fast operation, and adaptation to the changing environments and regulations and keep up with the latest innovations to develop performance. At the same time, careful awareness about choosing a development company for outsourcing from numerous new options available these days should be a crucial matter of concern.

To get the best professional advice on programming outsourcing options, please contact Qulix  the leading company in outsourcing programming. And don’t forget to keep up with our blog to follow the latest trends of the IT industry.

How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.


Thank you, !

Thank you for contacting us!
We'll be in touch shortly.

Go back to the home page

Feel free to get in touch with us! Use this contact form for an ASAP response.

Call us at +44 151 528 8015
E-mail us at request@qulix.com

Thank you!

Thank you for contacting us!
We'll be in touch shortly.

Go back to the home page

Feel free to get in touch with us! Use this contact form for an ASAP response.

Call us at +44 151 528 8015
E-mail us at request@qulix.com