Top Risks of Outsourcing Software Development

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Are you considering outsourcing your software development? By doing so, you are taking a big risk. You may not only end up with a bad product and lose money, but you may also expose yourself to potential security risks and data loss. What do you know about the major risks of software development outsourcing?

Outsourcing software development can be a great way to save money, but it is not risk-free. There are some serious risks involved in this process. Discover the major ones so you can make an informed decision about whether or not it is the right move for your business.

What are some of the risks associated with outsourcing?

According to statistics, roughly 70% of businesses outsource their software development. They do it for a variety of reasons. In most cases, they want to save money. When they make the wrong decision, things turn out quite differently.

The following are the primary risks associated with outsourcing software development to a third party:

1. Security risks

Outsourcing software development can be a great way to save money, but it is also important to be aware of the security risks involved. One of the biggest security risks when outsourcing software development is that the code will not be properly reviewed and tested.

It means that there is a greater chance that vulnerabilities will be discovered and that attackers will be able to exploit them. In some cases, it can even lead to computer system crashes.

It is also important to keep in mind the fact that many developers working on your project may have access to your company’s confidential information. It means that they could potentially use it to their advantage by stealing it or blackmailing you into giving them additional work.

2. Different levels of expertise

Another major risk associated with outsourcing software development is that developers working on your project may not have the same level of expertise as you do. It can lead to mistakes being made, which can then result in serious problems for your business.

For example, if your company provides services to students, you should ensure that your software produces good results. Students use software for a variety of purposes, from gathering research insights to visiting writer services such as Rated by Students.

3. Not getting the features that you were promised

When you outsource software development, you put your trust in the other company to deliver on its promises. But it is a risky proposition because it is easy for it to miss the defined targets, and you may not get the features that you were promised.

Therefore, you must establish clear expectations from the beginning and understand what will be required of your outsourcing partner. You should also ensure that they have sufficient experience and knowledge in both your industry and your specific software development project.

4. Reliability risks

Here are four of the most common reliability risks:

  • Outsourced software is less reliable than traditionally developed software;
  • It is more likely to have defects;
  • It is more difficult to fix because it is often developed in a different language or on a different platform;
  • It may not meet your expectations or needs due to the unfamiliarity of the developers with your relevant requirements.

5. Cost-overruns

If the company you outsourced your software development fails to meet expectations or goes out of business, you will end up bearing the cost of that failure. You will not only have to pay extra for the incomplete work but also have to deal with the stress and anxiety of not knowing whether or not your project will be completed.

6. Compatibility issues

If you outsource your software development to a third party, you place your trust in it to ensure that the code that it generates is compatible with the software that you use. However, it is often not the case.

Third-party developers are often unfamiliar with the codebase and all its nuances, which can lead to incompatibilities and problems down the line. It is possible that the finished product will not match your original specifications at all.

7. Quality control

By handing over responsibility for quality assurance to a separate entity, you leave yourself open to potential defects and glitches in your software. It could result in critical damage or even loss of data, and it would be almost impossible to rectify without causing further damage.

8. You may not get the support you need when things go wrong

If your contractor does not have the necessary experience or expertise in software development, then he may not be able to help you when things go wrong. For example, if you are working on an urgent project that requires you to convert text to image API, a minor delay in the delivery of the results may cost you not only time and money but also your reputation.

Furthermore, chances are that the contractor will be unavailable when you require his assistance, or he will request additional fees for additional services.

Things to consider when outsourcing software development

When considering outsourcing your software development, keep the following points in mind:

  • Check that your contractor is willing to accept responsibility for his work and respond quickly when problems arise;
  • Make sure you have a contract that outlines the project’s terms and conditions;
  • Make sure you understand what is expected of both the outsourcing company and you as the client;
  • Be ready for deadline or requirement changes. It is unavoidable when collaborating with a third party;
  • Be prepared to face communication difficulties. It may occur as a result of linguistic or cultural differences.

Final thoughts

The risks of outsourcing software development are unique to every company. If done well, however, the outsourced project can work out as a successful venture that boosts the growth of your business. To protect themselves from potential risks, organizations must hire only highly skilled and experienced professionals who understand what it takes to develop quality products.


Lillie Jenkins is a creative copywriter and content writer. She has worked as a copywriter since graduating school, so her writing skills are well-honed. She writes publications in such fields as marketing, business, education, and personal life. More than writing Lillie loves to travel and read professional literature.

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