(P) Evolution from software outsourcing to IT partnership
IT services outsourcing has become popular since companies realized they lacked high-end developers in their talent pool or had spent too much to keep experts in-house. Hiring external professionals or a whole IT team is the best choice if…

IT services outsourcing has become popular since companies realized they lacked high-end developers in their talent pool or had spent too much to keep experts in-house. Hiring external professionals or a whole IT team is the best choice if a company needs to engage additional competencies in projects.
“Do what you do best and outsource the rest”. We may all recognize this famous business tagline from the 1990s coined by management consultant Peter Drucker. 30 years later, the slogan still applies as outsourcing IT services is essential for professional and forward-thinking businesses.
The need for IT services outsourcing increases, as reflected in numbers:
- In 2020, the global market for IT outsourcing was estimated at $342.9 billion. The value is projected to reach $410.2 billion by 2027 (Business Wire).
- According to a Deloitte survey, the top reason for outsourcing (70%) is cost reduction.
- The value of IT services companies delegated to external suppliers may exceed $413.72 billion by the end of 2021, says Statista.
What is software development outsourcing?
It is handing the responsibility of software development to an individual, a software team, or an external company for business outcomes. There are assorted options of software development outsourcing, e.g.:
- Homeshoring - handing software development projects to a company in your location.
- Nearshoring - choosing a development team based near your country, accessible in terms of location and cost.
- Offshoring - commissioning software development work to distant countries (e.g. India).
- Onshoring - moving work that has been near- or offshored to a software developer in the same country as yours.
Business growth-oriented companies decide to outsource software development to benefit from:
- software developers’ expertise
- technology available for the project
- savings of time and money
- having employees focused on core business


