When is the Best Time to Implement Outsourced Product Development?

Oksana Zabolotna
HBD at Qubit Labs

Outsourcing product development is not only a common practice now, but it is also the future of work. 

In the 2022 Global CTO Survey by STX Next, 89% of CTOs intend to outsource product development. By 2026, the market for outsourced product development, according to GlobeNewswire alone, will be worth $425.19 billion. 

Outsourcing software product development has become a common practice for tech companies as many businesses outsource complete product life cycles or a portion of functions. Skype, Opera, and WhatsApp are just a few of the most successful global product companies that have successfully outsourced product development services. This article will provide more information about this trendy tech practice. 


What is Outsourced Product Development?

Outsourced product development refers to hiring an external company or team to handle the complete or partial development of a product on behalf of the contracting organization. It involves outsourcing product development life cycle stages, such as design, development, testing, and maintenance, to a third-party service provider. 

Outsourced product development can cover various aspects of the product life cycle, including conceptualization, design, prototyping, development, testing, deployment, and ongoing maintenance. The extent of outsourced product development can vary based on the organization’s requirements and capabilities. Some organizations may outsource the entire product development process, while others may opt for selective IT outsourcing of specific stages or tasks.

While outsourced product development services have been moving during the pandemic flare-up, the practice has been imbued in the local business area for quite a long time. A few worldwide brands, including Whatsapp, Google, and Microsoft, rethought their product improvement needs at specific places of their development stages.

For instance, to save money and gain access to top expertise, Whatsapp hired Eastern European developers to work on its app in the early stages. In the meantime, Google continues to outsource product development as the search engine giant seeks to support in-house employees and tap into global talent.


Outsourcing Software Product Development: Benefits

Outsourcing Software Product Development: Benefits

Outsourced product development can be a strategic decision allowing organizations to leverage external expertise, reduce costs, and efficiently bring innovative products to market. However, achieving the desired outcomes requires careful planning, effective management, and a well-defined partnership. But let’s look at all the advantages of outsourced product development services in more detail.

  • Cost Savings 

Outsourcing product development can be more cost-effective than establishing an in-house team. It eliminates the need for infrastructure investments, recruitment, training, employee benefits, and ongoing expenses associated with maintaining an internal team. Outsourcing to countries with lower labor costs can further enhance cost savings.

  • Specialized Expertise

Outsourced product development allows organizations to tap into the expertise of external teams with specific knowledge and skills required for product development. These teams often have experience working on similar projects and can bring valuable insights, best practices, and innovation. Access to a wider talent pool and specialized resources helps overcome skill gaps within the organization.

  • Scalability and Flexibility

Product development outsourcing provides scalability and flexibility in resource allocation. Organizations can easily scale up or down their development team based on project requirements without the need for long-term commitments or hiring and firing processes. This allows for efficient resource utilization and cost optimization.

  • Global Perspective and Market Expansion

Outsourcing product development to a partner in a different geographical location provides access to a global perspective. The partner can offer insights into diverse markets, cultural nuances, and regional preferences. This knowledge can be valuable for organizations seeking to expand their product reach and target new customer segments worldwide.

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Product Development Outsourcing: What is the Process?

Product Development Outsourcing Process

Define Your Requirements 

Before looking for offshore software developers to work with and implementing product development outsourcing, be clear about your needs. A few organizers chase after mastery to construct an application without any preparation, while others should add new elements to existing programming. List your venture needs as it assists you with tracking down the right seller with related knowledge or ranges of abilities.

Find a Vendor 

Many software development companies provide product development outsourcing; however, finding the one which will fully understand your values and requirements and be ready to be flexible – is a challenge. Choose a company with a wide choice of countries to hire and a good experience. 

  • Look Through Their Expertise

Investigate what services they provide. They need more about the companies they work with. Will be good if you look through feedback and case studies to understand what industries and projects they have experience with. At Qubit Labs, you can find all information about our current experience cooperating with companies of all sizes, goals, and drives. We have no limit and type as we are flexible to provide the best service to any business. 

  • Make a List

Make a list of the most suitable vendors you found and book consultation calls. Make sure they are clear and provide all details about their services, development rates, location hire, and if they understand your project. 

  • Choose a Vendor

It is a win-win deal when your future vendor provides you with ideas and options about outsourcing your product successfully and cost-efficiently. They are transparent with salaries and all costs and ready to be flexible when you need to scale your team. 

Choose a Collaboration Model 

Vendors usually offer a few collaboration models to assist new companies with staying cutthroat in quick conditions. Choose if fixed-cost, time and material, or recruiting a committed group suits you best. Consider your potential budget, course of events, and the undertaker’s instability while settling on a suitable model. 

Qubit Labs has multiple collaboration models based on your goals, budget, referable time zone, and required expertise. 

Build a Productive Communication 

Clear, seamless communication is essential to ensure your project progresses according to the agreed-upon schedule. This can only happen if both parties agree on a specific framework for communication. For instance, settling on a communication platform like Slack and establishing a schedule for progress updates.

Sign a Contract 

At the point when you’re happy with a specific vendor, now is the right time to reach an accord and unmistakably explain the terms. Before officially beginning the collaboration, make sure that both parties are aware of the terms of the agreement.


Product Development Outsourcing With Qubit Labs 

All projects are unique and require careful research, understanding, sourcing, and approach—that’s why we build a team of developers for you from scratch. Product development outsourcing is a fast and cost-effective decision to build a strong team of software developers from top tech hubs. Outsourcing product development in a different geographical location provides access to a global perspective. We offer insights into diverse markets, cultural nuances, and regional preferences. In addition, we provide all information about expertise, salaries, and taxation, so you can easily produce your budget. 

You can focus on your internal resources and expertise on core business functions by outsourcing product development. Qubit Labs hires a team from scratch and provides the most cost-efficient decisions that match with your expectations. You can focus on your core business goals while we help with payrolls, retention and onboarding. 

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Outsourced product development presents an opportunity for organizations to leverage external capabilities, reduce costs, and accelerate time to market. By choosing the right outsourcing partner, establishing effective collaboration practices, and maintaining a clear focus on objectives, organizations can unlock the potential of outsourced product development and achieve their product development goals efficiently and successfully.

By cooperating with Qubit Labs, you receive an exceptional and individual service of product development outsourcing that matches with your goals, values, and ideas. 


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Oksana Zabolotna
HBD at Qubit Labs

HBD and Head of Partnerships at Qubit Labs. Oksana is proficient at Search Engine Optimization; performs as a speaker for international tech conferences; author of webinars and guides on peculiarities of remote recruitment, top markets for hiring IT experts, and latest tech trends. Oksana is one of the partners of Women in Tech Ukraine – large-scale social project created to increase the number of women in IT industry.