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Is software development outsourcing worth it for small business owners?

Is software development outsourcing worth it for small business owners?

With IT outsourcing, creators can easily scale and grow their small business without missing a beat. 

software development outsourcing
Portrait for Amine BoussassiBy Amine Boussassi  |  Updated March 19, 2025

Are you familiar with the phrase, ”jack of all trades, master of none”? If yes, then you probably understand the challenge creative small business owners face when they juggle marketing, design, client management, and tech tasks.

Trying to do it all in-house as a small business owner will pull you in a hundred directions, especially when technical tasks get in the way of what you do best. And that’s where outsourcing your tech to experts will be a lifesaver.

By the end of this post, you’ll know exactly why small business owners should outsource their software development and, most importantly, how to choose the right outsourcing partner. Until then, grab your latte, and let’s get into the meat of our topic! 

6 reasons why creative small business owners should outsource software development 

Need some reasons to start outsourcing software development? Well, what are we here for? In this section, we’ll share with you six reasons why you should outsource your software development to experts. 

Sounds good? Let’s paint a clearer picture for you! 

1. Cost-effective solution

Cost-effectiveness is often the primary driver for small business owners when they choose to outsource software development and other IT tasks—and for good reason!

Building an in-house tech team that moves your business forward requires a solid hiring process, training, salaries, benefits—all of which costs a lot of money for small creative businesses.

Hiring offshore software developers on a project basis means you avoid all the long-term commitment of a permanent payroll, not to mention the cost of design and development projects, software licenses, workplace equipment, office rent… we could go on, but you get it.

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2. Get the service without the commitment

In tech, there’s always something new, and it’s very easy to fall behind. So why not outsource your IT to experts who are already up-to-date on the latest tools, trends, and platforms? Not only does this save you from the hassle of training an in-house team but it also gives you access to all the top-of-the-line solutions available in the market. 

But this isn’t really the full story. Outsourcing your tech to a trusted software development company lets you test the waters with what works for your business without a commitment that you can have when hiring full-time staff.

Here are some of the top IT services small businesses tend to outsource:

  • Software development and web/app development
  • IT support and helpdesk services
  • Cybersecurity services and data management
  • CRM development
  • Cloud services and hosting
  • IT infrastructure setup
  • Data backup and disaster recovery

Let’s illustrate this with an example. Say you run a small design studio and want to build a custom client portal, and instead of hiring a full-time developer, you simply outsource the project to a software development team. You can test the portal and see if it meets your needs without worrying about long-term contracts or salary expenses.

If the portal performs well, you keep it, and if it doesn’t, you can explore other options. Pretty flexible, right? 

3. More time for core creative work

This one is a big piece of the puzzle that probably gets talked about less than it should. Small business owners often find themselves wearing too many hats when they try to manage everything in-house, and knowing how time-consuming tech projects can be, we can safely assume they get pulled away from what really matters to their business. 

You may think, “But some business owners manage to figure it out.” Well, sure, a few do—but they’re definitely the exception and not the rule.

When you hand off your software development to a reliable partner, you get more time and resources to focus on your core activity— creative work—and this is how you can deliver the results you and your customers expect.

4. First mover advantage 

Outsourcing software development to gain a competitive edge in your market is a terrific idea, and it’s not hard to see why! With a service provider managing the software side, small businesses avoid project delays and technical issues and can launch new features, apps, or platforms way faster than the competition. And when you’re first to market, the advantage in terms of customer experience is huge.

Let’s assume you’re a small photography studio, and you have the idea of building a platform where clients can preview, select, and order prints directly from their photo sessions. You outsourced this project, and your tech partner completed the platform months ahead of any competing studios in your area. 

As soon as your clients experience the platform first-hand, they will do the word-of-mouth magic recommendation, and while your competitors might try to catch up eventually, your studio has already gained a competitive advantage and created a seamless experience that customers won’t easily forget.

5. Scalable solution 

Can outsourcing get any better than that? The answer is: yes, it can! Here’s how. If you’re a small business owner looking for scalable solutions that grow with your business, outsourcing is still your best bet. You can bring in development teams with the exact expertise you need, whenever you need them.

Even better, as your client base or service offerings expand, you can easily scale up tech resources through outsourcing. Adjust the size of the development team working on your project based on your budget and needs, without taking on the costs and responsibilities that come with full-timers.

If this isn’t a cue to start outsourcing your software development, we don’t know what is!

6. Ongoing maintenance and support services

We’ve saved the best for last! Now, you’re probably thinking things like, “What happens after the software development company hands over the project?” Well, you’ll get maintenance, assistance, and support services long after the project is completed. All of this eliminates headaches related to bugs, glitches, or technical issues that may occur down the road. 

And the best part? When you, as a creator, collaborate with a dedicated software development team on multiple projects, they start to really understand your brand’s vision. Over time, they get better at processing and delivering exactly what you need in terms of aesthetics and functionality. 

Potential challenges of software development outsourcing

We’re not here to sell fantasies. IT outsourcing is not all sunshine and rainbows, and you’ll always face some challenges related to quality, communication, and intellectual property. Let’s get into them one by one. 

Quality control 

Finding a reliable software development company isn’t as easy as it sounds. There are a lot of outsourcing partners out there who talk the talk but fail to deliver on their promises. 

In an ideal world, you should test the waters with smaller projects to see if their work meets your quality standards before committing to larger ones.

Intellectual property problems

Plagiarism often tops the list of challenges for creative businesses. Proprietary designs, custom features, and sensitive client information are common concerns you’re likely to face when outsourcing.

Some creative professionals assume that because they paid for the software, they automatically own the rights. However, this isn’t set in stone, and that’s exactly why you should protect yourself upfront. Your one-stop solution in this case is to sign an NDA and make sure your contract clearly states ownership rights. This is a simple step that can save you a lot of headaches later.

Communication and artistic vision 

Creative professionals are different from most small businesses—they often come with a clear vision for their IT projects. From specific UI/UX features to effects that reflect their artistic identity, even the small details matter. Let’s not forget how time zone differences can impact workflows when working with an outsourcing team located in another region. 

Now that we’ve discussed some common challenges that you might encounter with outsourcing, you probably want to know how to choose the right outsourcing company, and that brings us to our final section.

How to choose the right outsourcing partner

Now let’s move on to the more complicated part and explore the process of choosing the right outsourcing partner as a small business owner. 

Prioritize industry-specific experience

Whatever your tech project may be, it’s best to go with a partner who knows the creative sector because a tech provider with this background will better understand the nuances of visual design, branding, and the kind of client experience and can help with all of those little details that matter to creative small businesses.  

But finding that provider is all easier said than done, so you’ll want to dig deep into their portfolio, case studies, and client list and make sure their style and deliverables align with the kind of creative vision/value you want to bring to your clients.

Check reviews and ask for references

Reviews and testimonials definitely deserve a spot on our list of factors because you can’t afford to work with a tech provider in the dark without having a clear picture of what it’s like to work with them.

But it’s usually not that simple, so you might have to go the extra mile and check out their customer feedback on platforms like Clutch and G2. And guess what else you can do? Ask around in your network—a quick message to your LinkedIn contacts can often get you some solid recommendations for tech companies. 

Test their onboarding process

Your onboarding experience speaks volumes about your outsourcing partner, so before closing any deal, we recommend asking your potential tech provider to walk you through their onboarding process. And no, you don’t need to be a tech whiz to spot a solid onboarding approach. Here’s the lowdown.

The tech provider should discuss your goals, requirements, and any specific features or functionality you want to have. They should also provide you with a clear timeline and tell you when to expect deliverables so you can track progress along the way.

But that’s not all. The provider should also set up a clear communication channel—whether it’s email, video calls, or Slack (or sometimes all three)—and assign a point of contact you can reach out to. You should also have access to a shared workspace where you can get real-time updates on documents, designs, and project advancements.

These phases are critical to your onboarding process, and if any of these are missing, it’s definitely a red flag.

Payment models and contracts

Should you ask your outsourcing partner to provide transparent pricing upfront? Absolutely—in fact, that’s how trusted outsourcing partners operate. This way, you can plan your budget ahead and manage your cash flow for the project. 

Speaking of costs, make sure to clarify the payment model from the get-go. Some partners charge per project, while others prefer hourly rates or working on a retainer basis. It’s always a good idea to negotiate a model that suits your budget.

Another important element is the contract. Contracts are meant to protect both parties and guarantee that your provider sticks to the agreed terms. This document should highlight all the details related to the project: deliverables, timelines, costs, payment terms, and everything in between. 

Successful IT outsourcing stories for small businesses

Need some ideas to get you started? We’ve got you. Here are two use cases of small businesses in the creative sphere.

Radio Skovoroda

Skovoroda is a very popular Ukrainian radio station that targets millennials. They stream interviews with local celebrities and share useful content. The idea of Skovoroda was to modernize the listening experience with an intuitive, recognizable interface that speaks to their young audience and engages them. 

What’s the takeaway from all of this, you ask? Skovoroda wanted to scale and expand into mobile and Chrome OS markets, all while adding simple features to upload playlists, record podcasts, and manage streams and transcripts of their content.

Radio Skovoroda interface

Skovoroda outsourced the project to a partner who built the interface you see above. Now, listeners can access the radio playlist with just one click. Not only that, but they can also switch between two playlists—one for podcasts and sketches and the other for music only.

The best part? These features are available on iOS, Android apps, the Google Chrome extension, and even as a web widget.

Momice

Let’s continue with another creative small business example. This time, we’ll talk about Momice, a Dutch event management startup that offers software to make organizing conferences and meetings easier for everyone.

When your business is about event planning, you’ve obviously got to address attendee tracking. To do that, Momice wanted to develop a purpose-built app where the organizing staff could seamlessly scan tickets and keep track of attendees. 

Momice app

Momice needed a mobile app for iOS and Android. The app would read QR codes on tickets, pull check-in data, and automatically send it to a printer for instant badge printing. It might sound simple, but building this system in-house would have required time, resources, and a huge budget. 

The outsourcing partner developed two separate apps: one for iOS and the other for Android. Both apps offer the same features but were built natively to optimize performance and minimize battery consumption.

Choose the right IT outsourcing provider to scale your business

By now, one thing is clear: with IT outsourcing, creators can easily scale and grow their small businesses without missing a beat. 

Depending on your needs, you can partner with a qualified team of remote developers. And it’s not as tough as you think—you have our tips on how to choose the right partners. So go ahead, explore your options, and give it a shot. It might just be the solution you’ve been looking for.

We hope you gained something out of it all and that this article will help you with software development outsourcing! We wish you all the best—more growth and, most importantly, more time to focus on what truly matters.

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