Home » Software Outsourcing Tips » Software Outsourcing Tips: How To Save More Costs?

Software Outsourcing Tips: How To Save More Costs?

JSLancer Blog - Sharing knowledge on technology trends & software development

There is no finish line when it comes to software development. You constantly find something new you want to add. Therefore there should be a rise for human resources to adapt to that technology development. 

Software outsourcing is no longer a new term since it’s beneficial for business. However, you need to understand what the long-term benefits of outsourcing software look like. This article will walk you through some tips that you can optimize the budget for software outsourcing. 

Let’s find out!

Choose a company that provides high-quality, cost-effective service, and reasonable after-sales service 

How much does this project mean to you? Determine how much you expect to make or save before establishing a software development budget! Because one of the primary motivations for using IT outsourcing is to save money. Many organizations are searching for IT offshore outsourcing providers to help them save money on software development. Let’s have a look at some statistics regarding the top worldwide outsourcing sectors.

The most costly freelance developers, for example, may be found in the United States, Australia, and Western Europe. Their hourly fees range between $70 and $250. Nonetheless, they may offer outsourced services that are up to date on the newest trends and technological advances. While Asian nations have among of the lowest rates of offshore development in the world. The typical cost of outsourcing IT services in India is between $18 and $25. Other Asian nations, such as Vietnam, Malaysia, and Indonesia, are gaining momentum and offering comparable software development services for $30 to $40.

So, if you hire an Indian or Vietnamese software developer instead of a developer in the United States, you will save a lot of money. It will be more cost-effective since you will be able to hire more developers to finish a project. Moreover, software outsourcing companies in Vietnam now have grown rapidly. JSLancer is a rising star in Vietnam that provides high-quality products, professional developers, and cost-effective services. You can also save more money if you need aftercare since JSLancer has a supportive team. 

However, you should not limit your search to cheap software developer salaries. Choosing an IT outsourcing partner should be based on compatibility with your company’s strategy rather than cost. In addition, consider prior experience with methods, the company’s culture, and location.

Leverage advanced technologies

Over the last decade, communication technologies have gone a long way. Instead of paying someone to educate your new offshore staff, try utilizing video conferencing technology such as Skype, Microsoft Office Live Meeting, Zoom, or others.

Webinars are also an excellent technique for reducing outsourcing costs. “Using online courses or webinars may speed up the transition period and solve a potential skills gap with offshore resources,” according to Sonataservices.com.

That way, you can teach and communicate with staff from your company headquarters, where you can maintain a close check on the issue.

Make a plan and point out your project’s objectives

Let’s begin by making a list of the key characteristics that the project should offer. You may, for example, devote some time to competitor study, UI/UX, security requirements, and production monitoring. Remember to ask the proper questions in order to obtain a reasonable estimate on a software development budget!

  • Define precisely what you want to achieve, then inquire about the cost of IT outsourcing.
  • Determine how long it would take (in hours) to develop the project if you already have a dedicated team model for outsourcing.
  • Estimate how much money can be saved in the software development budget, taking into account continuing support, executive time, the potential cost of internal resources, and so on.

One of the most efficient methods to save costs in the software development process is to complete all project requirements. In other words, you should collaborate with a business analyst to gather and explain all needs. With the help of a competent BA, your project will be described in terms of what is technologically conceivable as well as what is financially and operationally feasible. As a consequence, it will be scalable, usable, and secure.

With JSLancer, you will be supported by the most dedicated team, who will help you to define what you need and the perfect plan to build your products. 

Communicate with outsourcing team effectively 

Many outsourcing initiatives fail because their objectives and overarching strategies are not properly communicated. When an outsourced team lacks sufficient knowledge about the strategic business, they are unable to fully use their expertise to assist you in innovating your product. As a result, spending on software development will rise.

Let’s meet and interact with your team on a regular basis! Without it, you will be unable to make the essential adjustments to improve. Daily roundup meetings, for example, may help get the day started on the right foot. Time zone variations may make daily meetings challenging in certain situations. If so, you can strike a good balance between your team and your requirements. Your software development budget is far less likely to stagnate as long as the practice of good communication is fostered.

Keep track of KPIs

Your company will profit from defined, precise, and quantifiable KPIs. When KPIs aren’t linked to your company plan, you’re losing a lot of time and money. KPIs such as percentage rise in operational expenses, the percentage increase in revenues, and accounts receivables should be measured by the ideal outsourcing firm. It may be measured using key performance indicators (KPIs) such as the number of customers, privacy concerns, the number of outsourced operations handled, and integration capabilities. Don’t be afraid to request that your IT partner utilize analytics tools and reports to evaluate their performance. Then you’ll know whether or not your software development money is being utilized effectively.

When you’ve determined how to save money on software development, it’s time to begin evaluating software development expenses and selecting a partner that provides the greatest value for money. JSLancer is a high-quality software outsourcing business that offers a wide range of outsourced services at reasonable rates.


The budget for your software development project should be determined by factors such as the quality-rate ratio, a convenient time zone, appropriate contract conditions, and the contractor’s communication and management skills.

Make use of business techniques to reduce outsourcing costs. Continuous improvement methods in design and manufacturing outsourcing may significantly decrease labor costs.