Outsourced Product Development: What is it + Global Leaders Case

Byon June 26#business-tips
Outsourced Product Development What is it + Global Leaders Case

Not only is it a normal practice nowadays, but product development outsourcing is the way of the future for employment. 

According to GlobeNewswire alone, the market for outsourced product development will be valued at $425.19 billion by 2026. 

Outsourcing software product development has become standard for IT organizations since many companies outsource whole product life cycles or certain functionalities. Skype, Opera, and WhatsApp are among the most prosperous multinational product firms that have effectively outsourced product development services. This article provides more details on this popular IT approach. 

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What exactly is Outsourced Product Development (OPD)?

While outstaffing entails employing developers and engineers via a software development agency, the outsourcing engagement model is defined as assigning a project to a third-party organization. Product development outsourcing benefits from lower expenses, quicker delivery, and access to outside knowledge.

It guarantees access to qualified workers even if you lack technical competence and saves time by eliminating the recruiting procedure. Businesses provide dependable and knowledgeable staff, simplifying the successful launch of your product.

Outsourced software product development allows startups and SMEs to enhance their current research and development resources. By enlisting specialists from different industries to help with product development, this strategy will help them acquire a competitive edge over rivals and concentrate more on their core skills. Getting expert input early in the process also lowers the chance of producing a subpar output.

Categories of Product Development Services Outsourced

Mobile, online, and bespoke are the three main categories of outsourced product development. 

Development of Mobile Apps

As mobile devices become cheaper, there is an increasing number of potential users for mobile apps. Mobile application development services include various activities to create mobile applications.

Developing mobile products may be difficult because so many different programming languages and frameworks are available. Outsourcing software product development might significantly streamline the process if you're looking for a sophisticated application with cutting-edge capabilities like AI or AR.

Web Design

Outsourcing web development allows businesses to create visually appealing, useful, and user-friendly websites. Companies can also stay ahead of the curve regarding online presence by working with development teams from outside sources to use the newest trends and technology. The collaborative approach makes rapid development cycles, fast responses to market needs, and continual improvement possible. Businesses striving for cost-effective solutions, creativity, and digital excellence may benefit greatly from outsourcing web development.

Development of Personalized Software

"custom software development" describes developing specialized software to meet certain business demands. These may include eCommerce apps, content management systems, in-house management tools like CRM or ERP, and many more. Instead of turnkey software solutions, custom software products will meet your specific demands and seamlessly integrate with your current infrastructure.

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Global Leaders Successful Software Outsourcing Case Studies

According to Clutch's software development outsourcing data, the main reasons for the worldwide demand for remote collaboration are reducing costs and gaining access to industry expertise. Additionally, other noteworthy examples exist of companies realizing the benefits of outsourcing software development.


Even with its enormous staff of more than 178,000 workers, Google still has a lot of work, so it outsources. For example, over 1,000 outsourced people from 60 countries are working on its AdWords initiative, which is critical for generating income.

The fact that contractors already outnumber direct workers in 2018 illustrates how important outsourcing has become, particularly for AdWords, a tool that reaches over 90% of internet users.


Skype, a communication platform that is well known today, was created by outsourcing its development to an Estonian software development outsourcing business when it was launched in 2003. Skype's cutting-edge capabilities, such as video chat and instant messaging, made it essential for both consumers and companies. When eBay bought it for $2.5 billion in 2005 and Microsoft bought it for $8.5 billion in 2011, it was clear how successful the company was.

US Health Portal

Because of a lack of skilled workers, the health site had trouble locating a suitable software provider to help it achieve its goals. To overcome this, they hired a third-party software development firm to create and execute their system, ensuring it complied with their requirements. With the new system, customers can concentrate on their core medical business while third parties manage the technical parts. It serves over 5,000,000 people yearly and is still expanding.


Adopting outsourced product development represents a radical change in how companies handle the challenges of creating new products. Using outside knowledge is a strategic move that will improve product quality, expedite delivery, and deftly handle obstacles rather than just being a cost-saving measure. 

OPD enables you to concentrate on your core competencies while overcoming resource limitations, meeting deadlines, and responding to market demands via a collaborative journey. The range of tasks that may be outsourced is enormous and includes everything from the development of original ideas to the complexities of design and prototyping. 

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