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Choosing the Right Software Development for Your Business

You must determine the best software fit for your company by considering factors such as budget, size, customer base, and services.

Outsourced software development from an IT BPO can create two types of software: Generic and Custom. 

For instance, many businesses now have various alternatives for purchasing off-the-shelf software, which is popular among start-ups and in high demand among organisations that do not want to invest in custom software solutions. 

But still, depending on your business needs, you can take advantage of either or both. Let’s put it this way. Should your company buy a solution to meet basic requirements or build a custom solution to fulfil your particular requirements? Should you adapt the processes of your business to fit a ready-made software or invest in a bespoke solution that suits your current workflows?

Knowing the differences between the two can help you make the right choice for your company. So let’s take a look to see what we can find out.

But before directly discussing that part, we also included the necessary information related to software development. Read ahead. 

What is Generic Software?

Generic software is a program that caters to the needs of multiple buyers. Also called off-the-shelf software, these apps have varied functionality.

And while not personalised, such software can be helpful for a large audience. Examples of generic software include Firefox, Opera, Word, PowerPoint, etc.

What is Custom Software?

The design of custom software is to cater to the needs of a specific client. An outsourcing company that offers software development services works directly with the client to create an app that helps with tasks. This type of software only works for one company and can’t be used by others.

Likewise, you can’t buy such an app in the store. The only way to get this is to purchase for development. Custom software is designed for specialised business needs. Therefore, the client is involved in the development process from the start.

What is Generic Software Development?

Generic software development is a process performed by the software developers and engineers that build the software product. Product software projects are the kind of project under this development. 

Usually, they create this for all types of business needs which have a positive demand in the market over a duration of time. 

A BPO service provider with a software development function produces generic software on its own and directs it to a group of clients with similar needs. 

What is Custom Software Development?

Customer software development is a procedure that develops a product for an individual client. Service software projects are the kind of project under this development. 

Likewise, these individual clients may be a group of persons or a company. This product mostly has a distinct need in the market only for a limited time and is for specialised business needs. 

A Software development service from an outsourcing partner creates custom software at the cost of particular customers. 

What’s the key difference: Software Developer VS. Software Engineer

While software developers and engineers share many similarities, they approach computer science and daily tasks differently. Know the key difference, and you’ll have no difficulty leveraging a talented workforce to boost the growth rate of your business.

What is a Software developer?

  • A professional who builds Software and works with programming languages to operate across several kinds of computers.
  • Primarily a solitary activity. 
  • Plan and write codes for an entire program.
  • Uses ready-made tools to build apps.
  • Precisely performs what engineers do but on a smaller and limited scale.

What is a Software Engineer?

  • A professional who uses software engineering principles for designing, developing, testing, and evaluating computer software.
  • A team activity. 
  • Works in conjunction with other parts of the hardware system.
  • Creates the tools to develop Software.
  • Fixes issues on a much greater scale.

What is Outsourced Software Development?

In software development outsourcing, a particular business hires a BPO provider specialising in IT services to manage its projects related to software development. 

These development services can range from developing commercial software for your customers or custom software your company uses. By outsourcing your software development functions, you are making way for your internal IT team to focus on core competencies such as growth, development and innovation. 

Here are some of the software development services that you can outsource. Check out below:

  • Software Architecture: Assists design solutions quickly and more efficiently for projects at different scales.
  • Software Testing: Offers a full range of software testing services to produce a reliable, efficient, and fast software product. 
  • Feasibility Study: Helps in benchmarking your product idea through possibility study, proof of concept, and user testing to reduce risks in the primitive stages.
  • Consulting: Offers technology advice to smoothly implement the optimal technology stack for custom software development requirements.
  • UX Design: Provides front-end, usability consulting and user experience design services for mobile devices, TV and PC across all industries.

The 5 Common Software Outsourcing Models

The best thing about outsourcing software development/engineering is that you can take charge of your outsourced team in any matter you prefer. Furthermore, you can utilise different models to outsource your software solution’s development, maintenance, and testing to fit your business needs.

Here are five models you can integrate to manage your team:


Most companies adopting this model want a committed outsourced team that can complete end-to-end management of the entire software project. The remote team is expected to finish their work with little to no disruption to the company’s daily operation.

Before the collaborative task begins, you and the outsourced team fix the project’s deadline and price. 

When should you opt for this model?

  • If the scope of the project is settled. 
  • If the requirements of the project are clear.
  • If the deadlines are recognised and agreed upon by both parties.

Dedicated Team

This model dwells on hiring a team of skilled experts from a third-party outsourcing vendor to focus on technical skills. Outsourced software engineering/development experts work together and act as an extension of your core team.

When selecting a group of developers, you can give them a brief coding test to examine if they are more than ready and qualified to take on critical tasks like developing the software for your business. 

The dedicated team can comprise many skilled specialists, such as designers, software developers and engineers, and UX experts. They will ensure that your product development processes are running seamlessly and effectively. 

Moreover, handling a dedicated team is the same as managing a remote team. You can hire an individual as a project manager who connects with your outsourced team and reports to you.

On the other hand, unlike the project-based model, the pricing depends on the number of dedicated team members you hire and the number of hours spent. 

When should you opt for this model?

  • If your software is highly scalable.
  • If you’re finding ways to establish a long-term relationship with an outsourcing company.
  • If your software requires daily updates and maintenance. 

Staff Augmentation

The third-party vendor forms the software team in this model, but you’re responsible for the core processes.

For instance, you will handle the software development project and all its individual tasks and the delegation of obligations within the outsourced team.

Meanwhile, the developer is responsible for the productivity of the team. They also oversee matters and problems related to staff, like compensation and vacations. 

When should you opt for this model?

  • If you wish to have more creative control during software development.
  • If you want to be more involved in the development process.

Time and Material (T&M)

This model includes projects with a clearly defined end goal. This outsourcing model typically calculates in person-hours of effort, and the client pays for the spent hours exclusively on the development. 

In addition, since the T&M roots from Agile methodology, you can see all stages of development. It then accelerates the likelihood that the deliverables will align with your expectations. Once you accept the work’s final results, you will fully realise the contract with the outsourced company.  

When should you opt for this model?

  • If you’re seeking a short collaboration engagement.
  • If you have a precise goal for the project.


This model lacks external dependencies and has a strictly defined scope and requirements. And to simply put, it isn’t dependent on resources and time. Instead, you, the client, is billed on pre-defined specifications and milestones. 

When should you opt for this model?

  • If you have a defined schedule and clear scope for the project.
  • If you wish to develop a small project.

The Pros of Outsourcing Software Development/Engineering

Cost Reduction

This is the primary reason why many companies outsource their software development process. Around 59% of all businesses utilise outsourcing as a cost-cutting tool.

Let’s put it this way. It can be expensive when hiring an in-house software developer because you will need resources for scouting, training, and onboarding newly hired employees. But when you hire an outsourced team, you can save capital on these hiring expenses. Likewise, you won’t have to purchase office spaces and supplies or invest in training them.

Quick Time to Market

Third-party service providers have a vast pool of resources for developing information systems. As a result, businesses can promptly access significant development resources, allowing them to render quick time to market for products. 

At the same time, they also operate within the framework of the Scrum and Agile approaches and set the pressing priorities to attain the result that the customers want to see. It dramatically lessens the time-to-market parameter and meets the required framework for providing the project to real users. 

Agility With Quality

An agile software development environment certifies preeminent collaboration between cross-functional IT development teams and businesses, leading to unmatched efficiency, productivity and speed. 

An agile team focuses on spotting and repairing bugs to ensure that the final product conforms to the business needs. The agile methodology, along with a highly disciplined CMMI Level 5 outsourcing software company, helps institute a fail-proof process to make sure they meet the sign-offs promised in the service level agreements (SLAs). 

Sourcing Global Talent Pool and Cutting-Edge Technology

You’re not location-limited when searching for talents if you choose to outsource. Instead, you can access tons of BPO vendors around the globe to manage your custom software development projects.

Most of these third-service providers have combined technical expertise by working with a sea of various clients. And to handle these projects and clients, outsourced software development teams have access to top-of-the-line and premium software development equipment and tools to help them adapt to your business needs without difficulty. 

Greater Concentration on Core Business

Transferring time-consuming projects to an outsourcing vendor can lessen the workload for your internal tech team. Your staff can also focus on projects that directly contribute to business growth, as these outsourced teams don’t require additional guidance. 

Furthermore, instead of forcing your in-house development team to manage projects they’re not equipped to deal with, outsourcing will allow your employees to concentrate on strategic goals that match their skill level while the outsourced team works on these niche software solutions.

Improves Product Quality

Employing an outsourced software development team can often enhance the quality of your final product. It is because they have dedicated resources for quality assurance and testing to ensure that the final software product is stable and has a better user experience.

Additionally, as your outsourced team might have fresh concepts for creating your software solution better, it can lead to more innovation. They can even suggest new ideas and approaches to solving existing business issues. 

Advanced Scalability

Rapidly growing businesses must prepare to meet new requirements. At this stage of development, many entrepreneurs need to scale their IT support but finding the means for these tasks within the team is often impractical and expensive. Likewise, broadening an internal team to meet evolving business needs can be time-consuming and costly. By partnering with an external service provider, you can avoid this and use a scalable solution that can expand to meet your needs. 

Future-Ready Approach

The modern global market scenario demands that businesses should digitally transform into future-proof organisations to keep pace with the rapid technology shifts. A professional outsourcing software development service provider can bring the technical expertise to design applications with a futuristic approach to meet unique business needs, like leveraging predictive analytics to identify events that trigger unexpected surges in traffic.

How to Choose the Right Software Development for Your Business

Each has its own set of pros and cons. But here are the salient factors that will help you determine which might be superior and beneficial for you. 

Architecture of Software

General Software development is highly flexible and built to offer large-scale future scaling and adaption in response to pivots, market expansions, and technical improvements.

Custom software development may be created for a specific purpose, considering who will use it in the existing corporate environment. Even so, it may be necessary to have some scalability in the future.

Unique Characteristics

General Software development features can be primary or complicated based on their purpose, but they will be consistent across a spectrum of similar General software supporting the same use cases.

On the other hand, custom software development contains extremely specific and unique features that are only available to the client for whom it was created. Each custom software that serves a common goal for various customers will have its own set of features and functions that have nothing in common.


For generic software developers, creating high-quality software is important, but not necessary. Suppose a corporation generates mass-market software and spends countless hours tweaking it until it’s flawless beyond comparison. In that case, it will fail to produce enough money and lose market share to competitors. 

Custom-made software, as opposed to generic software, concentrates on quality since the developers must certify that the finished product meets or exceeds the expectation of the clients in terms of usability and performance. Custom software must have high-quality solutions for clients to improve customer service, expedite internal corporate procedures and boost revenue. These are the very reasons why they must sustain quality. 


Small to medium businesses and entrepreneurs can typically afford generic software because it is not costly. Moreover, you can earn revenue from the quantity sold while maintaining good quality.

Since custom software exists explicitly for a single customer, it can be pricey. The software investment returns are sky-high if a firm invests in bespoke software for efficiency, improved productivity, customer service, and engagement.


Generic software is inexpensive and can be customized to meet the needs of small to medium-sized businesses and entrepreneurs

Which is the best choice? The answer is still entirely dependent on your needs and budget. But by going through this blog, we hope you get insightful ideas for choosing the right software development for your business! Thanks for reading! 

Ready to invest in the software development of your choice? Get connected with an excellent outsourcing marketplace that can help you with that─The Lead Enquiry. Contact us today. 



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