3 types of software development companies you can outsource to

Choosing the right software and outsourcing partner is crucial for business technology adaptation, each with unique advantages, costs, and capacities.

There are several different types of software solutions that you can adapt to your business. It is you who should decide which one will be the most suitable. You can choose from ready-made software that needs only to be installed and used, or bespoke software tailored especially for your current needs. There is also a mixture of these two types and systems integration which can significantly increase your performance. As you can see there are many options, you can learn more about choosing the right software type for your business here.

But the type of software is not the only thing you should pay attention to while acquiring a new software solution for your company. Equally important is your outsourcing partner – a company that will ensure your software is your ally, not a disruption.

There are several types of businesses that you can work with. Always make sure that your partner offers the service you need.

1. Sole traders

You will have no trouble finding freelance developers all over the world. Some of them work independently and some as a part of small teams of self-employed developers.


Low cost – Independent professionals offer lower prices than bigger companies, especially on small projects. You can also negotiate to lower the price even more.

Creativity – Independent developers take on a small number of projects, so they can afford to spend more time designing the solution creatively and originally.

Personalised customer service – While working with sole traders you can count on more intense contact and a higher degree of personalised customer service.


No backup – If the developers encounter any problems, no other colleague usually can take care of further development.

Small project capacity – Independent developers can only take care of small projects in limited quantity. They have to be aware of their capabilities.

Limited skill base – Sole traders must depend only on their skills. Even the most knowledgeable professional will not have the same skill level as a whole development team.

2. Large corporate developer

The biggest development companies claim to have the biggest areas of experience, skills and competitive prices but the reality is sometimes far from perfection and what you would hope for.


Big project capacity – huge corporations can take care of many projects simultaneously. They can also take care of huge projects or very complicated ones.

Skill base – Due to many employees gathered in big in-house teams larger agencies have an extensive skill base, qualifications and experience.

Fast – Larger capacity means big agencies can deliver the projects faster. They know that time is money and will do everything to provide the project as soon as possible.

High cost – outsourcing your IT project to large agencies can sometimes cost more. They value their skill base and capacity and the price charged can be excessive.

Arrogance – the company size and developers’ experience may incline them to think that they know best. This may even sometimes cause dismissing other suggestions but should not happen often.

Impersonal service – project managers you may work with can be responsible for several projects at once and may not have time to stay in contact with you. Support may be fronted by a call centre.

3. Offshore software development house

Several IT and development companies are based outside of the UK, not only in India or China but literally all over the world. Carefully chosen partners can be a huge ally.


Low cost – offshore agencies often offer far lower prices than competitors from the UK. It is sometimes caused by less rigorous processes or lower employment costs. A lower price does not mean lower quality.

Capacity – it depends on the size of the software development company. Some agencies are quite large and can deliver very big projects

Choice – There are hundreds of offshore agencies to choose from. You should be able to find exactly what you need regarding skills, experience and other requirements.


Misunderstandings – sometimes there might be a misunderstanding problem especially when the people designing the solution are not familiar with the customer’s culture.

Language barrier – language can always be a barrier especially when you outsource abroad. This can occur in particular when dealing with technical issues.

Time-zone difference – difference in time can be frustrating for both parties and may affect the project delivery time. You should consider offshoring to nearby countries unaffected by the time-zones.

As you can see, each type of software development house has its specific way of working, advantages and disadvantages. Based on that information you should make a conscious decision and step into the new technological era of your company with a powerful partner meeting all your needs.

If you have any questions about your potential software solution or ideas, do not hesitate, contact Headchannel and let us discuss your options.

Contact us.

If you need a partner in software development, we're here to help you.

We will respond to your enquiry immediately.