3 types of software development companies you can outsource to

3 types of software development companies you can outsource to

There are a number of 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 how to choose 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 make sure that 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 often 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 and that is why they can afford to spend more time on designing the solution in a creative and original way.
  • 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 there is usually no other colleague who can take care of further development.
  • Small project capacity – Independent developers can only take care of small projects and in limited quantity. They have to be aware of their own capabilities.
  • Limited skill base – Sole traders have to depend only on their own skills. Even the most knowledgeable professional will not have the same level of skill 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 have an ability to take care of many projects simultaneously. They can also take care of huge projects or very complicated ones.
  • Skill base – Due to a large number of employees gathered in big in-house teams larger agencies have an extensive skill base, qualifications and experience.
  • Fast – Larger capacity means that big agencies are capable of delivering the projects faster. They know that time is money and will do everything to provide the project as soon as possible.
Large corporate developer
  • High cost – outsourcing your IT project to large agencies can sometimes simply cost more. They value their skill base and capacity and the price charged can be excessive.
  • Arrogance – the size of the company and experience of the developers 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 a number of projects at once and may not have so much time to stay in contact with you. Support may be fronted by a call centre.

3. Offshore software development house

There are a number of IT and development companies 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 have a capacity to deliver very big projects
  • Choice – There are hundreds of different offshore agencies to choose from. You should be able to find exactly what you need in terms of skills, experience and other requirements.
Offshore software development house


  • Misunderstandings – sometimes there might occur a problem of misunderstanding 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 time of delivering the projects. You should consider offshoring to nearby countries that are not affected by the time-zones.
software development house

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.

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