How companies are growing smarter with outsourced development

Outsourcing has evolved from a niche approach to a standard strategy adopted by companies of all sizes.

Most startup founders, CTOs, and business leaders are already familiar with the concept of bringing in external talent, assigning specialized tasks, and improving both time efficiency and cost management.

As the founder of a global software development company, I’ve been on both sides of the outsourcing equation, partnering with clients across continents and operating as an extended team for companies navigating product growth and delivery.

In this post, I’ll share real-world examples across different company stages, from large enterprises to mid-sized tech firms and early-stage startups, highlighting how Full Product Partnerships (FPP) have helped them move faster, build smarter, and reduce execution risk.

Understanding the outsourcing landscape in 2025

Before diving into the stories, here’s a snapshot of how outsourcing is currently shaping product development:

• The global IT outsourcing market is expected to exceed $540 billion in 2024 and reach over $800 billion by 2029. This upward trend is set to continue, with a projected CAGR of 6.51% from 2025 to 2030, bringing the market volume to approximately $806.55 billion by 2030, according to Statista.
• India remains the preferred outsourcing destination, with over 54% of US-based companies choosing Indian partners for software development due to cost efficiency, time zone advantage, and tech expertise.
• A report from Accelerance notes that outsourcing can reduce costs by up to 70% and accelerate delivery by nearly 3x for digital-first companies.
• Yet, it’s not all smooth: 60% of outsourced projects fail or underdeliver due to unclear expectations, poor onboarding, or mismatched workflows, according to a study by Dun & Bradstreet.
• Startups in early product stages can save 30–50% of development time by outsourcing QA and frontend work, especially when paired with smart tools like AI-powered software and QA testing.

From what I’ve seen, success is less about where your developers sit and more about how aligned your expectations, tools, and communication rhythms are.

Common outsourcing models in software development

Outsourcing isn’t a single method; it’s a spectrum of approaches. Depending on your product needs, team structure, and delivery goals, the right outsourcing model can bring clarity, speed, and cost-efficiency to your development process. Based on what we’ve seen at Code-B, here are five practical outsourcing models that companies (from early-stage startups to enterprises) frequently use.

1. Project-Based Outsourcing

This model is straightforward: you hand over an entire project to an external software development partner. It works best when you have a clearly defined scope, deadlines, and expected outcomes.

We’ve worked with multiple startups building MVPs through our mobile app development services, helping them validate ideas without hiring a full in-house team. The product requirements were locked, and our team handled everything, from design and development to QA and delivery.

When it works:

1. For fixed-scope work
2. Short-term builds
3. Limited internal technical leadership

2. Dedicated Team Model

In this setup, the outsourcing provider supplies a dedicated group of developers (or even a cross-functional team) who work exclusively on your product. These teams align with your internal workflows, attend daily stand-ups, and often use your project management tools.

We’ve seen mid-sized companies grow faster by setting up dedicated offshore teams, especially when they needed sustained momentum without the delays of hiring locally. This model gives you long-term access to consistent engineering talent without the overhead of in-house recruitment.

When it works

1. For long-term product development
2. When you want full-time contributors without full-time contracts
3. Projects that require continuous iteration and support

3. Staff Augmentation

This model is about filling specific skill gaps on your team. You might need a React developer for three months or a QA engineer for a short release cycle. Rather than going through a full hiring process, staff augmentation gives you vetted professionals who integrate directly into your workflow.

Companies looking to move quickly often augment their teams through our custom software development services, especially when internal bandwidth is stretched thin.

When it works

1. To bridge temporary resource shortages
2. When you already have strong project ownership in-house
3. For specialized roles that are hard to hire locally

4. Time and Material (T&M)

In the T&M model, billing is based on actual time and resources used. It’s especially useful when your project requirements are likely to evolve or when you’re working in a dynamic, feedback-driven environment.

We recently worked with a health-tech company that outsourced their video consultation module under a T&M contract. Their internal priorities kept shifting, but because of the flexibility in the model, we were able to deliver a HIPAA-compliant product on time, just like many projects we’ve handled in the space of healthcare app development.

When it works

1. Projects without a fixed roadmap
2. MVPs in early exploration stages
3. Flexible teams that iterate fast based on feedback

5. Managed Services

This model allows companies to completely hand off a function, like QA, infrastructure management, or support, to an outsourcing partner. The partner takes full responsibility for delivering results, often with SLAs in place.

Some of our clients have outsourced their entire QA process to us while focusing internally on product development. With the help of automation and AI-based testing tools, we helped improve coverage and reduce defect rates across releases.

When it works

For support-heavy products

When internal teams need to focus on innovation

To ensure consistent performance without hiring in-house

Each of these models supports different business goals. Whether you're trying to reduce time to market, test an idea without overcommitting, or extend your in-house team without the burden of recruitment, choosing the right model is half the job. The rest is about finding a partner who understands how you work and can match your pace.

Case Studies: how companies achieved real impact with outsourced development

Let’s break this down into three types of companies that commonly outsource software development, and explore real-world examples to show how this approach has delivered measurable results.

1. How Andela helped GitHub scale through outsourced talent

GitHub, the world’s leading code hosting platform, was scaling rapidly. Their internal engineering team was fully occupied with product roadmap milestones, infrastructure upgrades, and security improvements. They needed additional development capacity, but without going through a 6-month hiring cycle or inflating their full-time headcount.

Solution:

GitHub partnered with Andela, a U.S.-based company that connects global software talent with high-growth teams. Andela provided GitHub with a small, distributed team of senior developers located across Africa and Latin America.

These developers were integrated into GitHub’s workflows, using their existing tools and sprint cadences.

Why did outsourcing make sense?

GitHub didn’t need just “extra hands”; They needed engineers who could understand complex systems, work independently, and deliver within GitHub’s high standards.

Outsourcing via Andela gave them that flexibility without the overhead of long-term hiring. The time zone overlap and strong English communication skills also meant fewer back-and-forths and less friction.

Outcome

With Andela’s support, GitHub was able to roll out new product features faster while keeping its internal team focused on core architecture and performance. The outsourced team contributed to both frontend and backend workstreams and adapted quickly to GitHub’s engineering culture. The result wasn’t just faster delivery, it was smoother scaling during a high-growth period.

2. Ciklum’s Software outsourcing model delivered speed at scale

Metro Group, a large multinational with diversified verticals including healthcare procurement, was struggling with outdated software systems that slowed down their supply chain and vendor coordination. Their in-house IT team lacked the bandwidth to rebuild the system from scratch while continuing daily operations.

They needed a partner to modernize the backend and build a modular digital procurement platform without disrupting ongoing services.

Solution

Ciklum brought in a dedicated offshore development team comprising backend engineers, UI/UX designers, and QA professionals. Working closely with Metro’s internal product leads, the outsourced team rebuilt the procurement interface and integrated it with vendor management and compliance tracking features.

They also introduced data-driven dashboards to monitor logistics and supplier performance in real time.

Why did outsourcing make sense?

• Metro needed to move fast without bloating their internal team. Outsourcing software development through Ciklum allowed them to:
• Tap into pre-vetted development talent across time zones
• Maintain focus on core operations.
• Speed up technical delivery through parallel development
• Reduce risk by working with an experienced outsourcing partner in enterprise software

This model gave them flexibility without the long-term commitment of hiring full-time engineers for a one-time transformation project.

Outcome

Within eight months, the new healthcare procurement system was live, cutting order-processing time by 40% and improving vendor onboarding efficiency by 60%. Internal teams reported fewer errors, and Metro gained better visibility into spend and compliance across their supply chain. Ciklum continues to support system maintenance and feature expansion as part of a long-term outsourcing partnership.

To know more about healthcare app development companies that you can reach out to. Visit our blog.

3. How Toptal’s outsourced team fast-tracked a health app launch

A fast-growing U.S.-based HealthTech startup had validated its idea for a mobile app that helps users track mental health routines. Their in-house team had built the initial backend using Node.js, but they lacked mobile developers with React Native experience. Hiring full-time engineers would’ve taken months, time they didn’t have. They needed to launch a working mobile app within 10 weeks to meet investor milestones.

Solution

The startup partnered with Toptal to quickly onboard two experienced React Native developers with prior healthcare app experience. Within a week, both engineers were integrated into their Slack workspace and sprint cycles.

They focused on building the app’s UI, integrating it with the backend, and implementing HIPAA-compliant data storage using Firebase and local encryption.

Toptal’s project manager also provided light oversight to ensure delivery stayed on track.

Why did outsourcing make sense?

• Speed: The founders didn’t have to spend weeks vetting candidates or dealing with recruiters.
• Specialized skills: React Native developers with relevant healthcare project experience were sourced instantly.
• Lower risk: Toptal handled vetting, contracts, and replacements, offering the startup peace of mind and flexibility.
• Focus retention: Their internal team stayed focused on backend performance and core data logic while the outsourced team moved the mobile interface forward.

Outcome

The MVP was completed in just under 9 weeks. The startup launched a closed beta with 500 users, received overwhelmingly positive UX feedback, and secured a bridge round of funding shortly after. The outsourced engineers continued to support them during the beta phase and transitioned knowledge to a full-time hire 3 months later.

Explore more trusted mobile app development companies in our detailed blog guide.

Lessons from delivering outsourced projects that worked

Whether you're a solo founder testing an MVP or leading a product team at a $100M company, outsourcing comes with its learning curve. After years of being on both sides, offering outsourced teams and working as one, I’ve picked up a few patterns that consistently make the difference between a frustrating experience and a productive partnership.

• Prioritize Overlap, Not Rates

Saving a few dollars an hour means nothing if you’re constantly playing catch-up. Even 2–3 hours of real-time overlap makes collaboration easier, feedback loops tighter, and progress much steadier. In my experience, this has mattered more than hourly rates almost every time.

• Set Clear Goals, Not Just Tasks

Simply assigning tasks isn’t enough. Clear goals, timelines, and a sense of “why this matters” always get better results. The best output I’ve seen came when the outsourced team understood the bigger picture, and not just what to build, but what it was meant to solve.

• Rely on Async Tools

Async communication has been a game-changer. Loom helps with walkthroughs, Notion keeps everything documented, and Slack is great for day-to-day communication. These tools create transparency without the need for endless meetings, which keeps things moving even across time zones.

• Assign a Technical Contact

If no one on your side can review code or manage architecture decisions, you're flying blind. Whether it’s a part-time advisor or technical co-founder, having someone who speaks the language helps avoid costly rework and misaligned expectations.

• Start Small, Then Expand

Not every partnership needs to begin with a 6-month contract. I’ve had the most success starting with a short sprint or a small module. It gives both sides room to evaluate fit, communication, and reliability before committing to a longer engagement.

Delivering value through client-focused outsourcing

As the founder of a software development company, I’ve worked with several U.S.-based businesses that turned to us when their internal teams were either stretched thin or needed something shipped fast. One such case involved a healthcare data platform that came to us with a clear but urgent need: build a secure, user-friendly analytics dashboard from scratch, in less than six weeks.

Here’s how we made it work:

• We Knew Exactly What Had to Be Done

The client came to us with a straightforward ask: integrate with their existing backend and create a front-facing dashboard that non-technical users could easily navigate. Because the scope was defined upfront, we could skip the back-and-forth and dive straight into execution.

• We Got Started Without Delay

There were no long onboarding cycles or unnecessary handovers. My team jumped in from day one. We structured the engagement around short, focused delivery cycles, which helped us build momentum early and avoid the usual delays that slow down outsourced projects.

• Communication Was Built Into the Process

We didn’t wait for things to go wrong to start talking. Weekly demos gave the client full visibility into progress, and smaller feedback sessions throughout the week meant there were no surprises. Both sides stayed in sync, even across time zones.

• We Used Tools That Supported Transparency

We kept things simple but effective: Trello for managing tasks, Slack for daily updates, and a central Notion space for shared documentation. This kept everything visible, organized, and easy to revisit as the project moved forward.

• Kept Progress Despite the Time Difference

While our teams were on opposite sides of the world, we planned for a three-hour overlap daily. That window was enough to address blockers, align on key decisions, and keep progress moving without bottlenecks.

The result? We delivered a stable, production-ready dashboard ahead of schedule. It passed HIPAA security checks and was demoed to internal stakeholders in time for a critical investor update.

More than just technical output, this was a true partnership:

• Trusted Collaboration, Not Micromanagement

What made this project truly efficient was the mutual trust we built from the start. The client gave us full ownership over the technical direction while staying involved at key milestones, like design approvals, testing reviews, and deployment decisions.

They weren’t watching over every commit or sprint update, but they were engaged where it mattered. That balance made collaboration smooth and kept decision-making fast.

• Made Availability a Shared Priority

Despite the significant time difference, both teams prioritized showing up when it mattered. We didn’t rely solely on scheduled check-ins; our developers stayed responsive during overlapping hours, and the client made themselves available for quick decisions when needed.

This mutual flexibility helped us avoid delays, resolve blockers faster, and maintain steady progress without losing context across handovers.

• Repeated Success Through Relevant Experience

Having worked with multiple U.S.-based clients across healthcare, fintech, and e-commerce, we understood how to step in and execute without creating friction. We’ve delivered projects where urgency was high and internal bandwidth was low, and that background helped us move confidently.

We didn’t need a long discovery phase or heavy documentation. We knew how to ship quickly, handle feedback in stride, and adjust without derailing timelines.

Final word on effective outsourcing

Outsourcing software development works when it’s treated as part of your product strategy, not just a cost-saving move. You get faster delivery, better access to skilled talent, and more room to focus on core priorities. But none of that happens unless you:

1. Choose the right partner for your stage
2. Set clear deliverables and timelines
3. Stay involved from start to finish

We’ve worked with companies across different stages, startups building MVPs, mid-sized teams accelerating delivery, and enterprises expanding their digital platforms. And in every case, the key to success was shared ownership, transparent communication, and the right delivery model.

If you’re considering outsourcing as part of your growth strategy, there’s no one-size-fits-all. But there is a model that can fit your business, and a partner who can help you make it work.

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