5 Risks of Outsourcing Software Development and How to Avoid Them

The global IT outsourcing market is expected to grow to $1.149 billion by 2032, offering strategic advantages such as lower costs and increased delivery speed. However, navigating the outsourcing landscape requires awareness of potential risks. This article discusses five critical risks of outsourcing software development: quality assurance concerns, data security and confidentiality issues, communication challenges, lack of control and oversight, and hidden costs and budget overruns. Tactics to reduce risk in delivered software include establishing clear standards for writing code, leveraging advanced SAST capabilities, scheduling regular meetings, creating detailed budgets, and fostering transparency in discussions. By addressing these risks, organizations can forge successful and collaborative partnerships that help sustain the performance of their software.