Will Agile Development Still be Effective if Software Development is Outsourced?

05 May 2023
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Agile development

The agile framework is well-known for its adaptability and flexibility which is why it’s popular in the software development industry. But what happens if agile software development is contracted out? Can the process still be successful? The response is unequivocally "it depends."

In recent years, organizations are increasingly outsourcing development processes in an effort to cut costs and benefit from specialized expertise. However, when it comes to putting agile development practices into action, outsourcing also poses a special set of challenges. It places a strong emphasis on teamwork, flexibility, and adaptability to shifting requirements, making it a great option for businesses that need to launch high-quality software products into the market rapidly. However, many firms may disagree on the subject of outsourcing agile development.

Communication is one of the main obstacles to adopting agile development in outsourcing. Agile software development’s success depends on effective communication, but when teams are divided by distance, time zones, and cultural differences, communication can be more challenging.

Agile development

Making sure the outsourced staff is aware of the project's objectives and specifications is another problem. In order to keep the project on pace and satisfy the needs of all stakeholders, agile development relies on cooperation and ongoing feedback. Making sure that the outsourced team has the essential context to make wise decisions can be challenging when they are not completely integrated into the project.

Despite these difficulties, agile development may still be successful when development process is outsourced. Establishing clear communication channels and promoting a cooperative and open culture are crucial for it to succeed. This could entail regular check-ins and status updates to make sure that everyone is on the same page, as well as the use of technological tools to enhance real-time communication.

Agile methodologies may also need to be modified to meet the specific requirements of outsourced software development projects. To accommodate the outsourced workforce, it could be essential, for instance, to change sprint lengths or define new roles and duties.

Let’s take a looks at the advantages and disadvantages of outsourcing agile-based application development in detail:


Access to a Global Talent Pool: By outsourcing agile development, businesses may collaborate with highly qualified individuals from all over the world.

outsource software

Cost Savings: By eliminating the requirement for internal developers, infrastructure, and other related costs, outsourcing development can help businesses cut costs.

outsource software

Scalability: Outsourcing agile-based application development enables businesses to swiftly scale up or down their development resources in accordance with their demands without having to make long-term commitments.

Greater Focus on Core Business Activities: By outsourcing development, businesses may devote more time and resources to their core business operations. This frees up resources for other important duties.

Faster Time-to-Market: By expediting the development process and cutting down on time spent on administrative duties, outsourcing agile development can assist businesses in bringing products and services to market more quickly.


Communication Issues: If a development team is based in a different time zone or speaks a different language, outsourcing agile development may present communication issues.

Quality Issues: Outsourcing may raise quality issues, especially if the outsourced team does not adhere to the same standards of development and quality control as the in-house team. Agile outsourcing can come with security issues, especially if sensitive data is provided to the team. To protect their data, organizations must make sure that the appropriate safety protocols are in place.

Time Zone Differences: Delays in communication and decision-making can have an impact on project time frames when agile development is outsourced to teams in various time zones.

myth of Agile development

The complexity of the project,  amount of skill and experience of the outsourced team, and the degree of cooperation and communication amongst all stakeholders are just a few of the variables that will ultimately determine if development is successful in an outsourced application development project. With careful planning and effective communication, however, agile development can still be an effective approach to product development, even when the work is outsourced.

How to choose the right agile software development partner?

myth of Agile development

Due to its flexibility, teamwork, and speedy outcomes, agile software development has grown in popularity in recent years. However, not every agile software development company has the resources or the knowledge needed to undertake agile development on their own. This is where working with an agile-oriented firm may help. A good partner can accelerate and increase the efficiency with which your organization achieves its development objectives. But how do you pick the best partner? Here are some points to keep in mind:

Look for expertise in agile methodologies

You need a partner who is knowledgeable about agile practices and principles and who can work with your team to successfully implement them. Consider working with a partner who has knowledge of multiple agile approaches, such as Scrum or Kanban, and who can adapt their style to your organization's unique requirements.

outsourcing agile-based application development

Evaluate their communication and collaboration skills

Agile framework is all about teamwork and communication, so picking a partner who shines in these areas is crucial. Find a partner who is receptive to your organization's needs and has a clear, open communication approach. They ought to be able to collaborate closely with your staff and offer frequent updates and feedback all through the development process.

outsourcing agile-based application development

Consider their experience in your industry

A partner should have working expertise in your field, in addition to having knowledge of agile processes. They should be able to adapt their experience to your particular needs and comprehend the special difficulties and demands of your sector.

Evaluate their technical expertise

It's crucial to select a partner who has excellent technical competence in addition to industry knowledge and experience with agile approaches. Find a partner who is knowledgeable about the most recent tools and technology and who can assist your business in staying current with best practices.

Consider their pricing model

Lastly, think about the partner's pricing structure. Try to look for a partner who offers flexible pricing choices that may be customized to your organization's requirements. While some partners might use hourly charging, others might use outcome- or fixed-price pricing structures. Select a partner who can provide a pricing structure that is suitable for your business and who is open and honest about their invoicing and pricing procedures.

outsourcing agile-based application development

To sum it up, it’s clear that there are both sides to outsourcing agile development. It’s a challenging undertaking for sure. However, if you’ve chosen the right partner, you can save costs and launch new products faster than ever.


Dinesh Thakur

21+ years of IT software development experience in different domains like Business Automation, Healthcare, Retail, Workflow automation, Transportation and logistics, Compliance, Risk Mitigation, POS, etc. Hands-on experience in dealing with overseas clients and providing them with an apt solution to their business needs.

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