Outsourcing Java Development: When You Need It and When You Don’t

Outsourcing is gaining popularity: in 2024, businesses around the world will spend more than one and a half billion dollars on outsourced development services, according to Statista.

In this article, we explore what tasks can be outsourced and how to determine if your business needs it.

First Things First: Why Are We Talking About Java

Java is one of the most popular programming languages, widely used in the development of enterprise applications, mobile apps, websites, and more. Java is known for its stability and reliability, has a rich ecosystem of libraries, frameworks, and tools, and provides the ability to write code once and run it on any platform with a Java Virtual Machine (JVM) installed.

Cooperation with a Java software development company can be a profitable strategy for many companies, especially if they do not have sufficient internal resources or expertise. It is important to conduct a thorough analysis of a company’s needs and capabilities before deciding to outsource.

4 Signals To Know If You Need To Outsource Your IT Tasks

Not enough internal resources

Java developers and Java consultants are in high demand, so an experienced specialist can ask for a high salary, and hiring an entire team along with a team leader (at the very least) for your project can be very expensive. If it’s not profitable for you to hire a team or expand your current one with permanent employees, an outsourcing company can help you out.

Urgent need for development

Development is an urgent need. You need it at the drop of a hat. Hiring a new team and onboarding will cost you a month of lost time, and that’s still a minimum time estimate. If you’re googling “where to find lots of competent developers in a week,” try outsourcing.

Lower operating costs

Taxes, salaries, and equipment – these are categories of spending that don’t exist if you use external development. Most often, such companies offer you a development services contract, and you pay only according to this contract, while payroll taxes and all sorts of deductions to funds fall on the shoulders of this very company. Plus, you do not need to provide the equipment – the exception may be only your own desire.

Focus on the core business

If development is not your company’s core business, outsourcing tasks will free up your time and resources to focus on the main priorities of your business.

Okay, I Need Outsourcing. But What Kind of Outsourcing?

Offshore

You can outsource development to countries far away from you, such as India, Poland, or Latin American countries. Pros: It will reduce your costs. Cons: Time zone differences or cultural differences may be inconvenient. For example, some day in country X may be a national holiday, and the company takes a day off.

Nearshore

You can also cooperate with nearshore countries with a similar time zone and cultural peculiarities. If we talk about Poland, Polish IT services are often used by companies from the neighboring country, Germany. This allows for easier communication and collaboration while maintaining the benefits of cost savings.

Onshore

Offshore or nearshore—working with foreigners may be legally inconvenient for you. It is good if the service provider company has an office in your country. But what if they don’t? You can cooperate with companies inside your country, but the financial advantages will be insignificant.

3 Types of Models for Cooperation with Outsourcing Companies

It’s pretty clear, so let’s get straight to the list.

Dedicated Team (you pay for the team)

You hire a whole team of developers; the team is fully immersed in your project and works exclusively on it. It’s convenient—you basically have a department, but you are not concerned with taxes, vacations, sick leave, and so on.

Time & Material (you pay for time spent)

You may not be completely sure exactly how many people you need and for how long. Time & Material is a very flexible model, allowing you to continue development as requirements change.

Fixed Price (you pay a specific amount and not a cent more)

If you are sure about the timeline and costs, you can set a specific amount that you will pay for all the work. But this is where it’s important to account for risks—if, due to your actions, the team works longer, you will have to cover the extra costs.

Which Tasks Can Be Safely Outsourced: 6 Examples

Several Java development tasks are well-suited for outsourcing, including:

New Software Development

If you need to build a web application, mobile app, or enterprise solution from scratch, outsourcing provides access to experts with relevant industry experience.

Maintenance and Updates

Outsourced teams can help maintain existing applications, fix bugs, and implement security updates to ensure ongoing efficiency and reliability.

Migration to New Technologies

Legacy Java applications often require modernization, such as migrating from older frameworks to newer ones like Spring Boot or transitioning to cloud-based solutions.

System Integration

Java applications frequently need to integrate with APIs, databases, or third-party services. Outsourcing facilitates seamless integration and system interoperability.

Testing and DevOps Services

Quality assurance, automation, and DevOps tasks can be outsourced to ensure software reliability and optimize deployment pipelines.

Potential Risks and Mitigation Strategies

While outsourcing Java development can be advantageous, it also presents challenges. Awareness of these risks helps in effectively mitigating them.

I Am Not Sure About the Vendors

We understand that not all outsourcing vendors provide high-quality code. If you decide to move forward with a vendor, take steps to secure your product and your investment. Try this:

Choose vendors with proven Java development experience.
Examine their portfolios and customer reviews on sites like Clutch. If you know a company that has worked with them, ask for feedback.
Establish clear coding standards and validation processes.
If a company’s proposal isn’t completely clear to you, ask follow-up questions.
Have regular meetings with the vendor to monitor the process.
Sign non-disclosure agreements (NDAs) with vendors.
Ensure compliance with security standards such as ISO 27001 and GDPR. Ask about certifications and licenses.
Clearly define the scope, goals, and deliverables of the project from the beginning.
Develop detailed contracts and service level agreements (SLAs).
Regularly monitor and analyze project progress through feedback sessions.

As a result of these steps, you should be confident in your IT service provider’s technical expertise and their suitability for your project.

If time permits, start with a small test project to evaluate the vendor’s capabilities.

When Not to Outsource Java Development

Despite all the advantages, outsourcing may not always be the best solution. You don’t need outsourcing if:

You require internal control over development.
Regulatory restrictions prevent collaboration.
Outsourced developers cost the same or more than an internal team

Summary

So, if you need to urgently implement a project but don’t have enough staff, you can outsource it: offshore, nearshore, or onshore. The company will work on your project, and you will pay according to one of these models: Dedicated Team, Time & Material, or Fixed Price.

However, if you suddenly realize that your team has been let go, you find it legally difficult to work with a vendor, or they cost more than your own team—there is no point in working with them.