In 2025, the development approach in IT companies looks completely different than just a couple of years ago. Instead of relying on in-house hires, more teams are sending complex work outside their organization so that they can ship products faster. Though insourcing is growing as usual, companies are not going to move away from third-party outsourcing. In fact, 80% of executives are planning to maintain or put more into their investment in outsourcing, as per the Deloitte Global Outsourcing Survey 2024 findings.
Outsourcing is not only popular just because it is cost-effective, but many businesses look at it as a means to gain access to vetted talent, skipping long hiring cycles. In fact, today, outsourcing services in the IT sector is not limited to support functions. Core operations such as web application development, maintenance, and support are increasingly being outsourced; the current market activity strongly indicates that the trend towards outsourcing core operations will continue to see success.
Outsourcing in Web Development: 2020–2025 Trends
- The global IT outsourcing market is expected to hit $588 billion by 2025, and $806 billion by 2030 (Statista).
- As per a report published by Delloitte, five years ago, cost-saving was a major reason for outsourcing for around 70% of organizations. In 2024, 34% organizations admitted that cost-saving was a major reason for outsourcing. [Source]
- 78% of businesses report a positive experience with their outsourcing partners, citing better outcomes, faster delivery, and expert knowledge [Source].
5 Reasons to Outsource Web Development
1. More than cost
For years, outsourcing was/is seen as a way to cut costs. And yes, hiring offshore developers still helps companies save money. But today, the cost factor is not only a primary reason for outsourcing. Industry reports show that 70% of businesses now outsource to accelerate delivery and gain access to expert developers or teams without the wait.
2. Access to skilled developers
Hiring developers locally takes time. It can take weeks or months. Plus ramp-up time, not to mention even after hiring. Outsourcing solves this ever-present challenge with in-house hiring. Take an example of web application development. With outsourcing, you can hire ReactJS developers who’ve already worked on real-world web projects in no time. In markets like India and Eastern Europe, companies are offering dedicated developers with deep expertise in ReactJS, server-side logic, and cloud deployment. In addition, there is a wealth of remote collaboration today that makes it easy to work with a team anywhere across the globe.
3. Technology is moving fast
Frameworks and tools are constantly evolving. Today, web development companies that are building digital products are under constant pressure to build smart, innovative solutions, like AI-assisted UIs and server-side rendering at the edge, to make products feel next-gen. For many in-house teams at many startups, it becomes difficult to navigate all of this information. Skills and talent gaps like this are common in companies of all sizes because employees often have to perform a wide variety of tasks that are far removed from their expertise. Outsourcing is a great option to keep pace with what’s happening with technology when there is not enough time to train an in-house professional. This is because an outsourced team or professional will bring expertise related to the current best use of the technology.
For this reason, many organizations have started to embrace service outsourcing companies that are familiar with the latest innovations.
4. Flexibility that fits how you work
In-house hiring means fixed responsibility from monthly salaries to workspace to operating overhead. That is the perfect option as long as the workload is predictable. On the other hand, outsourcing allows businesses to respond to ever-changing workload demands without long-term commitment. Need a ReactJS developer for a a 3-month project? Or a full frontend team for the next six months? You can easily scale up or down without impacting your core business.
This flexibility also helps when priorities shift. Let’s say you launch a product and now want to focus on improving the user experience. Instead of hiring new specialists, you can bring in a small outsourced team focused only on UX and frontend updates. That’s much easier than restructuring your internal team.
5. Outsourcing is not a shortcut
One common fear is that outsourcing means less control. But that only happens when there’s poor communication or unclear expectations. In reality, when done right, outsourcing builds long-term partnerships. Many outsourcing companies now work in the same time zones as their clients or offer overlap hours. They provide regular project updates, use the same tools that your team already uses, and follow secure development practices.
It’s also worth mentioning that global outsourcing is becoming increasingly regulated and organized.
Conclusion
With each passing year, the delivery timelines from project start to completion shrink. What used to take months to build is now expected to be delivered to the client in just a few days. Companies have to figure out how to move through congestion at the speed of technology, and outsourcing allows companies to find the deep talent that is intimately knowledgeable on advanced, emerging technologies and processes like AI-driven development. It connects you to people who have already built modern, scalable web applications.
