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Software Development Outsourcing

Baris CoskunBaris Coskun
August 1, 2023

Insights and tips from three industry leaders.

Software development outsourcing is a multi-billion dollar industry used by SMBs and enterprises worldwide to grow their businesses and realize their long-term goals. That’s great news for software development outsourcing agencies, whose pool of potential clients has never been bigger. Tapping into that pool, however, is a different story entirely.

The industry’s rapid expansion means competition has never been fiercer, and software development agencies can no longer rely solely on their sales pitch to find their next client. Businesses today aren’t just looking for a developer to do the work; they’re looking for a partner who can help them realize their long-term goals.

“Businesses want to work with someone who will be a partner and not just an order taker. For software developers, it ultimately comes down to knowing how to listen and get done what it is that needs to get done to build to business specifications”

Rich Wanden

Chief Customer Success Officer,

It’s no wonder than that finding the secret sauce for growing a software development agency can be so tricky. In addition to being a developer, you need to be a salesperson, networker, marketer and customer service agent.

So, to get to the bottom of what it takes to grow your agency, we spoke with three of the leading players in global software development outsourcing: Clutch, Upwork and Accelerance. In this guide, they share their unique perspectives and provide key insights into:

  • The types of potential clients you need to target
  • What companies are looking for when hiring a software development agency
  • Best practices outsourcing agencies should adopt when looking for new clients

The increase in software development outsourcing is a golden opportunity for agencies looking to expand their businesses. Let’s learn how.

What Are Clients Looking For When Outsourcing Their Software Development?

While there are various types of businesses seeking to outsource their software development, there are several recurring themes that agencies can tap into.

| Location isn’t a factor

For businesses looking to outsource their software development, hiring local developers is no longer as important as it once was. Instead, things like experience and skillsets have taken on greater significance. As an agency, this means that you should also embrace global talent when recruiting new developers, with a strong emphasis on those who work with the latest technology frameworks.

  • “One of the predominant trends we’ve noticed is that companies often cannot find the people they need in their local area. This is especially true with regards to freelancers with experience using the latest technology and frameworks or other niche skills. Additionally, we’ve seen that cost savings are becoming less of a factor for larger companies as they struggle to find the right talent at the right time. Recently, more companies are becoming more open to global talent once they realize the benefit of being able to utilize a larger talent pool to choose from. Remote talent also saves them certain overhead costs they typically were needing for their FTEs/contractors.”
    Brett Levert, Senior Enterprise Success Manager, Upwork
  • “Over the past few years, we’ve seen an increase in software development outsourcing, particularly to Latin America, Asia, and Eastern Europe where there’s been an increase in great talent at a lower cost than you’d see in North America and Europe.”
    Eleonora Israele, Head of Strategic Partnerships, Clutch
  • “At Accelerance, we work with developers in about 40 countries, including in Central and South America, Eastern Europe and Southeast and East Asia. One of the interesting things we’ve noticed in recent years is that agencies are recruiting developers outside of their home countries, signifying that location is not a factor when looking for new clients.”
    Rich Wanden, Chief Customer Success Officer, Accelerance

| SMBs are increasingly comfortable with outsourcing software development

While software development outsourcing has become common place amongst businesses of all sizes, there is much evidence to suggest R&D departments in SMBS are increasingly leveraging outsourcing services.

  • “We typically see high-domain knowledge buyers within SMB and midmarket organizations as a core use case. These organizations have small teams hiring individuals or agencies to help complete complex projects – either as an extra muscle or with a specific out-of-wheelhouse skill for a time bound period. At a macro-level, we’ve seen high demand from professional services industries for software development resources to support digital transformation efforts.”
    Brett Levert, Senior Enterprise Success Manager, Upwork

| Work-culture fit is crucial

Adapting to your clients’ company culture is crucial to developing an effective working relationship. Increasingly, companies are looking for developers who they can work with for the long-term, instead of just one-off projects.

  • “What’s most important for our customers is that they work with accessible and professional outsourcing providers who understand their company culture and the projects they need completed. While reduced costs is certainly a huge benefit to outsourcing, finding the right match for a business’s software development needs is more important than price, especially since they will likely end up spending more if the finished product doesn’t come in as needed.”
    Rich Wanden, Chief Customer Success Officer, Accelerance
  • “Businesses are looking for teams that really understand their vision and can help them achieve their goals. Finding a team that is a good work-culture fit, works with their preferred technologies and really understand what they are striving to do are always top priorities
    Eleonora Israele, Head of Strategic Partnerships, Clutch

Key takeaways

#1 You and your developers’ qualifications matter much more than where you are based.
#2 SMBs are increasingly outsourcing their software development compared to other businesses.
#3 Understanding your clients’ business culture is crucial to developing a long-term relationship.

Finding Your Next Client: Standing Out From The Competition In An In-Demand Industry

“A tight labor market and shortage of specialized skills has led to demand for software developers with the right skills outpacing supply”

Brett Levert

Senior Enterprise Success Manager,

While there is clearly no shortage of demand for software development providers, standing out from the competition is often easier said than done. But when the leading outsourcing platforms in the world see the top developers picking up more business each day, there are clearly some methods to get your name out there that are proven to work better than others.

  • “Get listed and reviewed on Clutch! A strong online reputation and client reviews are some of the top factors that clients look for during the buying process. Clutch is a free way for companies to market their services for free, which is why over 1,000,000 monthly buyers trust our content to pick their next partner”
    Eleonora Israele, Head of Strategic Partnerships, Clutch
  • Joining a new platform without any proven experience can make it difficult to get your first project, but that is the same when starting any new business. Ensure that past projects and example work are included in your Upwork profile. In addition, be detailed in the scope of past projects and explain the roles/resources your team provided. It is also better to include the work you’re most proud of vs. everything you have done.In your profile, include any certifications you might have, as well as testimonials from past clients. Finally, highlight your niche skills with supporting projects and ensure that your team members’ individual skills are clearly laid out in their profiles.”
    Brett Levert, Senior Enterprise Success Manager, Upwork
  • “While the initial process of selling yourself to a customer is important, you’ll need to go beyond that by becoming a good advisor and helping the customer understand their goals. Focus on the customer’s end game – and push them to understand not just what they think they need but what they may not know they need in order to be successful. Make sure that your conversations are outcome-oriented, not transactional, and that you can prove you’re able to achieve the customer’s desired outcome.”
    Rich Wanden, Chief Customer Success Officer, Accelerance

Key takeaways

#1 A strong online reputation and client reviews are some of the main factors clients look for when searching for software providers.
#2 Ensure your past projects, including their scope and the resources used, are available to your potential clients.
#3 To be an effective business partner, you’ll need to be a good advisor while helping your client understand and realize their goals.


Software development outsourcing is a booming industry that is transforming how businesses of all sizes operate. For outsourcing agencies, reaching potential clients is more than providing a sales pitch; you’ll need to show that you can be an active partner and advisor. The tips outlined here can go a long way towards ensuring you create fruitful partnerships to help your agency prosper.

As always, Payoneer will be with you every step of the way to make sure you can easily pay your agency’s developers and receive cross-border payments from your clients. Our suite of services allows you to easily manage your payments, enabling you to get back to what’s most important – running your business.

About Our Partners

Upwork provides a wide range of services for companies looking to contract out software development. In addition to its self-service talent marketplace, Upwork offers:

  • Talent Scout: A specialized recruiting service that helps connect businesses with pre-vetted independent software developers.
  • Project Catalog: Predefined, fixed-price projects that eliminates the guesswork and makes it easier for businesses to get started.
  • Upwork Enterprise Platform Suite: Provides end-to-end service to businesses from managing hiring and managing programs to scaling talent that has been cleared for legal compliance.


Clutch is a B2B ratings and reviews site focused on helping buyers find the best provider for their specific needs. Clutch directories feature over 200,000 firms, including over 20,000 software development firms from all over the world. Users can filter service providers by location, budget, services offered, specific technology focus, company size and more to find companies that meet their specific requirements. More importantly, Clutch features unbiased, 3rd party verified reviews on service provider profiles to help buyers put themselves in previous clients’ shoes and really get a feel for which company will best fit their needs.


As the premier global outsourcing advisor,Accelerance has offered top-tier software development resources along with professional consulting services for more than 20 years. Accelerance has curated the world’s largest network of proven software development outsourcing teams by personally vetting and certifying the top 1% of firms across 40+ countries. Accelerance personally works with each customer to ensure they find a perfect-fit partner. Our trusted advisors help clients to build and scale optimal software outsourcing solutions through better planning, better resourcing and better engagement management.

How Payoneer Can Help


Payoneer is the world’s go-to payments partner for digital commerce, everywhere. From borderless payments to boundless growth, we promise any business in any market the technology, connections and confidence to realize their potential.

What sets Payoneer apart?

  • Accept and make payments in multiple currencies via a simple and cost-effective solution.
  • Easily access earnings in your local currency at low rates.
  • Connect with customers on the world’s leading marketplaces while collecting all your payments in one place.
  • Pay your software developers directly from your account, regardless of whether they have a Payoneer account.
  • Enjoy dedicated, local support around the globe in multiple languages at any time.
The content provided in this article including any information relating to pricing, fees, and other charges is accurate and valid only as of the date it was published. In addition, changes in applicable regulations, policies, market conditions, or other relevant factors may impact the accuracy of the mentioned pricing and fees and other associated details. Accordingly, it is further clarified that any information regarding pricing, fees and other charges is subject to changes, and it is your responsibility to ensure you are viewing the most up to date content applicable to you. Payoneer will provide the most up to date and accurate information relating to pricing and fees as part of the account registration process. Registered customers can view this information via their online account.

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