The practice of contracting software-related work to external providers is a strategic business decision. This encompasses a range of activities, from the development of applications and maintenance of existing systems to testing and quality assurance. For example, a company might engage a specialized firm to build a mobile app instead of employing an in-house development team.
Engaging external experts offers several advantages, including access to specialized skills and technologies, potential cost reductions, and increased operational flexibility. Historically, businesses have utilized this model to focus on core competencies, accelerate project timelines, and address skill gaps within their organization. The practice has evolved significantly due to globalization and advancements in communication technologies.