Step-by-step explanation:
Software development outsourcing is a business strategy that sees such assignments undertaken by external experts rather than using in-house resources. It can involve delegating specific tasks or assigning an entire project to be completed by an individual or team.
Companies use outsourcing to cut labor costs, including salaries for their personnel, overhead, equipment, and technology.
Outsourcing is also used by companies to dial down and focus on the core aspects of the business, spinning off the less critical operations to outside organizations.
On the downside, communication between the company and outside providers can be hard, and security threats can amp up when multiple parties can access sensitive data.
Some companies will outsource as a way to move things around on the balance sheet.
Outsourcing employees, such as with 1099 contract workers, can benefit the company when it comes to paying taxes.