According to Zippia, an online recruitment services platform, 66 percent of U.S. companies outsource at least one of their business requirements. Another report by PEI Group, a business intelligence company, states that 43 percent of IT companies are willing to increase their outsourcing investments in 2025. Why? Because partnering with a trusted IT outsourcing company helps organizations build future-ready software products, accelerate time-to-market, compete with the top industry players, reduce overheads, and maximize business profits.
Outsourcing IT services has become more than just a necessity in 2025. Outsourcing partners are providing custom technology solutions that deliver value beyond costs. It’s time businesses in the U.S. and worldwide collaborate with the best IT outsourcing company to enable digital transformation, capitalize on niche skills, and scale core operations. However, when it comes to selecting the right technology solutions provider, many CEOs, CTOs, and IT decision-makers fail to identify the ideal fit.
Not to worry! This blog post will eliminate all the confusion once and for all. It highlights proven tips and best practices to avoid complexities, optimize evaluation criteria, and choose the top outsourcing partner for long-term business success. Let’s begin!
IT outsourcing is a strategic approach to delegating certain IT functions to external technology solutions provider. These functions may include technology support, cybersecurity, software development, and IT infrastructure management.
Out of these functions, most organizations mainly outsource software development. This approach aims to decrease in-house efforts, onboard top 1% talent, fast-track development, and boost business revenue.
Here are some major advantages of outsourcing software development to an experienced technology partner in 2025.
Software development outsourcing is a game-changing asset for North American companies looking to dominate the global technology landscape. However, there are critical pain points that businesses face when selecting an IT outsourcing company. Let’s have a look at a few of them to give you a better idea.
Many IT decision-makers are often confused about selecting the ideal technology partner. They approach various IT outsourcing companies for their software development requirements. While one vendor has required technology capabilities but lacks know-how of business nuances the other one showcases a vice versa scenario. This differentiating situation makes selecting the right software development solutions provider a prolonged struggle.
Instead, businesses can leverage IT outsourcing services from a trusted technology partner, such as Clarion Technologies. Our amalgamation of technology and business capabilities have helped businesses in the U.S. and across the globe exceed their goals, increase revenue, outshine competitors, and elevate CX.
Most businesses get stuck in long-term or fixed contracts. These contracts are isolated with agreement-based charges related to licensing, additional expenses, and scope creep fines. For instance, a financial services company in the USA observed a 29 percent exceed in budgets due to evolving requirements not covered in the contract signed with their nearshore outsourcing partner at the start of the project.
On the other hand, businesses can partner with a trusted offshore outsourcing partner, such as Clarion. This will help them leverage software development services with no hidden costs, zero IP breaches, faster time-to-market, no obligation contracts, and top 1% development experts.
Businesses limit their technology capabilities and growth trajectory by outsourcing their software development requirements to freelancers. They expose their PoC to frequent delays, guesswork, potential risks, prolonged deliveries, and lack of transparency. Besides, extended time-to-market restricts first launch advantage and pushes customers toward competitor apps.
Researchers often suggest that outsourcing to freelancers is not a great option for organizations looking to integrate cutting-edge technology capabilities. Freelancers often have limited experience and technology skills that can hamper the project scalability. Furthermore, IT leaders can’t be sure of having their PoC in safe hands. Their idea is subjected to poor data, patent, and concept security.
For example, a multi-location medical facility approached a freelancer to build a remote patient monitoring software. They experienced a 5-month delay in software delivery. Moreover, they lost $100,000 in rework with no visibility across project timelines and code quality until critical anomalies reflected in thorough QA.
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A leading healthcare provider approached Clarion with a similar business requirement. Their aim was to gain better visibility into patient records, fast-track manual processes, enhance demand forecasting, and improve decision-making. We helped them achieve such overarching requirements with centralized data management and predictive real-time demand forecasting. Our solution increased patient engagement by 40 percent and reduced costs by 15 percent. |
One of the biggest challenges faced by businesses in the U.S. and worldwide is identifying a software development partner with the right technology competencies. It becomes overwhelming to make the correct choice when software vendors exaggerate their skillset but are unable to present a success story. Organizations are unable to find a technology partner with the industry-specific experience that suit their niche. They struggle to collaborate with a company that is proficient in delivering similar software products and applications that align with their business requirements.
For example, an online retail company partnered with a local software vendor to leverage AI for customer feedback analysis. Due to the lack of AI expertise, the company was provided with an unstable solution and delayed delivery. This increased overhead costs by 25 percent.
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Clarion helped a US-based retail brand with AI-based sentiment analysis for customer feedback. Our AI industry experts implemented NLP and sentiment analysis models to get valuable insights for improving customer service, product innovation, and targeted marketing. The solution maximized ROI by 20 percent, increased customer satisfaction rate by 15 percent, and improved product success rate by 10 percent. |
Many IT outsourcing firms commit to deliver on-demand software development talent. However, when the time comes to start the project, they need at least 2 - 10 weeks to bring the right professionals onboard. Moreover, they take 4 - 12 weeks to ramp up/down the desired resources. This puts the project success at risk with delayed deliveries.
A trusted IT outsourcing company, such as Clarion can help businesses in North America and globally with a 98 percent project success rate. Organizations can hire pre-vetted developers and start the project in just 1 day - 2 weeks. This will help them improve their NPS and CSAT scores.
Now that you know the pain points of businesses, it’s time to understand how to choose the right IT outsourcing company in 2025 and beyond. Here are 7 tried, tested, and impactful approaches to partner with a trusted offshore technology solutions provider.
According to Forbes, an American business magazine, 37 percent of IT-related tasks is the U.S. are managed by outsourcing partners. Researchers also state that the business process outsourcing market is about to reach a whopping $620 billion by 2032. To stand tall in this growing business landscape, organizations need to collaborate with a leading IT outsourcing company based on pre-defined business objectives and KPIs.
When choosing software development outsourcing companies for US businesses, IT decision-makers need to focus on what they want to achieve with this partnership. Collaborating with a top outsourcing partner, such as Clarion can prioritize business-focused KPIs like increased CSAT and NPS scores, agile software development, faster TAT, reduced defect rates, and improved app performance.
As per Deloitte, a multinational professional services company, 70 percent of businesses consider reduced costs as one of the key aspects that define their outsourcing strategy. Indeed, cost-effectiveness plays a major role in decision-making. However, identifying the best fit between the best outsourcing companies in 2025 requires moving beyond lower resource costs.
Today’s IT outsourcing partners deliver more than just affordability and reduced overheads. They are creating the right balance between cost-effectiveness, quality deliverables, and long-term business value. As such, businesses need to evaluate them on various scenarios. This will help them tap into revenue gains, opportunity cost realization, and higher business productivity.
Clarion has built a custom IT Outsourcing ROI Calculator for better evaluation of software development requirements. This advanced tool facilitates a data-backed analysis of the financial and strategic impact of an IT outsourcing approach. It helps CEOs, CTOs, and IT leaders make data-driven technology decisions. It provides ROI breakdown for IT outsourcing in just 30 seconds.
With Clarion’s IT Outsourcing ROI Calculator, businesses can compare the advantages of vEmployee™ delivery model against onsite full-time employees, onsite full-time contracted employees, outsourcing to Indian large IT firms, and outsourcing to low-cost regions.
One of the most significant best practices for selecting IT outsourcing partner is evaluating their capabilities in advancements like Agentic AI, GenAI, cloud, and other modern technologies. Businesses should focus on collaborating with an IT outsourcing company that is well-versed in DevOps automation, cloud-native architectures, custom full cycle software development solutions, and AI agents.
Clarion has become one of the preferred choices of North American companies outsourcing IT services from India. We help businesses hire AI experts for eCommerce, PropTech, Healthcare, InsurTech, FinTech, and other industries. These certified experts deliver personalized and cost-effective software products at scale.
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A renowned eCommerce company was facing difficulties with payment processing and supervision. They outsourced their requirements to Clarion. Our eCommerce AI experts helped them build a scalable RCM optimization solution using Python, AI, and ML. Our technology solution elevated payment success, enabled 98 percent accurate payment predictions, and ensured 40 percent faster payment processing. |
Focusing on India is the best approach to select an offshore IT outsourcing partner for software development in the U.S. According to eSparkbiz, a leading software development solution provider, 59 percent of businesses are outsourcing their IT requirements in India. Another report by Forbes suggests that 300,000 jobs from the U.S. are outsourced to other potential countries like India.
A major reason to support this approach is the ‘Notice Period’. The U.S. doesn’t enforce a particular notice period for employees. Indeed, there are certain job roles that may be subjected to pre-defined contracts or policies. But there isn’t any standardized or average notice period. This leads to sudden departures that negatively impact the ongoing support.
On the flip side, companies in India legalize an average notice period of 1 - 3 months. This provides an essential dependency on the outsourcing partner to deliver without delays. As a business owner in the U.S., some other reasons to invest in software outsourcing companies in India include 30 percent lower resource cost, vast and easily accessible talent pool, better ROI, and improved scalability.
In 2025, business stakeholders should not only focus on ‘What to Prioritize’ but also be mindful about ‘What to Avoid When Choosing IT Outsourcing Company.’ CPOs and IT leaders need to take the necessary steps to eliminate misaligned business requirements, unrealistic deadlines, lean technology investments, and massive miscommunication. They need to identify and resolve potential technology loopholes, skills gap, data leakages, business limitations, and cost constraints without compromising quality.
US-based companies outsourcing IT services in India should always look for technology partners offering support for a 2 to 4-week pilot project. Businesses can request a risk-free trial to evaluate technology and business competencies. For instance, a pilot project of designing a simple Power BI dashboard can outline the UI/UX capabilities of the chosen IT outsourcing company. This approach can reduce potential vendor-switching risks by 50 percent.
Clarion provides a 2-week risk-free trail to help companies better understand and evaluate their PoC. We help business in the U.S. and worldwide gain valuable insights into our capabilities, processes, delivery approach, and expertise before making an investment.
Another best practice to choose the top outsourcing partner is understanding how they comply with essential security and compliance standards. Business owners need to collaborate with a technology solutions provider that conforms to key regulations like ISO/IEC 27001, SOC 2 Type II, GDPR, and HIPAA.
IT leaders need to join forces with an IT outsourcing company specializing in end-to-end data encryption, data security, IT infrastructure, robust authentication, and incident response mechanisms. For example, partnering with a software vendor backed by exceptional DevSecOps capabilities can decrease potential anomalies by 45 percent.
As a CEO, CTO, or IT decision-maker, it’s essential to partner with the right IT outsourcing company to enable value beyond costs. Clarion is one of the top outsourcing companies committed to helping their esteemed global clients create technology breakthroughs with state-of-the-art software development services. Our vEmployee delivery model helps businesses build their own extended offshore development team with custom selection, rapid onboarding, and seamless new hire integration.
Global and North American companies outsourcing IT services from India can partner with Clarion to experience various advantages, such as:
A leading technology partner with more than two decades of experience in software development outsourcing for U.S. businesses in India, Clarion is well-versed with cloud and AI capabilities, business nuances, and industry trends. We have been creating success stories for organizations across various industries, including Healthcare, PropTech, InsurTech, eCommerce, FinTech, and SCM. Our technology experts provide 360-degree assistance from requirement gathering and solution development to QA and post-deployment support.