Outsourcing involves hiring external parties to handle specific tasks, functions, or services that a company typically performs in-house. The main benefits include cost savings, access to specialized skills, scalability, and freeing up internal resources for core activities. This approach can be particularly effective for functions like IT support, customer service, accounting, and even research and development.Outsourcing in software development has become a strategic choice for many companies aiming to boost productivity, tap into global talent, reduce costs, and accelerate project timelines. This approach allows organizations to partner with third-party developers or firms to handle various aspects of the software development process, from coding and testing to maintenance and support.

In the context of application modernization, outsourcing can bring expertise in newer technologies (such as cloud, DevOps, and microservices) and help reduce the risks associated with migrating legacy systems. For instance, companies may outsource parts of their modernization efforts to external specialists with experience in re-architecting, refactoring, or re-platforming applications, enabling them to focus on strategic priorities while experts handle the complexities of the upgrade