Selective Outsourcing of IT Functions - a new trend in business outsourcing

Published on: March 19, 2021
Last updated: November 25, 2022 Read in fullscreen view

Recommended for you

18 Oct 2020 How to use the "Knowns" and "Unknowns" technique to manage assumptions 165/1259
05 Mar 2026 Top 7 Full-Cycle Web App Development Companies for Your Business in 2026 165/215
17 Mar 2026 How Much Does it Cost to Build an AI Agent in 2026 161/230
08 Oct 2024 Vietnam: The Rising Star in Global Outsourcing – Trends and Costs for 2025 153/516
11 Mar 2026 OEM, ODM, and OBM in Software Development: Choosing the Right Growth Path 141/167
07 Jul 2024 Top Fintech Companies in Vietnam Driving Innovation Across Digital Banking & Investment 141/275
12 May 2021 The Real Cost Between Outsourcing IT vs In-House: A Quick Comparison 133/579
17 Mar 2026 Top 10 Product Development Companies in Chennai 2026 (Updated) 131/148
16 Oct 2024 Building a Software Outsourcing Startup: Strategy Through Two Canvases 128/168
02 Feb 2026 What Is the Total Cost of Web Development for Small & Medium Businesses? 126/159
16 Feb 2026 Education App Development Cost in 2026: Benchmarks and Key Cost Drivers 126/184
06 Nov 2023 How do you streamline requirement analysis and modeling? 125/362
10 Mar 2021 The 7 Biggest Mistakes to Avoid Before Outsourcing a Web Development Project 124/357
23 Sep 2021 INFOGRAPHIC: Top 9 Software Outsourcing Mistakes 123/546
06 Feb 2026 How Much Does a CPA Cost for a Small Business? 122/145
11 Mar 2024 Why You Should Hire Odoo Developers from Vietnam to Customize Your ERP System 122/228
21 Aug 2025 Top 30 Oldest IT Outsourcing Companies in Vietnam 120/225
11 Jan 2024 What are the Benefits and Limitations of Augmented Intelligence? 119/605
18 Aug 2022 What are the consequences of poor requirements with software development projects? 119/387
01 Jan 2023 Top Software Development Challenges in 2023 118/437
20 Jan 2021 Fail early, fail often, fail cheap, fail safe but always fail forward 118/933
13 Dec 2020 Move fast, fail fast, fail-safe 118/458
05 Aug 2025 Why Doesn’t South Korea Outsource Its IT Projects Like Other Developed Countries? 118/223
05 Jan 2022 What Outsourcing Engagement Model is Right For You? 116/428
06 Feb 2021 Why fail fast and learn fast? 114/590
01 Oct 2020 Fail fast, learn faster with Agile methodology 113/1187
10 Jan 2024 Facts Chart: Reasons for outsourcing 113/268
19 Oct 2020 The hidden costs of outsourcing software development 107/575
02 Nov 2021 [Case Study] Streamlined Data Reporting using Tableau 107/410
01 Mar 2022 Top 5 reasons why outsourcing to Vietnam is a smart move 106/391
21 Oct 2021 Advantages and Disadvantages of IT Outsourcing 103/459
11 Nov 2021 What is an IT Self-service Portal? Why is it Important to Your Business? 102/549
01 Jan 2023 4 New IT Outsourcing Pricing Models to consider in 2023 102/477
14 Mar 2024 Why should you opt for software localization from a professional agency? 102/241
09 Sep 2022 Close Collaboration and Communication Can Overcome the Challenges of Distributed Teams 101/308
24 Nov 2025 Top Blockchain Companies in Vietnam 100/145
10 May 2021 What are things you should look for in a good IT outsourcing company? 99/544
31 Oct 2025 The True ROI of Software Development Outsourcing for Tech Startups 98/178
03 Dec 2025 IT Outsourcing Solutions Explained: What, How, Why, When 97/129
24 Nov 2021 What is the Actual Cost of Hiring Cheap Developers? 96/492
14 Oct 2021 Advantages and Disadvantages of Time and Material Contract (T&M) 95/988
01 Sep 2019 Outsourcing Software To Vietnam: Facts, benefits and limitations 93/554
01 Jan 2023 Software Development Outsourcing Trends to Watch Out for in 2023 93/416
01 Jan 2024 What The World Is Flat Means to IT Outsourcing 91/259
01 Apr 2021 IT Outsourcing to vietnam: Why It Is A Good Choice? 90/388
28 Dec 2021 8 types of pricing models in software development outsourcing 89/523
15 Aug 2021 TIGO Rate Formula - Things the partners should know 88/618
01 Jan 2023 Top 5 IT outsourcing countries in 2023 88/363
08 Oct 2022 KPI - The New Leadership 87/695
13 Jan 2023 What are the Hourly Rates in Offshore Software Development? 86/327
12 Jan 2023 Top 10 Trustworthy IT Outsourcing Companies in Vietnam 85/367
16 Dec 2021 Why outsource Python development of your project? 85/583
15 Oct 2022 Project-based team model for one-off and pilot software development projects 85/912
13 Oct 2021 Why Outsourcing Software Development Services Is Gaining Traction With Non-Technical Leaders? 84/399
01 Jan 2024 The pros and cons of the Centralized Enterprise Automation Operating model 83/307
10 Nov 2022 Poor Code Indicators and How to Improve Your Code? 82/299
14 Dec 2021 The Top 10 Problems with Outsourcing Implementation and How to Solve Them 81/477
17 Jan 2024 What are the benefits and challenges of using multi-sourcing or single-sourcing strategies? 81/283
10 Dec 2023 Pain points of User Acceptance Testing (UAT) 80/539
03 Oct 2020 Outsourcing Your MVP Development - Streamlined Solutions for future 80/506
19 Oct 2021 Is gold plating good or bad in project management? 79/910
02 Dec 2022 Success Story: Satsuki - Sales Management Software, back office app for School Subscription Management 79/319
03 Apr 2021 How digital asset management streamlines your content workflow? 78/409
03 Jan 2023 IT Outsourcing Costs: Is outsourcing really cost-effective? 77/287
20 Jan 2022 TIGO Self-Organization Practice: Change Management Workflow 77/548
02 Nov 2023 What are the pros and cons of iIT outsourcing? 77/290
17 Feb 2022 Prioritizing Software Requirements with Kano Analysis 75/379
03 Sep 2022 The secret of software success: Simplicity is the ultimate sophistication 74/279
04 Apr 2024 Unlock Vietnamese-Japanese outsourcing potential 74/308
03 Nov 2021 7 phases of Odoo Implementation and Development: Can they be outsourced? 73/497
03 Nov 2022 Top questions and answers you must know before ask for software outsourcing 73/358
19 Apr 2021 7 Most Common Time-Wasters For Software Development 72/617
04 Jan 2021 VIETNAM AS A BIG ATTRACTIVE DESTINATION IN THE FIELD OF OUTSOURCING 72/397
01 Jun 2025 10 Sustainable & Unique IT Outsourcing Companies in Vietnam 72/154
06 Oct 2021 Intellectual property issues with outsourcing software development 71/456
21 Aug 2022 Forbes: IT Outsourcing Hotspot: Vietnam, A Small But Mighty Powerhouse 70/325
02 May 2021 Outsourcing Software Development: Avoid 8 Mistakes 70/207
13 Feb 2021 Why is TIGOSOFT a software house for Enterprise Application Development? 70/450
22 Mar 2022 8 Mistakes Marketing Agencies or Consulting Firms Make When Outsourcing Web Development 70/415
12 Mar 2024 How do you create FOMO in software prospects? 70/243
01 Mar 2023 Bug Prioritization - What are the 5 levels of priority? 69/298
28 Oct 2022 Expect the unexpected in 2023 - How Outsourcing Can Help? 69/273
12 Oct 2021 Vietnam outsourcing path - the silk road connecting ASEAN with the developed countries (EU, US, Japan...) 69/410
09 Jan 2021 How can outsourcing enable business agility? 68/258
10 May 2021 Project Audit and Second Opinion Services 68/313
01 Jan 2024 Hiring Tech Talents in Asia: An Overview of Skills, Costs, and Potential 68/228
15 Nov 2023 IT Staff Augmentation Types and the Best Choice for Your Business 66/278
31 Oct 2021 Tips to Fail Fast With Outsourcing 66/457
17 Oct 2020 How Outsourcing can Improve Time Management for Better Business 66/364
02 Mar 2021 Estimate the Cost of Software Development 63/427
01 Oct 2022 Vietnam is a favorite supply of IT outsourcing services to Japan 63/299
11 Mar 2023 Common Pain Points in Software Development Outsourcing 62/326
01 Jan 2024 12 reasons for software development outsourcing 62/263
01 Jan 2024 Tech Partnerships: Choosing the Right Software Outsourcing Firm in Vietnam 61/233
01 May 2023 Streamline Your Business with Outsourcing 61/266
05 Jan 2024 Easy ASANA tips & tricks for you and your team 60/258
07 Nov 2024 Outsourcing Crisis Looming: Will Trump's Policies Transform the Global IT Landscape? 59/242
21 Jun 2021 6 Useful Tips To Streamline Business Processes and Workflows 59/590
08 Aug 2021 Why Nearshore Software Development is better than In-House Development? 59/254
16 Jun 2022 Rapid Application Development (RAD): Pros and Cons 57/939
01 Jan 2024 Software Outsourcing Questions for 2024 57/206
25 Sep 2025 A Practical Guide to Secure Online Work for Outsourced Teams 56/151
01 Jan 2023 Why is Vietnam the Top IT Outsourcing Destination of 2023? 56/297
08 Feb 2022 Software Development: Fixed Cost or Opportunity Cost? 53/514
26 Dec 2023 Improving Meeting Effectiveness Through the Six Thinking Hats 53/329
16 Mar 2021 Outsource Data Engineering Services - TIGO Streamlined Solutions 51/307
31 Dec 2021 Outsourcing Software Development to mitigate the impact of COVID-19 50/373
08 Jan 2024 Outsourcing on an As-Needed Basis 50/215
01 Feb 2023 [InfoWorld] Is your outsourcer agile enough? 49/242
21 Oct 2022 Outsourcing Billable Rate 46/315
25 Nov 2021 Low-Cost Software Development: Buy Nice or Buy Twice? 44/406
06 Nov 2019 How to Access Software Project Size? 42/299
03 Jun 2026 Enterprise Guide to Choosing the Right Enterprise Application Development Services 34/37

Any potential business idea or strategy once introduced, gains massive attention, owing to its success and creates huge market competition. Outsourcing is one such trend, which revolutionize the world’s business practices. Though the practice dates back to 1970 and was initially practiced in manufacturing industry, it soon established itself across all industrial segments. It has built better businesses and stronger economies. After Business Process outsourcing (BPO) and vertical outsourcing, the recent direction in outsourcing is selective outsourcing.

Read the white paper about outsourcing in here: Why Outsource Your Web Development and Top Mistakes to Avoid

Selective Outsourcing

Outsourcing only part of an activity or process and performing the rest in-house is selective outsourcing. Through selective outsourcing, organizations contract and outsource only critical activities /services while maintaining the overall control with them.

Different types of Outsourcing

As practice, companies opt for selective outsourcing, with outsourcing only selected modules or activities to supplier before reaching the long term agreement. This allows the investor to maintain the overall control of the activity and evaluate the supplier’s expertise.

Selective outsourcing over traditional outsourcing

With outsourcing, companies found a viable option of reducing their operational cost as its gives them freedom from investing in infrastructure, technology and at backend operation staff. Though outsourcing is a proven success mantra, companies are now getting more selective while deciding upon their outsourcing method. They are now hiring different outsourcing partners for different tasks based on supplier’s expertise. Some of the reasons for this choice are –

Traditional outsourcing results in loss of control and visibility of investor.
In traditional method, the company that outsource looses the in-house expertise.
With increasing competition, total outsourcing costs are high as compared while selective outsourcing has lower and predictable cost.
With selective outsourcing, companies have access to operational knowledge and ability to control the supplier.
Selective outsourcing offers flexibility to adapt and improve as per changing market and technological demands.
Selective outsourcing facilitates improved performance and creates lesser dependency on supplier.

Today, companies pay more premium on quality, customer satisfaction and market excellence which is promoting the growth of new ideas in outsourcing like outcome based outsourcing* and selective outsourcing.

Collaborate with TIGO Software Solutions

TIGO Software is a software outsourcing Development Company established in Vietnam with more than 10 years of experience. Collaborating with TIGO Software can bring you numerous opportunities for business growth. That is the reason many businesses have reached out to TIGO Software to get expert advice from software development to technology stack selection and project management, including overcoming communication barriers and the challenge of finding a technology partner to ensure the delivery of results as expected. Besides, TIGO Software also helps businesses with the management process of transferring knowledge and accountability to ensure project continuity and quality.

TIGO Software has years of experience working with clients from Europe and the United States and introducing the new offshore development team working alongside the existing in-house team.

TIGO Software can help you to access the large pool of IT talent in Asia and beyond, and our consulting services team will guide you through your outsourcing engagement, from beginning to end. Get in touch today!

Contact us for streamlining your business: info@tigosolutions.com

A A A A

[{"displaySettingInfo":"[{\"isFullLayout\":false,\"layoutWidthRatio\":\"\"}]"},{"articleSourceInfo":"[{\"sourceName\":\"\",\"sourceValue\":\"\"}]"},{"privacyInfo":"[{\"isOutsideVietnam\":false}]"},{"tocInfo":"[{\"isAutoNumbering\":false,\"isShowKeyHeadingWithIcon\":false}]"}]

Via

{content}