The US faces a shortage of skilled software developers and retention issues in the software development industry. A report by the US Bureau of Labor Statistics shows that the employment rate in computer and information technology jobs is projected to grow at a rate of 11% from 2019 to 2029, which is faster than the average for all occupations. This increase in demand for software developers is likely to worsen the current skills shortage in the US. As a result, many US-based companies have turned to outsourcing software development to the Philippines as a solution to this problem. However, outsourcing has its own set of challenges that companies must consider.

Issues of Outsourcing Software Development 

IP Risk

When outsourcing software development to any region, it’s important for businesses to carefully consider the protection of their intellectual property. While IP theft can occur in any region, it’s important to take steps to ensure that proper safeguards are in place to protect sensitive information and assets. It’s a known fact that some regions have a history of IP theft, which can pose a significant threat to businesses that outsource their software development to these areas.


CloudApper AI provides an enterprise-grade platform that allows companies to find quality and customizable software in a matter of time. 



CloudApper AI’s automated software development process eliminates the need for human developers, minimizing the risk of intellectual property theft. CloudApper AI provides a secure private cloud platform for software development. CloudApper’s platform can run on private clouds like AWS and Azure, ensuring the highest security level for the software development process. Moreover, CloudApper AI offers legal protection under USDA. 

Poor Quality of Service

Outsourcing software development may present challenges in terms of ensuring a high level of quality of service. Factors such as the availability of skilled developers and effective project management can impact the outcome of the project and have a significant impact on the company’s bottom line. It is important for companies to carefully assess the capabilities of their outsourcing partners and establish clear expectations to achieve the desired results.

CloudApper AI’s automated software development process ensures that the software is developed error-free, meeting high-quality standards. Our platform also allows for highly customizable software tailored to meet your organization’s specific needs. This means that you will receive enterprise-grade software that is not readily available in your local market. Additionally, our turnkey DevOps service ensures that the software is maintained, updated, and supported, reducing the risk of service disruptions.

Communication Problems

Outsourcing software development to foreign countries can result in communication problems, with language barriers and cultural differences being some of the biggest challenges. These issues can lead to misunderstandings, delays, and project failures. A survey conducted by Deloitte found that communication challenges were among the top obstacles faced by companies when outsourcing. The survey revealed that 58% of respondents considered communication difficulties a significant challenge in outsourcing relationships.


Developer shortage drives companies to outsource software development. CloudApper AI resolves the issue with its automated platform that generates enterprise-grade software, avoiding the need for human developers.


CloudApper AI’s team is made up of experts across five time zones, ensuring that communication is seamless and technical support is available 24/7. Our team also speaks multiple languages, reducing the risk of misunderstandings due to language barriers. Additionally, our turnkey DevOps service ensures that any issues are quickly addressed, reducing the risk of service disruptions due to communication problems.

Last Words 

Outsourcing software development can be a cost-effective solution for businesses looking to fill the shortage of skilled software developers. However, it comes with its own set of challenges. Companies must be aware of these risks and take measures to minimize them. CloudApper AI offers a comprehensive solution that eliminates these risks and challenges. Our automated software development process ensures that the software is developed error-free, meeting high-quality standards, and our secured private cloud platform provides legal protection under USDA. Visit CloudApper AI to learn more about our platform and how we can help your organization with your software development needs.

What is CloudApper AI Platform?

CloudApper AI is an advanced platform that enables organizations to integrate AI into their existing enterprise systems effortlessly, without the need for technical expertise, costly development, or upgrading the underlying infrastructure. By transforming legacy systems into AI-capable solutions, CloudApper allows companies to harness the power of Generative AI quickly and efficiently. This approach has been successfully implemented with leading systems like UKG, Workday, Oracle, Paradox, Amazon AWS Bedrock and can be applied across various industries, helping businesses enhance productivity, automate processes, and gain deeper insights without the usual complexities. With CloudApper AI, you can start experiencing the transformative benefits of AI today. Learn More