Teravision | Fintech Development Outsourcing Guide for 2025

For the longest time, Fintech has been evolving into one of the most promising market segments within technology as a whole. Back in 2020, there were only around 9.000 fintech companies in the United States. Now in 2024, that number has skyrocketed to over 13.000. The global IT services outsourcing market was estimated to generate around USD542 billion in revenue by the end of 2024, and with an expected yearly growth of over 8%, by 2029, custom software development outsourcing will be generating over USD 800 billion in revenue. It’s clear why, with the promise and increase of demand in engineering professionals in fintech, fintech software outsourcing will become more important by the day. We’ve already covered some of the benefits of agile nearshoring and custom software development in previous articles, like this one. Here, we’ll be focusing on the ways nearshore software outsourcing can be implemented for fintech projects in particular.

The Three Verticals of Fintech Development Outsourcing

IT outsourcing is a flexible method of developing your next fintech project, offering different benefits for various parts of your business. Teravision Technologies’ main focus is custom software development, specifically agile nearshoring, working with various fintech companies over the years gave us an in depth understanding of the different processes that they outsource depending on their needs. Here, we list the common three.

#1 IT Outsourcing/Custom Software Development

Hiring a software development company is not exclusive to fintech, and can be hired for many different reasons. Just as a brief reminder, custom software development outsourcing is focused on providing technical services with the purpose of faster time-to-market, reduce costs and effectively use their technical budget. IT outsourcing can also be handled through different engagement models depending on the needs a project has. Some may prefer complete control over the talent incorporated through the hired software development company, so IT staff augmentation is used. Others prefer their dedicated teams to fully take charge of the project and tasks they are given. In more modern terms, ITO can source to implement cloud based technologies and other innovative technologies at reduced rates. AI and machine learning experts are also possible to find when hiring custom software development companies.

Pros and Cons for Fintech Outsourcing

Pros:

• Hire and capitalize on outside expertise more for your fintech projects.
• Efficient method to begin implementing cutting edge and innovative technologies. Cons:
• You might prefer to work with multiple custom software development teams, especially when those teams are more specialized.

2 Outsourced Product Development (OPD)

In the beginning, you might be thinking that product development and outsourcing custom software development is one and the same for fintech. Our experience and philosophy showed us that both are very different. Complimentary, but different. When we speak of outsourcing product development, we are expanding the scope of the responsibilities a firm has when hired for fintech outsourcing. Something that traditional custom software development would not cover if not included. This scope includes a client’s business objectives and goals, making sure the final product developed can fulfill what your business needs it to fulfill in the first place. This means that the process is more flexible and crafted to fluctuate alongside the requirements a project needs. How does a custom software development company put those requirements into practice? These are usually accompanied by in depth QA and UX/UI development for your project. Results can also include scalable architecture for your project, alongside user research and technical consultations.

Pros and Cons for Fintech Outsourcing

Pros:

• Business-centric Aligns the custom software development process with the business goals and objectives of a client.
• Fully Responsible for Results The project manager is fully in charge and owns the product development process. From organizing the sprints when agile nearshoring, or coordinating the daily meetings.
• Specialty Expertise. Hiring a software development company for their expertise ensures the software solutions provided are being recommended by fully experienced developers that can provide the best value
• Flexible Approach/Adaptable to Change. Nothing is set in stone. Business needs can change when new insights are introduced to the software development process. These companies are adept at adjusting to changes, and employing cost-effective methods for idea validation. After evaluating what works and what doesn’t, development changes in accordance to the results. Cons:
• Requires an extensive amount of communication to prevent losing track of the project’s progress.

3 Outsourcing your Business Process

This type of outsourcing, considering our expertise, is the one we have the least experience in. However, it remains a potential need for many companies in the fintech market today. Business Process Outsourcing involves outsourcing your more administrative and business oriented tasks to an external team. These activities include customer service, marketing, accounting, among other services.

Pros and Cons for Fintech Outsourcing

Pros:

• Accelerated market entry. Outsourcing business processes can significantly speed up the time-to-market for new projects.
• Resource optimization. Make more effective use of internal resources by having them concentrate on core business activities, leaving other tasks to external teams. Cons:
• Security risks given more complicated communications between internal and external teams.

Start Fintech Development Outsourcing with Teravision Technologies

Teravision Technologies worked with many fintech companies, offering them fintech software outsourcing services for over 20 years. From regular nearshore software development services, to in depth product development services, we’ve helped build projects for fortune 500 companies and we’d like to help you build yours. he niche specialists can help you achieve better results in the selected field.