Outsourcing software development is an efficient method for benefitting from the talent of highly skilled engineers without going through the process of hiring them and taking responsibility for them as employees.

Outsourcing has become a normal part of life and a business seen across all sectors and industries. With the advances of the Internet and globalization, outsourcing software development is something that any individual or business is capable of, but the challenges facing this development is the ability to know the right destination to outsource software development.

ITOP is here to help eliminate the challenges, and we have compiled in our series lists of places to outsource software development. This particular post will be looking at Indonesia.


Advantages of Software Outsourcing to Indonesia:

Indonesia is an enticing multinational outsourcing destination and has the largest economy in South East Asia. It ranks among the top ten largest economies in the world in terms of purchasing power parity and is one of the 20 richest economies with a 79% contribution to the global economy.

Today, Indonesia is one of the leading countries in the business of process-outsourcing and emerging outsourcing destinations for IT services such as web design, mobile application development, and software maintenance.

Here are some competitive outsourcing factors to make it worthwhile to outsource software development services, especially in Indonesia – these are well proven by ITOP management and have made ITOP be in the right position to provide the best resources or introduce clients to vetted companies in Indonesia.

  • Improved Software Development Quality.
  • People Skills and Workforce Availability.
  • Open to feedbacks.
  • Shorter Time to Market.
  • Short Milestones for Faster Delivery.
  • Transparent Billing.
  • Low Labor Cost: Companies with labor-intensive activities have a greater chance of achieving a higher profit margin and reducing overall operating costs if they chose to outsource manufacturing processes to countries with cost-effective human capital such as Indonesia.
  • Digital Resonance: This refers to the country’s digital transformation level that is likely to include services within the business process outsourcing (BPO), information technology (IT), and voice services sectors.
  • Business-Friendly Outsourcing Requirements: To attract foreign investment in the outsourcing sector, the Indonesian Government amended its Investment Law 2007 to ensure fair treatment of foreign and domestic investors.


However, outsourcing to Indonesia has some entrepreneurial challenges, which are:

  • Poor Outsourcing Skills: There is no space for growth and expansion, particularly when there is such a limited workforce capable of performing critical tasks and core competencies required to support most global enterprises’ overall objectives.
  • Vulnerability to Cybercrimes: To make it even more complicated for Indonesia, there is a lack of a clear legal framework for personal data security. This has contributed to the abuse of citizens’ data and quick access to customer personal data on digital platforms.



Indonesians have the potential to become a significant global outsourcing player. However, it must first address some considerable issues such as cybersecurity and education. ITOP software outsourcing company, however, helps to consider clients’ specific requirements and the degree of comfort with the deficiencies addressed before proposing or entering into an agreement with a local outsourced service provider in the country.

ITOP expert’s consultation on effective IT outsourcing strategy and in-depth capability assessment report eases the providers and resources selection process. They connect clients to the right software development companies and manage software development outsourcing companies’ selection process.

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