Outsourcing Embedded Software Development:
Is It for You?

Jeffery Thompson
Innovative Leader in Custom Software Solutions: Jeffery Thompson, Founder of BIT Studios
Software Development
11 min read
Published: Oct 20, 2022
Updated: Feb 6, 2023
Outsourcing Embedded Software Development

In 2020, the embedded software market reached $13.5 billion. By 2027, that figure will grow to $21.5 billion.

An $8B growth in just seven years is a big deal. No wonder more and more businesses are relying on embedded software outsourcing.

In today’s post, we’ll explore the meaning of embedded software. We’ll also discuss the benefits of embedded software outsourcing. Then you can decide if it’s for you or not.

What Exactly Is Embedded Software?

Embedded Software

Let’s start with the basic definition of embedded software first. 

It is any specialized program that runs on specific hardware. Its purpose is to execute a task in the physical world over and over again.

What Makes Embedded Software Unique?

This physical aspect is what makes embedded software unique. Its design always includes interaction with the physical world. 

Embedded software is not the same as application software. One notable difference is that apps usually run on an operating system. That OS is separately installed on a device. 

As for embedded software, they often serve as the device’s OS. Thus, you embed them on the hardware, as opposed to installing them as an app on a device’s OS.

Great, we now know what embedded software is. This time, let’s discuss the meaning of embedded software outsourcing.

Embedded Software Outsourcing Defined

It is a service offered by various embedded software outsourcing companies. It means they’re developing embedded software for another company.

Of course, not all companies will choose embedded software outsourcing. Those that did must have done it for various reasons. 

So why should you have a third party take care of developing embedded solutions for you? That’s what we’re going to tackle next.

Why Go for Embedded Software Development Outsourcing?

Why Go for Embedded Software Development Outsourcing

There are many reasons why you should choose embedded software development outsourcing. Let’s discuss them one by one.

You Don’t Have an In-House Development Team

Not all companies can afford to assemble an in-house development team. 

Software talent, after all, costs money and resources. Not to mention the time required to do recruitment efforts.

With embedded software outsourcing, you don’t need to do it in-house. You can hire an agency to handle the embedded software development for you. 

You Only Need Embedded Software Development Services for a Limited Time

Let’s discuss a specific scenario. You’re a startup with limited resources. But you’re building a product that needs embedded software on its hardware. 

It makes super sense for you to go for embedded software outsourcing. 

For one, you can enjoy more flexibility. You hire embedded software developers when you need to. After launching your product, you can just stop the engagement.  

You’re in Need of Firmware Expertise

Firmware development happens to be a specialized skill. And not all companies can field their own in-house firmware experts. So what are your options if you need firmware expertise?   

Embedded software outsourcing to the rescue! Leverage the skills of experienced firmware developers to bring your project to life.

You Want Embedded Software Security You Can Trust

There is one more reason you should go for embedded software outsourcing. And it has something to do with security.  

Like any other program, embedded software can fall prey to hackers. So it’s more vital than ever to value security for embedded systems.

But here is some good news. Embedded software outsourcing providers usually adopt structured security policies. They need to if they want to survive as an outsourcing partner. 

Moreover, their embedded software engineers are familiar with security protocols too. You can hit two birds with one stone then. You get security in policy as well as in practice.

Benefits of Embedded Software Development Outsourcing

Benefits of Embedded Software Development Outsourcing

Embedded software outsourcing can provide many benefits for businesses. They include the following advantages below.

Cost-Effective Embedded Software Solutions

You’re paying only for the embedded software development services rendered. You don’t have to worry about overhead, equipment, or recruitment costs.

Also, you can do away with extensive training. Embedded software engineers can get up to speed with minimal training. Insert them into your project and they should be good to go.

Faster Firmware Development

Your embedded software outsourcing partner can focus on your firmware project. 

Meanwhile, your team can concentrate on other important things. Let your partner do their job while you look after your business.

Remember that embedded software developers are the best at what they do. Let their expertise get your project up and running in no time.

Access to Better Technical Skills

Recruiting top talents in embedded software development isn’t easy. It’s a highly competitive field. So hiring one may prove tricky.

Enter your software development outsourcing partner. Odds are: They already have access to elite technical skills. If not, they sure would know how to find the skill set your project needs.

Compliance and Security Standards

Ensure the security of your embedded software. Find a software development company with experience in upholding security standards. 

Better yet, partner with an agency with an excellent HIPAA compliance track record. It also won’t hurt if they have ISO certification.


You can easily shift the size and structure of your development team. Thanks to a partnership with a software development outsourcing company.

Yes, you might encounter changing business goals or needs in the future. With an outsourcing partner, though, you get more flexibility in handling expanded requirements.

What To Pay Attention to When Picking an Outsourced Embedded Software Development Team

What to Pay Attention to When Picking an Outsourced Embedded Software Development Team?

Be strategic in choosing your embedded software outsourcing company. Attention to detail is always needed. So exactly which details should you pay attention to? They are:

Technical Skills of Embedded Software Developers

Find out if their embedded software engineers have the necessary skills. 

We’re talking, of course, about programming languages for firmware. These include C++, C, and Assembly, to name a few.

Strategies in Embedded Software Services

Ask about their planning process. Then inquire about their quality assurance (QA) procedures. How well do they execute the SDLC for embedded software?

Past Projects in Embedded Software

Look into their track record. Browse their portfolio and look for previous embedded software projects. Then read feedback from past clients via Clutch or GoodFirms.

Fundamental Rules of Outsourcing Embedded Software Projects

Fundamental Rules of Outsourcing Embedded Software Projects

Not all companies outsource embedded software to a partner. But if you do, make sure you follow these five rules.

1. Review Your Partner’s Experience and Expertise

Have they had experience working with consumer products? Or are they experts in industrial automation only? How many years have they been doing firmware and hardware development?

A background check never hurts. But it can be crucial in determining if your partner can indeed deliver the goods. 

The little things can matter too. Yes, they can promise innovative solutions for your business. But can they provide technical support when it’s needed?

2. Determine the Technical Stack Ahead

Your developers should be familiar with the tech stack your project needs. 

Prior experience with real-time operating systems (RTOS) is definitely a plus. So is knowledge in general purpose OS.

Yes, skill in C or C++ programming languages is a given. But they should know how to work with data structures and control systems as well.

3. Go for Software Developers Who Know How Hardware Works

Embedded software development is all about leveraging hardware capabilities. So pick developers who are as comfy working with hardware as they are with the software. 

They are gonna navigate things like data processing, storage capacity, or memory size. So make sure they’re not good with coding only.

4. Leverage Agile To Be More Efficient

Agile is all about speeding up the product development lifecycle. It makes super sense, of course. Longer cycles tend to invite burnout, delays, and quality issues.

So ask your partner about their product development services. Are they making the most out of the Agile approach in software outsourcing? Do they value efficiency in their process?

5. Embrace Flexibility

Hire embedded software engineers who are flexible. Wait — what does flexibility mean in embedded software outsourcing?

It means they can be adaptable, especially when dealing with sudden changes. 

Of course, experience helps a lot. If they know their event-driven systems and architecture concepts, they’ll be okay.

Why Outsource Embedded Software Development Services to BIT Studios?

Why Outsource Embedded Software Development Services to BIT Studios?

We offer a wide range of embedded software services. 

We can provide embedded software development as a separate service. Or we can include it in our custom software development offering.

But why should you outsource embedded software development services to BIT Studios? We give you several reasons:

Our Extensive Experience

It ensures that we can solve any issue and find innovative solutions for your needs.

Our Diverse Expertise

Our team consists of skilled onshore and offshore developers. We deliver quality embedded software that helps you achieve your business goals. 

Our Unique Process

We pioneered a UX-first rapid prototyping process. It’s an approach that guarantees efficiency and reduces risks.

Are you looking for embedded software development services? Contact us today.


Embedded software outsourcing is as in-demand as ever. More and more businesses are choosing it because of the benefits it offers.

It is cost-effective. It speeds up firmware development. You can hire better firmware developers too through an embedded software partner. 

You get better security too. Lastly, it gives you scalability.

However, choosing an embedded software development partner is not easy. But if you follow best practices, you can forge a fruitful partnership.

Do you want to learn more about embedded software outsourcing? Talk to us today. We would be happy to help you.

Embedded Software Outsourcing Services FAQs

How Will My Embedded Development Partner Ensure Smooth Communication?

Your partner can ensure smooth communication by setting up clear channels for interaction.

For instance, interaction shouldn’t be limited to email exchanges only. It should also include scheduled meetings with agendas sent in advance.

To boost communication, your partner can also leverage tools. One great example is the use of project management platforms like Asana or JIRA.

You can also take advantage of messaging apps. They include popular options like Slack or Skype.

Should I Be Concerned About My IP Rights When Outsourcing Embedded Development?

It’s wise to take caution when partnering with any company. Even if it’s an embedded software development company. 

But there’s some good news when it comes to intellectual property (IP) rights. Contracts should provide you protection by the law. Also, non-disclosure agreements (NDAs) serve as an extra shield. 

Do you still want some extra peace of mind? Then choose a partner that is ISO-certified.

What Makes Outsourcing Embedded Software Development Popular?

Outsourcing embedded software development is popular for several reasons. First, it’s a cost-effective solution. It’s cheaper than forming an in-house firmware team. 

Another reason is that it offers flexibility. You don’t have to keep your embedded software team forever. When the project is over, the engagement is over. 

Embedded software development also remains an exciting field. It now incorporates machine learning, AI, and other tech.

How Do You Find the Right Embedded Software Outsourcing Company?

There are many embedded software outsourcing companies out there. But to ensure smooth development, you need to choose with care. 

Look into the company’s track record. Study past projects in embedded software development. The more diverse the portfolio. the better. 

Then review the company’s technical skills. Their skill set should fit with the tech stack for your project. Interview the potential candidates. 

Ask them about their process. Is it efficient or cost-effective? 

Explore their thoughts about dealing with changes. A good partner should be adaptable.

What is mobile app outsourcing?

Mobile app outsourcing is the process of contacting an outside company to develop a mobile app. This is often done when a business or a company does not have enough experience or mobile app development tools and other resources to create the app.

Originally published October 20, 2022, updated February 6, 2023

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