How Embedded Software Development Outsourcing Works – Guide for CTOs

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Steps to Successfully Outsource Embedded Software Development

Outsourcing embedded software development is a strategic move that allows companies to focus on core business aspects while leveraging external expertise in specialized technological solutions. As said Andrew Tanenbaum, author of Operating Systems: Design and Implementation, “Embedded systems are unique because they demand both the precision of hardware engineering and the creativity of software development”. For CTOs and technical leaders, understanding the mechanisms of outsourcing is key to making informed decisions that can support the long-term growth of the company. In this article, we will examine how embedded software development outsourcing works, its advantages, and what to consider when choosing the right partner.

What is Embedded Software?

Embedded software is a crucial component of modern devices, responsible for controlling their operation. From control systems in cars to medical devices and complex industrial machines, it determines how these devices function. It is estimated that in 2022 there were approximately 31 billion devices with embedded systems worldwide, and this number continues to grow with the expansion of IoT and the development of new technologies. This software operates within a precisely defined hardware environment, where reliability, efficiency, and precision in executing specific tasks are paramount. There’s no room for errors or delays—everything must work as intended to meet the requirements of the given system.

 

More about embedded software you can find out here:

Embedded Software

What Does Embedded Software Outsourcing in This Field Involve?

Why the game is worth the candle? Outsourcing embedded software and firmware development is a strategy that allows companies to tap into the expertise and experience of external specialists for creating, maintaining, and enhancing software tailored to specific devices. For IT companies, this means collaborating with experts who not only excel in the latest technologies but also have a deep understanding of hardware and software requirements. This approach enables businesses to quickly and efficiently implement advanced technological solutions, gaining a competitive edge in the market without the need to build such competencies in-house.

Outsource Embedded Software Development: Industry Expertise

  • Technological Expertise: It’s essential to verify whether the company has in-depth knowledge of the technologies that will be the backbone of your project. In the realm of embedded systems, skills such as programming in low-level languages (C, C++), proficiency in real-time operating systems (RTOS), and the ability to optimize software for limited hardware resources are often indispensable. These specific competencies can be the determining factor for the success of the project.
  • Project Portfolio: Reviewing the company’s previous projects can provide valuable insights. References and case studies can help assess whether the company has experience in working on projects within your industry—be it automation, healthcare, or IoT. This could be key to finding a partner who understands the unique challenges and needs of your field.

Processes and Methodology

  • Project Management: It’s needed to understand the approach the company takes to software project management. Do they work with Agile, Scrum, or perhaps more traditional methods? Aligning the methodology with your organization’s expectations and culture can significantly impact the effectiveness of collaboration.
  • Quality and Security Assurance: It’s important to examine the specific practices the company implements to ensure high software quality. Unit testing, test automation, and code inspections are just a few tools that can determine the project’s ultimate success.

Reliable Embedded Software Development Services: Costs and Financial Terms

  • Billing Model: It is important to choose a billing model that best suits the specifics of the project. The choice between an hourly rate, a fixed project price, or a performance-based model depends on the complexity, predictability, and scale of the project. It is also advisable to discuss financial safeguards, such as quality guarantees, penalties for delays or non-performance, and conditions related to any potential changes in the budget.
  • Cost Transparency: It’s advisable to request a detailed cost estimate that includes all project elements, such as development, testing, and integration, as well as support and maintenance costs. The payment schedule should be clearly defined, broken down into stages or milestones, which allows for better financial management and monitoring of project progress. Additionally, the ability to renegotiate terms in case of project changes, such as scope expansion or requirement adjustments, is vital.

Your Strenght: Flexibility and Scalability

  • Team Scalability: The software development company must have the capability to dynamically scale its team resources, particularly when the project expands or unexpected needs arise. The company must be able to maintain high work quality even with an increased team size and ensure that new team members are well-acquainted with the organizational culture and technical standards.
  • Flexibility in Approach: It is essential to evaluate how the company adapts to changing project requirements, such as sudden changes in specifications, the introduction of new technologies, or alterations in the scope of work or deadlines. Additionally, it is important to assess whether the company has experience in managing multiple concurrent project streams and how it handles the integration of work outputs from different teams, which can be critical for complex technological projects.

Embedded Development Outsourcing: Firstly Contracts and Legal Safeguards

  • IP and NDA Agreements: A well-constructed contract is not just a formality but a real protection for the company against losing control over key assets. Legal agreements regarding intellectual property (IP) and non-disclosure agreements (NDA) must be not only precisely drafted but also tailored to the specifics of the project. IP agreements should clearly define who will own the copyrights to the software or other products being created, as well as the terms for accessing the source code, its modification, and future use. Meanwhile, a well-prepared NDA secures all confidential information that may be disclosed during the collaboration, clearly defining what is protected and the consequences of any potential breaches of these terms.
  • Quality and Timeliness Clauses: To effectively manage the risks associated with project execution, contracts should include detailed clauses regarding quality and timeliness. Establishing clear quality standards that must be met, along with penalties for non-compliance, helps maintain a high level of project execution. In the event of delays, the contract should include punitive mechanisms that encourage timely delivery of work results. Additionally, the inclusion of flexible provisions that allow for adjustments to the schedule or scope of work in response to unforeseen changes helps maintain project discipline and protects against unexpected costs and delays. With such safeguards in place, the focus can remain on innovation rather than firefighting.

Long-Term Support and Maintenance of Outsourcing Partner

  • Post-Deployment Support: Bug fixes, regular software updates, and ongoing feature development should be clearly outlined in the agreement, with specific details regarding the scope and conditions of post-sales services. It’s also important to include mechanisms for system performance monitoring and optimization as it is used, which can be fundamental for the long-term success of the project.
  • Service Availability: Equally important is understanding how the company provides support in the event of critical issues. The agreement should include a Service Level Agreement (SLA) that defines standards for response times and issue resolution. It’s advisable to incorporate different levels of support tailored to the severity of the problem, such as 24/7 support for the most critical systems.

Ironclad Reputation

  • Market Opinion: Evaluating a company’s reputation in the market is fundamental to assessing its credibility and the quality of its services. Reviews and references from past and current clients can be found on platforms such as Clutch, Trustpilot, and G2, which specialize in gathering feedback about technology companies and service providers. LinkedIn is also a valuable resource where you can check recommendations directly from individuals who have worked with the company. Additionally, it’s worthwhile to look for opinions on Facebook, where authentic user experiences are often shared.
  • Financial Stability: Assessing a company’s financial stability is a key step in selecting a business partner. This can be evaluated by analyzing financial reports available in public registers, such as the National Court Register (KRS) and the National Debt Register. Additionally, services like Bisnode Polska (part of Dun & Bradstreet) offer detailed financial reports that provide insights into a company’s revenue growth history, debt ratios, and overall financial health.

Benefits of Embedded Software Development Outsourcing

Outsourcing embedded software projects and development offers numerous benefits to companies, especially in industries where technology and product innovation are critical. Here we’ve prepared an overview of the key advantages.

Accessing Development Partner ‘s Know-How and Experience

Software developers of embedded systems operate at the intersection of various technologies and architectures, often working in complex and demanding environments. Their development teams of specialists not only utilize advanced tools such as compilers, debuggers, simulators, emulators, and tools for code analysis and version control, but they are also proficient in key industry standards like MISRA, ISO 26262, and DO-178C. This expertise enables them to deliver software that not only meets stringent requirements but is also robust, error-resistant, and ready for the most critical applications.

Concentrating on Your Core Strengths

It should also be remembered that outsourcing software development to an external company allows an organization to save a significant amount of time, and it is well known that time is money. An external company, already equipped with proven processes, tools, and an experienced team, can deliver a ready-made solution more quickly, thus shortening the project timeline. These companies often employ Agile methodologies, which enable flexible project management, rapid iterations, and regular delivery of working software versions. As a result, the project can be executed at a pace and scale that would be difficult to achieve internally, especially in organizations where software development is not the core activity.

Moreover, external teams often have access to the latest tools and technologies, such as advanced CI/CD (Continuous Integration/Continuous Deployment) systems, test automation platforms, or modern code analysis tools, which can significantly enhance the efficiency of the software development process.

At the same time, by delegating such tasks, the organization can focus on its core business areas and activities that bring the most added value, rather than investing time and resources in developing skills outside of its core competencies. As in other fields, the Pareto principle applies here as well, which states that 20% of actions generate 80% of the results. So, is it worth spreading yourself too thin?

Steering Clear of Typical Errors and Complications

Embedded systems have specific hardware requirements, including limitations on memory, computational power, and energy consumption, making software development for such systems extremely challenging and requiring specialized expertise. The software must run efficiently on hardware with limited resources, necessitating meticulous planning of every aspect of the code. This means implementing algorithms with low memory demands and minimal energy consumption, which is important in battery-powered systems or those operating in harsh environmental conditions.

Additionally, embedded systems often function in critical environments, such as healthcare, automotive, or aviation, where failures can lead to serious consequences. Therefore, the software must be exceptionally reliable and secure. There is no room for errors, as any mistake can cost millions of dollars. It’s no surprise that advanced testing and verification methods are employed in embedded systems.

Furthermore, developers must ensure that the software is resilient to interference, hardware failures, and unforeseen operational situations. Redundant error control systems, automatic restart mechanisms, and other techniques are often used to enhance fault tolerance.

Eliminate the Hassle of Hard Integration

To develop embedded software, it must be designed to efficiently communicate with various hardware components and peripherals, which may be based on different communication standards, such as UART, I2C, or SPI. This requires developers to have a deep understanding of the technical specifications of each of these protocols, as well as the ability to optimize the code to ensure that communication is as efficient and reliable as possible.

For example, in an automotive system, the engine control unit (ECU) may communicate with other units via the CAN protocol, which demands low latency and high reliability. On the other hand, in an IoT system where devices communicate wirelessly, it is essential to ensure security and minimize power consumption, which presents additional challenges.

Moreover, embedded systems often need to support various hardware interfaces, such as GPIO, PWM, ADC, DAC, requiring additional knowledge of the capabilities and limitations of these interfaces. Developers also need to ensure that the software is scalable and flexible, so that new devices can be easily integrated, or existing connections updated, without making significant changes to the entire system.

InTechHouse – Outsource Embedded Software Development Services to Professional

Choosing InTechHouse is a decision that combines proven expertise with tangible results. For over 15 years, we have been delivering top-tier embedded solutions. With more than 250 completed projects under our belt—ranging from smart IoT devices to advanced medical and automotive systems—our experience translates into real value for your business.

InTechHouse comprises over 200 specialists, including software engineers who approach technological challenges with passion. You won’t find any cookie-cutter solutions here—each project is a unique solution tailored to the specific needs of the client. As for project timelines? By efficiently managing resources, we deliver projects within a 3 to 6-month window—quickly, but without compromising on quality.

Our high standards, backed by ISO 9001 and ISO 13485 certifications, give you confidence that the product will meet even the most stringent requirements, especially in industries where there is no room for error. It’s not just about technology, but also about reliability and safety.

InTechHouse is also a solid hardware development company, collaborating with global leaders in the technology market. With over 100 satisfied clients worldwide and an annual revenue growth of 20-25%, it’s clear that we not only deliver solutions but are also constantly evolving.

By choosing InTechHouse, you are opting for a team that combines experience with innovation, professionalism with creativity—all within a partnership that brings real benefits. For us, the choice is simple—InTechHouse!

FAQ

Is outsourcing embedded software development safe?

Yes, provided that you choose the right embedded software outsourcing company. It is important to select a company with industry experience that follows best practices in security, such as NDA agreements, data protection measures, and quality management systems.

Can I maintain control over the project during outsourcing?

Yes, it is significant to establish clear communication channels, regular progress reviews, and defined goals. This allows the contracting company to maintain full control over the direction of the project’s development.

Is outsourcing embedded software development suitable for every company?

Outsourcing can be beneficial for companies of any size, but the decision to implement it should be based on an analysis of needs, internal capabilities, and available resources. Outsourcing often allows for cost reduction, especially compared to building a full-time internal team.

What does a typical collaboration process with an external company for embedded software development look like?

The process usually involves stages such as requirement analysis, system architecture design, implementation, testing, deployment, and post-deployment support. Regular communication and progress reviews are essential at every stage.