Why should you not stop? Software development in the time of economic slowdown

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Could anyone ever expect that the world would come to a standstill for several months? No one did. With countries easing lockdown restrictions, the pandemic has hit the global economy hard. Businesses must now adjust to the COVID-19 world. Navigating new challenges requires a focus on protecting employees and increasing flexibility. This means slashing capital expenditures and fixed costs wherever possible.

A recent PwC study found that over 80% of CFOs plan to reduce costs, and almost 60% will cancel or defer planned investments. Scrutinising tech spending has landed on the to-do list of over half of them. 

Can you afford to scale down software development efforts? The answer is No. Your competition could be taking advantage of this pandemic and are ramping up.

Brace yourself for what comes after

The current situation is fraught with uncertainty. Financial markets have plummeted, and many production lines have closed; even tech projects have suffered from cost-cutting. There’s nothing surprising about it. Facing uncharted waters, businesses are striving to reduce expenses as they navigate the slowdown. They are focusing on the here and now–securing cash flow to survive. Recruitment processes have freezed, budgets slashed, and investments postponed.

Software development during economic slowdown

We’re observing companies reshaping operations to align with evolving demand. Covid-19 has jeopardised the bottom line. Innovations will be key to staying ahead post-pandemic.

Accenture predicts, economies will never return to pre-COVID levels. The role of technology will be crucial if you want to stay competitive, yet, companies are deciding to suspend software development projects. What brings immediate relief – savings – will prove harmful in the long-term. By postponing software development, products will only stagnate and recede over time. If you compound that with the crisis, it will aggravate the post-COVID recovery.

Instead of slashing software development projects, look for agile methods to push them through amidst the crisis. Outsourcing software development can be a great tool, especially in this time of uncertainty. Check this post to learn how to find and choose a technology partner (and why Poland is a particularly good area to look for one ?

Below are five reasons why a reliable IT outsourcing company can support your preparations for the upcoming post-pandemic challenges and opportunities.

5 reasons to outsource projects in the time of crisis


Hire a team and get the job done without adding new heads to payroll and increasing fixed costs. No need to invest in capital expenditures such as workstations – your technology partner takes that responsibility.


A dependable nearshoring partner guarantees that you get work done affordably, without compromising quality. By partnering with a technology outsourcing company from the EU, you are always close: not only in terms of the time zones, but also culture, language, and standards.


Get access to experienced engineers with the exact skill set your business needs, no matter how rare or sought after they are. Focus on what you want to achieve, and your technology outsourcing company will take care of the rest. They will build, onboard, train, and upskill the team for you.

For example, all teams at Scalo are well-versed in remote work. Our service delivery managers assure they have everything they need to get the job done so they can perform at their best.


Only pay for the resources you need at a given time. Adapt the outsourcing model to your changing needs.


Don’t defer your software development projects. Instead, scale up the capacity and accelerate the progress of the product. Release and validate it faster. Gain that competitive advantage.

The times may seem tough, but the pandemic and slowdown will end one day. So #StayatHome but don’t fall behind. Outsource your product development and get ready for the post-COVID realities – it will pay off!

Contact us, and let’s talk about how you can get started.

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