The global embedded systems market size was valued at USD 110 billion in 2024 and is estimated to grow at 6.4% CAGR from 2025 to 2034.This rapid expansion reflects how deeply embedded technologies are becoming integrated into everything from industrial automation to consumer devices.
At the same time, North America’s embedded systems sector is expanding rapidly, with major tech players like Intel and Microsoft driving innovation. But while demand for embedded engineering talent continues to rise, supply is lagging behind. Many companies are struggling to find qualified experts especially as embedded systems become more complex and deeply integrated across industries like automotive, logistics, energy, and manufacturing. The more sophisticated the system, the more time and resources it takes to build. That’s why outsourcing embedded software development has become a strategic move for businesses looking to stay competitive.
Table of Contents
- What is Embedded Software Outsourcing?
- Key Benefits of Outsourcing Embedded Software Development
- 6 Tips to Find a Reliable Embedded Development Company
- Proven in Practice:Embedded Control & LoRaWAN at Scale
- Our Embedded Engineering Toolkit
- FAQ
What is Embedded Software Outsourcing?
Embedded software outsourcing is the practice of partnering with an external engineering team to handle part or all of your embedded system development – from firmware and hardware integration to testing and delivery. It’s not just a cost-cutting tactic; it’s a strategic move that helps you access specialized skills, speed up development, and reduce risk.
If you’ve tried to hire embedded developers recently, you know how fierce the talent competition is. With a global shortage of qualified engineers, some companies go as far as relocating their headquarters to regions with a deeper tech talent pool. But that’s a drastic step and not always necessary.
Outsourcing offers a smarter alternative. By bringing in a dedicated external team, you can close skill gaps quickly and ensure critical projects move forward without delay. These outsourced teams often integrate directly with your workflows, use your preferred tools, and align closely with your product roadmap.
Another major benefit? Your internal team gets to focus on what matters most. Instead of splitting their attention across too many projects or scrambling to meet unrealistic deadlines, they can zero in on high-impact tasks and strategic business goals. Outsourcing frees them from the pressure of multitasking and allows your organization to work smarter not just harder.
Whether you’re launching a new connected device, optimizing legacy systems, or scaling for a product release, embedded software outsourcing helps you move faster, build better, and stay competitive.
Key Benefits of Outsourcing Embedded Software Development
Still on the fence about outsourcing? These benefits can tip the scales:
1. Access to Specialized Skills
Outsourcing gives you instant access to engineers with deep expertise in embedded systems. Instead of spending months recruiting, you can bring in a team that already understands your tech stack and industry.
Need firmware optimization? Low-power system design? Compliance with niche protocols? The right outsourcing partner has done it before and can do it again for you.
2. Scalable Engineering Teams
Embedded development often comes in waves: rapid prototyping, intense development sprints, then periods of relative calm. Outsourcing lets you scale your team up or down without the cost and delay of hiring full-time employees. Whether you’re expanding scope or wrapping up a project phase, a flexible partner keeps your team size aligned with your needs.
3. Risk mitigation
From flawed system architecture to product delays, embedded projects carry significant risks. Outsourcing helps reduce these by pairing you with experienced developers who know how to spot red flags early and fix them fast. Plus, if a vendor isn’t delivering, you’re not locked in. You can change course without the sunk cost of an internal hire.
4. Cost-Effective Execution
If your business builds smart devices or custom electronics, chances are you don’t need a permanent embedded team. Outsourcing lets you access senior engineers and advanced equipment only when you need them without investing in labs, licenses, or long-term salaries. This model is especially cost-effective for startups or R&D-heavy companies.
5. Built-In Security and Compliance
As cyber threats become more sophisticated, securing embedded systems requires specialized knowledge – from secure bootloaders to encrypted communication protocols. A seasoned outsourcing partner will know how to develop systems that meet strict security standards and industry-specific compliance frameworks.
6. Faster Product Delivery
If your internal team is split across multiple initiatives, project timelines can slip. An outsourced team is 100% focused on your delivery, which helps reduce bottlenecks and accelerate time to market. That’s a key advantage if you’re racing competitors or trying to hit a product launch window.
6 Tips to Find a Reliable Embedded Development Company
Choosing the right outsourcing partner makes all the difference. Here’s what to look for:
1. Hardware development expertise
Your vendor should have hands-on experience with the specific hardware platforms you’re working with whether it’s ARM-based microcontrollers, custom boards, or SoCs. They should understand your hardware environment, be able to work directly with development boards, and have fast access to the components needed for prototyping and testing.
Ideally, they also maintain relationships with hardware distributors to minimize delays when sourcing parts. A team that knows your hardware ecosystem inside and out will move faster, avoid costly errors, and deliver more reliable results.
2. Proven Firmware Expertise
A solid partner knows how to design robust firmware architecture and implement features like I/O validation, logging, diagnostics, and error handling. Bare-metal programming, real-time OS knowledge, and microcontroller-specific know-how are non-negotiables.
3. In-House Lab
An internal lab speeds up development and testing. It also ensures that the entire process, from prototyping to validation happens under one roof. It’s a sign that the vendor is serious about security, traceability, and efficiency.
4. Logistics and Delivery Support
Timely access to hardware is critical in embedded development, especially when working across borders. Your outsourcing partner should have a proven system for managing hardware shipments and minimizing delays. Look for a team with reliable logistics processes and strong relationships with international delivery providers.
5. Security Standards and IP Protection
A trustworthy partner takes security and intellectual property seriously. They should work under signed NDAs, follow industry standards, and ensure that you retain full IP ownership once the project is delivered.
6. Post-delivery manuals
Once development is complete, your partner should provide detailed documentation, usage manuals, and sometimes even video walkthroughs. That makes it easier for your team to integrate the solution, troubleshoot issues, and scale the product down the line.
Proven in Practice:Embedded Control & LoRaWAN at Scale
Real-world results from a 30,000-device deployment across 2,000+ locations.



We recently partnered with a Canadian company in the commercial laundry industry on a project that required stable, long-range communication between industrial washing machines and a central control kiosk without relying on Wi-Fi or Ethernet.
The client specifically needed engineers with hands-on experience in LoRaWAN network design and embedded systems integration. Rather than spend months recruiting in a tight labor market, they chose to outsource the development to our team which already had proven expertise with LoRa-based communication and mesh networking.
We built a custom LoRaWAN mesh network using EBYTE modules and embedded software. Each machine now includes a dedicated control board that maintains long-range connectivity, regardless of facility layout or distance from the gateway.
The final system supports:
- Real-time status monitoring
- Remote configuration and diagnostics
- Secure over-the-air firmware updates
Today, this embedded solution is deployed across 30,000+ machines in over 2,000 locations, delivering reliable, low-power performance and scalable control.
Our Embedded Engineering Toolkit
Our team brings hands-on experience across a wide range of embedded platforms, protocols, and hardware technologies. Here’s a snapshot of what we work with every day:
Embedded Software Platforms & Hardware
- Microcontrollers & SoCs: STM32, Nordic, TI, NXP, Microchip, Silicon Labs, ESP32, Zilog, Radiocrafts
- SBCs & AI Boards: Raspberry Pi, Banana Pi, BeagleBone, NanoPi, Orange Pi, NVIDIA Jetson Nano, Coral board
Wireless & Wired Communication
- Wireless: Wi-Fi, LTE, LTE-M, NB-IoT, GPS, Iridium, Bluetooth/BLE, Zigbee, LoRa, RFID, proprietary RF
- Wired: UART, SPI, I2C, CAN, USB, Ethernet, PoE, RS-232, RS-422, RS-485, 1-Wire, CSI
Sensors & Motors
- Sensing: Vibration, Acoustic, Current, Voltage, Magnetic, Radio, Optical, Proximity, Distance, Speed, Acceleration, Environmental, Flow, and more
- Motors: DC, AC, Stepper, BLDC, Reluctance
Displays & Interfaces
- LCD, TFT-LCD, LED, E-Ink, Electronic Paper
Flexible Engagement Models
We adapt our approach to fit your business needs:
- Project-Based Delivery – Ideal for fixed-scope development with clear deadlines
- Dedicated Team – Long-term collaboration with a stable, integrated engineering team
- Domain Consulting – Access to niche technical expertise and architecture guidance on-demand
Whether you’re building a prototype, scaling an existing product, or solving a tough technical problem, we’ve got the tools and the team to support you. Let’s build something that works – and works brilliantly – together.
Author: Alina Skyba
FAQ
How do you ensure smooth communication throughout the project?
We assign a dedicated project manager and tech lead as your primary point of contact. Communication is structured, transparent, and efficient – with regular check-ins, status reports, and shared access to documentation and tracking tools (Jira, Slack, Confluence, etc.). We always agree in advance on convenient times for calls and reviews to keep collaboration easy and consistent, regardless of time zone.
Will we own the IP for everything developed?
Yes, you retain full ownership of all deliverables, source code, and documentation. IP transfer terms are clearly defined in the agreement from day one.
How fast can you start working on a project?
Once we finalize and agree on the scope, requirements, and engagement terms, we typically begin work within a week – often sooner. Our team is structured for quick onboarding and fast ramp-up, so we can move efficiently from planning to execution without unnecessary delays.
Can we scale the team up or down during the project?
Yes. We offer flexible team scaling based on your current needs and project phase. Whether you need to quickly bring in additional engineers during active development or scale down after a release milestone, we adjust the team size accordingly without disrupting progress or continuity.
What happens if the project scope changes mid-way?
Scope changes are common, especially in complex or hardware-dependent projects. When this happens, we assess the impact on timelines, resources, and budget, and provide a clear proposal for next steps. We prioritize transparency and make sure all changes are documented, approved, and integrated into the plan without slowing down delivery.
How do you estimate project timelines and costs?
We start by analyzing your requirements in detail including system complexity, hardware dependencies, and expected deliverables. From there, we break the work into phases with estimated effort and milestones. For fixed-scope projects, we provide a clear timeline and budget upfront. For evolving projects, we often use a time-and-materials model with regular tracking and cost visibility.










