Numerous businesses in various industries depend on software for their daily operations. However, not every company has the expertise and resources to develop and maintain its own software.
As a result, many choose to employ third-party specialized providers who can build and manage software for them. This, in essence, explains the practice of software development outsourcing.
Picture this: You want to assemble a team of skilled developers for your business, but the total costs are overwhelming. The screening and selection of candidates already require a great deal of time and money. However, you’ll need to spend even more to train and manage your new employees.
Instead of undertaking all that extra work, you can simply outsource software development. This way, you can use the services of experienced professionals for lower costs than hiring additional staff.
10 Reasons You Should Consider Outsourcing Software Development
As mentioned previously, outsourcing software development is faster and cheaper than putting together an in-house team because you don’t need to provide extra office space, set up infrastructure, and spend on training course.
However, there are many other compelling reasons why outsourcing can be a smart option. Here are 10 of them;
1. Provides access to a top-tier talent pool
The digital world is rapidly changing, and new technologies grow like mushrooms every time. Therefore, you’ll need people who have training and expertise that allows them to readily navigate through these changes.
With outsourcing, you’ll have access to a network of qualified developers who keep their knowledge and skills up to date. Moreover, there are a plethora of agencies worldwide that specialize in various technologies and employ personnel with the necessary skill set to get whatever project you have in mind done,
For example, if you want to create a face recognition software that’s at par with the best applications on the market, you’ll need a team of experts in artificial intelligence (AI) and deep learning processes. Instead of hiring salaried employees, you can simply coordinate with an outsourcing firm that has sufficient AI experience and leverage their employees’ skills for your projectes.
2. Significantly reduces costs in the long run
As we have repeatedly stated, outsourcing software development is a cost-effective approach. However, it’s also important to mention that not only are its upfront costs lower, but outsourcing is also generally less expensive in the long term.
Startups and small enterprises often do not have the financial resources to invest in an in-house team. Apart from requiring huge initial costs, building a team can have an impact on the company’s capital requirements and, as a result, its overall starting position. This, in turn, can potentially impede business growth.
Additionally, by choosing to outsource, you can both dodge recruitment costs and save on overhead expenditures required in managing an in-house team.
3. Speeds up time-to-market
When you outsource software development, outputs will be delivered much faster. Teams from third-party agencies perform well under the conditions of strict and tight deadlines because they are used to taking on short-term projects. Also, since details like deadlines can be specified in the agreement, they are required to meet them.
Furthermore, service providers are often willing to negotiate software development timelines and even adjust their personnel’s working hours to make sure the project will be completed on time.
The best news is shorter development time means more marketing time for you. In the tech industry, having more time to market a product plays a major role in its success since the longer you’re able to present your product to end-users, the more customers you are likely to reach.
4. Reduces major risks
Delegating software development to an outsourcing agency is a lot less risky move than hiring an in-house team. Outsourcing reduces a variety of financial risks from an investment standpoint because it does not require substantial initial spending.
Furthermore, by entrusting a project to an experienced software outsourcing firm, the chances of failure are significantly decreased. It’s also important to note that employee turnover can impact your company’s performance.
If members of your staff decide to leave while a project is underway, it can take some time to get back on track. Remember, downtime can trigger financial losses. By working with an outsourcing company, you can avoid situations like this and expect seamless workflows.
5. Allows you to focus on core business duties
As you delegate coding and development to a software outsourcing company, you can remain focused on other critical aspects of your business such as long-term objectives, growth, and day-to-day operations,.
Depending on the nature of your company, outsourcing software development can help reduce your employees’ load and enable them to do important tasks that require detailed work such as branding and marketing, finance, sales, administration, customer relationship management, and many others.
6. Offers a scalable solution
With outsourcing, you don’t have to worry about making adjustments if your requirements vary from project to project. Whether the project requires an entire team or simply a couple of developers, you may negotiate the details with the outsourcing company and be assigned a team of the right size for each project,.
You don’t have to worry about dismissing or hiring more workers. As a result, you will have the freedom to take on projects of different sizes. The outsourcing company can even assemble teams based on the members’ level of experience to match the difficulty and complexity of your specific project.
7. Provides a wider range of options
Because you get to access a large pool of talents, outsourcing allows you to be flexible in decision-making. For instance, unlike hiring employees for your in-house team, outsourcing will not keep you geographically confined. With offshore choices, you can select an outsourcing agency from any corner of the world.
Since you can choose companies in almost any state or country, you have better chances of finding an outsourcing service provider with pricing options and collaboration models that best meet your needs.
Real-time collaboration platforms such as Skype, Redmine, JIRA, Trello, Zoom, and Slack can help you to stay in touch with your team no matter where they are based. Also, if you want to monitor the software development project more closely, you can hire a hybrid firm that works both onshore and offshore. You get the best of both worlds and a lot of versatility this way.
8. Gives you the option to outsource specific functions
You may also choose to outsource just one or several functions instead of the entire software development process. For example, you may already have an excellent in-house development team but lack a professional QA engineer. In this instance, you can employ the services of additional specialists to support your team,.
There are software development firms that provide a variety of specialized services such as UI/UX design, QA testing, and support and maintenance. There are even companies that offer customizable service packages, allowing you to select crucial functions to outsource.
9. Allows you to benefit from advanced tools and technologies
Software development outsourcing firms remain ahead of the competition through the use of cutting-edge techniques and technologies. They are up-to-date on the latest innovations for web, mobile, and cloud development, as well as frameworks and tools. Most of these high-tech products come with exorbitant licensing costs for use and dissemination.
By outsourcing, you can enjoy the benefit of using such tools without having to invest a lot of money in purchasing them. Hiring an outsourcing company that already has the newest technologies can help minimize your expenses and starting time while providing you with high-quality work faster.
10. Offers continued support and maintenance
Software development is an ongoing activity, considering that software code is never written once. The majority of software initiatives need continuous upkeep. This is also true for outsourced software development; the end product requires support and maintenance to process updates, resolve errors, and add new features.
As a result, outsourcing is a preferred long-term solution for maintaining software products. While you focus on other aspects of your business, the outsourced crew can work on your product’s upkeep. If it is a product that will be sold to clients, you can focus on marketing and gathering user feedback while the developers continually improve your software.
Is outsourcing software development a good idea?
To conclude, software development outsourcing is becoming increasingly popular among businesses due to the remarkable benefits it provides. It requires lower upfront costs, speeds up development time, and involves fewer risks.
Overall, software development outsourcing is a more convenient option for organizations, particularly small to medium businesses who are unable to financially support an in-house development team. Outsourcing software development is also ideal for short-term projects that do not really need a long-term investment of your resources.
Software development outsourcing works for most firms because it is a less expensive and more flexible alternative to hiring additional staff. However, your project’s success relies mostly on the capability of the outsourcing company you will delegate tasks to, so choose wisely and be sure to explore as many options as necessary.