Introduction
The cost of IT outsourcing is expected to surpass $1.3 trillion by the end of 2023 as businesses expand their search for digital transformation professionals.
Companies benefit from outsourcing since it lowers operational expenses, allows for a flexible workforce, and saves time. Due to these advantages, more businesses choose to outsource business processes, driving the outsourcing market to expand.
In this article, we will cover why to outsource software development and the 6 key indicators to outsource software development:
Why Outsource Software Development?
For a variety of reasons, many start-ups and well-established organizations find that Custom Software Development is an intelligent choice. Businesses work hard to complete their tasks within their limited spending limits. Also, organizations can't compromise on the quality of the project. In such a situation, organizations are turning to outsource.
Accepting a developer from outside your company's walls can have a lot of benefits. You can guarantee that your projects are completed on time, lower your workforce costs, and add an extra set of wheels to your execution speed by outsourcing the development to a multidisciplinary team.
6 Key Indicators to Outsource Software Development
- Focus Towards Critical Aspects: In the modern corporate environment, business executives are expected to take on a variety of responsibilities. Spending less time on personnel recruitment, hiring, and training will benefit you greatly. Businesses might use this extra time to concentrate on their essential components. You can devote all the time and effort necessary for the company's successful functioning to its mission-critical components. There is room for innovation and improvement in sales, marketing, and business development.
- You Want Access to Best Talent: You can connect with the best talent in the world by outsourcing software development, which overcomes geographical limitations. The best aspect is that this type of collaboration could be for all projects or just one project with no further obligations. Outsourcing software development gives your company rapid access to a talent pool of highly qualified and experienced individuals with proven expertise in their area. Additionally, their adaptable engagement strategy makes it quick and easy to get started on the project immediately.
- You Don’t Have the Bandwidth: In today's fast-paced business environment, speed is your weapon. Therefore, you must do tasks quickly without sacrificing quality. But it can be hard to complete tasks on schedule if you don't have enough internal resources. Working with software outsourcing is beneficial in this situation! In order to fulfill shorter deadlines, teams' sizes can typically be adjusted in software development organizations. The hourly fee would increase as a result, though. Finding outsourcing partners in developing nations could be of interest to you.
- Faster Time to Market: When you outsource or hire a well-known software development company/partner, you’ll be assured that expert developers will be working on your dedicated project round-the-clock. Keeping in mind that this is their primary area of expertise, they are more effective and knowledgeable in software development. A shorter time to market for the software is a guarantee when professionals are working persistently on your project. This will boost client satisfaction and provide your company with a competitive edge.
- You Don’t Have In-house Development Team: There's a strong probability you don't have an internal software dev team unless you own an IT business. In-house resource costs for hiring, training, and retention can quickly burn a hole in your wallet. When compared to outsourcing costs, choosing a partner can result in significant savings. You don't have to add to the workload of your HR team by searching for the appropriate resources. Additionally, you are not required to invest money in the tools and programs needed for custom software development, testing, and implementation.
- Outstanding Support: You are engaging professionals with an in-depth understanding of the industry when you hire a software development outsourcing company. Outsourcing companies serve as your business partners who want to help you grow. You can contact software outsourcing experts who will be able to quickly resolve your issue if you face a problem.
As a result, when you outsource your software development, you get a team you can rely on and who will be there for you whenever you need them.
Examples of Big Companies Who Outsource their Software Development
Google: Google is aware that, despite its scale, it cannot do everything. They also have outsourced development work, email assistance for software products like AdWords, and more. Google is extending this even further by providing phone assistance as well as email support, with staff located all over the world. These people smoothly integrate into their internal support team, giving clients faster response times at a fair price. Google is an excellent example of outsourcing done right to show the benefits of outsourcing.
Reasons Why Google Outsourced: access to talent skills, improved quality, customer satisfaction, and reduced costs.
Alibaba: Alibaba is another excellent example of outsourcing software development. Alibaba recognized that, despite being able to keep their production and resource costs low locally, the size of capabilities required for growth was not present in their area.
As a result, Alibaba began seeking partners and outsourcers early on in their development across a variety of different projects. The website prospered and expanded at an exponential rate because of outsourcing.
Reasons Why Alibaba Outsourced: access to the talent pool, focus on core business and delivering quality products to end customers.
Whatsapp: When considering businesses that outsource, WhatsApp is a fantastic example because it has done so since the beginning. WhatsApp had 30 full-time employees and five part-time employees as of 2012.
Based in Mountain View, California, they recognized the importance of controlling costs if they wished to expand. Russia provided the solution for WhatsApp, and they were able to obtain development resources there for a small portion of what they would have had to pay in the US. Thus, they saved the money and outsourced it to Russia.
Reasons Why Whatsapp Outsourced: Reduce cost and focus on core business
Slack: Slack, which was founded in 2013, has rapidly replaced other internal communication tools in high-tech firms. It's a clear winner thanks to its easy-to-use interface and integration capabilities, but this success didn't come by coincidence.
Only four developers made up the core team of Slack, which developed the product and launched it. But this team understood that in order for their product to succeed, it had to be attractive and flawless. In order to do beta testing, Slack hired an outsourced team for beta testing. Slack was able to create a solution that businesses accepted as a result of feedback it received about what aspects of the platform worked and didn't.
Reasons Why Slack Outsourced: customer satisfaction, delivering quality software products to end customers and reduced costs.
Conclusion
Software development outsourcing has various benefits. However, it is important to note that you must check in with the outsourcing company with which you plan to collaborate. Verify their level of experience, inquire about their approaches, the form of their collaboration, your ability to participate in the project, etc. These things vary from business to business. You can build a collaboration that will help your company to new heights with careful planning.
