Why Do Companies Outsource Software Development?

Companies Outsource Software DevelopmentWhat Is Outsourcing?

Employing a third party or assigning tasks or services to a third party is known as outsourcing. An outsourcing initiative with a technology provider can involve a range of operations, from full IT function to defined parts like software development, network services, disaster recovery or QA testing. Companies may choose to outsource software development onshore (within their own country) or nearshore (to a neighboring country) or offshore (to a more distant country).


Benefits of Outsourcing Software Development

Some of the benefits of outsourcing your business software development are:

1. Reduce costs

One of the top benefits of outsourcing is to lower costs. Businesses that handle every part of their operations internally must gradually pass these expenses to their clients. Companies can reduce costs by working with an IT outsourcing firm giving them a price advantage over their competitors. Companies can gain access to various professionals at prices they might not otherwise be able to pay. The following are the main advantages of outsourcing jobs to organizations that handle essential IT tasks.

  • As only qualified specialists work in such organizations, they can expect excellent outcomes
  • Reduced overhead costs for offices, technology, hardware, software and cloud infrastructure.

Outsourcing firms offer the knowledge and resources necessary to attain software projects at lower costs. 


2. Utilize new skills

The time and effort necessary to appropriately estimate the stakes must be taken into account. Even if you have a team of competent developers, it does not necessarily mean that you should assign them to work on every problem. It is possible that developers at your organization are occupied with tasks that directly advance your corporate objectives or business goals. You allow talented workers to concentrate on the most important activities and accomplish resource optimization by outsourcing.

Reliable and knowledgeable outsourcing firms provide flexible options and committed teams. You can save time on training the staff. It is likely that the skill sets of the in-house team will fall short of a team of highly skilled engineers from a software outsourcing company. No matter how big your internal team is, developers will be productive as soon as they join your project.


3. Focus on your primary business

It can be challenging, time consuming, expensive and restricting for your organization to hire staff to perform tasks outside of your primary industry. Moreover, you need to save valuable time in recruiting, training, and keeping talented people in areas that are outside the core business. This can be a barrier to your company’s growth. 

Businesses can concentrate on their primary objectives and focus on areas where they are proficient by working with an outsourcing firm. Companies can outsource their back office, accounting, or customer service (using custom CRM development), etc. and stick to their critical business. Outsourcing companies are available to assist with these jobs outside of your area of expertise. 


4. Using latest technologies

One of the most important reasons to outsource your software development is to gain access to better technologies. There is a high possibility that outsourcing businesses will use more advanced software tools and platforms than you.

Technology develops significantly every year, and developers in many businesses are only knowledgeable in specific fields. Businesses may want access to the latest development practices to improve customer experience, which may demand outsourcing some tasks. Outsourcing firms utilize current technologies to complete projects and solutions.


5. Scale and grow

When companies start booming and expanding their business, they must be ready to adapt to changing demands. Companies need to increase their IT support assistance at this point in development. Building an internal team at this stage can be expensive and time consuming. You can avoid this by working with a vendor and use a feasible solution that can be quickly expanded to match your demands.

Vendors have adequate resources to match your increasing demands and needs and can quickly and flexibly enhance a project’s resources.


6. Working remotely

The location of your software development team is becoming irrelevant. Many successful companies run their business without an office or an internal team and have offices in various parts of the world. Outsourcing firms use developers from different time zones to cover clients globally.


7. Providing IP rights

By outsourcing your software development, you have the option of owning the rights to the generated software. Outsourcing firms always give their clients the strongest intellectual property protections.


How To Select a Software Development Outsourcing Partner

A significant amount of brainstorming is involved in choosing an outsourcing partner for software development. Some points that you may want to ponder upon while selecting a partner are:

  • It is important to look up a company’s rating and read feedback from previous clients about their work together. 
  • Check whether the company’s developers are well-versed in the technologies required to complete your projects. For example, if you’re building a cross platform app, ask whether developers are familiar with frameworks like React Native and PhoneGap.
  • You have to be clear about what you expect from your outsourcing relationship. It is crucial to determine this before approaching any outsourcers, as they have their ideas based on their strengths and capabilities. 
  • Is the overall savings that an outsourcer offers you important or is the speed at which they can reduce your costs important?
  • How do you want the price costs – low, fixed or variable?
  • Do you want broad skills or in-depth knowledge in a particular field?
  • Be sure of the company’s geographical location, as time-zones and language gaps matter.
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