• Outsourcing, Software Development
Outsourcing, Software Development
Top 7 Reasons Why Outsourcing Your Software Development Works
7 minutes
Isen Santos
August 23, 2023

In the current age of digitization, there is hardly a business that goes without having a software application. From automating internal processes to improving the customer experience, a software application (in one form or another) is a major reliance and driver of businesses, irrespective of the industry.

Even if you want a micro website to be built or an entire application for your business, you can hire a team of professionals for an expert to run through.

Outsourcing IT services is a great option for businesses to achieve their digital transformation goals while reducing risks and maintaining a cost-savings approach.

Here's why outsourcing is good for your business:

1. No Stress in Hiring

Recruiting professional software engineers for a development project might be a nightmare. Not only must you find people who have the necessary expertise, but you also should think about ensuring good conditions of employment so your in-house developers stay with you at least until a software product is released. Not to mention the difficulties associated with the integration of new team members in the ongoing project if someone you found decides to change their career path and leave your company.

Hence, the absence of hiring stress is one of the main reasons why companies outsource. If you choose a reliable development company for outsourcing IT services, you can be sure that there are always highly experienced programmers to make your project progress flawlessly. And you don’t have to think about recruitment and the related problems at all.

2. Operational Costs

In-house developers must have space where they can work. And as an employer, you’ll also have to provide them with the necessary equipment and furniture. So if decide to hire an internal team, you’ll have to think about additional operational costs you’ll bear.

IT outsourcing frees you up from all of the above problems because:

  • You pay only for the actual time developers work on your project. You don’t have to maintain the whole team full-time.
  • If you opt for the offshore development, developers’ hourly rates will most likely be much lower than in your home country.
  • You don’t have to bear any additional costs associated with recruitment and employment.
  • You don’t have to rent additional office premises for a development team; neither must you buy computers, desks, chairs etc. for them.

3. Extensive IT Experience

An outsourced team gives you an opportunity to hire experts who are already used to working together and will therefore have a greater understanding of the space than a generalist. This means that they know specifics of each other’s styles of work and, thus, can easily adapt to them if needed. Consequently, there are much fewer misunderstandings and if any issues occur, they are resolved in a timely manner.

The Most Important Factor: Talent

Ultimately, identifying whether you want to hire a software development agency or build an internal team comes down to cost and risk. If you’re a larger company with thousands of employees, it might make sense to hire a mobile app agency to execute the entire project. If you’re a small startup that has yet to get funding or launch a product, you might want to bring in a few new founders to build the app with you.

It truly depends on your situation.

For example, according to 500 Startups founder Dave McClure, the ideal startup team should have three types of people: hackers who can code, hustlers who can manage and understand the business, and designers who can lead and implement design.

If you’re a larger company needing to build a scalable app, your team might consist of a larger group of talent that knows how to build an app. Some of the key roles you might want to look for include a product manager, app designer, iOS developer, quality assurance manager, user experience designer, user interface designer, API developer, Android developer and back-end engineer.

Talent is the most important (and most expensive) part of the app development process—whether an agency is paying the wages or you are. The success of your app may hinge on finding the right talent for your team.

It can be easy to get lost and overwhelmed by the amount of choice in the app development market. That is why it is extremely important to thoroughly evaluate any prospective company you plan on doing business with. A good firm needs to have technical expertise, good communication skills, accountability, proven history, and the enthusiasm to understand and envision your idea. The realization of your project vision is often in your developer’s hands, so it is important to choose wisely.

4. Improved Compliance

By outsourcing your software development, you gain access to international talents without the legal compliance that most companies have to go through from hiring employees. Your outsourcing company can take care of all the legal paperwork and customs so you can focus on other things that matter.

5. Team Chemistry

Most IT outsourcing agencies have teams of designers, developers, quality assurance engineers, and product managers who have worked together on multiple projects. Even if you already have one or two people on your team who have development experience, it’s likely the people you bring in to fill the gaps have never worked with your team before. As such, you’ll go through the growing pains that come with getting a new team on the same page. The team will need to learn each other’s strengths and weaknesses—things an agency team would already be familiar with.

6. Risk Mitigation

Another great advantage of outsourcing your software development is the lower risks as compared to other alternatives. Freelancers are considered not very reliable in terms of the declared level of expertise and meeting deadlines, while the competency of an internal team is usually limited to a number of pretty much routine tasks they perform most often.

At the same time, if you outsource information technology services, the risks are mitigated. First of all, IT outsourcing companies comprise professionals specializing in different technologies, so the team working on your project is able to see the big picture and address most issues at the early stage. And, secondly, they know how to establish efficient workflow within the development project, so there are no any delays and the process goes seamlessly.

7. Better Focus on Your Business Processes

Freeing up management time is also a reason why some companies choose to outsource software development. A development team may use different methodologies, for example, Waterfall or Scrum, so the ways they work will also be different. However, there is always a person you can contact directly to find out how the process is going. At the same time, only your minimum involvement in a project is required — just to make sure that your team and you are on the same page. Hence, you can stay focused on your core business processes rather than managing software development.

Outsource Software Development Today

Several functions can be outsourced by a company in different departments. From management training to payroll software, outsourcing takes care of it all. Offshore development has become a giant industry with more to come. Outsourcing software development is now the key to a company’s success. It is the best solution in the age of globalization and technological advances.

Outsourcing changes the dynamics of the world economy.

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