Top 8 Reasons to Outsource Software Development

Difference Between Front End, Back End, and Full Stack Developer

A startup running on a limited amount of resources? A small business that wants fast software delivery and flexibility? A large corporation that handles numerous projects simultaneously and wants to save time for managing core business objectives? Businesses of any size and scope can benefit from delegating part or all of a project to developers overseas. Whether you need CRM development services or accounting software development, outsourcing can make your life easier. Besides money-saving benefits, it has many advantages.

The outsourcing industry has grown dramatically over the past decade. From 2000 to 2019, revenues increased from $45.6 to $92.5 billion. Moreover, BPO (Business Process Outsourcing) is expected to grow up to $405.6 billion by 2027. So why do companies outsource, and what’s the hype behind this globally-recognized approach? So why do companies outsource, and what’s the hype behind this globally-recognized approach? Why do companies prefer outsourcing over other approaches? Let’s find out

Top 8 Reasons to Outsource Software Development

If you think that reduced costs for operations are the only benefit for companies to go with outsourcing, you are far from reality.  We will discover each model’s pros and cons if we compare in-house software development to outsourcing software development. However, hiring developers overseas is gaining momentum, and here are 8 top reasons why. 

Access to Global Talents

One of the most compelling reasons for outsourcing IT services is the tremendous labor market, which includes a diverse mix of skills and expertise. Software development is usually not limited to one technology, and to create a competitive and recognized web or mobile application, you need professionals with different expertise. However, many countries in the world face a scarcity of IT experts, especially niche ones. For instance, a considerable shortage of developers leads the Netherlands to outsource around 70% of its specialists from East Europe (Ukraine, Romania), France, and India. Outsourcing outside the European Union means having exposure to world-class specialists who deliver top-quality software. 

Lower Labor Costs

According to PayScale, US firms typically spend around $75,000 a year to have a Java developer on board. In comparison, going offshore cuts this expense by more than half. How? In Ukraine, the average salary of a Java developer will not exceed $22,000 a year. Cheap costs for labor in East Europe does not mean low quality of IT services. On the contrary, Eastern Europe is known for its IT excellence, so your end-product will be high-quality and delivered fast. 

Recruiting and Training Developers Isn’t Your Concern

Finding, interviewing, and training employees for a project is a time-consuming process that involves recruiters, an HR expert, and your attention. By choosing a reliable and professional vendor with rich experience in providing outsourcing services, you can be sure that you’ll get the right team for your project. 

Vendors Are in Charge of Team Management

Managing an in-house team to maintain productivity, efficiency, motivation, and overall satisfaction usually falls on the HR expert’s shoulders. This employee is responsible for upholding a healthy team environment, integration, and sufficient resources for the developers to deliver the required product.

Outsourcing development is an approach that sets you free from taking care of the team: a vendor’s management staff takes all responsibility. From the moment you sign the contract and agree on all project details, a vendor will organize the team, control the timetable, and oversee the proper flow of technological operations. 

Reduced Time for Support

The process of software development doesn’t end with a ready-to-go project. Maintenance and support are two ongoing phases aimed at removing bugs and adding modifications required by the product during its use. Why is this a reason for outsourcing? Because you will incur no extra costs for support and maintenance – it’s all included – and your dedicated team will handle errors as soon as they appear. 

Opportunity to Invade The Global Market

Whether being a startup, small, or large corporation, your business needs to grow, extend its target audience, and eventually, increase profits and world brand recognition. 

 “Small business, augmented by a global pool of human capital, can compete directly with the biggest players in their space, and win,” claims David Walsh, an entrepreneur who believes in the power of outsourcing.

By delegating your project to a professional team overseas, you can explore the local customer, define their needs, and detect gaps to fill. Start the promotion of your newly born product there and save your time to market. 

Focus on Core Projects

If IT services are not your strong side, why not let professionals do the job for you. Quite often, this is one of the top reasons for outsourcing software development for big companies. They run a great variety of projects and do not want to spend extra money and resources for development. Outsourcing gives them the freedom to focus on other core processes while streamlining business goals. 

Boosted Flexibility and Scalability

Companies that use outsourcing services are free from finding, recruiting, training, and integrating the team members into their core philosophy. If a team feels the need for more employees at a particular stage of the development process, a vendor takes care of it. In fact, outsourced teams can also quickly respond to changes in customer demand and implement them promptly.  

Wrapping Up

Outsourcing comes with cost-saving benefits, technologically-driven approaches, dedicated teams, and reduced time to market. With a rich number of IT specialists globally, you can extend your in-house team and reap the success. Once the idea is accurately arranged, business goals are spoken, and the requirements are given – start outsourcing your software development to grow your business. 

Masri serves as the Chief Content Editor at BestKodiTips. With three years of experience, she excels in creating technical content, focusing on how-to guides, Android and Kodi tutorials, app reviews, and addressing common technological challenges. She ensures to stay abreast of the latest tech updates. Outside of work, Masir finds pleasure in reading books, watching documentaries, and engaging in table tennis.

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