Software development outsourcing is the new normal. But if you are still on the fence on whether or not your business should do the same, you’ve come to the right place. This article explores five good reasons to outsource software development.
As the entire world is accelerating its shift to digital, outsourcing software development is becoming increasingly common these days. Companies worldwide are turning to third-party vendors to alleviate some of the pressure put on their in-house staff.
In fact, software development isn’t’ the only service outsourced. Business leaders also outsource services like accounting, customer support, social media marketing, or payroll processing. Outsourcing has become so widespread that the global market for such services is worth over $92.5 billion, and it is set to grow, especially in the current public health crisis situation.
But why do so many companies choose to outsource software development? And what benefits your business would get if you choose to do so too? Here are five reasons why outsourcing software development is a smart decision.
1. Reduce business costs
Cost-saving is the top reason why companies worldwide consider outsourcing. In fact, data from Deloitte shows that nearly 59% of businesses outsource with the purpose of reducing their costs. That’s right: outsourcing software development can help your business save a lot of money.
But how can outsourcing help you reduce business costs? Well, think about it: you may not have the technical expertise and skilled people required for effective and flawless software development. What’s more, you may also lack the infrastructure for it. And, investing in both the people and the tools can cost your business a fortune, which you may not afford, especially if you run a small business.
But even if you own a large company with a big budget, outsourcing software development may still be a better idea. Or, at least it was for WhatsApp, for example. The company has outsourced the development of its iOS app to a freelance professional, whom it has also brought abroad the business full-time afterward.
Software outsourcing is a much cheaper option for businesses for many reasons, including paying only for software development services, not for the experts or the IT infrastructure. What’s more, you also don’t have to worry about other costs that are usually connected to in-house employees, such as sick pay or training.
2. Get access to world-class skills
Wouldn’t you want to know that your job is completed by the best of the best? Well, with outsourcing software development, this can happen as you get access to a larger talent pool. In other words, when you outsource your software development, you get access to a skilled workforce from all over the world, no matter how many miles lie between them.
What’s more, in a world where almost everything is happening online these days, such as learning online or working remotely, you don’t have to worry about communicating with professionals who aren’t in your area. Tools like communication software, project management tools, prototyping, and more, can keep your in-house team and the professionals you outsource to connected during the entire outsourcing process.
Plus, think about it: when you outsource to the best professional out there, you also gain a competitive advantage for your company.
3. Save time on the hiring process
You know what they say, “time is money.” In other words, time is a valuable resource that any business would like to save if possible.
Now, imagine how much time you’d spend on hiring in-house IT professionals. You’d have to advertise a vacancy, host multiple interviews, the onboarding process, plus other tasks related to hiring new in-house employees. In fact, data from the job site Glassdoor shows that the average length of the businesses’ job interview process is around 23.7 days.
What’s more, imagine the costs related to all these processes. Data shows that the average employer in the US pays around $4000 for hiring a new employee.
When hiring new software developers for your in-house team, you need to make sure that several steps are completed, from posting an application to various platforms to sorting through all potential candidates, interviewing them, and hiring the best ones. But, let’s be honest; this takes a lot of time, effort, and money.
On the flip side, when you outsource software development, you don’t have to worry about either of these tasks. Plus, you know for sure that your project is handled by a professional that has the necessary skills and knowledge.
4. Take some things off your internal IT team’s plate
Sometimes, your internal IT team may be overwhelmed by the projects they are handling. What’s more, your in-house professionals may also struggle to complete core business tasks because they are overwhelmed with all the tasks they must juggle with. How can you help them? Outsource a few tasks to professional software developers.
When your in-house team has way too much than it can handle on its plate, freelance professionals can help. First of all, this will help you avoid overwhelming your internal team with work that is not matching their skill level. Plus, it gives your employees the time to allocate more resources to other core processes.
5. Accommodate peak loads
Every business can have some times of high demand. Now, this is definitely good news because increased demand equals increased revenue. However, when your team and business aren’t ready to deal with peak loads, everything can quickly turn into a disaster and hurt your business reputation and customer loyalty.
When you are experiencing a peak load, you must quickly redistribute all available in-house resources to operations and processes that your employees may not have the skills for or may not be able to handle on such short notice. Now, hiring new employees can be an option, but that takes time and money. So, what’s the best option here? Software outsourcing.
Outsourcing software development allows you to hire a professional team for just the peak period, with no long-term commitment.
