Why Outsource? The pros and cons of Software Outsourcing
Generally speaking, outsourcing software development allows business organizations to address the various challenges of reducing overheads spending, quickly build a remote tech team, and thereby speed up the product’s time-to-market. Below are some of the attractive benefits of software development outsourcing:
Software Outsourcing Advantages:
Lower development costs and reduce overhead spending
The most common reason leading businesses to outsource their development project is the drastic saving on the development costs. Reduction in spending and staying within budget enables businesses to grow and scale their business effectively, as well as keep up with market demand. Thus, cost-saving remains the primary advantage for businesses to outsource their software development needs.
Besides, by contracting work to a third party, companies can cut down on their labor costs, including a variety of employee benefits such as insurance, training, leaves, and more - while paying outsourced teams at a competitive rate.
Outsourcing vendors usually determine the development cost based on the hourly rate of developers, in accordance with their seniority level, without taking into account the aforementioned expenses above - ultimately making the entire outsourcing endeavor more attractive for business organizations.
Flexibility
Customer companies can engage with software outsourcing vendors only when and if needed. Unlike permanent employment, there’s no legal bound or obligation of maintaining a long-term contract which offers customers the flexibility of having to pay for outsourcing during the project works. This is especially advantageous in comparison with hiring full-time in house developers all year round, where their expertise may not be needed as much, after project completion.
In addition, cloud computing technology makes it easier than ever for people to work from home or anytime anywhere, making remote working gradually becomes the norm. Offshore remote working is more and more about human and machine interaction rather than micro human management. The location of remote developers is becoming a non-relevant factor in this day and age. Hiring remote IT tech talents to work on software projects are more attractive than ever.
Improve Business with a Focused Strategy
Working with a remote development team opens up new opportunities as companies are exposed to a range of new, emerging, and disruptive technologies such as Blockchain, Artificial Intelligence, and more which helps transfer the knowledge base and best-practice to internal teams effectively.
Having quick access to a large pool of IT talents on a large scale allows clients to implement their projects efficiently while having more time to focus on their core competencies. In particular, if customer companies are not in the IT industry, this offers significant benefits as it allows companies’ employees to have more time spent on other important tasks generating revenue such as sales and marketing, enhancing business growth and productivity.
Faster development and Speed up product time-to-market
Since the outsourced workforce are already experienced and well-versed in the technologies and tools required of the development process, there’s no need for extra time spending on training and on-boarding, saving customers a significant chunk of time to speed up the development process. Specifically, this is highly beneficial in the context of large international corporations, where the decision-making and approvals process might take much longer than usual.
Furthermore, changes occurred during will also be addressed quickly to ensure projects can move forward according to schedule. The remote development team is motivated to work quickly and deliver projects on-time, providing customers a competitive edge over their competitors.
