Even if it feels like a new practice, outsourcing is a buzzword that has been around from as early as the ’70s. It now comes as an accessory to the IT industry and is a practice that medium-size companies use mostly. This article explains how outsourcing software development can benefit your business and how to implement it. You will find the key details to consider before deciding to pursue outsourcing.
What is outsourcing
For the ones who are new to the outsourcing discussion, it’s important to say that this practice happens not only in IT but also in other industries. Accounting, customer support, social media marketing, and payroll processing are also outsourced. The concept was invented to allow employers to delegate less-than-essential or hard to handle processes to another party. When it comes to outsourcing IT functions there are two categories, namely outsourcing infrastructure and outsourcing application.
This includes desk capabilities, data center outsourcing, network services, managed security operations, or overall infrastructure management.
Legacy system maintenance, testing and QA services or software implementation and management then you’re looking in the application outsourcing industry. This means application outsourcing.
While most companies can provide both types, it is important to check what are your exact needs in order to pick the right supplier.
Why should I outsource software development
May it be the need to focus on larger business goals, expanding your business, accessing skills that aren’t available in-house or simply the wish to save some money, outsourcing comes as a hero solution. Many industries turn to this option due to its time and cost-effectiveness. Sometimes the work required by your business starts putting too much pressure on your in-house team. Or it even expands outside your in-house skill-spectrum. These are all signs it’s time to find an outsourcing supplier for software development.
To alleviate the workload pressure on your team and allow your company to develop at a natural and unrestrained pace, outsourcing software development can be a good choice for you.
What exactly can I outsource
So you decided it’s time to use outsourcing for software development. Now that you’ll delegate the development work to a specialized company, there might be more functions you need than you anticipated at first. Let’s see what exactly you can delegate to the software development company:
- Custom software development, so you can have apps tailored to your business needs
- Software maintenance and support for all services provided
- Operations with a data center and a database
- Technical support service for your apps
- Web hosting maintenance
- Security and data recovery
Advantages of outsourcing software development
You’ve learned the reasons but this doesn’t speak all the advantages of outsourcing software development. The most common ones are for sure the small costs and the time advantage but other factors might weigh down your balance.
When turning to outsource software development you can reduce your development cost by up to 60%. This is due to cutting-of the need for employees’ hiring, onboarding, insurance and retention programs. The salaries of the newly hired team won’t have to meet your company standard or be competitive. That’s because in most cases, the providers are companies from overseas where rates are significantly lower. Eastern Europe, South Asia, and Latin America are outsourcing software development hot spots where the rate per hour is nearly half of the rate in the US or the UK.
Access to highly talented developers
When trying to do software development in-house, finding the right talent might take plenty of time and money. But when you reach out to a software company, all the search is already done so you can just taste the fruit of their experience. Moreover, contracting a specialized IT company grants you access to all tools needed to deliver the best results for your project. Since you work directly with industry professionals, they are permanently perfecting their delivery and processes. You can benefit from a full-cycle software development including planning, development, testing, deployment, and maintenance.
Manage peak workload periods
This year showed us what a crisis means and for some businesses, it did not turn out well. That is why peak workload times require desperate management decisions. You might need to short your business focus or reassign among your teams in order to thrive. What if you could have a hand in the software development issue? A team that could reduce the risks of software failures and who handles maintenance and security? One less risk to consider, at least.
Disadvantages of outsourcing software development
When collaborating with a team from a different country differences might arise. From cultural misalignments to protocol differences, it’s easy to get tangled. Language barriers can come in and make communication with the contracted team difficult. But since the outsourcing practice is widely used, most companies who provide this service are reputable English speakers. In any case, the in-house project managers and the software development company’s representative can ease communication and step in when clashes happen.
When you outsource software development to a company within your country the time difference isn’t an issue to consider because you’ll probably pick an offshore provider. Luckily there are companies all around the world offering software development so you can pick a team that meets your work range. South America, East Asia or Eastern Europe are the areas to explore. With plenty of options, you can surely find a team just enough hours away to deliver and join your call while you’re both at work.
There are many things to consider before outsourcing your company’s software development but also just as many success stories and reasons to make you join the boat. We’ve been in the outsourcing industry as a provider for a few years now, so if you want to ask us anything or even commission us for a project we are just a call away (GMT+2).