20 Aug

Reasons why companies should start outsourcing their software development

by Trudo

Ideas can come up in your head, and no matter how innovative they might be, without having a strong team of software developers to help your idea reach the online market safely, they might fail. Companies with products as big as Google, Slack, Skype and countless more, have all had a part of their software developed by outsourcing teams, whether they are nearshore, offshore or onshore outsourcing companies. Taking Google as a more detailed example, the more the company grew they realized their capacities were not fit to provide with all the work, and started outsourcing some of their software developing work, as well as customer support by email and phone. In particular, offshore outsourcing can be in high demand due to drastically lower costs and larger talent pool, but can be slightly more difficult to manage. Outsourcing a part of your software development, especially for start-up companies, nowadays seems to be a very important part in the advancement of the business. Starting from having access to a larger “supply” of advanced talent, disregarding geographical limitations, having cheaper costs, freeing time for your in-house development team (if there), up to having a product in the market at a much faster speed.

Outsourcing a part of your software development, especially for start-up companies, nowadays seems to be a very important part in the advancement of the business.

Save your time

Now, whether you already have an in-house developing team, or you need to create one from scratch, big projects require a large chunk of your time. In the case of an already present in-house developing team, micromanaging details of the product and losing focus from more important work will be a huge loss, as usually in-house developers are also a lot more costly. Getting help from outside of the company will not only save you money, but you will have the product out in a much faster time. And since we already mentioned, if your company does not already have an in-house software developing team, this will get even more complicated. The hiring process is a dreadful period which can take up three to four months and a vast amount of financial resources. If you are in areas with a smaller population or in general small towns, the pool of potential employees with the required skill-set and extensive experience that are able to deliver good products might not be available at all.

Save your money

Offshore outsourcing companies have lower payment rates for the same required set of skills, sometimes maybe even better. Some larger companies actually start outsourcing just to be able to get into the market and have access to more skilled engineers, but in most cases it’s all about the money. Lower-price is a factor that largely affects the decision of the companies mostly because if you save money in this aspect, there is more space to promote growth and development of the core team. Being able to afford unexpected overhead costs that the customers require will help expand the business and compete more in the market.

Why is outsourcing not only done for cost-effectiveness?

One thing we have mentioned a few times until now is having access to a larger pool of advanced skills and resources, and a larger set of experienced individuals. As it is always important to give opportunities to less experienced developers, bigger tasks require more talent. With outsourcing you don’t need to worry about having that talent and experience anywhere near, as you can access software developers all over the world. This will also ensure flexibility of the team’s end product to meet the ever-changing business and commercial conditions, which can keep the company up to date and always required by clients. Outsourcing these teams will also highly increase focus on the main strategy and core competencies of the in-house employees.

Obviously, outsourcing can have potential downsides, but taking proper measures can minimize the disadvantages as much as possible. Communication with offshore teams could be a possible issue as different time-zones make communication a bit more difficult, but the majority of the cons that you could possibly experience with offshore companies could be avoided if you as a possible contractor will find an experienced, trust-worthy company.

Businesses and companies can think of outsourcing as just a cheaper way to get a product, but it actually helps the core teams develop in ways that would otherwise be impossible as time would be lost on smaller issues and there would be less brains and resources being spent on innovative ideas and unique work.