Although there are many reasons to outsource software development projects, there are still some misconceptions about why one should outsource.
Companies of all sizes follow the tradition of building in-house teams to take care of such tasks, but the world is changing.
Over the last couple of years, we have seen a boom of businesses contracting third-party partners to take care of development.
With the uncertainty caused by COVID-19, it is expected that companies will outsource more than ever.
Tighter budgets, less time, and insecurity has reshaped the views of CEOs.
The need to focus on core strengths has led businesses to leave the technical work to more specialized companies in that specific field.
"I am a startup, should I outsource my next software development project?"
If you are a startup and you are still unsure of the viability of outsourcing, you might want to check out this decision tree.
Regardless of your company size, there are relevant reasons why outsourcing can benefit your business. I will share five of them with you.
5 reasons to outsource your next software development project
- Save Money and Survive Uncertain Times
- Save Time and Focus on Growing Your Business
- Have Access To A Network Of Experienced Remote Workers
- Increase Cybersecurity And Avoid IT Data Breaches
- Be On The Edge of The Latest Technologies
Before we start digging in, let me ask you a question... Do you know where to find the best software outsourcing partner to work with?
I can tell you where, but first you will need to read this article, to find out my little secret at the end of this post. Let's start!
1- Save Money and Survive Uncertain Times
The main reason why outsourcing can be beneficial for you is costs. This is a short but scary word that neither you nor your client want to hear, specially when it entails increasing costs!
Hiring full-time in-house developers comes with expenses: Fixed (high) salaries, additional office space, work equipment, HR administration, training… the list goes on and on.
If you choose to outsource the job those costs disappear. It is the responsibility of the software development company to manage office duties and find the best talent for you. Your only task is to present your project and enjoy the expertise of highly experienced developers.
IT outsourcing has clearly yielded positive results over the last few months. With the economic crisis caused by the pandemic and an expected long-term recession ahead, there is no room for discretionary spending.
IT outsourcing is a cost-efficient option to save on operational costs and survive uncertain times.
2- Save Time And Focus On Growing Your Business
Saving time is one of the most precious things we can do for ourselves and for our business. How many times have you lost yourself with secondary tasks instead of focusing on important areas of your business?
Having time to work on what matters most to the company is crucial to its success. Thus, waiting months to find and train new employees might not be at the top of your priority list.
One of the things that the pandemic has taught us is that agility is imperative.
It is important to act rapidly and be fast to launch products at the right time. Shortening the time to go-to-market has never been as important as it is today.
Contractors have experienced developers who are able to start at anytime and at any stage of the software development life cycle. Whether starting a project from scratch or solving a problem, they ensure that your product is delivered on time.
There is a second aspect that should also be taken into consideration. During recession periods, companies tend to decrease their workforce and budgets to survive.
Consequently, the workload of existing employees increases significantly leading to stress and lower performance.
Hiring a software development company will alleviate the work of the in-house team tremendously. They will be able to focus on tasks that impact revenue, while the external team takes care of support and maintenance tasks.
If you let your team focus on their core job, your company can gain a competitive advantage and decrease the time needed to go to market.
These are the main reasons why companies are choosing to outsource their software development work. If being agile is something important to you, you should consider doing the same.
3 - Access A Network Of Experienced Remote Workers
Finding highly experienced software developers can be a daunting task.
Partnering with an outsourcing software development company gives you access to the brightest minds in the market for the most attractive rates. Especially when you need hard-to-get specialists like data scientists and machine learning engineers.
Good IT outsourcing firms have an extensive network of international developers working remotely, which gives you access to a pool of talents that you wouldn't otherwise have.
The shift to work from home shows that remote development and cooperation are challenging tasks for many businesses. According to McKinsey, infrastructure scalability and cybersecurity threats were top concerns of CIOs during the Coronavirus crisis.
Software development outsourcing companies are ahead with years of experience in remote work. That’s why you can trust them. They will share best practices and ensure your remote development is effective, scalable, and secure.
4- Increase Cybersecurity And Avoid IT Data Breaches
Cybersecurity is a main concern of chief technical officers because most of the IT data breaches happens inside the company.
With outsourcing contracts, there is a non-disclosure data agreement that ensures that the third-party will manage your data only for the purpose of the project and destroy it afterwards.
Client data security is of utmost priority for software development companies. For this reason, the chances of a data breach close to zero.
One effective risk management strategy widely adopted by businesses is geographic dispersion. Data centers are strategically distributed across the world and prepared for natural disasters and pandemics.
In case of disruption, consider the outsourcing software development company not as a mere third-party contractor but as your long-term strategic partner. They are resilient and certify that the quality of your products is kept up to the standard.
5- Be On The Edge of The Latest Technologies
To stay ahead of the competition, quality outsourcing companies are always up to date with the latest technology and they invest heavily in their developers’ skill set.
Continuous training of the development team helps them deliver higher quality work faster. They are more than just developers, they are IT consultants who are able to recommend high tech solutions that you might have not even heard about. On the other hand they might suggest simple optimal solutions based on experience working on other similar projects.
Don’t spend money on training, resources, and tools if you can have it all without any burden. Invest time in strategy and marketing whilst your strategic partner builds high tech solutions and applications for your project.
6 – Take Advantage OF The New Outsourcing Paradise
If you arrived here, I am confident you are convinced that outsourcing is a great investment for your next software development project. Now, I will tell you a little secret.
With so many attractive offshore destinations, which one can provide you with the best service of all?
In this blog article, Samir Alam explains why South Africa should be on your next offshore destination.
Have you ever considered South Africa? If not, it is about time to change your mind and start looking out there, and let me tell you why.
The attractiveness of the nation is greatly attributed to the political and socio-economic reforms conducted by the government since 2007. These governmental efforts resulted in an annual growth rate almost three times bigger than that of the Philippines or India.
International companies like IBM, Amazon, and Capital One opened local offices in South Africa in the last few years. These big players are benefiting from high-quality service at lower costs.
This is possible due to tax incentives, a modern information flow, and improved local tech infrastructure going from cloud-based services to advanced analytics.
Needless to say, the geography and weather are powerful magnets to attract foreign business. The region is in the central-European time zone, English is the official business language, and the population is familiar with the western working culture in general. This all makes it easier for the day-to-day work.
Are you ready to outsource your next software development project?
A myriad of factors contributes to choosing between building in-house capacity or outsourcing software development services.
Despite misconceptions, working with a third-party IT company has many benefits: minimal financial expenditure, more time to focus on the core business, cybersecurity, access to highly skilled talent, and the latest technology.
Outsourcing has proved to be a safe, high-quality, and cost-efficient option to have your products delivered at the right time, especially in periods of disruption and economic uncertainty.
If you are convinced and consider offshoring in South Africa, you might want to know more about us.
Over the last 5 years, at Appstrax we have outsourced full stack development services to more than 30 international clients.
Our team of experts can build and deploy customized software solutions of any kind. You can check our portfolio, follow us on LinkedIn for updates, or contact us directly. We would love to see if we can help you build your next tech idea.