The concept of delegating some work to third parties exists in every industry.
Thus, automotive companies outsource the manufacturing of their parts to external suppliers, educational centers outsource the creation of content to external copywriters, famous brands outsource the sewing to factories abroad.
In fact, around 70% of services worldwide have been outsourced in 2019 to date. The common stereotype is that software developer outsourcing is done when a company needs to cut costs, despite the service quality.
The truth is, software development outsourcing saves a good sum of money, but there’re far more important reasons to consider besides financial profitability.
Here are some reasons to outsource
Since all companies outsource specific services, let’s start by defining the general reasons for outsourcing.
- Lower integration cost
Onboarding a new professional is a complicated and time-consuming process. The fresh employee needs to know about the organization’s internal rules, project specifications, network contacts, current tasks, workflow, etc.
Most of the time, it takes about a few months for a new team member to start working. In this period of knowledge transfer, the company pays the salary of two employees (the new employee and the outgoing specialist).
By hiring a specific company or a separate professional for a specific task, this entire process can be minimized to essential knowledge only.
Furthermore, as outsourcing means bringing a professional to the team, they tend to take only a few hours to understand all the specifics.
- New and specialized knowledge on the subject
The external view of the procedure and industry experience make software outsourcing service invaluable.
Outsourced human resources can notice the missing elements in a manufacturing line or offer new ideas at the table from their past experiences.
These experts can actually provide much more benefit than completing a single task.
- A way of recruiting talent
It’s common to test an employee, but companies can’t extend it forever.
Outsourcing allows you working with a professional mind in a field to test your experience in real-time for an indefinite period of time.
It helps companies avoid the hassle of permanent employment contracts and high taxes in some countries.
However, assigning individual tasks with a fixed deadline and price is a perfect way to survey the industry and create a group of potential candidates for full-time recruitment.
Obviously, outsourcing development means avoiding full-time hiring. Still, it wouldn’t be a bad thing to have a backup list of great employees and a contact list of industry experts for future recruits.
- Get a senior for the team
Whenever budgets are low and you need a project management professional with expertise in your line of work, outsourcing can be a great option.
You mayn’t have the budget to employ an individual for full-time job, but even the temporary service of a super-seasoned person in the industry will streamline the procedures and lay an excellent foundation for the work to come.
Add to that list of contacts for the superstar’s audience and influence, and you’ll have one more reason to select this option.
- Focus on what’s important
Small tasks should be completed, but they can take up most of the time, leaving nothing for what actually matters.
Just as families hire maids, companies have to outsource a few services to pay attention on their main goals and objectives.
By paying this employee, a company cleans the floor while earning money from production, for example.
When and why outsourcing the software development
All of the reasons for outsourcing described above also relate to outsourcing software development services.
However, as the IT industry is a leader in task assignment, there’re specific reasons to consider this service if you own, organize or work with a company in this market.
- Instant help for urgent needs
Software development came to make life easier for a company.
A good app can increase an organization’s efficiency, increase customer loyalty, and provide new revenue.
Often the necessity for this type of application arises urgently, here and now. Thus, the company often has less time and knowledge to quickly transform its current tools or bring a new tool to market.
Third-party software Development Company helps fill this gap of resources in a few days and can deliver the complete product significantly earlier than the in-house development process.
- Better risk management
Every new software or application development is a risk in itself.
The collection of all procedures in one place, for example internally, increases the chances of failure of application, on-time delivery failure, process stagnation etc.
By outsourcing various parts of the development procedure to outside suppliers, a company can mitigate these risks. If one professional fails, another will catch.
- Reduced time to market
The responsiveness of an application is among the fundamental requirements for any app today. Lack of adaptation may lead to significant loss of revenue and overall brand failure.
As soon as an urgent need arises, such as during COVID-19, when organizations had to add new methods for deliveries, takedowns, etc., the company team mayn’t have enough skills and resources to effectively deliver these new services on time.
Software outsourcing solutions offer a reliable hand and the ability to reduce the time it takes to bring new features to market.
The customer here dictates the delivery terms while the outsourcing team adapts so that you’ve full control over release deadlines.
- Part-time scheduling
Continuing the previous idea whenever you need to deliver a new feature as soon as possible, there’s no time for consideration; it’s time to act.
Outsourcing gives the internal team extra hands and minds to reach the new goal faster.
And, by good luck, you only get additional help for a task, a sprint, a project, etc.
Once completed, the cooperation with software outsourcing team can be terminated immediately on same day. It’s a perfect way to avoid urgent development crises.
- Development flexibility
The software outsourcing professionals have a extensive range of expertise available, so you can include them at any time according to the needs and specifications of your current project.
Flexibility in asset usage and assignment is a big advantage for every software development company.