Hiring can be an exhausting and time-consuming business. That is one of the foremost reasons outsourcing products or software development is a great idea. However, since that sounds too obvious, let's dig deeper to understand the science behind outsourcing and why it is finding great favor in the industry.
Software development outsourcing entails delegating software development project responsibilities to third-party collaborators or offshore teams. The idea is to delegate a part of software development to another organization or hire a team to do the work for you instead of putting up an in-house team. Usually, it can be one part of the development process.
For instance, you want to build a new website in the first case. While your in-house team does the central part, you hire tech talent to do the UI/UX design or the QA for the website. That way, you get an expert to do what they are good at, and you keep control of the other aspects of the project.
In the second case, you want to develop a website- you hire a team to do the whole work- from UI/UX for the entire website development. So, whether it's the complete or part of your project, giving it to an outside organization or hiring a developer with a specific skill set is outsourcing. The trend of outsourcing software development is growing rapidly despite its complexities.
So, why do businesses prefer to outsource their software development requirements? In this blog, we'll look at the primary reasons for outsourcing and how it can be a game-changer for organizations looking for cost-effective, efficient, and expert-driven solutions.
Primary factors why companies outsource software development
As an engineering head, what worries you the most when you think about developing a product- is it overshooting the budget, delivery time, or product quality? If you can't choose between those three, then you are on the right track- since all three aspects- budget, timeline, and quality- are integral to any software development.
So, here are six significant factors that tilt the scale toward outsourcing software development:
1. Expertise is not an option- it is a mandatory requirement
One developer can have multiple skill sets; that's his advantage. However, a developer with the perfect tech stack and domain knowledge is someone you need when you are working on a substantial project. Domain knowledge and expertise are a must-have because:
- Domain knowledge enables the outsourced team to appreciate the organization's specific needs and goals, ensuring the final product meets industry needs.
- In-depth domain expertise allows the outsourced team to foresee and address industry-specific obstacles and concerns that may occur during the development process.
- Domain knowledge contributes to testing per industry-specific use cases and standards and ensures that the product meets applicable compliance and regulatory requirements.
- Domain knowledge enables the outsourced team to offer industry-specific best practices and new ideas to the project.
- Knowing the domain helps the outsourcing team in proactive risk management methods and identifying risks before they worsen.
2. Overshooting budgets can make or break the bank
Software development outsourcing can save costs, even if you must pay the outsourced tech team a great deal to complete the work. Why? An outsourced team can come from any part of the world, and an expert from an area with less overhead costs than usual can work to your advantage. Several other factors work to your benefit:
- Outsourcing can hasten the software development process and help businesses launch their products or solutions more quickly, reducing overhead costs.
- When you deliver products within the timeframe or even before it, you have happy customers and clients in hand and more businesses coming your way.
- One of the significant cost-saving benefits of outsourcing is access to skilled workers in countries with lower labor rates. That can result in substantial savings, especially when hiring in-house developers in higher-paying countries.
- Outsourcing eliminates the need for in-house employee expenses like salary, benefits, office space, and equipment, leading to considerable savings in overhead costs.
- Managing an in-house development team requires supervision, project management, and coordination of resources. Outsourcing providers frequently handle these issues, which reduces management overhead.
3. Accounting for eventualities can be your best bet
Software projects are always wrought with challenges, last-minute additions, deletions, and changes. What that means is that accounting for all eventualities is a must when it comes to software development. Say, for example, you want to develop the mobile version of your website and be compatible with all platforms, and then you need expert help to make it happen. So, scaling up or scaling down is an eventuality that is always a chance that we need to consider. Outsourcing your software development can help in covering up these eventualities as below:
- You can scale your development team up or down depending on project requirements, shifting workloads, and achieving tight deadlines.
- Covering all business needs can vary over time owing to market dynamics, consumer demands, or strategic developments. With a scalable outsourcing contract, you can respond to these changes without making substantial changes to your development team.
- Scalability ensures cost efficiency in outsourcing. You avoid excessive costs associated with retaining a fixed-size team during periods of lesser demand when you can alter the size of your outsourced team according to the project's needs.
- The capacity to quickly scale up resources is critical in outsourcing. Scalability enables you to promptly bring in extra developers or specialists when faced with tight deadlines or unforeseen spikes in workload.
- Some projects may suffer workload peaks owing to specific milestones, product launches, or other events. Scalable outsourcing allows you to handle these peaks effectively without jeopardizing project timeframes or quality.
4. Hiring can be an exhausting process- why hire when you can contract?
Hiring is an exhausting process- what with the time to find the right developer or the tech team, screen them, fix them up for the interview, and so on. It's pretty time-consuming, and you may eventually not get what you need- either in expert skillsets or domain knowledge or pay more. By outsourcing a team, you navigate the rigorous hiring process and get your hands on the best expertise in the industry. The advantages?
- You do not need to pay for job postings, advertising, or recruitment agencies to attract prospects. Outsourcing firms have their talent pools, so you can begin the hiring process without incurring these costs.
- Hiring in-house personnel requires enough time from your HR and resources for screening, interviewing, and onboarding. Outsourcing takes care of these activities, saving you the HR costs.
- Outsourcing companies often engage trained tech experts, eliminating the need for costly training programs or resources.
- In-house personnel require office space, desks, computers, software licenses, and other devices. You don't need to invest in new resources because most outsourcing works remotely. Even if they work offline, the outsourcing companies provide them with the necessary equipment.
- In-house employees frequently receive health insurance, retirement contributions, and paid time off. You can negotiate a fixed contract price with outsourcing, which streamlines payroll and benefits management.
5. If you are confined to boundaries, you are missing a treat!
Are you still confined to the geographical boundaries when it comes to hiring? Why not look for the global talent pool to work on your projects? Are you concerned about increasing your overhead costs? Then here is some news for you!
- A global talent pool allows you to tap into various abilities and knowledge. Different regions may have specialists in multiple technologies, guaranteeing that you may discover suitable professionals for your project requirements.
- Time zone variations can work to your advantage in a 24/7 development cycle. Development can take place around the clock with a global team.
- You can delegate tasks to teams in different time zones, resulting in faster project development and issue resolution.
- Each location may have its perspectives and approaches to software development. Working with a global talent pool exposes your project to various ideas and unique solutions that can help your software succeed and compete.
- A global talent pool can bring insights into varied markets and user behaviors. Working with specialists from diverse regions improves understanding of cultural nuances and market dynamics, which is critical for producing user-friendly and globally acceptable products.
Overall, outsourcing brings various advantages, and cost-efficiency, effective product delivery, and hiring headaches are very few among them. That is why outsourcing is gathering more takers in the global software market.
Work with an expert tech team- hire with Notchup!
Are you thinking about outsourcing your product or software development, too? Then you are in for a treat!
Notchup offers a great pool of global tech talents and teams who can work round the clock to deliver your products on time. We have some great skill sets in the industry who work as dedicated development teams and individual tech talents to create quality products round-the-clock. There are no restrictions to geographical boundaries here- from Asia to the UK and the USA, our developers work in all time zones to develop quality software products worldwide.
Are you looking to hire from our global pool of tech talents and teams? Click here to learn more!
