5 Massive Advantages of Outsourcing Your Software Development Project
Outsourcing’s popularity has grown exponentially over the last 20 years.
The global outsourcing market has gone from 45.6 billion dollars in 2000 to 85.6 billion in 2018. Information Technology Outsourcing (ITO) leads the way with a total of 62 out of those 85.6 billion, compared to 33.6 billion contributed by Business Process Outsourcing (BPO).
Software development is the biggest contributor within ITO.
With that in mind, let’s look at the biggest outsourcing advantages for software development projects.
This is the first and most obvious advantage that comes to mind.
Cost savings is often at the top of the list of factors that influence business decisions. This rule also applies when it comes to making the decision to outsource.
Eastern Europe and India, for example, are two of the most attractive outsourcing destinations, mostly because they offer enormous opportunities for cost-cutting.
Even if you’re not outsourcing to a cheaper country in terms of cost of labor, the overall project development costs can still be lower. You won’t be paying as much employment taxes, benefits, equipment and other expenses of that nature.
Outsourcing your software development project will allow you to save a decent amount of money, which you can then reinvest in your core activities.
That said, outsourcing should never just be about reducing expenses.
Access a New Talent Pool
Not all businesses have enough tech experts to choose from.
Outsourcing to allows businesses to get access to a totally different workforce and in some cases – to new technology.
By outsourcing you come in contact with people with extremely customized expertise in specific areas that can help your company grow beyond just one project.
If you build a culture of knowledge sharing you’re also going to see massive improvements in your in-house team. Workshops and joint coding sessions are great ways to get the most out of your outsourcing efforts.
Avoid Recruitment and Onboarding
Every employer knows how time-consuming recruitment and onboarding can be.
Especially in the tech world.
Posting job ads, looking through LinkedIn, going over all the applicants’ resumes and scheduling interviews can take a tremendous amount of time.
When you outsource your software development project, you give up all that hassle. This saves enormous amounts of resources.
If you have an in-house recruitment team, then outsourcing some less important projects can reduce their workload. That way they can focus on hiring people for vital internal positions.
Obviously, if you don’t have an in-house software development team already, building one for a single project is rarely going to be a good option.
Reduce Workload on In-house Team
Nowadays, pretty much every business needs some type of software.
If you specialize in software development or offer software solutions, chances are your in-house team is swamped in tasks.
Outsourcing some of the work that would have otherwise gone to your in-house team can allow your developers to focus on the most critical tasks at hand. This ensures their maximum attention.
Obviously, you must build a good strategy that takes into account which projects should be exclusive for your in-house team and which are better off outsourced.
With the right plan and execution, outsourcing will give you more scalability and keep your internal workforce fresh.
This final advantage is a function of all the other ones.
Time is our most valuable resource in business, so this final advantage is probably the biggest one.
From not having to deal with recruitment and onboarding to not working on some smaller development projects, outsourcing can free much of your time.
You should also think about all the time you can free for your employees, especially when you need them to focus on one or two important projects. Those are the times that you need everyone in your in-house time to be on their A-game.
Outsourcing is a great tool that growing companies should at least consider at one point.
Business owners and other decision-makers can see great results from outsourcing software development projects if they use outsourcing as a part of a broader plan for their company’s growth.
If you’re interested in ITO or BPO for your business, you can contact RnD Talents here. We’re a team of experienced software developers and recruiters who focus on hiring the best talent and assembling high-quality teams. You can learn more about our outsourcing service here.