Despite its popularity and obvious success, there are still many myths surrounding programming outsourcing. We are going to cover some of the most frequently asked questions relating to outsourcing software development and then go over some companies who used it to their advantage.
Why Should You Consider Programming Outsourcing?
Programming outsourcing is used when you have a software project that requires a certain niche talent and it is almost impossible to find this person in your local area. It can also work out more cost-effective than traditional hiring methods. Let’s take a closer look at some of the key reasons to use programming outsourcing.
- It allows you to focus on core business functions
When running a business, your attention is stretched across every area. If you have a strong tech team who are experts at what they do, you don’t need to spend as much time supervising the development of your software and you can focus on other needs.
- Access to more talent
If you are searching in your local area you may find a handful of potential candidates but not one that is a perfect fit for you. As soon as you consider outsourcing, your talent pool because as big as you want it to be. You can find more specialized talent all over the world. Outsourcing also allows for more flexibility in hiring, so you can hire excellent talent only for the time you need them.
- You can save time and money
The outsourcing partner you choose will handle many tasks in the recruitment process which saves your time and a great deal of stress. You don’t have to only outsource your software development. Other tasks could include marketing and PR. All of which means you can spend more time on other business functions. Outsourcing is a great way to reduce your outgoings as the rates are often much cheaper than hiring locally.
- Adding innovation to your company
Programming outsourcing partners are specialists in their field. They will be able to introduce you to some of the latest technologies and how you can use them to your advantage. This innovation is passed on to your customers as they are will have a better customer experience.
- Ensuring Security
Programming outsourcing partners are more than used to signing non-disclosure agreements, so you know that your project ideas won’t be leaked to your competition. Also, the professionals you hire will have a great deal of respect for online security and again, be using all of the latest security software.
Where to Find A Programming Outsourcing Partner
There are two principal ways in which you can find an outsourcing partner:
- Freelance websites
Typically, people will go down this avenue if they are looking for a single hire or trivial, not so significant tasks. On the downside, there will be lots of potential candidates, so it might take a while to verify the qualifications of the person.
- A software development vendor
This route is for those who are looking for added value rather than lower rates. Software development vendors will provide high-quality service and at the same time expertise that you don’t already have on your team. Today’s outsourcing trend is about finding a balance between low prices and expertise. When using a vendor, you will be able to enjoy a variety of collaborative options whether that’s fixed-price models or ‘time and material’, you will find more flexibility than ever.
Is Programming Outsourcing Really Dead?
No! Those who believe this often feel this way because the prices are no longer as low as they were or the outsourcing destinations are questionable. On the contrary to dead, outsourcing is progressing. Software is the most popular niche to outsource and now, instead of only focusing on cost and quality, since the introduction of cloud-based services, security has become another reason to outsource.
5 Companies That Correctly Outsourced Programming
- Skype
Niklas Zennstrom and Janus Friis from Scandinavia created the idea of an instant messaging app that incorporated video and voice calls. Nevertheless, they had no resources to turn their idea into reality. Three Estonian developers worked on the backend of Skype which resulted in 300 million monthly Skype users. Thanks to the collaboration of outsourcers, Skype was sold to Microsoft for $8.5 billion.
- Slack
This communication app built for the use in work locations and it wasn’t only the software development that was outsourced. The company based in Silicon Valley chose to outsource its design needs, logo creating, testing, and PR services. There are now approximately 8 million daily Slack users and 43% of Fortune 500 companies use this solution, worth an estimated $7.1 billion in 2018.
- Alibaba
Alibaba is now the world’s largest marketplace, but the founder Jack Ma decided to outsource the software development to the U.S. His decision came from a lack of local talent and the desire to compete with well-known giants like Amazon.
The company that created WhatsApp took just 2 years to go from 30 full-time employees and 5 part-time employees to selling the most popular chat app in the world to Facebook for $19 million. The company chose Eastern European developers.
- BaseCamp
The web consulting agency 37Signals had the idea of a project management tool but were lacking the in-house resources to carry out the project. After finding an outsourcing partner to refine the app, the owners soon discovered that BaseCamp was generating more income for hem than their web consulting services and shifted their focus to this.
In Summary
So, programming outsourcing is alive and kicking, and on top of that advancing to meet the needs of today’s companies. Outsourcing can provide a number of solutions to your business including reducing costs, gaining expertise and innovative methods. The one thing to take away from this is that finding an outsourcing provider isn’t about looking for a person or company to do a job, it’s about finding someone who can become your partner.
