Outsourcing is when a company chooses to use an external developer or team of developers to complete part or even all of its projects. It can be categorized into offshore, nearshore, or onshore. Offshore outsourcing is using a developer in a different country altogether. Nearshore refers to a neighboring country. And onshore is a developer that is in the same country as your business.
There are a great number of advantages to outsourcing and a few disadvantages that we will also consider. Let’s begin with 12 reasons why companies chose to outsource software development.
The Advantages of Outsourcing Software Development
- It reduces costs
If you think of the costs involved in hiring a developer and then training them, you will realize that it’s not cheap. Then multiple that by the number of developers you need, and the costs can become astronomical. Outsourcing is far cheaper. In fact, if you look at countries in Eastern Europe, you could save as much as up to 80% compared with other countries in Europe and North America.
You will also be able to save on investing in equipment as the outsourcing company makes sure this is included.
- You can save time
Choosing developers in different countries means people can be working on your project around the clock, speeding up the process. You will also be able to start sooner as you will be able to have an outsourced developer trained and ready to start in a matter of days.
- Increased experience
It might be the case that your in-house team doesn’t have the skills needed for your software development. Choosing to outsource lets you bring highly qualified specialists into your team.
- It is more flexible
It is not practical to hire, train, and keep on a software developer full time when you don’t have enough work to get the most out of them. It might mean you have to sign a long-term contract and maintain their salary and benefits for the duration. Outsourcing lets you scale your team up or down depending on the needs of the project.
- An improved strategy
If you have more than one project to handle, you will need to manage your team depending on the various projects and their skills, often taking talent away from one project to complete another. When you outsource parts of a project or even the whole project, your in-house team is free to focus on their core responsibilities.
- Superior Compliance
You will be able to develop automated compliance leading to a lower need to human-follow ups, again, saving time and money.
- Your product can be released faster
It’s an incredibly fast-paced market and any delays could result in your competition releasing the same product before you do. Hiring an outsourcing company can speed up production and allow you to maintain a competitive edge.
- Tapping into the latest digital knowledge
As new technologies keep appearing in record time, it’s almost impossible to keep your in-house team up to date. Outsourcing software development companies have access to talent that is competent in all of the cutting-edge solutions in the most recent technologies, allowing you to make sure your product is bleeding edge.
- Fresh insights
Creating new software requires innovative ideas. An outsider working on your project may be able to offer alternative ideas and new outlooks.
- There is less risk
Outsourcing has matured a lot in recent years. The system has ironed out the wrinkles all the way from developers to management teams. Leading outsourcing companies provide a trusted service that will elevate and speed up your project.
- A larger talent pool
In many fields, there is a shortage of talent, and it is becoming more difficult to find the right talent locally. When you outsource, you have access to talent from all over the world.
- Reach a wider market
An excellent business practice is networking. When you choose an outsourcing company, particularly nearshore or offshore, you will be making new contacts around the world, which is only going to promote your business more.
