For various reasons, companies have begun to dive further into the process of outsourcing. Some of the benefits they have learned include cost reduction, employing experienced developers, and better time management. In particular, software outsourcing to developers in Europe has been the most popular region.
Let’s look at the best and worst reasons to use outsourcing for software development.
The Best Reasons
– Can Grow a Team Quickly Due to Hiring Being Time-Consuming
Software outsourcing can be as simple as finding the right, experienced developers and hiring them. The other alternative may be hiring new developers or transitioning current employees to work on those software projects. Most often, recruiters don’t recognize if employees have the skills necessary to complete those projects, or they could just not possess those skills at all. This would mean hiring is the ‘best option to build the ideal team. Instead, outsourcing is a less time-consuming and more convenient solution.
– Reaching the Extent of Current Skillset & Needing to Go Beyond That
Sometimes, employed developers may not possess the knowledge or skill set needed to implement new technology into a company’s development projects. When advancement becomes a requirement for companies, outsourcing could be a solution to incorporate that technology, so those employees don’t have to. This is where experts on certain things can be temporarily employed. Additionally, there are times where temporary outsourcing becomes a long-term or permanent relationship.
– Software Knowledge & Skills are Required, But It Isn’t A Specialty
Outsourcing could fill that gap for companies looking to break into different areas but don’t have experience or knowledge in those areas. Technological advancements might force some companies to do this or risk going out of business. Outsourcing can provide lower-cost services while adding quality work to the business’s reputation.
– Startup Businesses are Looking to Create MVPs
MVPs, or Minimum Viable Products, are essentially the basic version of a product business are looking to build on. They often might be inexperienced, lack specific resources, or can’t dedicate enough time to build and expand on their MVP. By outsourcing, those businesses can have other, more experienced software developers construct those MVPs for them.
The Worst Reasons
– Miscommunication or Underestimated Outsourcing Requirements
Startup companies may face this most commonly. Having a miscommunication on the foundation, structure, or merely underestimating the level of outsourcing needed for the development project become the worst reasons to outsource (or rather, continue outsourcing). Miscommunications typically happen first within the business itself. Startups, in particular, are more likely to underestimate how much they should outsource. Whether that occurs before they outsource or during might depend on the level of outsourcing they initially expected, among many other things.
– Decreasing Costs is the Primary Reason
Outsourcing is generally a cost-saver for businesses. However, if decreasing costs is the primary reason for outsourcing, it can lead to problems. Those businesses look for the cheapest rates and quickest completion times, which opens the door for getting scammed or simply unsatisfied with the results.