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Mar 25, 2020

What are the Benefits of Outsourcing Software Development?

Oksana Mirgorodskaya
Oksana Mirgorodskaya

The market for mobile apps, web apps, and software keeps growing. The rapid growth of their assortment makes it harder to attract customers. However, more possibilities open for new business ideas and people to start their projects every day.

In this article, you will find the necessary information about the strategy of outsourcing. Many people consider this a method to spend less money on their projects. However, there is much more behind that. Outsource providers may improve the quality of a finished product and bring you more ideas for future startups. The more professional developers you hire, the better, because they will accelerate the development process. However, sometimes even a couple of outsourcing professionals could make all the nuances fast enough without loss in quality.

Here are the main benefits you may get:

  • Time Saving
  • Saving Money
  • Flexibility
  • Strong Strategy
  • Technological Development
  • Fresh Ideas
  • Risk Reduction
  • Work Accuracy
  • Company Growth
  • Reach for the Broad Market

This list is not complete. Each project is unique, and outsourcing will bring special advantages. Many organizations share their experiences with outsourcing. The majority of reviews and articles are positive. Before trying it, you should know the pros and cons of outsourcing software development.

How to outsource software development

Let’s go back to basics. What exactly is outsourcing? The answer is simple. Usually, a team of professionals who work at the same company holds projects. However, some parts of certain functions may be too expensive or the workers are not experienced enough. To solve such problems, companies hire professionals to have external help for the operational activity. Basically, it is outside service performance.

According to statistics, outsourced labor is 80% less expensive, especially when you hire programmers from abroad. It means that this gives you an opportunity to save money and develop other projects.

There are three types of outsourcing: offshore, nearshore and onshore. Onshore can be an agency in your country. Nearshore is when you choose experts from nearby states. Offshore is searching for a developer overseas.

You may think of outsourcing as a trendy thing. Expertise confirms that many companies use it often while developing fresh projects. This strategy is successful because it gives new advantages that can’t be reached with the ordinary team – new technology resources and low costs. Many successful companies have tried this method and launched extremely profitable applications.

The main advantages of outsourcing

There are many advantages of outsourcing software development. Let’s look closer at the main benefits you may get:

  1. Time Saving
    There is no team of people who can work 24 hours a day. However, if you hire programmers from all over the world, your project may be in non-stop development. The more workers you have, the faster you will launch your project. Deadlines mean a lot, and a well-organized team is a key to success.
  2. Saving Money
    It is known that outsourced workers usually demand less money. Many outsource developers are high-level professionals who are able to do their work quickly and qualitatively. Furthermore, you should settle accounts for their services only and not pay them a salary. Tip: it is much better to hire a team of programmers than search for each one individually. It may be more expensive and time-consuming to manually create a team, especially if your programmers are narrow-profiled specialists. Their training, in fact, can make a serious impact on your budget.
  3. Flexibility
    It is not profitable to hire an in-house developer for a full-time job. If you want a loyal worker, you will have to pay him a salary, even when there are no projects at work. Hiring outsourcing persons is profitable since they will be paid and needed only if there are certain projects in development. You can make a deal with them for future projects or hire new programmers.
  4. Strong Strategy
    The team of developers you hired for a full-time job, as experienced as they are, may lose control over the situation. If they work on several projects at once, it may be hard for them to concentrate on different types of tasks. In fact, such a situation may lead to delays and issues with deadlines. You may find the solution in hiring new people, but searching for them takes time. It is better to find a team of experienced developers who have a list of finished successful projects.
  5. Technological Development
    Companies have different experiences and equipment. If you hire an external provider, it may be a huge improvement, since their resources can be better. This will boost your progress as well, and you will not need to invest in such things. This solution may be cutting-edge for your organization. Isn’t it excellent to have the possibility to try the newest technologies without a necessity to learn them? It is a great way to save time and money as well.
  6. Fresh Ideas
    People are different, and even if your crew consists of the best programmers and professionals, it is hard to come up with something new. Sometimes you need to think outside of the box. You can hire a developer from an outsourcing service and be surprised by the fresh ideas of this person. Seeing your project from other perspectives is great. This way you will remove the flaws and get fresh thoughts for future projects.
  7. Risk Reduction
    When you hire people, choosing each one individually, you may skip certain peculiarities about them. They can be unprofessional or have a lack of experience. That is why the best solution is to hire a skilled team from a company with a good reputation.
  8. Work Accuracy
    Talented programmers create profitable projects. As easy as it sounds, hiring a professional may be a difficult task. Offshoring is a perfect strategy to find the best workers and improve precision. The business owner doesn’t connect to the geographical location of the outsourcing company. The main task is to hire real professionals with huge experience and a high level of knowledge. You can find specialists dedicated to your project. Outstanding software will be profitable even in a highly competitive market.
  9. Company Growth
    Each project needs a unique strategy. As a businessperson, you know that time means a lot. You can’t have all day to work on each project. It will be better to hire programmers and form teams for each startup in particular. This way you will have enough resources to control all of the projects and work on your company.
  10. Reach for the Broad Market
    This one can be the main advantage of outsourced developers. A product made by foreign specialists can be useful for people all over the world. The possibility to get on a global market is very profitable and overwhelming. If you get professionals from various countries, they will share their knowledge about relevant situations in their local markets.

Disadvantages you have to know

This strategy is able to make your project successful, but on your way, you may face certain difficulties. So, you should know the disadvantages of outsourcing software development. The main cons are connected with safety and finances during the process:

  1. Lack of Control.
    After the establishment of communication with an outsourced provider, you will have limited access to the internal development of your project. Mostly the work will be planned and done without your management. Many persons will find this helpful, while certain people hate when they can’t track the whole process.
  2. Security Problems.
    Hiring a stranger opens many possibilities, but it also puts you in some kinds of danger. Make sure to keep in touch with the person you hired, and do not give him any extra information unless needed.
  3. Hidden Costs.
    Make sure to negotiate with the contractor. Some companies follow a certain scheme to profit on their projects. They name the costs of particular tasks, but when it comes to development, additional tasks might be completed, and the final number can be larger than expected.

Our Experience

Our team has worked with many foreign companies. We know that outsourcing is a great strategy for new projects. It is up to you who to choose, but our crew consists of professional developers. Our team provides services to different companies from the USA, Great Britain, and Israel, and has established connections with customers all over the world.

Before making a decision to hire foreign professionals, check their references and samples. It will show their skills. Sometimes you may meet misunderstandings as well. Our team knows how to establish business relationships without any problem. If you want to become our loyal customer, we will be ready to work on different types of projects. However, defining your goal is a big step to success. If you have made a clear vision of the future results, it will be much easier for us to meet your expectations.

If you want to ask questions about your application development, send us a message. Our consultants can provide you with online assistance. We are willing to help our clients as much as possible!

Final Thoughts

Starting an in-house project may seem easy, but if certain tasks are too complicated, you should consider hiring a specialist, sometimes even from abroad. Now you know how to outsource software development, and you can estimate pros and cons. Each project is unique, and your startup may not be appropriate for these strategies. However, you may use outsourcing tools for future projects. We are sure any decision you make will lead to a successful result!

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