Outsourcing Software Development

22 June 2020

Outsourcing software development is not a new idea, but it has undoubtedly become more popular. The benefits of outsourcing used to be seen solely in terms of finances. Budgetary concerns remain a primary reason some firms go this route. However, many companies are discovering additional and vital reasons to look at software outsourcing.

More firms than ever are turning to outside sources for development, IT, and other technical needs. In some cases, these outside contractors are coming onsite to fill roles formerly reserved for staff. In others, the work is completed offsite and even offshore.

Why Programming Outsourcing May Be a Good Fit for Your Company

#1 Overcoming a Limited Talent Pool

As the demand for technology development rises at an exponential rate, it becomes more difficult for companies to get the talent they need to get the work done. This is especially true in areas where the talent pool is already limited, or the competition for the top developers is already fierce. The good news is that, in our increasingly connected world, we can now have access to talent from across the country and around the world.

With the help of technology, we can access the best talent, no matter their location or ours. Talented developers also no longer need to commit to working with just one company. They can split their time between multiple clients or work for a client exclusively on a project basis and then move on to somewhere else they are needed.

#2 Eliminating the Need for Continued Training

One of the most significant benefits, when companies outsource programming, is that it removes the responsibility for continued training and growth from your company. You can get the exact people with the correct skillsets you need for the project when you turn to programming outsourcing. You don’t need to recruit them, train them, or help them stay up to date on the latest trends and technology. With the right software outsourcing company, you will have the right team with the skills and expertise needed for the job.

#3 Software Outsourcing Benefit: Cost

If you ask the question, “Why do companies choose to outsource work?” The most common answers relate to cost. That is true for a reason. Companies can save significant amounts by handing over their projects to a software outsourcing company. Some leaders might initially see the costs of outsourcing as too high. But consider the expense of doing the work in-house. You have salaries, benefits, and office space. You also have a considerable amount of inefficiency in an in-house team. Unless you have a steady stream of projects, you will continue to pay your developers even when there isn’t priority work. If your organization lacks the expertise for a particular project, you will need to recruit and train new team members.

Read also: What is project risk?

#4 A Reason to Outsource Development: Accommodating Peak Loads

Wouldn’t it be nice if we could all schedule projects efficiently across the calendar year and never be working on too many things at once? That is not the reality in most businesses, and that can cause significant software development problems. Either you hire a big team that can handle the highest possible load, or you maintain a smaller group and need to reallocate resources and risk burning out your best employees to make deadlines. One of the benefits of outsourcing is that you can scale up or down, depending on the project. You can have the exact team or teams in place for peak times with no commitment to keep them around when things slow down.

Whether you choose to work with an IT outsourcing company, you choose to outsource PHP development, outsource computer programming, or explore options for completely outsourcing software development services, you will have the talent you need when you need it and won’t be paying for it when you don’t.

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#5 Outsource Development to Reduce Time to Completion

All else being equal, getting your projects done faster is almost always a good thing. If you can, without sacrificing quality, get what you need in half the time, it opens up numerous possibilities in terms of efficiency and the ability to meet your goals. An in-house team will likely have trouble speeding up development without sacrificing features or quality. That team may also be balancing the speed of development of one project with other projects that are also on tight timelines. When you are outsourcing software development, you choose your timeline. You can have dedicated developers offering as much time and bandwidth as necessary to get it done. You won’t have to hire more employees, put other projects on hold, or tax your organizational resources to get your project done on your schedule.

#6 Programming Outsourcing Allows for an Increased Focus on What You Do Best

Chances are, your company’s core competency isn’t software development. You need software applications and services to get your work done. So why focus on the internal work of development when you can take advantage of outsourcing development. Instead of overwhelming your organization by maintaining a development team that may or may not be ready for the next project, you can focus on your business and entrust this work to others who make development their business. In the meantime, you can use that extra bandwidth to further the strategic goals of your company.

Choosing the Right Team for Software Outsourcing

Of course, outsourcing software development is only effective if you find the right people to work with. Start by understanding exactly why you are choosing to work with an outside software engineering company in the first place. Many of the pros of engaging an outside team are listed here.

However, it is essential to know your own “why” and what you see as the key benefits for your organization. With this in mind, you can begin researching and interviewing outsourcing software development companies to determine if they will help you meet your goals. This will also help you make decisions about things like the pros and cons of offshoring vs. hiring a local or national firm. There may be offshore product development solutions to fit your needs, or you might even consider nearshore software development outsourcing.

It will also help you determine the level of service you need from the company, the amount of in-person interaction you will expect, and your budget expectations. Figuring this upfront will ensure that you find the right team for the software development outsource job and enjoy all the benefits of outsourcing software development.

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