6 Reasons To Outsource Software Development


Software development outsourcing is the new normal. If your company’s growth is software dependent and your internal IT team has too many things on their plates, you should think of outsourcing your software development. We in this article walk through the benefits of outsourcing software development and an eight-pointer list of why outsourcing software to an offshore company still works!

[1] Access to a larger talent pool and the latest technology

One primary reason why companies outsource software development is exposure to global talent. Also, because expertise in every skill and technology cannot be demanded in-house.

With software outsourcing, businesses get access to skilled workforce all over the world, thus expanding their technical capability and horizon.

And it also means being relaxed. Everything from development to deployment is taken care of by the outsourcing team without any need for additional training or guidance. Make sure to keep these points in mind before choosing an offshore software team to ensure your software project screams wow!

You don’t spend much time or resource developing or managing the project but at the same time have shorter development time and faster time to market. This increasing exposure to talent due to software outsourcing, result in a competitive advantage for the company.

[2] Increased Focus on Core Business

Survival of the fittest! Remember? In today’s times, businesses have to find ways to innovate and expand in order to survive their competition. Outsourcing software development improves concentration on strengthening other core processes. It also doesn’t overwhelm your in-house staffs with work that doesn’t match their skill level, further allowing them to focus more on strategic goals in alignment to the business.

This, in turn, streamlines your business processes and helps to free up and allocate more resources to other processes that help make the business tick.

[3] Cost savings

Companies can save 30% on operating costs by outsourcing their software development! When you are running a successful business, the carousel (of spending, mostly) never stops turning!  

When you outsource software development, there is a considerable difference in wages in developed and developing countries.

Also, you save a hefty amount of money in the form of employee salary and benefits when you outsource. So, software outsourcing to developing nations results in greater economies of scale and makes it cheaper for a firm to outsource software development and operations than to carry it in-house.

[4] Better Risk Management

When investing, we generally are advised to diversify our investment portfolio rather than put all the money in one place to reduce risk. Same with software outsourcing. Software outsourcing is volatile and effective risk management to reap its absolute benefits is critical to an organization’s long-term viability.

Splitting components and operations amongst different vendors help mitigate risks. Do your due diligence, talk to the vendor’s existing clients, rate their previous experience and then decide. Always remember, the key to a successful software outsourcing relationship is “outsourcing transparency,”

[5] Accommodate peak loads

Every business has times when their demand is at the peak. This means re-distribution of available in-house resources to operations and processes they are not specialized in. Or this means hiring new employees.

Both results in higher costs and a decrease in efficiency. With software outsourcing, you can just hire a scalable team for just the peak period with absolutely no commitment. They help balance the workload, saving big bucks and at the same time increasing efficiency.

[6] Better Security

Assuming that your in-house team doesn’t specialize in IT, there are pretty good chances that your software’s security is not in safe hands. Security flaws will put sensitive information about the company at risk.

Outsourcing software development will give you better coverage against IT security breaches. The software team will ensure that the code and processes that go into developing applications are as secure as possible.

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