All You Need To Know When Outsourcing Software Development!
It is getting more competitive than ever before for businesses today! Every company wants to lead in the market as quickly as possible. How can you get there first?
Software development can be your answer. But can outsourcing software development make a difference?
Outsourcing has been one of the most talked-about digital transformation strategies, especially if you want to launch your products quickly into the market. Outsourcing software development nurtures your business goals by saving time and cost. You ensure effective and innovative product delivery when you allow top professionals to work on your project. The benefits are not just limited to that.
This blog will explain the pros and cons of outsourcing software development and how you can select the right company so that you are well prepared the next time you plan to outsource your software development!
Why Outsource Software Development?
Organizations outsource software development to save costs and resources, nourish business growth, remain competitive in their sector, and more. By outsourcing, businesses enable their in-house team to focus on their expertise rather than be jack-of-all-trades. This kind of freedom allows your team to improve their performance in their field instead of doing routine tasks that consume precious time. Here are some more benefits:
1. Control business expenditure
The biggest driver of outsourcing software development is cost reduction. This frees up more funds to channel into other crucial business areas.
The question is, how does it reduce cost?
When you outsource software development, you are only paying for their services. You save common expenses associated with in-house staff like hardware and software, rent, training, etc. Besides, it is much easier and cheaper to outsource as you can find software development teams within a few clicks.
2. Gain access to the world’s best outsourcing specialists
Outsourcing software development goes beyond physical boundaries, empowering you to connect with the world’s best talent. The best part is that this collaboration could be for all projects or just a one-off project with no further obligation.
3. Saves time on onboarding specialized talent
Looking for a software developer with a diverse skill set is a complicated and time-consuming process. Plus, training a developer incurs more delays and costs. Conversely, outsourcing software development is far simpler while saving time, effort, and money.
4. Flexibility and speed
Outsourcing software development gives you the simplicity of scaling your project. An outsourcing company allows you to choose the right cooperation model that matches your business needs. This allows you to respond to changes as they occur and take action to address them with a quick turnaround.
5. Forge ahead with the latest technology
A good software outsourcing company uses the latest languages and development tools to build effective and innovative products at minimum cost. You can benefit from this and trust that the best tools will be used for your requirements.
6. Get exceptional support
Since the outsourcing firm may already have experts with immense knowledge in their field, they become your business partners. If you face any crisis, you can count on them to solve your problem as soon as possible.
Now that you understand why you should outsource software development let us clarify the difference between offshore and nearshore outsourcing.
Read more: Why Software Development Outsourcing Is A Smart Move Now?
Offshore Vs Nearshore Outsourcing
Offshore outsourcing is sourcing company operations outside your country in a different time zone. Nearshore outsourcing is sourcing company operations within your country.
Benefits of offshore outsourcing include cost savings, access to specialized expertise, and 24/7 support. Benefits of nearshore outsourcing include shared time zones, similarities in cultural background, better control, and better security.
Software development doesn’t need an in-house team, so you can choose either near or far outsourcing companies to build your ideal dedicated team.
Pros And Cons of Outsourcing
As for any solution, there are always pros and cons. Let us look at both, so you can make an informed decision for your business.
Pros of Outsourcing
1. Timing: While every business needs to go through a procurement phase, that time will be much reduced if you don’t have to spend onboarding the right talent. Besides, if your idea is still in the formative stage, you will not be able to attract the right talent. This makes outsourcing the best option.
2. Business goal: If validating your idea is your primary business goal, the earlier you begin to do this, the better. Outsourcing frees you to concentrate on business goals and build the foundation of your business viability.
3. Access to proven workflows: Because the outsourcing firm likely worked with many organizations similar to your business, you can be confident that it will implement proven workflows and processes.
4. Speed to market: Speed to market increases as the outsourcing firm can manage and optimize workflows.
5. Access to a larger talent pool: Outsourcing companies can access industry experts who can be reached whenever you need to consult them for a solution.
Cons Of Outsourcing
1. Risk of failure: Business failure is risky if you cannot manage your outsourcing company effectively.
2. Communication challenges: Some offshore firms with different cultures may pose communication challenges.
3. Lack of motivation: An outsourcing firm may not share your motivation to see a project through to successful completion.
4. Limited control: If the outsourcing firm uses freelancers, the hiring company may have only limited control over the actual work.
Digital transformation is an investment that has to be made to stay relevant. However, whether to hire in-house or outsource will ultimately make the business more successful and profitable.
Read more: A Detailed Software Development Outsourcing Guide For CEOs!
How To Select the Right Outsourcing Company?
Once you have decided to outsource your software development, evaluating and selecting the right vendor to complete the work that meets the best standards is crucial.
Here are some tips that can help you find the right outsourcing company:
- Research and list all potential partners who can provide the required services. Also, find out from others to see if they have any recommendations.
- Good communication is of utmost importance. Request a meeting to help you understand their communication style.
- Ask for references, read their case studies, and do your research to determine whether they have the needed experience and expertise to see your project through.
- Be cautious about any outsourcing company that offers cheap rates. Instead, enquire about their success in the past.
- Verify a vendor’s security policies, certifications, and accreditation.
- Ensure the vendor has professional liability insurance.
- Find out if the vendor can support all of the programming languages you need for your software development projects.
We at Fingent would love for you to come and test us out. Meanwhile, here is a look at what our clients have to say, some of our case studies, and a look at what we excel in!
Are You Ready to Outsource Your Software Development?
The choice is entirely yours. Make sure you consider all the pros and cons and make an informed decision. First, look at your business needs. Then, find out if the vendor is compatible culturally and financially. This will ensure a higher probability of success. We would be happy to discuss your needs and help you decide. Please feel free to reach out to our experts.