Benefits of Outsourcing Software Development

Benefits of Outsourcing Software Development

For many years, the software industry has been actively growing. New startups are appearing every day. Companies in many countries of the world experience significant limitations in the labor market. Hiring new personnel is becoming expensive. This creates favorable conditions for outsourcing app development, forcing many technology providers to seek additional opportunities both in their own country and abroad.

Outsourcing is an excellent way to ensure maximum efficiency and functionality of organizations, whose main activity is software and mobile app development. Efficiency is achieved through the transfer of one of the company’s activities to another organization that specializes in it. Many companies prefer having mobile app products developed by offshore companies rather than their staff due to large experience and professional skills. Benefits of outsourcing are becoming obvious for most companies. Check what they are.

Why Is It a Good Idea to Choose Outsourcing?

Why do many companies choose to outsource mobile app development?

• A lack of specialists who can meet all the company’s needs, as well as problems finding them in the local labor market.
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• There are a large number of technology companies, and the industry requires more resources than is available in the local market.
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• A lack of specialists with certain knowledge and skills within the company.

Attracting such resources for a short period of time is often very expensive. The relevant projects may require only a limited amount of such labor, which makes hiring such specialists on a permanent basis not profitable. By choosing the option of using development outsourcing services, the company gets access to a set of resources from around the world that are available for the amount of time the company needs.

Offshoring vs. Outsourcing

Outsourcing is a cost-saving option, in which the customer receives the result of some work from another company. An outsourcing company must become part of the customer’s business process for a fairly long time. The principle of outsourcing is to save money by attracting skilled labor in supporting business processes.

In essence, offshoring can be compared with an outsourcing company, in which, to reduce costs for certain tasks, another organization becomes a service provider, but from another country. Offshoring seeks to take advantage of low labor costs, easier taxation, and a number of other advantages that such a model can provide.

Key Benefits of Outsourcing Software Development

Check advantages of software development outsourcing services:

• Quick access to qualified specialists (including specialists with specific knowledge and skills) Of course, the client needs to understand that he will need to carefully examine the various providers, before making a choice. But the process of choosing a trusted provider is often much easier and cheaper than finding an employee on the domestic labor market.
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• Flexible and scalable development team. The development manager, using mobile app development outsourcing services, can easily change the number of attracted resources both upwards and downwards. It’s possible to attract specialists with a certain set of knowledge and skills and pay only for those resources that are actually used according to the project plan and the agreed schedule.
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• Motivated development team. The motivation of the team remains with the company that provides outsourcing services. Usually, an outsourcing provider offers various programs for the professional growth of employees, creates a knowledge bank and a single platform for sharing experience gained from working on a huge number of projects. Also, an additional motivation for developers creates a variety of projects and tasks.
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• Providers can offer in-depth expertise in very narrow areas. If an outsourcing provider tries to specialize and adheres to a certain sphere of tasks within the software development, during the time he has worked with a large number of projects, he accumulates a huge store of experience and knowledge in this particular area. This helps to develop high-quality software products.
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• A chance to cut costs. It is the main pro for a startup. There is no need to pay for work leave and sick leave. Often, the use of internal resources involves significantly larger projects with higher budgets. In accordance with global trends in software development outsourcing, such services usually imply a fairly low hourly cost.

Does Software Development Outsourcing Have Any Cons?

Outsourcing is considered a great business model, however, like any other thing, it may have its own pros and cons. It allows solving a number of tasks. But there are certain things to keep in mind. You may face problems connected with the correct understanding of the tasks set and their priorities, a lack of understanding of how this or that functionality should be implemented.

There may be problems with the development management process, inconsistencies in the status of tasks in the monitoring system, and the current state of affairs in the project. These issues are resolved by active two-way communication. A client using outsourcing services should understand that third-party teams need to maintain constant active communication to avoid possible risks.

What to Pay Attention Choosing an Outsourcing Development Company?

When a company makes a decision to outsource mobile app development, it must take into account such factors as communication skills, technical competence and experience, customer reviews, work approach, budget, time differences, and other characteristics. It is reasonable to first decide on a country you’d like to outsource to and only then on a particular offshore company or a local company. There are many cultural, religious, differences in mentality, which has a great influence on how people work.

Conclusion

Companies sometimes need to bring certain functionality to the market within a certain time frame or to urgently solve a technical problem in order not to miss a certain business opportunity. This requires a fast and time-limited gain of the development team. Having a flexible and easily scalable resource, companies that provide outsourcing services can easily solve this problem.

If you organize the whole process the right way, outsourcing software development can be a dynamic tool that helps reduce costs, save time and gain additional work experience. If you manage the offshoring cooperation process correctly and find outsourcing service providers you can trust, you can take full advantage of all the outsourcing opportunities.