In a technologically driven world, organizations across all sectors are modernizing their IT infrastructure and shifting steadily more of their operations online. The unavoidable fact is that in order to thrive in the face of intense competition, businesses must increase their investments in software development.
However, in the majority of situations, they are already overburdened and unable to devote any more resources—including money, manpower, or time—to software development. Additionally, they frequently lack the necessary skills in their staff. Due to this, a lot of businesses opt to contract out the development of their software to a different business.
Read on for our list of the top 10 reasons to outsource software development if you are uncertain about making the same decision.
But before we head on, let’s find a few critical statistics below.
Outsourcing Software Development Company: Market Overview
The statistics on outsourcing software development companies vary depending on the source and the region being studied. Here are a few statistics from different sources:
- According to a report by Statista, the global outsourcing market size was valued at $92.5 billion in 2019 and reached $98.4 billion in 2021.
- The 2020 Accelerance Global Outsourcing Survey found that 78% of companies surveyed outsourced some or all of their software development work, with the majority of companies outsourcing to Eastern Europe, Asia, and Latin America.
- A survey by Deloitte found that 59% of businesses outsource to reduce costs, while 57% outsource to focus on their core business functions.
- According to a report by Grand View Research, the Asia Pacific region is expected to be the fastest-growing market for IT outsourcing services, with a compound annual growth rate (CAGR) of 8.5% from 2020 to 2027.
- A study by the National Outsourcing Association found that the most commonly outsourced IT functions include application development and maintenance, infrastructure management, and help desk and support services.
Overall, these statistics suggest that outsourcing software development is a growing trend, with businesses outsourcing for a variety of reasons, including cost savings and the ability to focus on core business functions. The market size is expected to continue growing, with certain regions experiencing faster growth than others.
10 Reasons to Outsource Your Work to a Software Development Company
Why do businesses outsource the development of software? Here are a few of the main advantages of outsourcing software development for your company.
#1. It Saves Your Money
The very first reason why companies must consider outsourcing is its cutting-edge cost reduction. Simply speaking, when you hire software app developers in-house, you have to pay each one of them individually. However, if you outsource your software development needs to an outside team, your chances of paying more reduces, because you paid for the entire team.
Apart from this, outsourcing means you are open to hiring developers from any geographical location. This again deducts the option of renting or purchasing an individual space for the hired engineers without sacrificing the caliber of your job.
And the icing on the cake is, you interrogate the developer’s skill set, experience, and how well he can handle the app development pressure, all in one space.
#2. It is Time Efficient
You did see this coming, didn’t you? While hiring an outsourced group of engineers you eliminate:
- Location of the developers
- Hiring a team yourself
- Worry about responsibilities and deadlines
All these phenomena are excluded when you outsource your project to a reputed software development company. They undertake all the responsibilities while indulging in the best developers suitable for your business needs. The team will ensure that you create a strong marketing impact across your target niche.
So, all you have to do is relax and supervise the activities! Not needing to be present every time.
#3. You Might Encounter Scalability On-the-go
We are going ascendingly, and the next stop is how outsourcing your work to a enterprise software development company can intensify your business with scalable outcomes.
While there are many reasons to contemplate, here are a few critical ones:
- Outsourcing may help you leverage the wider market easily because the hired experts know what they are doing
- From marketing to sales and new opportunities, businesses can even dive deep to explore more ideas for better reach and give a competitive edge to other company holders.
#4. The Burden of Extra Work Minimises, So You Can Work on the Core Business
When you save time and resources, and unlock scalability, it is pretty obvious that the burden of doing extra is reduced. This simply allows businesses to put more focus on their core business operations.
Enabling them to engage more with their customers, diversify their business networks effectively and interact better with employees or visa versa, alongside many other activities.
When you are not weighed down by programming processes, it will be much simpler to concentrate on your main objectives. Long-term benefits will accrue from this and have a favorable effect on the expansion of the company.
#5. Avail Instant Results
Let’s know one thing, having your own team of developers involves multiple challenges such as investing a lot of time and money in educating a crew that has little to no prior expertise in the industry.
However, a team that has been outsourced already has the proper personnel and the necessary capabilities. As a consequence, you won’t have to spend time on hiring or training when you outsource the job.
#6. You Don’t Have To Rely on Hiring an IT Expert
The best part about outsourcing is you can completely be dependent on the hiring an IT expert. As they have a team of concerned person for given task such as QA specialists, UI/UX designers, project managers. No doubt, these roles requires to pay additional money and time in finding the right software development company for your mobile or website development company.
But all in all, whenever you hire the right service provider, imagine you can run your business at ease.
#7. Outsourcing Might Help Ease Out the Process & Give Flexibility
You saw this point coming, didn’t you? This component is helpful for jobs that must be completed quickly. There is no wrong in saying that hiring developers for your project involves times, energy to educate them, agree to their terms and conditions, and than create a team can be expensive and time consuming.
Even though you have done everything, the results might not go up to the mark or can be also a complete disaster.
Here is yet another reason why you need to outsource your work to third-party group. They have experienced developers, you don’t have to speak to them for every details (because they already know what they are doing) and ultimately save costs and extra time.
#8. Get Closer to Drawing Perfection
Now when you have stable output and everything is running smoothly, you only get perfection. This is possible only when you involve a reputed third-party company, that meets your expectations and acquired budget.
Why? Because the said company will be awared of their responsibilities and will be working upon your given instructions.
#9. No Risk Involved
Whichever business you deal in, it will definitely involve challenges or risks. But such risks get resolved when you get in touch with the correct Software development services, making your business workflow much easy.
As mentioned prior, the offshore software development company will only involve the best developers who are proficient in the project and can deliver tasks on time. Therefore, the chances of risks gets null and void here.
#10. Outsourced Company May Make You a Pro With The Latest Tech-Savvy Trends
Getting the thing done professionally is simply one aspect of outsourcing. You may access tools, know-how, and resources through software development outsourcing that you would not have on staff. The most recent trends and advancements in the industry are often known to software development organizations. To do their jobs more effectively, they employ the most cutting-edge and potent equipment.
Hang on! We are not done yet! Don’t you want to know a few quick tips before you hire a dedicated software development company? You do? So, let’s know them below.
Quick Tips Before Hiring a Software Company
- Define your project requirements clearly:
It’s important to have a clear understanding of your project requirements and goals before hiring a software development company. Make sure you have a detailed project specification document with all the necessary details.
- Check their portfolio:
Review the software development company’s portfolio to see if they have experience working on projects similar to yours. Look for quality work and satisfied clients.
- Check their expertise and technology stack:
Ensure the software development company has the expertise and technology stack necessary to deliver your project requirements. You can ask for a list of the technologies and tools they use.
- Check their communication skills:
Communication is crucial when working with a software development company. Ensure they have clear communication channels, and they’re responsive to your queries.
- Check their development process:
Your selected agency must have a well-defined development process that suits your project’s needs. Agile methodology is a popular choice for software development.
- Check their availability:
What if your dedicated company takes up your project but the team is occupied delivering other projects? No way you won’t wait! So, make sure they have the capacity to take on your project and are available to meet your project deadlines.
- Check their pricing:
Ensure the software development company has a transparent pricing model and that you understand their billing process. Compare their pricing with other software development companies in the market to get a better idea.
Overall, take the time to research and evaluate potential software development companies before making your decision.
As you can see, there are a lot of good arguments in favor of outsourcing software development to an overseas company. You may save time, save expenses, concentrate on your main duties, and gain the other benefits stated in this article by outsourcing.
Most significantly, you may outperform the market competition and remain ahead of the curve by outsourcing software development to the proper developer.
It might be challenging for you to choose the best IT company, nevertheless, given the wide range available. You require a development team that is adaptable enough to work within your constraints and budget. These benefits are provided by DianApps to help you keep one step ahead of the competition. Contact us without delay.