Why Outsourcing Developers Makes Good Business Sense?

There are two things that any IT-enabled company needs to sustain and gain a competitive edge – control and speed. Control to keep the cost of software development within the budget, and effectively manage the capabilities and resources. Speed to get the software solution to the market fast. However, when the in-house IT team has too much on their plates or the budget constraints are too much to handle, software development outsourcing might seem the best option.

Outsourcing software development enables businesses to achieve higher economies of scale, while also focusing more on their core competencies. They can choose to outsource a part of the entire software development project to a company that is more experienced and cost-efficient. This helps businesses to achieve better control and faster time to market while saving time and money.

In this newsletter, we will discuss why hiring an IT outsourcing company is quite obvious and how to address the challenges of outsourcing. So, let’s get started.

Outsourcing Software Development: Pros and Cons

According to Techanvio’s research, the market for application development outsourcing will grow by $ 98 billion from 2020 to 2024.

Another study by the National Outsourcing Association shows that more than 70% of companies plan to increase their outsourcing use. The NOA asked their respondents about the reasons for choosing to outsource product development. The top answers were:

• 35% – cost savings;
• 23% – improved user experience;
• 17% – rejection of outdated solutions.

To read more about the said visit Forbes.Com

Software Development Outsourcing - Advantages and Challenges

Outsourcing software development means outsourcing either parts of or the entire process to an external company. Many times, companies turn to outsourcing as a way to save time and money.  There are many variations and models of outsourcing, including

• Staff augmentation
• Managed services
• End-to-end software delivery
• Offshore development
• Onshore development
• Nearshore development
• Hourly pricing models
• Project-based pricing models

To read more about the said visit The Wall Street Journal.

Why software development outsourcing is more relevant after COVID-19?

Truth be told, getting the best value for money in software development is no easy thing. The very notion of value for money is complex and involves tens of unsuspected factors. But as business owners try to adjust their operational model to boost product development without burning through cash too fast, outsourcing select areas of their development work to a third-party provider can be a safe and powerful move forward. In fact, for those looking to refocus on their core activities and explore more cost-effective development strategies without compromising resource models, outsourcing is a real game-changer. The magic is in the combination of hiring the right professionals and an engagement model that fits the bill.

To read more about the said visit LinkedIn.

Why Do Companies Outsource?

Do you think cost efficiency is the only reason businesses hire an offshore outsourcing company? Think again!

In a report from Technavio, they have mentioned the rising need for optimizing business processes as the key driving factor for IT outsourcing in the coming years.

Be it a small start-up or a top-notch IT company, all of them today prefer outsourcing to a trusted software development firm to improve operational efficiency, lower costs, and save time. Let us take a look at some of the top reasons why software development outsourcing is still going strong.

To read more about the said visit RADIX.

Reduced Development Costs

Reducing your costs is the most impactful way you can build a better product. In fact, it’s the most common reason organizations choose to outsource software development.

According to Deloitte, 59% of companies outsource with the intention to reduce or control their costs. This makes sense when you consider that Outsourcing can reduce development costs by 70%.

Reducing costs frees up resources for future development (bug fixes, new features, more hardware, or – in the most extreme cases – a pivot). If you don’t need additional funds for the current product, lower costs leave resources that can be reinvested into the project, either by accelerating development (by adding more developers to the team) or expanding the product’s scope. Otherwise, you can use those savings for future products or other business expenses.

To read more about the said visit DevSquad.