Outsourcing software development is a significant step for any firm, from a tiny start up to a large enterprise. Risk and scepticism are always there, but that's understandable: breaking from established practices, no matter how important, is rarely simple.
According to Deloitte; 78% of companies are in favour of outsourcing.
The key drivers for businesses to outsource their software development are:
- Saving time, money, and resources
- Easier access to certified technical capabilities
- Enhance their ability to scale
- Reduce risks associated with recruitment
- To become more agile and flexible
- Gaining a competitive advantage in the market
Why Should You Outsource Software Development?
Easier Access To Larger Talent Pool and Technologies
Exposure to global talent is one of the main reasons why organizations outsource software development. Also, because in-house competence in every skill and technology is impossible to come by.
Ever since companies realized they must always be technology-driven to remain relevant and competitive; the demand for talented software engineers is higher than ever. Hiring software engineers is rather challenging, retaining them on your team is even more difficult.
Fast growing markets witnessing a major boom and reliance on digital technologies such as Saudi Arabia cite hiring and recruiting qualified digital specialists as a major issue hindering their efforts to meet the demands of their market.
The best software outsourcing partners can provide your business with the option to hire a (1) dedicated software development team led by certified technical and product specialists or (2) extend your in-house capabilities through staff augmentation.
At Sitech, our teams are led by product managers and world class technical leads with relevant experience in each industry and technology.
You don't have to devote a lot of time or resources to creating or managing the project, and you get a faster time to market as a result. Due to increased exposure to talent as a consequence of software outsourcing, the organization gains a competitive edge.
Focus On Your Core Business
In order to compete in today's market, firms must discover new methods to innovate and expand.
Outsourcing software development allows you to focus on improving other key operations. It also ensures that your in-house team isn't overburdened with work that isn't a good fit for their abilities, enabling them to focus on business-critical strategic goals.
As a result, your business procedures become more streamlined, allowing you to free up and commit more resources to other operations that assist the company run smoothly.
Managed Software Teams is a software development model that allows businesses to become more innovative and efficient.
Less Costs. More Benefits.
Whether you are building new digital products or maintaining your existing digital experiences, software development is an ongoing effort.
Outsourcing software development may save companies up to 30% on operational costs.
Cost reduction benefits every firm since it frees up capital to invest in other areas of the business (personnel, hardware & software upgrades, office expansions, increased salaries, etc.).
The cost of sourcing, recruiting, and retaining highly skilled software engineers is on the rise due to the aforementioned competition for them. This is why more and more companies are relying on staff augmentation to meet their needs at managed cost without the added hassle of performance management and talent retention issues.
Other businesses with larger and far more complex digital product requirements opt for entire teams managed by product managers - leading to higher satisfaction and faster software delivery rates.
Effective Risk Management
To avoid risk, it is typically recommended that we diversify our investment portfolio rather than putting all of our money in one location. The same may be said for software outsourcing.
Because software outsourcing is inherently risky, good risk management is crucial to an organization's long-term success.
Risks can be reduced by dividing components and processes among several providers. Do your homework, talk to the vendor's current clientele, rate their prior experiences, and then make your decision. Always remember that "outsourcing transparency" is the key to a successful software outsourcing partnership.
Our product management experts wrote about the dangers of offshore software outsourcing and how to avoid them here.
Peak Load Management
Every firm has instances when demand is at an all-time high. This entails reallocating available in-house resources to activities and procedures in which they are not experts.
Alternatively, this might imply the employment of new personnel.
Both lead to increased expenses and a reduction in efficiency. You may employ a scalable staff for just the peak season using software outsourcing with no long-term commitment. They assist in balancing the workload, saving time and money while enhancing efficiency.
Assuming that your in-house staff does not specialize in IT, there's a strong probability that the security of your program is in jeopardy. Security weaknesses will put important enterprise information at risk.
You will be better protected against IT security breaches if you outsource software development. The software team will make sure that the code and methods used in application development are as secure as feasible.
Reliable Support and Maintenance
Software has to be maintained and supported on a regular basis. As a result, you'll need a dedicated crew to deal with the constant issues and changes. You're already paying your software team for upkeep when you outsource software development.
In addition, if you're very lucky, you and your software outsourcing provider will be separated by a major time zone. This is advantageous since it allows your company to profit from 24-hour operations.
Faster Time to Market
Businesses all over the world have realized the importance of speed and how it can be exploited to gain a competitive edge. You don't have to rely on your in-house resources for the product launch when you outsource software development. You may really set the timetables according to your needs, and you will have specialized developers at your disposal.
Software Development Outsourcing
Outsourcing software allows you to be more flexible - a critical and strategic capability for your business especially when you are required to constantly upgrade and evolve your digital products or services to meet the demands of an extremely dynamic market.
Outsourcing software development is a fantastic way to achieve digital transformation and growth via innovation while also lowering risks and improving profits. It also aids businesses in gaining a competitive edge while maintaining focus and efficiency.
Though, it can only be good if you are sure you have chosen the ideal software development partners.
Ideally, you'd want a partner that can help you achieve growth through certified, reliable, and product-led software development. Working with Sitech today will ensure you gain access to a global pool of world class talent and digital specialists.
Schedule a free consultation with our team where they can help inform your decision making with more clarity.