Software development is a compound process involving a range of services, from building applications to integrating software and analyzing data. The complexity of all stages makes outsourcing software a great alternative to building an in-house team. In the following article, we examine the most important benefits of outsourcing software development.
Jump to the software outsourcing benefit of your interest:
- Save time and focus on what your company does best
- Tackle the developers shortage problem: recruit faster and more efficiently
- Align your spend with the desired business outcome
- Save on technology and infrastructure
- Access a bigger pool of IT experts
- Increased efficiency and faster Time-to-Market
- Reduced risk & staffing flexibility
- Strategic partner for transformation
Save time and focus on what your company does best
A full in-house product development cycle can consume a lot of time – from a couple of months up to a few years. Meanwhile, a reliable software development outsourcing vendor can deliver a minimum viable product (MVP) in as little as three months by following an agile approach. As a result, collaborating with an external company enables you to conduct the project much faster and efficiently. In addition, the time which you spend on finding an appropriate IT company to outsource your work is shorter than the recruitment process. With all the saved time, your team can focus on developing other areas of your business, along with the strategy of your new digital product.
Tackle the developers shortage problem: recruit faster and more efficiently
An average of 44 days passes between submitting a job application and the start of the first day on the job for software developers, according to a new study from LinkedIn. On top of that, the onboarding process is not included in that period of time. Meanwhile, a fully functioning team can be set up within two weeks if it is outsourced. Let’s consider the situation in the Nordics. There, an effective IT recruitment of a Senior Developer may take up to 9 months. For fast-moving companies and startups, this means not only additional costs but also delays in their time-to-market. With outsourcing, a team of experienced developers can start working on your project in as little as two weeks.
Align your spend with the desired business outcome
According to research done by Joe Hadzima, a senior lecturer from MIT, the true cost of an in-house developer could be 2.7x times the base salary. In comparison, outsourcing a simple MVP to an IT outsourcing company can start from $40,000. That includes everything from technology to team management and IT support. On the contrary, in Poland, the cost of the same performed labor may differ by up to 80% compared to West Europe or North America.
Save on technology and infrastructure
With software outsourcing, any expansion of the IT infrastructure in the event of scaling the development up is minimized to an extent. It is the offshore software development company that carries the costs of the complete IT architecture and infrastructure.
Free resource: what are the best questions to ask your potential software provider before starting a cooperation
Access to a bigger pool of IT experts
Highly skilled experts are difficult to find, especially when you are looking for experts with an experience in niche technologies. Outsourcing software development gives you access to specialists with unmatched skills and expertise. You can find specialists that will handle your project without needing to worry about additional training or guidance for in-house employees.
Increased efficiency and faster Time-to-Market
Outsourcing the development of your project can decrease the software delivery time by e.g. 80%. This is possible thanks to a team that is totally focused on coding and not distracted by other in-house requirements.
Reduced risk & staffing flexibility
More flexibility is another considerable advantage of outsourcing development. Hiring new employees for short-term projects is inefficient and generates additional costs, especially in the downtime phase. By outsourcing software development, you can increase or decrease the size of your team as necessary. According to one of our long-term clients, Education Alliance Finland, the flexibility to scale up or down is one of the reasons they decided to outsource their software development.
“When we outsource, the work is more flexible – naturally we have different development needs at different points and times. We can scale up and scale down our business whenever needed.”Olli Vallo, the CEO of Education Alliance Finland
Access to the latest tools and tech
Inefficient technology may be one of the reasons to outsource your development. By working with a software provider that uses advanced technology, your product can gain a competitive edge on the market and hence have higher chances of succeeding. What is more, cooperating with an outsourced software development provider can modernize the current technology of your business, speed up the deployment of the new stuff and help your employees gain valuable insights from the outsourced team.
Strategic partner for transformation
Working with external partners provides your company with practical experience, new knowledge, and meaningful feedback. Therefore, you gain valuable insights that can lead to the improvement of your project as well as your company in general. To sum up, outsourcing your software development might be a strategically-wise decision. If you are still unsure and would like to learn more about the software outsourcing process, feel free to reach out to us using the contact form below. One of our colleagues will get back to you to discuss more.