Why do Companies Outsource Software Development?
Discover why companies outsource software development to save costs, access global talent, boost efficiency, and focus on core business goals.
Companies outsource software development to save costs and leverage faster time-to-market ideas. It is a prevalent practice among various business industries that lack expertise in IT background. Even software companies that face a shortage of skilled talent trust outsourcing as an effective method to produce excellent products at the right time.
But a lack of experience in the outsourcing model can be intimidating to entrepreneurs and SMEs. The various benefits of software development outsourcing like cost reduction, access to skilled talent, flexibility and scalability, makes it an invincible option.
This blog explains the key benefits of outsourcing.
What is software development outsourcing?
Outsourcing is the method of choosing any third-party service provider to design, develop, and maintain software applications. The services can range from developing software from scratch or managing business operations or developing and maintaining legacy software solutions for your customers.
Here are 7 good reasons to outsource software development
Reduces software cost
Outsourcing your software projects can help you save anywhere between 30% to 50% of the actual budget. Compared to the in-house development process, outsourcing leads to immediate savings in terms of the following:
Zero infrastructure cost
Low hiring rates of developers
Eliminates the need to pay for employee perks and benefits
No investment is needed to train the software team on emerging technologies
Welcome global talent
Outsourcing allows companies to tap a massive pool of world-class tech talent at a lower cost. This eliminates the issue of talent shortage in your homeland. So, you do not have to compromise with the technology sack of the software applications.
You can choose the best technologies for building websites, mobile apps, and other software solutions. The worry of finding suitable software developers is on the shoulder of your service provider.
Improve focus on core competencies
By outsourcing the IT task to relevant professionals, you get sufficient bandwidth to focus on the key business operations. Moreover, as experts are handling your ideas, it mitigates the risk associated with the projects significantly.
Flexibility and Scalability
Standard outsourcing models provide you with flexible staffing options and pricing models. For example, you can add more developers to the team as per the latest business requirements.
The standard outsourcing models are:
Staff augmentation: You can extend your existing team with skilled tech resources on a contractual basis.
Project outsourcing: This allows businesses to develop custom software without hiring a large permanent staff. You can seek end-to-end services under this model.
Dedicated Developer: You can hire a developer for a designated period like hours, weeks, or a month.
Stay competent with emerging technologies
Most IT partners stay tuned to emerging software technologies and development trends. This helps to gain a competitive edge in the business industry. The right partners can help you build complete solutions with regulatory compliances, trends of the industry verticals, and more.
Launch your ideas quickly
A well-equipped software outsourcing partner helps you build ideas seamlessly. They can provide you with a planned roadmap for deliverables. This helps to eliminate inconsistencies from the project and build flawless applications.
You also save time, as you do not have to hire in-house developers, which usually takes several weeks. In contrast, an outsourcing software development agency can start working on your projects in less than 48 hours.
Security and quality assurance
One of the key reasons to outsource software development is greater security, reliability and application performances. Technology partners can implement the best practices to make robust applications that are secured against malware, phishing attacks, cross-site scripting (XSS), and more.
How much does it cost to outsource software development?
The final cost to outsource software development depends on the region and the type of developer you need to build the project.
Region: The average hourly rate varies by region, with North America being the most expensive and Africa being the least expensive. Some of the standard rates are the following:
North America - $50–$150 per hour
Latin America - $30–$50 per hour
Western Europe- $60–$130
Africa - $20–$40 per hour
Asia- $25–$40 per hour
Developer type: The cost of a software developer can vary depending on their role. The table below provides insights.
Conclusion
The benefits of software outsourcing makes it an appealing option to a large range of businesses. From saving time and cost to building high quality applications makes it a worthwhile option.
Choose the best outsourcing partners for a smooth collaboration and development of ideas.
About the Creator
Coding Sprint
Coding Sprint is a customer-focused AI development services that provides flexible development resources. You can hire developers to quickly fill a talent gap or seek long-term end-to-end development services.
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