OUTSOURCING FOR SOFTWARE DEVELOPMENT
5 Benefits and Reasons to Outsource Software Development
Is it best to hire and onboard a dedicated software developer for a new project? Or is it better to outsource development to a remote developer?
U.S. companies spend $60 to $70 billion dollars outsourcing software development each year. Here, we’ll, therefore, look at the fundamental benefits of outsourcing, as opposed to hiring in-house teams of developers.
Companies Save on Operating Costs by Outsourcing
When companies hire in-house software developers, several costs have to be taken into consideration.
Hiring and onboarding costs need to be considered.
New IT equipment and office space need to be allocated to in-house development teams.
Employers are liable for employee expenses and benefits such as holiday and sick pay entitlement.
By comparison, outsourcing sees developers themselves shoulder the burden of IT equipment procurement costs. Project prices are usually also fixed, removing the onus of employers to cover developer benefits and other work expenses.
Outsourcing Software Development Helps Businesses Tap a Broader Talent Pool
When businesses hire in-house software developers, they are usually forced to hire from local talent pools. In a city, this isn’t a problem. However, for some businesses, this can limit the availability of developers with certain skills.
By comparison, outsourcing allows companies to source talent from any location, while tapping a broader talent pool in the process.
Romania is one of the top software outsourcing in the world.
At present, a worldwide shortage of software developers is seeing many big tech companies train new staff in-house. However, for non-tech orientated businesses, asking existing IT employees to develop software on the fly can be a security risk.
It is possible to train the likes of a web developer to code apps. However, when businesses attempt to save by training existing IT personnel, doing so can do more harm than good.
Stretching existing IT personnel too thinly can lead to security vulnerabilities.
A businesses bottom line can be adversely affected, as a result of staff not focusing on what should be considered core business activities.
Training existing IT personnel is often more costly and time-consuming than outsourcing a project.
Outsourcing software development avoids all of the aforementioned concerns. Most developers being outsourced to will also scrupulously check software for bugs and security weaknesses through every step of development.
Launch New Software Applications Faster
If you need to develop a new software application fast, outsourcing is the only way to do so. At least, this is the case if you are not a big-tech company like Google.
Hiring and organizing in-house developers takes time. However, outsourcing ensures that developers you hire will start on a project right away. Read more about your new MVP.
Scale Team and Business Skills On-Demand
One of the foremost benefits of outsourcing rests with the fact that doing so allows companies to scale skills and services in real-time.
Typically, developing software in an unfamiliar coding language can take weeks or months to master. (Unless you hire new developers.) By comparison, outsourcing allows businesses to virtually on-board new skills and talent as these are required. This allows businesses to scale quickly while capping recruitment and IT infrastructure costs.
Alternative to software development outsourcing is staff leasing.