If your company’s growth depends on software, and your in-house IT team has too much stuff, you should consider outsourcing your software development. Software outsourcing is basically an arrangement in which a business hires a third-party software contractor to perform software-related work that could have been done in-house. However, developing a complete software application in-house requires both money and time. To be honest, not every enterprise has a dedicated IT team, so choosing a software outsourcing platform is a good choice.
Software development outsourcing helps businesses achieve greater economies of scale (cost savings gained through increased production levels) and focus on core competencies without expending large amounts of money or time. Annual global revenues from information technology outsourcing are estimated to be in the range of $60 billion to $70 billion when focusing on contracts with a total value of more than $25 million, it said. Therefore, software development outsourcing provides businesses with a competitive advantage by minimizing costs, enhancing customer service and maintaining product quality within a limited budget.
So what are the benefits of software outsourcing and how to effectively outsource software development? It can save costs, get a larger talent pool and the latest technology, pay more attention to core business, have security and risk management, reduce time cost and flexible coordination, and shorten time to market, etc.
Let’s talk about the specific manifestations of these advantages of outsourcing development.
By outsourcing software development, companies can save 30% on operating costs! Know that in running a business, the wheel of operating costs (mainly expenses) never stops turning! And when companies outsource, big savings can be made in the form of employee salaries and benefits. While retaining the core business, the others are outsourced, which can not only speed up the project progress but also save costs.
Additionally, software requires regular maintenance and support. As a result, some companies require a dedicated team to handle ongoing bugs and modifications. Outsourcing software development means that the software team is already paid to maintain it. This is an advantage as it helps your business reap the benefits of 24/7 business operations.
Businesses across the globe have realized the need for speed and how it can be leveraged to gain a competitive advantage. With software outsourcing, you don’t need to rely on available in-house resources for product releases. You can actually specify a schedule based on your schedule and have a dedicated developer for your service accordingly.
With the development of digital technology and the impact of the Internet environment, people’s employment methods have undergone substantial changes, and flexible employment models and shared service models have gradually become popular. Many enterprises have shifted from the traditional fixed employment mode to the flexible employment mode. Changing the employment mode through the flexible employment platform enables enterprises to manage personnel more efficiently, thereby saving business operations and labor costs. This is one of the reasons why more and more companies choose outsourcing platforms.
