Blog post

How to Get the Most Out of Outsourcing Software Development

Learn how outsourcing software development can transform your business and let you focus on core activities.

October 17, 2019

6 mins read

In the past, outsourcing software development was limited to hiring external developers to code your new product. But nowadays, there are many more services on offer. Software development companies now have the ability — and the facilities — to help your company innovate and thrive in this age of digital transformation.

Everything from analysis, development, and production of software can be outsourced. You can even take advantage of a fully assembled team of designers, testers, and project managers to bring your idea from concept to completion.

Getting a competitive advantage in business is the goal for many companies, alongside reducing costs and boosting profits and productivity — of course, all while maintaining the highest quality of customer service. When you partner with a software development company with experience and access to a wide pool of talented experts from a range of industries, you can achieve all of this.
How to Get the Most Out of Outsourcing Software Development

A world of opportunity opens up once you decide to outsource software development. Some of the main benefits of outsourcing are:

Access to skilled experts and a large talent pool
Highly skilled experts can be hard to find, especially when you’re limited to your local area. When you outsource software development, you gain access to specialists with unmatched capabilities and experience.

You can find specialists to handle everything from development to deployment, without needing to worry about additional training or guidance for in-house employees.

Cost savings
Cost savings can be felt across the board. Considering the high cost of recruiting skilled, experienced software engineers — not to mention their salaries and benefits — outsourcing can make a huge impact on the cost to bring a new product to market.

Operating costs can be dramatically reduced without the need to build or maintain infrastructure in-house.

Focus on core activities
Core activities of your business can suffer when resources are diluted. If employees are required to work on a project that doesn’t match their skill level, primary business tasks can fade in importance and get neglected.

Outsourcing allows your in-house staff to focus on what they do best: keeping the business aligned with strategic goals.

Improved service
With skilled experts on board, customer satisfaction will increase. High-quality products and services can be delivered at a faster pace, as product development is handled by a team of experts with the right infrastructure.

Faster time to market
Increased exposure to talent means you no longer have to depend on in-house resources for the product launch. Dedicated software developers can automate processes and work to a timeline dictated by you, resulting in a shorter development time and reduced time to market.

A competitive edge
Outsourcing to a development company that puts world-class experts at your fingertips is just one of the ways your business can race ahead of competitors. By concentrating your employees on core in-house activities, your business can thrive. Increased productivity is an instant bonus when you partner with a superior outsourcing company.

Read more: Learn why thousands of global tech businesses choose Ukraine as an outsourcing destination and what makes this country a prime location for software outsourcing services?

Nearshoring vs offshoring: Which is better?

How to Get the Most Out of Outsourcing Software Development

Now that the advantages of outsourcing are clear, the next step is to decide whether nearshoring or offshoring is the better choice for your company.

Depending on where your company is based and the scale of operations you wish to outsource, both options are viable and can make a world of difference to the efficiency of your business.

Nearshoring

Nearshoring is the practice of outsourcing any aspect of your business operations to a nearby country in a close time zone. Advantages include:

  • Ease of communication
  • Short distances and affordable travel (if required)
  • Cost savings (operations, production, labor, etc.)
  • Similar competencies, skills, and quality requirements
  • Small or no time difference
  • Few cultural differences
  • High degree of control
  • Timely decision-making
  • Similar financial and legal constraints

Offshoring

Offshoring is also the practice of outsourcing business activities to another country. But with offshoring, the geographical location is irrelevant. Advantages include:

  • Unbeatable cost savings
  • Significant overall decrease in production costs
  • Infrastructure for scalability
  • Similar competencies, skills, and quality requirements
  • Full project management
  • Time zone difference may allow for 24-hour work schedule

What size of software development company is best to work with?

Once you’ve decided whether nearshoring or offshoring is the better option for your company, the next step is to decide whether a small, mid-sized, or large software development company is optimal for your business needs. Relevant technology expertise and industry-specific experience are essential for the success of any new product, and can be found in a variety of places.

Small companies
Outsourcing software development to a small company can be great for startups and other companies that are small themselves, especially when it comes to pricing. With fewer than 250 employees, small outsourcing companies generally have less experience, so they offer their services at a lower rate.

With a small set of specialists, small software development companies can afford to be flexible and change processes as needed to suit their clients. In return, they make the effort to go the extra mile.

On the other hand, small companies rarely have the resources or specialists capable of bringing a large-scale project from idea to fruition. And access to a smaller talent pool means finding the right experts can be problematic and slow down development. A lack of resources or expertise can also hinder the ability to scale quickly, resulting in a longer time to market for your product.

Medium-sized companies
Mid-sized software development companies employ between 250 and 999 professionals, and they often have strong experience working with a variety of clients. Generally, they have access to a suitably sized talent pool, so they have the tech expertise to handle most projects.

Finding additional expertise on demand can be a challenge, but when a team needs to be extended to cover processes from development right up to launch, a mid-sized company can usually fulfill these requirements.

Access to industry-specific experts can differ depending on the size of the company. At the lower end of the scale, it may be hard to find the required expertise at short notice if a project needs to be expanded. If it’s difficult to find one or two team members with sufficient qualifications and experience, the problem only grows once a team of 10+ specialists is required.

Large companies
Large software development companies employ over 1,000 experts. With this capacity, specialists are available at all times and companies have the resources and infrastructure to cater to a diverse range of industries. Whether you’re a small startup or a multinational corporation, a large outsourcing company should have the expertise to tackle your projects.

With size comes experience; larger software development companies have the capacity to handle all development and operational tasks. Furthermore, an unmatched talent pool means instant access to qualified experts and engineers across a variety of industries.

In-depth knowledge of procedures from working with world class brands and enterprise-level companies comes as part of the package.

The ability to scale is instrumental to a product’s success, and with larger outsourcing companies, that ability comes standard.

A large company can assemble a team to bring your project from concept to completion in a short period of time, increasing the efficiency and productivity of your own business.

Conclusion

Outsourcing software development can make or break a project. In-depth research is required to find a suitable outsourcing company that can seamlessly integrate into your organization. Look for an outsourcing provider with the focus and speed of a small outsourcing company coupled with unmatched expertise and scalable infrastructure.

Focusing on core business activities, reducing risk, and increasing profits are essential goals for any business. All can be achieved when you outsource your software development to the best.


Searching for a world-class software development company with niche expertise and a skilled workforce to bring your product from concept to completion? Contact Intellias to find out how we can help you transform the way you do business.

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