What Makes Outsourcing a Wise Option to Save Money For Your Business?
October 30, 2020
We live in the world of a highly competitive era where most companies are leveraging all the tools and techniques to deliver the best customer experiences and gain a competitive advantage. Outsourcing development is one of the trending topics that enable small and middle scale businesses to manage their business functions of any scale and lower costs up to 20-30%. When you plan to build software or app, the question that may pop up to your mind is what team of developers should you hire- in-house or outsource? When you have limited time and money, outsourcing can be a great option. Before you hire a Custom Software Development Company, learn everything you need to know about outsourcing development and how it will help you lower business expenses.
Top Benefits of Outsourcing Software Development
The research by Statista states the turnover in the IT outsourcing market in 2021 is expected to become approximately $96.7 million. This shows how more and more companies are making use of outsourcing software development services to reduce costs, save time and effort.
Here are some of the advantages of hiring a outsource software development team-
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Flexible Costs
One of the biggest advantages of using outsourced software development services is flexibility in cost. There are many popular regions for outsourcing that include Europe as they have talented developers, government support of the IT sector, and being the country with low taxes.
- Higher No. of Talents
Another advantage of using outsourced software development services is a huge pool of tech professionals having experience as well as knowledge. The hiring process of the outsource software development team takes only a few days, not even months. Apart from that, it provides you with unlimited hiring options enabling businesses like yours to avail best benefits & opportunities.
- Scalability Support
The best thing about hiring a reliable outsourced development team is their ability to scale up and scale down, as per your business requirement. It is completely your call to make your development team bigger or smaller. For example- if you want to speed up the development process you can increase the resources that will be involved in the development process and even decrease them if you don’t need many resources to look after the development of your small project.
- Quicker Project Delivery
The whole process of outsourcing software development services helps your business to reduce the time spent on recruiting as it eliminates its cost of long screening and several interview rounds. As you have the freedom to adjust the speed of the project development process, you can choose to increase the number of resources. As a result, time to market will decrease along with expenses, as you can stop paying the developers when the work is done.
- Freedom to Choose Desired Technology
You have the right to choose the technology you want your project to be developed with. There is a possibility that you stay in some area where you don’t have the developers who have experience in Java, you can always hire someone having experience of that from anywhere across the world. The process of outsourcing makes it easy to choose a qualified specialist in any region, as per your choice.
- Better In-House Operations
Another good thing about outsourcing your business operations is that your in-house team can focus on core operations, as they have enough time and most of the complex tasks are handled by the outsourced team. The in-house team works on delivering better customer experiences, which eventually leads to better returns, sales, and revenue for the company.
- Low Wages in Offshore Countries
We know that hiring the right developers with the required technologies’ expertise and skills can be a tough task but not in the case of hiring an outsource development team. It is easy to find developers in offshore countries and their hourly development rates are much cheaper than that of developed countries. You may even get a developer with rates as low as $15 per hour.
- No Extra Cost to Train In-House Members
Living in the digital world of today where new technology is witnessed every year, keeping updated with the evolving tech trends is essential to make your business stay ahead. If you don’t opt for outsourcing, you have to train the in-house development team & keep them updated, which comes with high training expenses. However, this can be avoided if you choose to work with an experienced team at offshore locations.
Things to Consider Before You Choose to Outsource Software Development
Cutting down expenses is what every business aims for, especially if you own a startup. As outsourcing is the best way to reduce operation costs, businesses are looking for remote developers & the development team working in offshore locations to get their projects developed. Listed below are some of the questions you must answer first before deciding to opt for outsourcing-
- Is the budget of the company becoming too tight?
- Do you think outsourcing is the best option for you?
- Is cutting costs one of the main reasons to outsource?
- Are you sure you can solve your company’s problems?
- Do you know how to calculate outsourcing costs?
Though we have learned that most of the companies outsource to save their costs or fit within the tight company budget, it is important to ensure that you hire the right team unless it may turn out to be a problem. If you are still worried about the development cost of your project, you can take the help of our easy to use App Cost Calculator that will help in getting the estimated development cost within a few minutes.
Research that Shows How Organizations Save by Outsourcing IT Development
As cost savings is one of the major concerns, many organizations- big or small prefer to outsource their software development or IT services to offshore locations. Here are some of the examples of organizations that have achieved immense business benefits with huge savings by outsourcing their development services-
- More than 27% of organizations outsource their software development services to reduce costs as stated by an IBM research report.
- Research by McKinsey Global Institute states organizations in the US was able to reduce costs by 60% while outsourcing IT services.
- An Australian survey of 7500 public organizations states that outsourcing services saved around 46% of total costs as compared to in-house development.
- A study by Deloitte says 64% of the companies believe cost-savings is the primary factor that drives them towards outsourcing.
Wrapping Up
Hopefully, after going through the points mentioned above, we know that the choice of a development team to engage with is one of the major concerns in the process of app development of the project. In addition to that, you must understand your business requirements thoroughly before you decide to outsource the software development services. The choice is completely yours whether you want to work with an in-house or outsource team at offshore locations. Though there may be situations when an in-house development team or freelancers can be a wise option, make sure that you conduct thorough research before choosing a suitable team for your app development. If you are looking for reliable app development services, hire our expert team of the leading web and mobile app development company California to save costs & enhance business results.