The landscape of software development has undergone significant changes in recent years, shifting away from in-house manpower to the adoption of outsourcing teams. This evolution is a direct result of digitization, with companies increasingly focusing on developing applications to streamline business operations and enhance customer experiences. However, the need for a dedicated software development team, which can be prohibitively expensive for many companies, has led to the emergence of specialized outsourcing teams.
Definition of outsourcing software
Outsourcing software development entails enlisting the expertise of an external service provider to manage various aspects of software development initiatives. These services may encompass tasks such as creating software tailored to your company’s needs, overseeing business operations, or engaging in the ongoing development and maintenance of software for your clientele. It is a great solution for companies that don’t have a huge budget for their own team.
Advantages
The advantages of outsourcing are manifold, providing possibilities that would otherwise pose significant challenges when building an in-house team.
- Lowering costs
The first plus of using an outsourcing company is cost efficiency. By choosing this solution companies can save a lot of money, instead of spending it on hiring developers, development tools or purchasing hardware. This is basically building a whole new infrastructure, for what not every company can afford.
- Global opportunities
By deciding to use an outsourcing development team you gain access to a global market of developers. It enables you to choose from the best software engineers across the world. Without losing on quality, you can hire developers from any place in the world.
- Micromanagement is off
When overseeing your development team, constant attention is required for tasks like progress evaluations, addressing absenteeism, and reminding employees of their responsibilities. This often leads to a situation where employees spend more time on reporting than actually performing their tasks. In contrast, when you engage a software development company, your primary point of contact is typically the project manager, who assumes responsibility for all aspects of your project. After discussing and approving the project plan and budget, it becomes the project manager’s responsibility to handle all the details, eliminating the need for excessive micromanagement.
- Use the latest technical innovations
The rapid evolution of technology requires businesses to stay current with the latest trends. This can pose a challenge for companies not directly engaged in the development of technological solutions. By outsourcing such tasks to a specialized company, you can circumvent these challenges and harness the expertise of top professionals from various parts of the world to obtain innovative solutions.
Popular ways of using software outsourcing development team
You can use your outsourcing team with different options:
- Nearshoring: This approach entails collaborating with an outsourcing company situated in a neighboring country. It becomes a favorable choice when prioritizing specialized skill sets, cost-effectiveness, and minimizing or eliminating timezone differences.
- Homeshoring: This entails assigning the project to a software development team located in the same city or country as your business. With the teams in close proximity, it becomes possible to arrange face-to-face meetings.
- Onshoring: This process entails reintegrating a software development team into the organization’s native country.
- Offshoring: offshore outsourcing work is commissioned to distant countries. It can entail large timezone distinctions and language barriers but gets you access to more expert developers that might not be available for the first two options.
Conclusion
In conclusion, outsourcing a team dedicated to software development is the optimal choice for companies looking to avoid significant expenses associated with building an in-house team. Beyond cost savings, this solution frees companies from operational responsibilities, transferring them to the leaders of the outsourced team. Embracing outsourcing can be a crucial step for companies seeking development opportunities and provides a substantial chance for success.If you have any outsourcing questions, feel free to reach out. Also, consider tuning into our podcast, Startup Stories, in your spare time, where we explore the intricacies of startups and what makes them thrive.