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Software Development Outsource: Whom Does It Save?

Updated: Dec 8, 2021

Following SlashData, there will be 45 million software developers in the world by 2030. It's the case when demand drives supply. The biggest client is a business looking to improve the offer quality. A good result requires powerful instruments. Thus, the company's digital transformation directly depends on development quality. Who to trust the creation of lacked solutions? Can an internal IT team do it? Perhaps, but not always. Today we will talk about why businesses appeal to IT outsourcing companies. Let's see the advantages of such outsourcing and which companies should use them.

Top 5 Reasons Why Do Companies Choose Outsource

In some companies, management mistakenly believes that full-time employees will be faster and efficient in software development. Perhaps. Every business is unique. But, as practice shows, much more money and time are spent on in-house development. The level of employees' productivity drops, as current tasks are left without due attention. It's time to consider five main reasons why companies should pay attention to outsourcing IT services:

  • Lack of technical expertise. It doesn't mean that company's employees are not talented or skilled enough. Each software has its characteristics. It is better to hire experienced specialists who develop such things every day. Otherwise, the internal IT team will have to spend a massive amount of time learning new information and using it accurately.

  • Too few technical specialists. A company may have several IT employees. But they will not be able to develop global solutions. There are two ways out: to hire new employees or to use the outsourcing company services. The first one is not profitable. We are talking about project work. Thus, at the end of development, new employees will not have anything to do. It's a waste of resources. On the other hand, outsourcers work on a project basis, and there are no problems with their employment.

  • The technical team's absence. Some companies work in this way. For them, outsourcing software development is a necessity. Most likely, the company already uses remote technical support services. In this case, it is worth analyzing whether the IT partner has expertise in development.

  • The solution is needed ASAP. There is no time to train employees or hire new ones. In this case, outsourcing development will save the future of the company and its money. A remote team will do the job quickly, qualitatively, and on time.

  • A fresh look. Due to many current tasks, it's much more difficult for IT staff to develop software in parallel. Employees will not have enough time and energy to be creative in this matter. The outsourcing team will suggest new solutions or elements for the software based on their experience. Thus, they focus on one project and can deliver a unique product.

What Are The Benefits of Outsourcing The IT Function?

  • No issues. The outsourcing company allocates a team of developers who devote all their working time to a specific project. Based on this, they can write clean code quickly. The possibility of finding bugs or issues during testing will be low. Thus, the result of the outsourcer's work makes it possible to use the advantages of business process automation unimpededly.

  • Internal resource preservation. In the case of development, it is better to delegate it to the IT partner. This solution will allow the company's employees to spend time on daily tasks and do them efficiently. Such an approach also maintains a work-life balance.

  • Expert approach. Outsourcers specialize in developments. They know all the pros and cons of practice techniques and choose the most effective solution, suitable for a specific business.

  • Even more specialists. It is much easier for the contractor to attract the professional to the project if needed, but not involved yet. Also, each team member has his own unique experience. So, what a developer cannot do, the other one will perform quickly.

  • Maximum results with minimum efforts. The customer company prepares a development request and monitors its process. It's enough to get a solution ready for implementation. The contractor's team will do the rest.

Development Outsourcing: Which Companies Should Think About It?

Small and medium businesses delegate almost all development. It's due to a lack of employees and easy targets. But what about large companies that have complicated business processes and need to optimize them all the time? In this case, it's hard to determine which task should be outsourced. There are two main reasons why:

  1. The company needs to change some systems from time to time. This obstacle requires an in-house IT team that knows the software components and can quickly update them.

  2. Business needs to keep data confidential. Cooperation with the contractor means the company needs to share its information with somebody else. It's not always reasonable and safe in case there is no NDA signed.

Development for the retail industry can be a good example. Retailers typically hire IT teams to develop and maintain software for the financial, order processing systems, and so on. In the first case, companies protect all financial data. In the second one, sellers do all possible to update programs periodically. In turn, the retail delegate to contractors the website or application development.

According to Statista, the software market will grow to $ 57.23 billion by 2021. It seems that every company will order software development support. Why not? It provides several advantages such as savings on operating costs, acceleration of the development process, and, most importantly, the final result quality.


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