For many companies hiring in-house software developers isn't a viable option as it's too costly, or software development isn't a core of their business. More and more of such companies are opting for hiring a dedicated software development team from a managed service provider (MSP). Although there are many pros and cons of outsourcing, it still can have a significant impact on your company's profitability, and it has become a common feature in business and tech strategies.
Here are 6 reasons why outsourcing software development works:
A huge benefit of outsourcing is that it greatly decreases TCO (total cost of ownership) of a dedicated software development team. You pay only for the work hours spent, and once the project is completed, the expenses stop. It also saves you the expense of upskilling current staff or the cost of hiring new employees.
2. Preserves focus
Outsourcing time-consuming, non-core functions allow your teams to remain focused on your main activity enabling growth. Most companies find it increasingly difficult to keep up with technological change and high consumer expectations. Outsourced development makes this much easier at the same time ensuring no loss of emphasis in developing core business competencies.
3. Greater resources
Most likely small companies won't have sufficient IT skills or appropriate systems required for development. Building software development team would require funds to cover not only developers' salaries but also office space, equipment and tools. When you work with an outsourced team, you will get the service without concerns about budgeting for the appropriate talent and tools. You also get access to a greater talent pool, as MSPs can provide you with teams of specialists of all kinds that can begin working on your project from the day one.
4. Structured workflows and ample hands-on experience
Experienced software development team knows what to do and how to do it, providing transparent monitoring at the same time. You can also count on the detailed product documentation to be provided to ensure quick onboarding of any new specialist to work on the product in the future. When you are developing software through MSP provider, they can quickly replace a gone or sick employee.
5. Team collaboration
Established in-team collaboration ensures correct task delegation and strong team spirit. The team members are used to working with each other, reducing the risk of workplace conflicts which can be quite damaging for the project.
6. Enables market expansion
One of the key reasons companies choose to create new software is to expand and grow into new markets and be able to provide additional services to their customers. Experts in software development can also help grow your internet presence by incorporating the latest technologies while engineering for performance, stability, security, SEO, and other critical aspects of the online experience.
Businesses choose software outsourcing for many different reasons. The costs and requirements will vary, but the benefits are clear among most of the world's top companies. Connecting with consumers, saving money, reducing risk and market expansion are the main benefits. With thoughtful planning and selection of the right software agency to meet your needs, your company will reap the rewards.