5 Reasons Why You Should Outsource Software Development

Wednesday, 7 March 2018

5 Reasons Why You Should Outsource Software Development

Posted by Rahul Gupta
The transition of the world economies towards globalization has wholly redefined the external ecosystems in which organizations exist. The effects of globalization have also been apparently visible on how the internal organizational designs have changed to become more responsive to the external ecosystems.

As globalization has gained a stronger foothold in the international economy, the competition between individual firms has become much more aggressive.  Firms are now striving to seek competitive advantage over each other so that they can operate optimally and can sell goods at a lower price without compromising on either the quality or the profit margins.

Outsource Software Development
Sustainable competitive advantage has become the key to success in such a ferociously competitive world where firms are entering and leaving the market every day. In such circumstances outsourcing has emerged as the buzz word in the international corporate circuits. Huge corporate houses around the world today outsource large parts of their operations in order to cut down costs and improve the quality.

The whole concept of outsourcing has stemmed from the economic concept of specialization according to which handing over a task to a specialist will increase the output and reduce the costs.
Coming to the tech side of the corporate world, software development is one of the most technical and budget consuming factions of any company. In many cases, if the company itself is not a tech-based company but has an IT department to take care of its tech-related needs, usually the software develop0ment goes to this particular department.

Unfortunately, tech-based products such as new software require its own set of research and testing which needs both additional costs and skill, something that might be lacking in a company. This is where outsourcing of software development comes into the picture.  Here are 5 reasons why you should be outsourcing software development projects for your company.

1. To Save Costs

Cost cutting is one of the key concerns of any firm that aims to remain competitive and still maximizes its profits. However, if a company sticks to an in-house software development program, it might need to recruit additional IT professionals and might also need to invest in additional infrastructure support.  The cost of developing, testing and launching the software will cost additionally.  

On the other hand, if you outsource the software development to an IT company that specializes in doing so and already has all the required resources for the purpose, you will be able to save a whole lot of costs. The best part is that with outsourcing you can even choose to get the software developed in another part of the world, such as India where the cost of software development is much lower.

2. To Save Time

When you outsource software development to a third party IT professional company, they already know what needs to be done and already have the necessary systems in place to be able to get on with the work directly. Moreover, specialized software houses usually work round the clock and do not adhere to a standard 9-hour work shift. This means that you will save a lot of time and your software development will speed up.

3. Access to a Bigger Talent Pool

When we talk about outsourcing, we are talking internationally. The best thing about outsourcing is that it does not restrict you to become dependent upon whatever resources you have in your country. Instead, you can feel free to transcend borders and recruit the best tech talent from anywhere in the world. This will ensure that your product will not only be low on the costs but will also be high regarding quality at the same time.

4. Take Advantage of Technological Progress

The tech industries in different countries are growing at different rates. Some countries are much more advanced regarding research, knowledge and infrastructure than the others. This means that tech companies in those countries have a much more competitive advantage.  Outsourcing software development projects to those countries will allow you to take advantage of their cutting-edge technology that is lacking in your home country. This will also allow you to attain technological economies of scale.

5. Helps in Mitigating Risks

Software development is not something as simplistic as it sounds. If you are not someone who is specialized and have a full-fledged team to take care of every aspect of the development process, you can quickly land yourself in massive trouble with increased costs, failure to meet deadlines, programming went wrong and failures during the testing phase. This can be very risky for a company who is not technologically equipped to handle such circumstances, and you might also end up loose focus from other important projects. Outsourcing software development to a specialist company will help mitigate those risks.

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