The global economy is in the doldrums with the world moving towards globalization. In this cut-throat competition where companies are spending heavily on cutting-edge technology to capture more market share, it’s becoming quite difficult for startups to give competition on a limited budget.
One of the trending solutions to this problem is software outsourcing! In this article, we will read about the growing needs of outsourcing and how it has become necessary!
What is software development outsourcing?
The essentials of any business nowadays are having an outstanding website and an app. You can either hire a team of professionals who need a lot of time and money, or you have a better option to hire a third-party organization.
Hiring a third-party programmer for your software development will help you manage tasks more easily! Time and money are the critical variables of a business, which can significantly impact revenues.
The expense of hiring a software developer is far more costly than outsourcing. That’s why many local developers send their projects to India, Vietnam, Ukraine, Singapore, etc. You don’t have to buy any equipment and provide any resources to cut down the expense to a considerable extent.
Especially during the situations that arise due to COVID-19, when businesses are low on budget, outsourcing is the best option! Another most significant advantage is that you will get to focus more on core business processes.
Your staff may already be overloaded with previous projects, and the deadline for other projects is near. In this situation, you must hire a third-party organization.
Software development outsourcing – Some stats
Many companies organize recruitment drives in prestigious colleges to pick up the best talent, but sometimes the team cannot meet the trending requirements. In 2019, 59% of companies chose the option of outsourcing! The revenue of the industry was expected to be $92.5 billion and will inevitably rise this year!
Since AI and IoT are going to capture a significant portion of the industry, the Gartner report says that 80-85% of the companies will turn to outsource to improve customer satisfaction by providing real-time data.
Global blockchain spending will reach $16 billion by 2023. Since there is a shortage of specialists, outsourcing will be the only option for financial institutions and private ventures.
The cloud computing market will reach the $1 trillion mark, and with exponential data to be stored and processed, companies would surely need outsourcing for effective cloud platforms. In this way, outsourcing will play a crucial role in the AR & VR and other IT industries.
5 Software development outsourcing scenarios
- Scenario 1 – If your product is market fit
- Scenario 2 – If you want to develop your software further
- Scenario 3 – If you are searching for specialists with unique skills and competencies Ad hoc
- Scenario 4 – If you can’t afford a big and experienced development team
- Scenario 5 – If you are a non-tech company and want to boost your business with good software
Scenario 1 – If your product is market fit
After you are done brainstorming over your idea and want to implement it, you will need several resources – human resources being the most important. If you are a fresher who has just entered the market and wants to open up a startup, outsourcing will be the best option! Why?
Because you don’t have time, money, and experience! On the one hand, you might be pitching for seed funding, while on the other hand, your team might be struggling with a low budget.
The CTO will give you the best team of professionals who will determine the project milestones, technical requirements, and help in project management. Thus, you will get more from less!
Scenario 2 – If you want to develop your software further
Your product was working fine, but immediately the investors urged you to bring some new features in the software and bring more stability. Either your team may be already occupied with some other projects or may not be able to embed those features!
In this situation, the need for outsourcing arises. However, the process looks quite tempting but is very helpful and flexible. You can scale up or down the outsourced team anytime according to your requirements.
Scenario 3 – If you are searching for specialists with unique skills and competencies Ad hoc
Imagine a situation when your team can’t embed the new trending features of AI and IoT, which are crucial to scale your business and give a fight to your competitors. Will you spend more time and money training them? Even in this situation, outsourcing seems to be a better option!
Scenario 4 – If you can’t afford a big and experienced development team
You might want to hire the nation’s best brains to accomplish your goals, but does your budget allow that? Time is running out, and you have to beat your competitors and leverage your brand image too!
So, rather than on the hiring process, you can look for an outsourcing company that provides the best professionals in this industry. You can manage the team’s size, negotiate and agree on the terms and conditions of various timelines of the project.
Scenario 5 – If you are a non-tech company and want to boost your business with good software
Even the non-tech companies today can’t boost their business without the IT department. But a good working software can ramp up your business. Being a non-technical person, you don’t know how to hire the right technical candidate, and therefore, outsourcing is the best option left!
You may spend a whole week taking interviews but couldn’t decide and hire the right person. Talking to outsourcing companies can give you a clear vision about their achievements, team, and charges!.
Conclusion
Summing up, we can say that whether you are a fresher or an experienced player, whether you have a large team or very few people, scenarios do come in such a way that outsourcing becomes the only way out! It will give instant relief to your problems with less load!
We at RavStack have been helping our clients by providing the best professionals, looking after their business essentials, and project management. We understand the needs and goals of the organization and do the best we can!
Our team is well-versed in industry trends and has provided customized AI, IoT, and cloud computing services. So, contact us anytime you feel, we will support your business!
Faqs
-How do you successfully outsource software development?
For successful outsourcing of software development -
1. Define your goals
2. Research the best countries for outsourcing
3. Research the best software development outsourcing companies in that region.
4. Contact offshore software development agencies about your project
5. Ask for a software development proposal and judge the best software development company for outsourcing
+Why do organizations outsource development?
Software development outsourcing helps businesses achieve greater economies of scale and also enables organizations to focus on their core competencies without spending ample money or time.
+What are the different types of outsourcing?
Here is the list of different types of outsourcing that you need to know -
1. Business process outsourcing
2. Professional outsourcing
3. IT outsourcing
4. Multisourcing
5. Manufacturer outsourcing
6. Process-specific outsourcing
7. Project outsourcing
8. Offshore outsourcing
9. Onshoring
10. Nearshoring
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September 23, 2020
7 mins read
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September 30, 2020
6 mins read
Thanks for sharing the insights.
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