Skip to content

Main Reasons to Outsource Software Development

Outsource or not to outsource is a question that almost any business faces sooner or later. We’ve come up with the most convincing arguments about why outsourcing can be a beneficial strategy for your business.

Maintaining an in-house IT department can be rather expensive and for some businesses even inefficient due to high payment rates that only increase with employees’ experience. Moreover, you’ll have to buy and upgrade development tools, pay taxes, get licenses, spend time searching for the needed specialists, and a lot more. Therefore, the cost of a software application might quickly dilute its benefits. That’s where outsourcing software development can be of help. It means handing over software development duties to IT experts outside the company.

Outsourcing  suits best those companies that want to focus on their core business activities and strategy. Besides that it is an effective way to get high quality for reduced costs and in a short period of time. Outsourcing proved to be so robust, convenient, and cost-effective that it has become a normal practice even for IT companies as they also started to outsource some of their tasks like QA, DevOps, UI/UX, etc.

Let’s have a closer look at what and why to outsource to software development companies.

What to Outsource to a Software Development Company?

What to Outsource to a Software Development Company?

There are lots of functions you can delegate to an outsourcing software development company:

  • Custom software development when the developed app is tailored specially for your business requirements or your customers’ needs.
  • Software maintenance and support — software engineers will provide timely upgrades and maintain high-quality of your app.
  • Operations with a data center and a database — if you need to install and maintain your own data center or set up a database.
  • Technical support service when specialists handle incidents that customers may have with the app.
  • Security and data recovery to prevent data hacking or its loss.
  • Network and web hosting maintenance when software engineers take responsibility for network operations and all those related to web functionality.

‍Why Outsource Software Development?

If you consider whether to outsource your business application development or not, then here are 5 reasons why it’s a good idea. With outsourced services you will:

#1 Generate cost savings

Businesses cut down their development costs up to 50-60% when they turn to an outsourcing company. This impressive figure is simple to explain. When you hire outsourced teams, you reduce expenditures on employees’ hiring, onboarding, insurance, and retention programs. Moreover, the average employees’ salary level is much lower in outsourced locations than on the local market. In Eastern Europe, South Asia, and Latin America an IT developer salary rate is much more attractive in comparison with the rates in the US. For example, a US software developer will cost you $50 per hour, while in Eastern Europe the rate starts at only $25 per hour. Meaning that you can get a full-cycle software development service for a much lower price.

#2 Focus on your core business

To stay ahead of their competitors, businesses should learn how to innovate and grow fast. For this, they need to concentrate on their key processes and business strategy, delegating all the associated operations that are outside their competence.

When you move software development functions to an outsourcing service provider, you ensure that a team of experts is going to develop your software, while your employees do the tasks that really matter, adding to your business value.

#3 Fast-track your app development

Time to market is one of the key factors that determine product success in the market, therefore, the faster you present it to the end-users the more customers you can get. Outsourcing development teams perform strongly under the conditions of tight deadlines as they choose well-experienced project team members, properly select development tools, and follow the principles of Agile methodologies.

If you need your software developed by certain dates, outsourcing service providers are always ready to negotiate development timelines and even do the revision of working hours to ensure successful project delivery.

#4 Get access to the latest technological innovations and most talented development teams

#4 Get access to the latest technological innovations and most talented development teams

Rapid IT industry evolution implies non-stop education and training. If you have an in-house development team, you should provide training opportunities for your employees to keep up with the technological advances and stay competitive. When you hire outsourced