Outsourcing software development can be immensely beneficial, whether you are an established company or a startup. Delegating software development into the best hands might be a brilliant decision.
Outsourcing software development will reduce the burden on your company’s in-house team. This will also leave enough time for the core team to focus on other aspects of growth for the company.
Also, if the software development requires a skill that your in-house team lacks, you can compensate for that by outsourcing talent, which will also be cost-effective for your company. There are numerous benefits of software development outsourcing.
What is Software Development Outsourcing?
The basic meaning of outsourcing is hiring an outsider on a contractual basis for a specific task. So, software outsourcing means hiring a third party outside the core team in a company for software development purposes.
During the pandemic, most companies started working remotely. Outsourcing, which had always been a sure shot way to increase a company’s revenues without incurring high costs, boomed.
Benefits of Software Development Outsourcing:
Bring down software development costs
One of the primary reasons to outsource software development is how drastically it can cut costs. When you work with full-time employees, your company incurs extra charges. Besides the salary you must pay, you have to provide your employees with office space to work in.
You would also have to offer them other perks and benefits and pay taxes. When you outsource software developers, many extra costs are curtailed.
Also, when you decide to hire freelancers from a company, the taxes and other costs are managed by that company without affecting your business.
Costs of outsourcing app development vary in different parts of the world. But on average, it will be around $30-$150. The costs will go up if you hire someone from USA or Europe, and it will reduce for freelancers in Asia and Latin America.
Compensates for the skills lacking in your core team
This does not, by any means, imply that your core team is unskilled. However, hiring young freelancers who are up-to-date with their knowledge and market understanding can be excellent assets for the company.
Taking the burden off the in-house team
Your core team is much less burdened when skilled freelancers join your team remotely. When tasks are relegated to freelancers, your core team can better focus on other tasks that need to get done.
Increases overall efficiency of the company
When a team of skilled freelancers join the company, the full-time employees are much less burdened.
When this happens, everyone is much less stressed about getting things done. The relaxed work environment increases the overall productivity of the whole team of professionals.
Deadlines are more easily met
When you have an entire team that consists of both in-house employees and freelancers working on a project, you can ensure that deadlines are more easily met.
Spend less time looking for specialists
‘When you set out to hire individual specialists, it usually costs you a lot of time and money. You have to go through the CVs of all the candidates, shortlist the appropriate ones and interview them individually to select the right person finally.
Then, you have to train the professionals you have hired according to your own company’s needs. When you hire a team of freelance software developers from a company, the job of shortlisting the right candidate has already been done.
You have a ready-made team of professionals who can immediately start working on your project. Often, the cost of hiring a freelance developer team is equivalent to the cost of hiring a full-time developer.
You can access a global talent pool
Since an outsourced team can work remotely, you don’t have to limit your hiring preferences to your company’s location.
You can hire the best people from a global talent pool, and these fresh talents will be significant assets to the company.
There are fewer errors in the final product
When you have a talented team working on your project, there will be fewer errors without detection. Potential flaws can be easily pointed out and corrected.
Flexibility
Hiring full-time developers might be irrelevant if your business is not primarily about software development, but you want to build an app or website solution for your company.
Hiring freelancers might be best because you require short term but efficient work.
Tips For Software Development Outsourcing
Although it sounds like a lucrative idea to outsource for your software development requirements, which it is, you have to exercise some normal levels of caution still.
Here are a few tips for deciding which freelancers are the best for your company:
Know the risks
Although costs can be lower for hiring freelancers, you might end up with unskilled people if you don’t test them out properly. Your end goal will suffer if you hire such a team.
Appointing an efficient project manager
You hire from a global talent pool when you hire freelancers. You will end up with people from different backgrounds and nationalities on your team. To manage such a diverse team, it is a must to hire a project manager.
Your project manager will keep everything organised. It will be a bonus if your project manager speaks the country language where you are hiring your freelancers from.
Communicate your expectations
Tell your outsourced what you expect from them. Tell them about the requirements and the deadline of the project.
If you use one particular platform to communicate, ensure that every team member understands how to operate the platform. Tell your team how often you want them to speak about the project’s progress.
Discuss the time and cost of the particular project
Always make sure to discuss the time it would take to develop specific software and the money it would cost you. You can then negotiate the rate according to your budget.
Be aware of cultural differences
As promising as it sounds, hiring a global team of experts brings a host of other challenges. Working with professionals all over the world means understanding cultural differences.
What is funny to one person might upset someone else. Also, time zones will be different, which will complicate communication. You have to come to a common ground to communicate successfully.
These might sound like petty things that do not deserve attention, but these little things can go a long way towards the success of your project. When employees cooperate, a company thrives.
The Last Lines!
Outsourcing software development might be one of the most lucrative options that companies have if they want to expand their businesses. Outsourcing has a lot of benefits, like exposure to a global talent pool to cut down on extra costs.
However, one should be careful if they want to hire the best freelancers for their companies.
