Is it Safe to Outsource Software Development?

• The Secret Behind Outsourcing Popularity
• Should my Company Outsource IT Services or Not?

Classical teams and offices started to be old school with the growth of different freelance platforms. The need for outsourced IT professionals is in high demand. The recent events connected with the pandemic have even strengthened the emerging tendency.

To avoid unpleasant experiences in the hiring process, it is a good idea to dig into safe IT outsourcing by learning the basic terms and conditions of this process.

THE SECRET BEHIND OUTSOURCING POPULARITY

Although the final cost for the project implemented under this model may be costly for the customer, this is still a preferable option for many businesses today. What encourages a company to outsource software developers? We can distinguish five primary reasons:

1. Hiring specialists according to the precise requirements.
2. Sparing time to focus on other goals and projects.
3. Finding rare experts to enhance the product quality.
4. Reducing lots of costs and the tax burden.
5. Expanding the business internationally.

Let us talk about the abovementioned reasoning in more detail.

Why do companies choose to outsource?

HIRING DEVELOPERS ACCORDING TO THE PRECISE REQUIREMENTS

Outsourcing and outstaffing provide excellent opportunities to find developers at cost-effective rates, with any level of skills, and in each, even the most specific, niche. Many countries like Ukraine, Poland, and Lithuania have very attractive taxation systems and affordable levels of life, which positively influences price formation. Russia is also a perspective country for offshore software development. Overall, a business may save up to 50% of expenses compared to the United States or Western European countries.

SPARING TIME TO FOCUS ON OTHER GOALS AND PROJECTS

The next reason why companies seek outsourcing IT services is to spare time for their core businesses. It allows businesses to concentrate on their own goals rather than operations and processes related to recruitment and human resources management. This way, companies find new directions and nail business development. In addition, involving side specialists allows reallocating the workflow among the in-house team. It saves them from overtime and multitasking, therefore increases efficiency.

FINDING RARE EXPERTS TO ENHANCE THE PRODUCT QUALITY

For many companies, outsourcing is a chance to enhance the quality of services by finding fulfilling business-critical needs. In the demanding IT world, some specialists possess very specific knowledge and skills, and not every business has an opportunity to hire one. Therefore outsourcing can be a “magic pill” providing access to outstanding human resources.

REDUCING LOTS OF COSTS AND THE TAX BURDEN

Outsourcing reduces infrastructure costs significantly. At a virtual office, an outsourced IT specialist is responsible for their working conditions. The customer is relieved from providing space, equipment, and other IT helpdesk infrastructures.

EXPANDING THE BUSINESS INTERNATIONALLY

Besides the obvious financial side of the question, outsourcing is a good opportunity to expand business globally, acquire new talents and technology. All these foster the customer to boost their company to a new level, making it more competitive and increasing the return on investment.

SHOULD MY COMPANY OUTSOURCE IT SERVICES OR NOT?

While making a decision to hire remote personnel, a business owner should have a clear and honest answer about the resources his company possesses. Questions to answer before hiring outsourced software developers:

• Do we have enough people to manage the team of the outstaffed personnel and overlook the operation during the project implementation?
• Or maybe it is better to allocate a little bit bigger budget and pay for the outsourced services, stay out of any process and wait for the result?

Decide how much control and management you want

Choosing the second scenario, a business owner should be ready to let the external vendor loop in all the internal IT processes and infrastructure just to deliver a project. This is not an option for managers with a delegation and micromanagement system. Outsourcing will be the right decision to make for the companies that have short-term goals but are not able to fulfill them just by exploring internal resources. Outsourcing is the right thing to do if your company can hardly be called technology-oriented, but your product or service definitely needs to be strengthened. The same applies when you need to automate and simplify any business process.

Continue reading this piece on our blog to find out:

• Outstaffing vs. Outsourcing: What is Your Demand?
• 5 Milestones To Consider for Safe IT Outsourcing
• Pitfalls to See the Big Picture

Here at Exceed Team, we offer top-quality app development services for various industries