The demand for software development outsourcing is growing exponentially, and experts predict that it will rise more in the future.
In fact, research was conducted by Statista, which says that the IT outsourcing market will reach $399.90 by the end of 2022, and will grow to a market volume of $552 billion by 2026, growing at an annual growth rate (CAGR) of 8.80% in 2022-2026.
The growing rate is leading to an increase in demand for software development outsourcing. Most companies are preferring to outsource their projects for custom software development to get the benefits of high-quality products at a reduced cost.
The question arises: is cost the only factor in outsourcing? Well, the cost is one of the significant factors for outsourcing, but there are other factors responsible for enabling companies to switch to outsourcing too.
Cost is not a sole factor for outsourcing software development, but there are other factors responsible too, such as improved efficiency, time and cost reduction.
US based software companies are offering a wide range of services such as web development, app development, UX/UI designing, maintenance and others.
People are understanding the online market. Thus they are approaching software development companies for developing their business software’s. Due to the increase in the number of clients, the companies prefer to outsource their software development projects to countries like India that have affordable cost and expertise for better quality of products.
In this article, you will learn about the factors besides cost that are responsible for outsourcing;
Let’s explore each one of them!
Major Reasons Responsible for Outsourcing
Most companies know that they will get a reduced cost when outsourcing. However, cost isn’t the sole criteria as there are many outsourcing companies that charge the same as in-house companies. Then what makes the outsourcing companies stand out, if cost isn’t the only factor?
Here are a few reasons, besides cost, why you should hire outsourcing companies:
1. Faster- To- Market
If outsourcing isn’t done cautiously, it can take ages to build a product. And if the product isn’t built at the right time, then the company would need more time to market as introducing a new product to the market isn’t an easy task for both the marketing and sales teams.
It doesn’t matter how good your internal development team is. The only concern is how to get faster products, and for that you can either outsource the product to the entire team or even extend your in-house team by hiring skilled developers.
When you get extra developers on deck, it would become easier and less time-consuming to build the product, which would give the companies more time to market. You can find tons of outsourcing companies who can deliver the product on time and beyond your expectations.
2. Focus more on Core Competencies
Every organization is based on certain ideas and competencies that allow them to establish their identity in the market. Often, companies tend to overlook their competencies, which can be cutting-edge technology, impeccable sets of services, customer engagement, anything. There’s always something special and unique about a company.
Although your in-house team can manage everything by themselves, it will just be a mere waste of time and effort that could be spent somewhere else, which might end up neglecting the core competencies.
Let’s say a software development company primarily focuses on software development while overlooking other activities that are responsible for launching a product, or business development strategies, project management, strategy development, and much more.
Outsourcing software development will let you focus on other activities besides software development.
Hiring an outsourcing team will ease your workload as they will handle the product development, which will ensure that you get more time to focus on other activities that can be as important as product development, enabling your company to grow.
3. Get Domain Expertise
Domain knowledge is quite important, especially when you’re building healthtech or fintech apps. For that, you might need a domain expert who has sufficient knowledge and can meet customers’ expectations. Finding and hiring a domain expert can be a real hassle.
However, outsourcing a company can ease your task, as generally, an outsourcing company has tons of domain expertise. They work with different partners on various projects, so they have knowledge about domain experts and the product that you would want to build.
4. Highly Experienced
Outsourcing companies generally have experience since they must have been working for so many years. They have a client base and have sufficient knowledge about product development.
Hiring inexperienced developers can end up delivering bad-quality products, which no company would ever want. On the contrary, outsourcing companies have experienced and skilled developers who can build amazing software products and come up with awesome software solutions, if you have hired the outsourcing company wisely.
5. Improved scalability and Flexibility
Hiring a full-time developer is quite difficult as you have to search and find the right developer, which can become a hassle, whereas if you hire an outsourcing development company, you don’t have to individually hire developers on a full-time basis.
Instead, the company deploys their developers on projects, and once the project gets over, they are free to leave. Furthermore, You don’t even have to pay the developers individually as the company appoints them on a pay-roll.
In addition, if you are developing an app using ReactJS, you need to hire ReactJS developers for your project, then you can scale up your team without any hassle.
6. High Quality Product Development
The outsourcing companies have to maintain the reputation to build good client relations and on building better digital solutions, they won’t compromise with the quality of the product.
Furthermore, their services are not restrict to product development, they offer other services as well such as digital marketing. They offer services worldwide and will definitely have tons of customers in various industries, so they wouldn’t want to tarnish their reputation by delivering bad-quality products.
7. Cut Cost
Many people believe that outsourcing is all about minimizing costs by outsourcing them to another country. However, it’s more about cost-saving.
Now you must be thinking that low cost always results in delivering low quality products, then why should we hire? However, that’s not the obvious case. Low cost also means delivering good quality while paying less.
The cost reduction happens because of differences in pay scales and wages between Asian countries such as India, China, and western countries.
Outsourcing your work to countries like India can help you save more than 60% of what you would be paying elsewhere. Moreover, the quality can be high. Who doesn’t want to save money while maintaining the quality of the product?
Conclusion
As we have seen, an Outsourcing product is just not about cutting costs, in fact it has a lot to offer such as getting high-quality products, domain experts, and rapid app development.
Nowadays companies look forward to hiring outsourcing companies to ease their work, building new products, support and maintenance which is leading to a surge in demand for outsourcing companies.
