Just think of a furniture brand building its software application to help taking orders from customers with a custom design. Alternatively, consider a security agency catering to real estate warehouses trying to develop a software application to manage and control the on-site security staff and their issues.
In both cases, these two companies can understand their businesses very well and are experts in their fields. To build the required software, they need to hire a whole IT team and build a fully-featured development lab with proper tools, licensed software, and IT infrastructure. This will cost them a big fresh investment, too much time and resources for hiring developers and IT staff, and the great overhead cost burden.
All these will take away valuable time from top managers and decision-makers as well. On top of that, the development project’s success cannot be guaranteed just because these businesses have to rely on their newly hired IT and development team.
This is why such companies for their software projects prefer to outsource the entire development work in most cases. Let’s explain these reasons one by one.
You Need Skilled and Experienced Developers
Just as a hotelier understands the hospitality industry better, a software development company understands the dynamics of software applications better. Naturally, when building a software application, it can take more competent decisions and engage the right skills for the right tasks.
According to a study report from Ncube in the current year, there will be an overwhelming shortage of 1.4 million software developers in the US alone. So, this skill gap and shortage of the right developer talent remain a key reason businesses outsource developers.
In recent years we have seen many companies in the West prefer to hire developers from India just because of meeting their talent needs. In a global landscape where the time zone and cultural differences are increasingly becoming insignificant considerations for hiring talents, you can find out and hire the right talent for your project from anywhere on earth.
You Can Focus More on Your Business
The common logic that becomes a key impetus behind the outsourcing move is that a business, instead of raking its staff on something unknown, can concentrate on core business while the outsourcing company can take care of the software project.
Just by getting on board a development company, you can get rid of the extra workload to hire developers, manage a development project, maintain an IT infrastructure, and so on. Instead of doing this, you can just continue doing what suits you best while your software is built by the outsourcing company.
Many businesses these days practically run a global operation from a small office involving a neat team of experts. For such smart startups, building software in-house is too much in terms of the workload. Naturally, they can only opt for outsourcing.
One of the biggest incentives for outsourcing a project is the lower cost of development. When you manage an in-house team of developers, you need to make available many in-house resources and continue with an increased overhead cost. The whole thing will end up creating a large hole in your app budget.
In complete contrast to this, you can be completely relieved from all these expenses and cost components by outsourcing the project. The only thing you need to do is pay the development company for the entire project and get it done and delivered within a stipulated time. No wonder that such cost advantage and relief from the hazards make at least 59% of companies accept software outsourcing instead of in-house development.
More Efficient Security
If your business is vulnerable to security risks, putting all your trust in in-house development can be detrimental. You can be better off by diversifying your development approach by relying on outsourcing companies for some projects. This will keep your security vulnerabilities to the minimum.
On the other hand, expert software development companies have a better experience with security threats, malware, and hacking attempts. They have time-tested expertise in dealing with security threats by using the right tools and development practices. So, by outsourcing your project to an expert development company, you can ensure better software security as well.
Independence from Licenses and Tools
Software development requires access to a multitude of tools, licensed software, and development environments. For a business with the least or zero IT infrastructure, managing all these can be a bit more challenging, time-consuming, and expensive. In contrast, when you rely on an outsourcing company, all these worries are gone.
To insist on the point once more, we can say that the licensed software, tools, and IT infrastructure consume a considerable investment for a software project and unless you are going to build software products frequently, investing in all these is very impractical.
On the other hand, you always find yourself confused and challenging while deciding on the software tools and IT components for an app project. In contrast, a seasoned development company knows what it needs for the project.
Faster Time to Market
Software projects are often time-critical as every new competitor in the app market can create more competition. This is why the faster time to develop and the market is the key consideration that makes businesses favor outsourcing instead of time-consuming and resource-savvy in-house development.
Outsourcing development companies have the necessary expertise in modern development approaches such as the agile method and Minimum Viable Product (MVP) approach to build your app quicker while keeping things strictly under control.
Finally, the impetus for giving a software development project to an outsourcing company is the success and track record of the hired company in similar projects. Yes, by choosing a software development company wisely, you can give your project the foundation for long-term success.