Nowadays, more and more players in the software development industry resort to outsourcing. Still, there’s a dispute going on: is that a good or bad thing?
Let’s start with the definition. Software outsourcing is the process of allocating specific development needs to a third party. As a rule, these third parties are inexpensive yet fully qualified to do the required job. If a particular company has no resources or specific expertise to complete all the work by themselves, outsourcing is an excellent way to go on with a project. The companies around the globe have become dependent on this business model, and outsourcing provides a range of weighty benefits we’re going to outline in this article.
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Without further ado, it’s fair to say that the most apparent reason for outsourcing is money. Outsourcing works excellent for the bankroll, and this is probably the most significant factor in motivating business entities to outsource their work.
The principle is simple – currencies like dollar or euro have an advantageously high worth in economies of developing countries, so the rates to hire software engineers are significantly lower. At the same time, programmers from Eastern Europe or Asia are just as skilled and technically proficient as many of their Western colleagues. Undoubtedly, these rates depend on a wide range of factors like complexity, project size or delivery model; however, the development rates in Eastern Europe are regarded as among the lowest ranging from $25 to $40 per hour, with the current median at $35/h. This way, calculations show that it costs less to pay a third party than engage/hire a staff member whose wage is higher by default.
As the competition in the outsourcing domain is high, its economy has produced a market of professionals which perform outsourcing tasks with a lot of precision and proficiency. Sure, a hiring company may have the brightest and most talented developers in their own country, but outsourcing allows various tasks to be handled at an affordable rate and with more efficiency. But sometimes companies need specific expertise which isn’t always easy to find. What is the answer? Rather than feel pressured to search for a brand-new staff member with the required skills, it’s worth to address a specialist, and let your trusted staff do what they do best.
Besides, scaling the remote team with the goal of building a more robust solution and including the capacity for thorough testing will significantly increase product stability and lead to the much better user experience. Improving the quality of your code not only generates a lot of value (which is obvious), but it also helps to protect your investment in the light of future requirements.
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Software development takes less time when people are working on your applications around the clock, so you can get your product to market more quickly than your competitors can. A proper outsourced IT-company should provide the skills and workforce necessary to meet any strict deadlines. More often, the outsource developers may work in shifts at additional pay if needed (in case the company has development centers in different continents, like Elinext company (USA – Europe – Asia)).
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Meanwhile, the in-house staff of the hiring company can continue to focus on their primary tasks and duties while external organizations handle the excess work. For a temporary period, talented professionals can handle excess amounts of work. Modern technology has allowed high-quality freelancers and organizational options to be summoned at a moment’s notice. Outsourcing can create quick solutions to complex problems and will enable you to choose which duties will be performed by your core staff, and which will be completed externally.
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Summing up all these insights, it’s no brainer to answer the question in the first paragraph. Your outsourcing experience totally depends on the team that you hire. A professional outsourcing partner allows businesses to improve their productivity, increase profits, and remain focused on the business development and growth. However, when organizations deal with outsourcing companies carelessly or improperly, like ignoring meeting or providing sloppy specs, the opposite effects may occur. As a rule, having a trusted outsourcing company as a partner is generally a wise decision. When performed with careful consideration, outsourcing software development needs is an inexpensive and effective solution for any company.