Building an active online presence is imperative for each business. These days, everything seems to be happening online. Hence – there’s a massive need for a custom-made website or web app. But, how will you do it? Choosing to outsource vs. setting up an in-house team is always a puzzle. To make the best call, you must know all the advantages and disadvantages of outsourcing web development.
Nowadays, companies worldwide hand over multiple job functions to their reliable third-party service providers. In fact, more than 300,000 positions were outsourced in 2018. In 2019, the global BPO market reached $92.5 billion. These are some staggering facts, right? While having these figures in mind, it is safe to say that businesses around the globe enjoy many perks of delegating parts of their work to external teams. Still, some things could go awry. See what you should watch out for – and how to overcome these familiar struggles.
What Is Outsourcing in Simple Words?
Outsourcing is a far-reaching business practice that started to gain its popularity back in the 80s. In short, it entails hiring a skilled party outside a company to perform specific tasks and drive results. Back in the old days, large companies and well-established organizations were the ones who chose to outsource. And now, more and more startups and small businesses are deciding to try out this practice. Today, firms worldwide outsource different roles:
- Development and other tech positions,
- Accounting and administration,
- Customer service and call center services,
- Marketing and sales,
- HR functions,
The principal ideas behind hiring a BPO company include gaining better results and saving some time and money. Still, if you choose correctly, other perks will inevitably follow.
What Is Web Development Outsourcing?
Much like in other industries and domains, web development outsourcing encompasses many of the same principles. So, here’s how it goes: One company chooses to delegate some part of its business to an outsourced dev team. This external team should be specialized in various technologies that match the company’s requirements.
Now, there are quite a few trends to consider in this particular field. Firstly, companies choose PWA development to launch to market more promptly and ease the entire process toward reaching the end customers. Then, there is a matter of increased popularity of AI. Chatbots and voice search are among the most favored solutions for those seeking a quick answer. Lastly, there are some innovations to web product design. For instance, motion UI is made to increase conversions by grabbing your audience’s attention quickly.
Explore the new ways to magnify your success and find a third-party dev team that will help you out with it.
Why Should You Outsource Web Development?
Finding and hiring a web development team that matches your precise business needs can be quite an adventure. Just deciding whether to build an in-house team vs. to outsource job functions can wear you out. Luckily, there are some points to keep in mind that will help you find the best solution:
- When the in-house dev team falls short of your expectations and specific technical skills that are suddenly becoming essential for the project, you should seek help outside the company,
- If your company needs to shorten time-to-market, hiring an outsourced team is often the best option,
- If you need to hire more developers or other tech experts fast, you won’t be able to dedicate enough time to sourcing, selecting, and hiring internally. So, make sure to find a reliable team of tech professionals outside your firm.
If you’re recognizing your struggles in these scenarios, start exploring the BPO market. Regardless of the potential harms and disadvantages of outsourcing web development, a trustworthy third-party organization with the right technical expertise could solve some of your main problems.
Pros and Cons of Outsourcing Web Development
Statista showed us that more than 45% of ITO happened due to a lack of some tech skills on board. In addition, 35% outsourced technical roles to cut some costs. According to this survey, there are more than a few good reasons to outsource web development. Still, some businesses experienced the negative impact of delegating their IT tasks to external developers.
Key Benefits of Outsourcing to Keep in Mind
Sure, you can’t help but be a little skeptical when handing over specific assignments to an outside company. Regardless of their background and market reputation, it’s normal to feel a bit worried. But all in all – there are more than a few benefits of outsourcing that you shouldn’t forget:
- Saving time and money,
- Being more productive and increasing quality,
- Gaining more profits faster,
- Covering more ground,
- Obtaining new skills swiftly,
- Easing the hiring and onboarding processes,
- Focusing on core activities and aspects.
Finally, you could diminish some stress and help your in-house developers relax and split their responsibilities with another crew. That way, you’ll lower employee churn rates and boost overall satisfaction. Teaming up with skillful and dedicated developers will bring these perks – and more. So despite of the potential downsides to hiring a third-party team, the outcomes can be surpassing.
What Is a Disadvantage of Outsourcing?
There are a few known disadvantages of outsourcing. Although this practice often helps companies progress, everyone should know of these potential drawbacks:
- You could encounter a lack of quality communication and face some misunderstandings due to a time-zone difference or poor organization,
- Businesses can’t monitor the progress nor the quality continuously,
- Security could be an issue, especially if you’re dealing with sensitive clients’ data.
However, when it comes to the disadvantages of outsourcing web development, you need to consider a few extra points. Know which problems you could be facing if you pair up with an unfitting BPO partner.
5 More Disadvantages of Outsourcing Web Development You Must Watch Out for
As we have seen, there are many pros and cons of outsourcing web development. Nearly every time, the team you hire is what makes all the difference. So, plan carefully, know your true needs, be meticulous when searching for the best partner, and watch out for the red flags. These are the scenarios you must avoid at all costs:
- Inadequate planning and improper project management are some of the potential risks,
- Possible scams and hidden fees could happen if the BPO provider isn’t trustworthy,
- Accidental or deliberate delays are possible,
- Quality could decrease,
- Company culture could suffer due to a third-party team’s impact.
Sounds like something every business owner would dread, right? Stay tuned for an in-detail examination of these horror stories.
Management and Planning Issues
If companies choose to outsource web development, they may run into difficulties caused by poor planning. We can all agree that there’s no way to simply take a leap and do anything that seems suitable at the time. To reduce confusion and mistakes, you need to have everything planned out in advance. Start with the technology choices and plan out the number of developers in your squad.
Another hurdle that many firms must handle when they delegate web development tasks is project management. In numerous situations, you are supposed to manage the entire dev team. However, you might have managed teams in others. Therefore, you must pay close attention to project management and prepare a precise scope of work and a well-defined agreement that will cover these situations and help you plan on time.
Hidden Costs and Scams
Even though hiring a BPO company is usually supposed to be cheaper, you need to keep your eyes wide open and avoid being tricked. Some third-party teams will ask small businesses to sign lengthy contracts, and they’ll add lots of small print at the bottom. So regardless of the impeccable portfolio and your positive gut feeling about an outside dev team, make sure to read the terms thoroughly. If you don’t, you could end up with unforeseen costs.
And although it is helpful to bring in professional agencies to share some risks, it can be rather unsafe to bind your company to the profit and success of another group. So again, you need to clarify all terms and conditions in your arrangements to make sure you won’t take a financial hit if their developers fail to deliver.
Shifting Time Frames
One major problem with assigning specific tasks to an outside company is the chance that they may be used to doing stuff in their own sweet way. As a result, it might be challenging to organize & harmonize calendars to ensure your customers get what’s promised to them consistently and timely. For this reason, you could be bound to shift your timeline and resynchronize schedules. So, ultimately, it could be a recipe for disaster. Your loyal customers could turn on you, and your reputation might be at stake.
Losing focus and reducing the odds of controlling performance and quality are among the common disadvantages of outsourcing web development. Sadly, some freelancers and BPO companies are motivated solely by their profit. Although all facts and stats suggest that outsourcing has evolved and the focus has shifted from quantity to quality, some still live, work, and play by the outdated rules. There are individuals and teams out there that are only profit-driven, and you must watch out for them. Strive to hire a trustworthy group that shares your values and understands your agenda.
Lastly, working with an external group could harm your team culture. Having a heterogeneous squad never fails to bring the best results. However, some cultural differences could be nothing but harmful. Things getting lost in translation and some moral dilemmas you might face are just the tip of the iceberg. These misunderstandings and issues could lessen your in-house team’s morale. Also, the hostile atmosphere might become apparent to the end customers, resulting in losing profits and facing public backlash.
And finally, there could even be some legal issues if the laws in the region you have chosen to outsource from are not much like your local regulations. Do a thorough search before you hire an external web dev team.
Overcome These Risks: Find the Right BPO Company
Even though there are more than a few risks and challenges of outsourcing to be aware of, many of them won’t harm you when you find a fitting partner. Choosing the right BPO company can be easy if you follow these steps:
- Check out their reliability,
- Look for references and testimonials,
- Take a glance at their previously finished projects,
- Interview the staff and double-check their tech and soft skills,
- Be precise about your expectations,
- Talk about finances on time,
- Ensure you share some core company values.
Before making up your mind, consider all of the advantages of hiring and working remotely. First of all, your outsourced team can be located anywhere in the world – and that’s actually a huge plus. You will have a much larger pool of talents at your disposal, promote diversity, obtain more coverage, and gain different perspectives on problem-solving. Make sure to explore the best countries to outsource your dev projects to. Compare their job markets, learn of each region’s potential, and weigh up the financial aspects.
Finally: The Disadvantages of Outsourcing Web Development Can Be Ridiculously Easy to Deal With!
So, what have we learned from these cases of BPO gone wrong? First and foremost, you must be aware of your actual business needs. Do you even know why you should (or shouldn’t) outsource? Do an internal assessment. Then, move on to exploring the market. Does it feel like you lack the time? That’s still not a good reason to skip the extensive analysis of each potential partner. And finally – once you shortlist the firms that match your expectations, tech stack, core values, and budget, take good care of the communication. Be precise and clear. Be honest and transparent. And spell out your terms in the agreement to avoid surprises, delays, and hidden costs.
Teaming up with the right BPO company will lessen all these risks – and you know it!