Attracting, hiring, and retaining tech talent is the ultimate goal of countless enterprises and startups worldwide. Since we live in a time when technology rules & the competition is getting fiercer by the minute, businesses are prone to exploring BPO as a perfect solution. There are many benefits of software development outsourcing.
Choosing to outsource small or substantial projects and pieces of a business to external teams is not a brand-new tactic. Companies have been doing it for decades. However, now, more than ever is the right moment to explore and embrace this widespread practice. Wanna know why? Let’s see what we have on our hands.
What Is Software Development Outsourcing?
The simple definition of outsourcing suggests that it represents an agreement that defines how one company lets another take care of specific parts of its business. For example, when you outsource software development, it entails finding a reliable BPO company specialized in this domain. Its team will fulfill precise tasks within a predetermined time frame and by using a tech stack you’ve chosen to use.
Know Your BPO: A Few Stats to Take a Look at
The future of outsourcing holds some substantial progress. This popular business practice has been expanding its market size and reached enormous revenue. However, none of it would be possible if outsourcing hasn’t been evolving continuously.
Here are a few facts & stats to put you into perspective regarding BPO:
- This industry’s total value will most likely reach $405.6 billion by 2027,
- The total value of outsourced operations was $92.5 billion during 2019,
- BPO is estimated to produce nearly $113 billion of revenue in the US throughput 2021.
One of the most significant shifts happened when small businesses embraced outsourcing as a tactic to grow and scale with ease. Today, more than one-third of these firms outsource at least some roles. According to Clutch, 52% of small business owners were considering finding a BPO provider in 2019. And now, this percentage is on the rise. The truth is – collaborating with a skilled and respectable third-party team drives excellent results. Stay tuned and see more about the benefits of software development outsourcing.
What Are the Pros and Cons of Outsourcing?
Nearly 70% of businesses that outsource parts of their work are primarily focused on reducing costs. Nevertheless, this is far from the sole reason companies outsource. In fact, around 25% of small businesses do it to boost efficiency. Other key advantages of outsourcing include:
- Saving time,
- Being more flexible,
- Gaining a competitive edge,
- Having a more diverse team,
- Enhancing productivity,
- Scaling more easily and successfully.
Knowing which steps to take and what to look into in order to grasp how to outsource software development is essential. That way, you will get to see all of these perks very quickly. Not to mention that you’ll obtain some long-term results.
Nonetheless, there may be some risks to keep track of and overcome gradually.
Risks & Disadvantages of Outsourcing
Like any other business choice, deciding to outsource parts of your workload does come with a few risks and challenges. Even with all the benefits of outsourcing software development, you should pay close attention to avoid some familiar pitfalls companies often face:
- The inability to monitor performance and control quality,
- Differences in working hours and difficulties when syncing schedules,
- Potential security breaches and issues in that domain,
- Possible lack of communication and misunderstandings.
When it comes to outsourced tech roles, there are a few other concerns to overcome, such as confusing code and dissimilar methods your in-house and third-party team use. Still, most of these cons can be easily overcome when you find a knowledgeable and trustworthy BPO partner.
What are the Advantages of Software Outsourcing?
We can’t help but notice how technology is reshaping our daily lives. According to Statista, nearly one-half of the entire global population owns a smartphone. To make this fact more impressive – it means that 3.8 billion people are smartphone users. So, there is a massive need to develop all sorts of mobile apps, PWA, and more. As expected, eCommerce businesses are also thriving.
That being said – it comes as no surprise that so many tech (and non-tech) companies are battling to attract and hire developers and other IT professionals. And that’s why BPO works like a charm. Here are the top five benefits of outsourcing custom software development:
- Avoiding costly and lengthy hiring processes with uncertain outcomes and bringing skillful engineers to the team,
- Boosting efficiency and productivity, which saves some more time and money,
- Lowering various costs and increasing financial gains faster,
- Reducing stress and eliminating several known business risks,
- Being able to direct your efforts toward other business areas.
When searching for a suitable BPO company to take care of your tech needs, be sure to keep an eye on the main software outsourcing trends and choose a team eager to innovate and grow continuously.
Gaining Quick Access to Highly Skilled Developers
Custom software outsourcing enables a company to gain quick access to profoundly skillful software specialists. This business practice simply implies you are free to pick the best outsourcing company out there. This way, you can fulfill your company’s needs in no time.
Recruiting, training, and onboarding new team members is pretty tricky. Moreover, it can be very lengthy. And lastly – hiring processes (plus the cost of an empty seat) can skyrocket. However, by simply researching the BPO market, you will find the best developers and designers swiftly.
Reducing Time to Market and Increasing Productivity
When running a business, you can’t help but believe the proverb: time is money. As a result, more and more companies outsource different business roles and processes.
In-house software development has multiple perks. Still, it can be paused for numerous reasons, which can cause overall productivity to drop. One of the main benefits of outsourcing custom software development is that you will effectively reduce the product’s time-to-market. A skilled third-party dev team will accelerate your project and boost the quality all the way.
Lowering Hiring and Operational Costs
Delegating custom software development requirements to third-party devs is a great way for companies to decrease hiring and operational costs. For instance, a BPO company may be settled in an entirely different part of the world. Still, its team will get your work done on time, responsibly, professionally – and most likely more cost-effectively.
Know your budget and align your business needs before signing a deal with a BPO provider. Also, learn about the overall costs and get to know the market. That way, you will surely avoid unnecessary expenses.
Eliminating Business Risks
Software outsourcing greatly lessens business risks and prevents stressful situations that can easily happen in any type of dev project. Everyday tasks that would typically be on you (like monitoring the progress, assigning responsibilities, and making sure that all deadlines are met) are taken on by the BPO company’s project manager.
By assigning a set of duties to custom software companies, you can effectively reduce stress and diminish risks.
Focusing on Core Business Areas
We live in a deeply technically advanced era. Nowadays, all companies need to be focused on establishing and improving their core business plans. It can be challenging for many firms to handle both internal business processes and software development. Outsourcing tech roles to qualified third-party dev teams can be a fantastic way for businesses to emphasize their core operations.
Who Benefits from Outsourcing?
Almost every company has met the same question – how to choose between an in-house software team and finding a BPO provider? Of course, relying on a third-party company often allows countless gains. But still, is it the smartest choice for you?
Here’s what you need to consider:
- Does your in-house team lack specific tech knowledge and skills that will be essential for the project?
- How much time do you have, and will you be able to meet the deadlines just by working internally?
- Are you short on qualified staff, and do you need an experienced tech professional on board ASAP?
If answering these questions gave you chills, it’s time to conduct a thorough search and spot a reputable outsourcing company.
Keep These Benefits of Software Development Outsourcing in Mind & Choose a Reliable BPO Partner
Knowing when and why you should outsource your software development is crucial. Although this business practice offers numerous upper hands, it’s not always recommended to dive headfirst into the world of BPO providers. Still, suppose you conduct an in-depth analysis of your business needs, budget, and current capabilities and determine that outsourcing is the right choice. In that case, you will encounter superb results and master the market.
Don’t forget about the challenges you might face & do an extensive search to find a BPO company that will bring all the benefits of software development outsourcing to your firm.