Outsourcing is the practice by a company or entity of obtaining goods or services from an outside source, such as a foreign supplier or independent contractor. In many cases, outsourcing replaces the use of an internal resource. Businesses in Western countries often outsource their services to various locations – mostly to developing countries – to take advantage of cheaper labor.
It is no longer surprising when your customer service call from the US is answered by a call service rep in India or Ukraine, who attempts to solve your issue from thousands of miles away. Outsourcing takes place in every possible scenario or occupation, wherever remote solutions are acceptable.
Software Development is becoming more frequently outsourced to various third party locations, to large, medium, and even small software development companies. The decision to outsource depends on your individual situation and circumstances, but here are the top 6 common reasons for outsourcing your software projects:
- Cost of service
Cost is the primary reason companies outsource Hoteling software development services. Businesses save on wages, medical insurance, retirement plans, and other full-time employee benefits. Outsourced software developers often charge a fraction of the cost of in-house developers or domestic software companies.
- Cost of equipment and management
Companies save big on office equipment, hardware, and software tools when outsourcing software projects. Many developers work remotely on their computers, frequently using open-source software that is free of charge for development projects. Companies often outsource entire project teams, including management and HR, decreasing their expenses to a minimum.
- Delegation of responsibility
When businesses delegate software development tasks to outsourcing companies, they free themselves from an enormous amount of work. They can focus on marketing and communication while software development is happening behind the scenes.
- Getting work done by the best developers
Outsourcing doesn’t have to mean lower quality. Outsourcing companies hire top-level local professionals and tech students, many of whom are happy to work for a foreign company for a slightly above average wage and experience. They put in tons of work for relatively low compensation, saving the company money.
- Saving on maintenance
Product maintenance is an integral part of every software development project. According to the Agile methodology, which is often implemented by the software industry, a company should provide ongoing maintenance services to customers, even after the product release. Outsourcing your maintenance services is very cost-effective.
- Enthusiastic diligent employees that solve the most difficult problems
Competition and brainstorming are often encouraged in Agile software development projects. Happy for the opportunity to work on a project, outsourcing teams often go above and beyond to please their bosses. They often do seemingly impossible things by solving complex problems in a short time span.
Outsourcing has become a common practice in today’s global economy. This phenomenon has positive aspects as well as some downsides. For great results, companies should consider not only profits, but also the wellbeing of workers who participate in the process. Outsourcing teams produce great products that change the world for the better at relatively low cost.