Why do companies outsource software development? Here are some of the key benefits of outsourcing your business’s software development.
1. Reduce software development cost
Whether you have an in-house software development team or not, you’ll have to admit that the costs are quite high. Not only do you have to pay their wages, but you’ll also need to fork out for their benefits package, holiday and more. In fact, some research suggests that the trust cost of a new in-house developer for a startup could be 2.7x the base salary with all of their perks, taxes, meetings etc. added up. That’s quite startling to say the least!
So, if your developer is currently costing you $100, that figure quickly turns into $270. Scary, right? But what if you could offload the majority of those costs into another company? Why not let somebody else pay for the package, and bring that cost much closer to the original figure?
In fact, you can bring in a lot more people for a lot less money if you outsource your development. That’s because they will be hired on a non-permanent basis, and the benefits, taxes and holidays will be taken care of by the company you hire. It’s a win-win!
2. Ultimate control over project
Outsourcing your software development can give you better control over your project compared to an in-house development team. An outsourcing software company knows best how to gauge your enterprise.
Furthermore, a software outsourcing company can help you design your solution to make it the most adequate for you by considering the size of your organization, your target audience, the suitable technology type, and they will figure out how your solution will perform in the future.
3. Short-term Commitment
One of the most overlooked benefits of an offshore term is its short-term nature of the commitment. You get to bring experts to work with you on a short-term basis. This means that you will not have to pay them a monthly salary or incur any long-term expenses that are involved while hiring an in-house team.
You also do not have to worry about laying off employees if you need to scale down or worry about losing employees if you take on a different project. You have the freedom to hire experts only when you need them.
4. Development of Strong Code Base
You often seek experienced developers for outsourcing MVP work. They will know what platform to be used, the best languages for coding, UI frameworks, testing mechanisms and other good development practices. With this knowledge, they can build a strong and robust base for your MVP. The entire infrastructure of the code will be understandable easily so that your future developing team can manage the application.
5. No need to worry about HR
Any business that does well has the right employees. This goes to show how important the hiring process is. If you’re a startup, you probably can’t afford to hire an HR manager just yet, so you’re likely to handle the recruitment process yourself. If you don’t have any HR experience, you’ll struggle to recognize the right candidate. To avoid all this trouble, you can use an outsourcing company; they have trained HR personnel to handle the recruitment process.
6. Minimum risk
Both in-house and outsource teams come with risks. But generally, the risk is lower when you choose to outsource. Why do I say this? Before you enter a partnership with a company to develop your business product, you can test their skills and capabilities. Start by signing them on for a small task. If you’re happy with the outcome, you can give them a larger task, and if that works, you know your project will be in safe hands. On the other hand, there’s no surefire way to see what you’re getting with an in-house team before you commit.
7. Get Started Sooner
Outsourcing web development or an MVP project will reduce the duration taken to bring your product to the market. It is much easier to get started than it is with an in-house team of developers. You will not have to waste time finding developers, interviewing them, recruiting them, providing them with adequate training etc. This, in turn, ensures that you can market your product much faster and will get a head start when compared to your competitors.