Technology development and Internet popularization contributed to the globalization process. It caused a lot of changes in world perception and the way it functions. One of those changes is: outsourcing to software provider.
What is outsourcing?
‘Outsourcing’ is a term that came from: ‘outside resource using’. It means deputing a business process to a different company. Outsourcing first became very popular as a way for production companies to save some money. They started buying or ordering a product production from a different company instead of producing it by themselves. It has evolved even more since then. Because of a long list of benefits that come with outsourcing, companies started to outsource even more processes. In todays world companies outsource the most strategic tasks of the businesses like software engineering or facility management.
Offshoring vs. Nearshoring
There are two of the most popular types of outsourcing to software provider: offshoring and nearshoring. There’s a big chance that you’re going to choose one of these options.
Offshoring means outsourcing your business process to a far-distant country, usually overseas. The biggest motivation is usually an aspect of cost cutting. Americans tend to offshore their software development to countries like: India, Ukraine or Poland, where costs are much lower than in USA.
Nearshoring is when business decides to work with a company that is placed in a neighbouring country. For instance, in this situation USA would outsource from countries like Mexico, Canada and perhaps some other countries from South America. European countries, like Germany or UK would most likely go for Poland or Ukraine. Both of these types are an opportunity for American businesses to cut their costs by hiring a software company outside the US.
6 Benefits of Outsourcing To Software Provider
You might be wondering what’s the point in outsourcing to software provider if you can have someone in your company to do that just fine. Well, you might want to hear about those benefits cause I’m pretty sure they’re going to change your mind.
That’s definitely the first and I think the biggest reason to consider outsourcing your software. To put it into perspective, let’s look at the minimum wage chart ($ per hour). It should give you a basic knowledge on the conditions in different countries. It doesn’t necessary mean that the countries on the bottom of that list are poor . Living in them is just cheaper so the minimum wage is also lower. Of course it doesn’t show us how much you’re going to have to spend on a software in those countries. However, I think it’s fair to say that the lower the minimum wage, the cheaper the software.
Moreover, let’s not forget that outsourcing eliminates the necessity to invest in expensive equipment. Software development companies already own that type of devices.
When you decide to outsource your software, you’re definitely going to choose someone who knows what they’re doing. Hiring a company gives you an access to a team of developers that have been working together for a long time. They did multiple projects together and know how to work in a team like this. With their knowledge, your project can be developed quicker and better than hiring individual developers to your office. You also eliminate the problem of not knowing how to manage a project like that. Moreover, it gives you more time to focus on core tasks of the business.
Here we actually have 2 benefits in 1. First of all, developing a software is very often a temporary job, not something that requires a permanent support. So you’re not going to want to hire 5 developers for your company for the duration of the project and then fire 4 of them after the project ends. That’s usually how things work. Developing software is much more time consuming than maintaining and supporting it after it’s done.
Moreover, software companies offer supporting your software with every project. When you decide to hire a company for that, you eliminate a problem of having too little or too many people. You save a lot of money, that you would’ve spend on salary. Second of all, you don’t have to deal with recruitment process. It saves you a lot of time and energy to do other, more productive activities.
The Best Software Possible
Limiting to your city or even country lessens your chances to find the best of the best. If you’re open to cooperate with people all around the world, you have unlimited access to the best developers out there. It’s very difficult nowadays to find real professionals near you. Don’t limit yourself and increase your chances to find the most skilled ones.
Time Difference Is On Your Side
Think about it this way: you find an issue that needs to be fixed and thanks to the time difference, by the next day, it’s already gone. Time difference allows your business to work even if you’re not. If you’re worried about communication issues, don’t be. Pretty much every software development company is going to adjust to your time zone so you don’t feel any inconvenience on your side.
Better Risk Control
Outsourcing reduces the amount of potential problems you have to think about. The company you hired takes care of the whole developing process. Your involvement is limited to consulting with them and giving feedbacks. We understand that you might feel like it’s risky but in reality it’s the opposite. Outsourcing is a very common thing. There are legal regulations that make that type of cooperating very safe and efficient.
In conclusion, as you can see there’s plenty of advantages of outsourcing for your business. It’s something worth considering and thinking about. This might be a solution for your excessive expenses rate and a way for your business to grow. You definitely don’t have to outsource the whole, huge project. Test the waters first. If you’re interested in a specific Software House – give them a trial project, something small to check if they’re the right option for you. Your satisfaction is the most important here. If you’re still hesitant feel free to contact us and we’ll help you make the right decision.
We also recommend reading:
- Outsourcing – Is Poland a good choice to outsource my software to?
- Can Outsourcing Software Development Work for Small Businesses?