Businesses are falling head over heels for their outsourcing partners
Outsourcing has become an obsession now. 78% of businesses all over the world have positive opinions about using outsourcing services. And we are wondering, what is motivating them? Either superior skills or lower recruitment costs, or BOTH!
Companies are outsourcing software engineers for several reasons. Software development is frequently outsourced to companies or freelancers since it speeds up development, gives you access to experts with the knowledge you might not have on your in-house team, and is usually comparatively cheap.
Business Wire estimates that the worldwide IT outsourcing business, which was worth $333.7 billion in 2019, will grow by 4.5% annually to reach $397.6 billion by 2025. (2020–2025).
But before we begin with our complete guide on outsourcing software engineers, let us first understand What IT outsourcing is and what is up with Software outsourcing.
What is IT out-sourcing ?
IT outsourcing is the practice of managing your company’s IT requirements with the help of a third party or a freelancer.
In simpler words- When you assign your IT needs to an external pool of experts and not your In-house team, it is considered IT outsourcing.
What is Software Outsourcing ?
Software outsourcing is the process of appointing another company to develop software for you. Software development outsourcing offers several advantages, such as increased productivity, lower prices, greater quality, lower risk, and access to a wide pool of experts.
Pros and Cons of IT outsourcing
Before indulging in the pros and cons of outsourcing a software engineer. Let’s first consider one of the most underrated aspects of outsourcing, and that is TRUST. Note that outsourcing is not one time process, it is more like building a valuable relationship with the service provider to achieve IT goals.
Pros of outsourcing software outsourcing
1-Reduced time to market
In a market where competition is high, delivering your products to customers before the competition reaches them is a major benefit. By outsourcing your IT requirements directly to experts, there is a significant reduction in the time spent on recruiting, verifying, interviewing, and training, thus aiding in developing the project speedily.
2- Expertise in a large talent pool
The most important thing while recruiting is to hire the right people, and the most difficult thing is where to find them. Companies have started outsourcing their services frequently because of the availability of skilled experts from all over the world.
3- Demands fulfilled, Anytime and from Anywhere!
Imagine hiring IT professionals that can handle all of your demands quickly, effectively, and without costing you excessive amounts of money. That is how flexibility in outsourcing IT is currently manifested.
Companies have to bear the cost of training while hiring in-house engineers for software development. Outsourcing software engineers save money by directly employing IT experts and lowering operating, rental, equipment, and other supply costs. Outsourcing software development saves 58% on development costs.
Cons of outsourcing software outsourcing
Outsourcing experts offshore having time zone differences can sometimes lead to a lack of communication or even worse miss communication. Having In-house management that stays connected with the outsourced expert can be a mindful step toward IT outsourcing.
While outsourcing, it is difficult to measure the risk factors that can impact highly on the company. There are several risks such as outdated software, chances of hacking, and low network.
3-Loss of control
Whether you sign a contract to have another company perform the function of an entire department or a single task, you are turning the management and control of that function over to another company. When you outsource an entire project, you are not much involved in the development process or the software used, and you risk losing control.
Platforms to outsource Software Development Engineers
When we talk about a dedicated team model, turn on the partnership mode! For longer projects or complex development processes, a dedicated team model is the best choice for companies because the outsourcing agency will handpick professionals to collaborate and work collectively on a shared company goal.
A staff augmentation model is a good option for businesses that do not want to go through the entire recruitment process but only require a professional’s expertise for a limited timeframe on their current team.
The project-based model works best for companies that have a clear idea of their product and do not want to be involved in the whole product development process.
Once they specify their requirements, the whole project is assigned to a team of experts, and the company is free to work on other areas of business.
Types of IT Outsourcing
Outsourcing is of different types typically known as Location based outsourcing.
Same country, Same time zones
Pros– Easy Communication, No language barrier
Cons– Higher cost, Limited pool of experts
Close to a country usually same time zone
Pros– Similar cultural values, Easy access to services, Low-risk
Cons– Comparatively expensive, Limited expertise
Away from country different time zone
Pros– Cost Effective, Wide pool of experts
Cons– Different Time-zone. Communication Barriers
The term “outsourcing” is no longer new. Companies are now relying on outsourcing to address complicated development problems, rather than just reducing costs and gaining flexibility.
Your biggest victory can come from outsourcing to the right people. And we can help you get there. With 17+ years of hands-on experience, Communication crafts utilities a potent mix of technology and innovation to provide end-to-end Website development solutions under one roof.
By outsourcing with CC ,you can add a skilled crew, high-quality code, and accelerated development to your project.