Introduction
When it comes to software product release in the pre-defined time having lower or no bugs, CTOs and CEOs are faced with the problem if they should arrange an in-house developer’s team, crowd-source the whole procedure, or outsource software development to an expert software outsourcing agency. While software outsourcing has many benefits, like tool saving, equipment, training costs, and time needed in the hiring procedure, getting the right software development outsourcing partner could be extremely challenging.
If you’re unsure if outsourcing software development is the best alternative for your business, you have come to the right piece of content!
This blog highlights the advantages of outsourcing software development and the standards you must follow when selecting a software outsourcing company.
Key Statistics on Software Development Outsourcing 2022-23
- The worldwide IT outsourcing market is projected to grow to $98 billion (2020- 2024), increasing at 5% CAGR!
- Worldwide, businesses have spent $75.2 billion only on outsourcing security past year!
- 78% of businesses across the globe feel optimistic about their outsourcing associates.
- Nearly 54% of companies use third-party support to link with their customers.
- Around 51% of the technology executives outsource applications & software maintenance, and about 40% outsource data centers.
- 71% of financial executives outsource a few of the services they need.
- 59 million freelancers are there in the US alone!
- Around 300,000 jobs are outsourced every year in the US alone!
- Around 64% of the offshore technology jobs outsourced are software application development.
Types of Software Outsourcing
Outsourcing software development is just like home repair. However, rather than doing the job on your own, you can hire outside repair services. The end objective is to make your home pleasant and comfortable living space.
There are three fundamental types of software outsourcing according to the location and work done.
- Onshoring: Onshoring It’s physically the closest collaboration type, so you and your outsourcing partner will be situated in a similar time zone.The best part of onshoring is your partner team might have an office near yours; therefore, you can freely visit your favourite cafe; however, only people with a high budget can afford onshoring.
- Offshoring: If your internal team is located in the U.S and you want to work with GTCSYS situated in some other country, it would be called offshoring. In easy terms, an offshore team means a team located in another country, generally at a greater distance.Offshore software development has proved to be the most affordable method, providing you with a team of IT specialists. Yet, it would help if you coped with the differences in the time zone.
- Nearshoring: If you do software development outsourcing with a parallel time zone or minimal differences, then it is named nearshoring.The advantages of hiring a nearshore outsourcing company are that it is in a close location and provides a team of IT experts at lower prices than onshoring; however, there are language and cultural issues.
Software Outsourcing Models
Different software outsourcing business models describe how you team up with a vendor. These are the three most familiar software outsourcing models:
- Project-Based Model: Here, you hire a software development outsourcing company to implement the work already defined and planned.
- Dedicated Team Model: In this model, you must hire a team and outline the project scope. Unlike a project-based model, a dedicated team is more involved in the project.
- Out Staff Model: Sometimes, outsourced software development needs to find some extra professionals, and you will be free to hire distinct professionals or out-staff workers to cover that scope.
Benefits of Software Development Outsourcing
Outsourcing can be an excellent option for businesses looking to accomplish their business while maintaining cost-savings and justifying risks. These benefits constantly influence global companies.
We’ve discussed six key benefits of outsourcing software development here.
- Lesser Software Outsourcing Costs: As per Deloitte, 70% of organizations are attracted to cost reduction while outsourcing software development. The time and massive expenses related to training & recruitment, and organizing technology teams are critical factors in cost reduction.So, rather than hiring resources or staff, assigning the job to a specialized offshore software development company can be more valuable. In addition, hiring dedicated developers from a software development outsourcing company helps maintain capacity levels associated with the resource and budget needs throughout the project.
- A Larger Pool of Talent: Among the significant reasons businesses outsource software development services is that it is challenging to hire outsourcing developers, mobile developers, and web developers that work on any particular app development project like flutter app development or RPA automation that requires a highly specialized team.All these summarize into a minimal talent pool while hiring locally that becomes even tougher while other players look into similar prospects.
- Quicker Time to Market: Software development outsourcing can leverage a vast pool of sources for software app development. Clients can access all the development sources quickly and easily, helping them to offer quick time to market for different products.Simultaneously, a dedicated offshore software development company implements Agile and Scrum methodology tactics and sets the required priorities to accomplish the customer’s anticipated result.This considerably lowers the Time to Market and encounters the pre-defined parameters to provide a project to the actual users.
- Affordable Development Cost: Most offshore software development outsourcing companies provide their customers with a flexible price model and top services. For example, eastern Europe gets famous for a group of trusted partners, lacking resources, and lower taxation in the IT sector.The development cost might also be influenced by the project’s complexity, app development types, staff sizing, technology stack utilized, domain expertise, and collaboration duration.
- Project Risk Mitigation: Creating and releasing new software or applications comes with many risks, like code issues, inaccurate estimations, and tight deadlines.Outsourcing software development can help you alleviate the risks of creating software products. A dedicated offshore software development company can offer a team that employs a quality project management system, including a smooth and well-established workflow, and successfully create applications, ensuring constant business ROI.
- Focus on Key Functions: Generally, businesses get distracted very easily by dividing efforts and time between different activities which apply to a company’s operations but beyond the main business goals. That is where software development outsourcing plays a role and assists business leaders in focusing on vital expertise.Businesses can concentrate on their key objectives by hiring software development outsourcing services providers.
How To Find the Best Software Development Outsourcing Company?
Once you decide to use software development outsourcing services, you can fall in search of an outsourcing partner. We always feel that getting a good software development vendor needs as much energy as getting a good partner. Here are a few points which will help you find the best software development outsourcing company.
- Plan Your Requirements: You should know your expectations to get the best results and communicate that. So, it would help if you envisioned the outcomes you need to have.The product needs demanded detailing. The initial and essential thing is clarifying your requirements and the product vision. These are the three key questions you need to ask yourself:
- How do you need to collaborate?
- What do you want to find the results?
- What do you anticipate from the outsourcing company?
- Check Recruitment Platforms: The next step is checking who exists in the market for software development outsourcing. Fortunately, there are recruitment platforms listing software outsourcing agencies, companies, or contractors like Upwork and Clutch review.
- Study Company’s Profile: The next step is to check the company profile. What do we mean here? Some things like:
- Previous Clients
- Industry
- Case Studies
Case studies are critical to observe a team’s expertise and experience. Related industry plays a vital role as working with the outsourced development team experienced in creating property startups whenever you get one is an essential contribution to your success.
And lastly, the most pleasing way of evaluating a potential software development outsourcing company is by saying what others need to talk about them. Therefore, take your time and check Google reviews from previous clients.
Book a Presentation Call
When you fix your requirements, check many recruiting stages and study the companies’ profiles you have gone through, short up to 5 companies from them.
The following action will be booking a presentation call. You need to do that by just writing to a company’s mail id with a brief background about your ideas, and we’ll organize a call.
How Much Does It Cost To Do Software Development Outsourcing?
It’s not easy to say the precise number in the context. According to our knowledge, the ballpark price range of software development outsourcing is $50,000-$250,000.
The low-price tag is for a basic app that needs very little backend processing or user interaction, which means lesser hours of development. If you’re creating a multi-platform app having a server-side app, heavy interaction, financial transactions, and connection with external systems, then the cost is expected in 6 figures!
Why Will GTCSYS Be Your Best Software Development Outsourcing Partner?
Every time during the intro meeting with the client, we show these numbers:
- 8+ Years of Experience
- 320+ Successful Projects
- 15+ Countries served
- 99% Customer Satisfaction
It’s not merely statistics. Using these numbers, we highlight that we strive hard to become a reliable software development outsourcing company. We work like one team with our customers and expect the same from them! It’s about the corporation, not just completing tasks.
For us, professional software development outsourcing means positive relationships with clients. It nurtures more vital collaboration, imagination, and space to do the best.
Final Words
Software development outsourcing has become widespread amongst startups and established companies, benefiting business growth.
This helps you develop, test, and launch the products more quickly. If you think software development outsourcing is a way to follow or have any queries, feel free to contact GTCSYS, and we’ll happily help you!