Why should you outsource software development? 7 Key Benefits
If you’ve never partnered with an outsourcing company for software development, making the decision can feel pretty tough. That’s perfectly understandable. Outsourcing isn’t just about making benefits for the financial aspects. It also means dealing with how to work effectively with a partner outside your organization.
Outsourcing software development brings numerous benefits. According to Statista, the market is expected to grow at 11.07% (CAGR 2023-2028) and is forecast to reach $777.70 billion by 2028. These figures clearly demonstrate the many advantages that businesses can gain by opting for outsourcing services.
So, what are these specific benefits? Why do companies outsource software development? Let’s explore them in this article with Nexle Corporation.
Why do companies opt for outsourcing software development?
A business has various reasons to consider outsourcing software development. In some cases, it may be their last option. Alternatively, they may choose a software development company as a long-term partner to drive innovation and foster growth in their business. However, regardless of the motivation, the ultimate goal remains consistent: to capitalize on benefits that are not easily accessible through in-house development.
Reduce the Overall Costs
Businesses often opt for software development outsourcing due to several significant reasons. One of these is the potential cost savings, which can reach up to 60% compared to traditional methods. By doing so, businesses can effectively allocate their financial resources towards other essential activities.
You must acknowledge that establishing an in-house software development team necessitates a significant investment. This includes internal development costs, salaries for programmers and related staff, equipment and infrastructure procurement and maintenance, human resources and project management expenses, as well as various other expenditures. These cumulative costs can create financial strain on the business.
Meanwhile, outsourcing software development often provides numerous benefits. Businesses can avoid the burden of fixed costs and expenses associated with maintaining an in-house development team. They can tap into the talents and expertise of professional software development companies without having to establish or maintain a complex infrastructure.
Additionally, outsourcing software development companies come with hefty expenses and intense competition, which poses a notable challenge for startups, small businesses, and medium-sized enterprises. Nonetheless, the dynamic shifts entirely when considering the option of outsourcing software development to foreign firms. In this scenario, businesses can capitalize on the advantages of reduced labor costs. The talent acquired from various locations is often available at a lower hourly service rate.
Software development usually involves a team with different skills to ensure project success. However, there are instances when the expertise of an in-house team may not match that of a professional software outsourcing company.
Bringing in new talent can boost innovation and enhance the project. Experienced developers from external sources offer fresh perspectives, extensive knowledge, and unique approaches to the table.
Software outsourcing companies are experienced in handling different software projects. They have acquired extensive knowledge and expertise to effectively manage your specific business operations.
This option provides many benefits. By choosing this option, you can save time and money since you won’t have to train your team on these technologies. Moreover, you will avoid the risks of mistakes and delays that are often associated with new team members.
Access a Vast Pool of Top-tier Talent
Software outsourcing offers businesses of all sizes the opportunity to tap into a global talent pool. It goes beyond borders, enabling access to a diverse and skilled workforce with specialized knowledge across various technical domains, technologies, and capabilities.
With the assistance of software outsourcing partners, your internal development team can optimize efficiency and bolster productivity. They will benefit from a wide array of valuable resources and specialized expertise.
Helps businesses focus on core competencies
A key benefit of outsourcing software development is that it allows businesses to focus on their core competencies. By entrusting this task to professional outsourcing companies, businesses effectively allocate their valuable resources. This strategic move allows them to concentrate on activities in which they excel and generate substantial value for their customers.
Businesses can optimize their operations by choosing to outsource software development instead of heavily investing in both human resources and technology for in-house development. This strategic decision allows them to allocate their resources towards developing core products or services, enhancing customer satisfaction, and expanding their market influence.
In addition, partnering with a software development company relieves the burden of managing and overseeing an in-house team. Businesses can now redirect their attention and resources towards enhancing their core capabilities, without the need to worry about recruitment, training, or human resource management.
Reduce Time to Market
In reality, establishing an in-house software development team is a time-consuming process that requires significant effort in recruitment, training, and management. This can lead to delays in software development and project deployment. However, hiring a professional software outsourcing company helps avoid these challenges.
Outsourcing offers a streamlined project execution by eliminating the challenges associated with human and resource management. Established software outsourcing firms possess skilled and experienced teams capable of successfully accomplishing your project goals.
This approach not only saves valuable time and resources, but also opens up the chance to boost the return on your investment from your business operations. Moreover, collaborating with developers based overseas can have its perks. The time zone difference could keep your project active round-the-clock, accelerating the project finish time and enabling you to introduce your product or service to the market at a faster pace.
Keeping pace with the latest emerging technologies
At this moment, we find ourselves immersed in an era where technology is progressing incredibly rapidly. New technologies, developmental structures, and project management tools are continually emerging. This swift advancement poses a bit of a hurdle for businesses of all sizes as they strive to comprehend and adjust to these continuous transformations.
Outsourcing software development becomes beneficial in this scenario. When companies team up with professional software development firms, they can take advantage of their specialized skills and industry knowledge. These firms make a point of keeping up with the latest technology trends, and they integrate them into their projects effortlessly.
As a result, when you outsource software development, you ensure that your project is executed by harnessing the most advanced technologies and methods available.
The capability to adjust resources as needed
The ability to adjust resources offers a significant advantage when collaborating with software development outsourcing companies whether it’s expanding or downsizing, . This is the primary reason businesses choose to partner. Often, projects require a large workforce for efficient completion. However, once a project reaches its end, maintaining a fixed development team becomes unnecessary and burdensome for the organization’s resources.
Collaborating with outsourcing software development companies offers the advantage of not needing to hire full-time development resources. Instead, one can tailor a resource team that perfectly aligns with current requirements. This eliminates the headaches typically faced by Chief Technology Officers (CTOs) in managing human resources.
Offshore software development company – Nexle Corporation
Nexle Corporation, based in Vietnam, stands as a premier professional software development company. We’ve built a robust reputation over ten years, successfully providing countless clients around the globe with stellar software solutions.
Why should you choose to collaborate with us?
Our team comprises highly skilled and professional software developers who possess extensive expertise and industry-specific knowledge.
Our experts are proficient in various programming languages such as C/C++, Python, Swift, Java, Kotlin, React Native, Flutter, HTML5, Qt, iOS/Android app development, and more.
The company demonstrates a strong commitment to remain updated on cutting-edge technologies, constantly integrating them into the software development process.
We always strive to optimize costs for our clients, ensuring maximum benefits for them.
DevOps methodologies are integrated into our project development, accelerating the software development process.
We strictly adhere to information security standards to safeguard our partners’ interests.
Throughout the entire process, transparency is maintained from requirement gathering and project planning to development and deployment.
With our commitment, the projects we undertake will deliver the highest quality, cost-efficiency, and your utmost satisfaction. Contact us today to discuss your project.
Nexle is a leading software development company based in Ho Chi Minh City, Vietnam. We are delivering on the world’s largest, most complex projects to transform the way governments, companies and communities work. We have been developing smart, technology-enabled solutions to solve our clients’ toughest challenges, demonstrating a commitment to excellence and a passion for exceeding expectations. Nexle is well positioned to be a partner and co-innovator to businesses in their transformation journey, identify new growth opportunities and facilitate their foray into new sectors and markets. We’re globally recognized for our innovative approach towards delivering business values and our commitment to client success.