With the ever-changing software market and new cutting edge technologies being introduced at lightning speed, software outsourcing is becoming popular at a rapid pace. The essence of the software development lies in its ability to adapt to the new trends, new programming languages, new methodologies, new industry standards and practices. This is why, now even the larger corporations are catching up with the software outsourcing. The statistics are fascinating; Statista estimates the worth of software outsourcing to be at $92.5 billion dollars in 2019 and has predicted an even higher number in 2021. The essence of the software development lies in its ability to adapt to the new trends, new programming languages, new methodologies, new industry standards and practices.
Many businesses have been affected by the roaring pandemic but the software outsourcing industry has escaped its adverse impact. Before we dive into its reasons, let us roll back to understand what software outsourcing is. By definition, it is a practice by a company to handover one or more essential tasks to a third party software solutions provider who can employ their expertise to fill the skill gaps in the inquirer company. In simpler terms, software outsourcing providers like DevNatives allow the bigger organizations to develop software solutions including extensions or customization of the pre-developed software to a newer suggested solution that follows the full Software Development Life Cycle in a cost effective manner.
COVID-19 has most definitely pushed many people and companies in the pursuit of digital transformation. Many businesses are trying to stay afloat and with SOPs in place, the only solution is to bring everything online. However, this has also started the urge to find the expert developers with major focus on the quality of the solutions. With little to no means to train new developers, the real talent has become scarce. This is where outsourcing service providers play a pivotal role with a huge market of offshore software experts. However, to see a clear picture of software outsourcing, it is important to weigh the pros and cons.
Benefits of Software Outsourcing
The benefits of software are extensive; let us discuss them one by one.
Acquire Offshore Expertise with Lower Cost
Acquiring Offshore Expertise cannot only balance out lack of in-house experience but cut out the costs in half by saving infrastructure, office, training and salary expenses. However, it is extremely important to ensure that the outsource company provides quality services. A professional team will most likely attain maximum success till the end.
Accelerate Development Speed
Offshore professional teams are well trained in their domain and are often following agile methodologies. This, combined with good communication can accelerate the development speed to ten folds.
Hiring an offshore team can open up new opportunities with newer teams trained in upcoming cutting edge technologies like Artificial intelligence, Business Intelligence and Blockchain etc. Moreover, it also allows the customer company to focus on its idea rather than spending its time and resources on application development.
Most of the outsourcing vendors follow agile methodology and are very flexible towards changes within reason. Moreover, the customer companies pay these vendors for work hours that are being put into the development. This allows flexibility not only in the product but in payment as well.
A good outsourcing company has a large number of talented employees working in different technologies. It is easier for them to scale up the team if required by the customer company
Drawbacks of Outsourcing
Delegating software development to a third party service might seem like a good idea with low cost, flexibility and focused expertise. However, there are several risks and shortcomings explained below that need to be considered.
Owing to different countries, time zones and languages, communication becomes a challenge which often leads to project failure. Moreover, lack of collaboration also causes frustration and burnout.
Decreased Product Quality
Quality of any product depends on the quality benchmarks in place, clear communication of the expectations and meetings in regular to discuss whether the progress is in accordance with the communicated requirements. However, with outsourcing, all of these variables become difficult to manage as the definition of quality and success vary among different companies.
Loss of Control
Trusting a third party by giving access to your data presents several challenges and giving up control is one of them. Moreover, you also have little to no control over how the work is being performed or managed.
Now that we have listed the pros and cons of outsourcing, one very important fact has been highlighted i.e. the success of any product depends on the software outsourcing provider that you as the customer company hire.
How to outsource software development effectively?
To ensure that outsourcing software development will be a success, there are certain things that you should consider before including:
- Define clear goals for outsourcing
- Establish clear pathways for project management and remote team collaboration
- Make realistic timelines and expectations
- Track progress to provide feedback
There are numerous factors that influence the likelihood of success when it comes to software outsourcing. Among those, there are certain aspects which companies should keep in mind, including:
- Establish clear goals for outsourcing
- Involve in project management and collaborate with remote teams.
- Have realistic expectations.
- Set milestones and frequently track progress to provide feedback.
Again, it is impossible to guarantee 100% success of an outsourcing project. But there are some things that can help businesses improve their chances of success. In addition, corporate clients should select outsourcing partners who apply an agile methodology to flexibly manage their development projects to ensure better quality and more frequent releases, and to improve collaboration. In addition, it is also highly recommended to use the advanced tools to effectively manage the project tasks in order to get an idea of the progress of the project.
DevNatives is an outsourcing software firm providing development and designing services in the cutting edge technologies. We have worked with international teams to produce efficient and robust B2B and B2C applications. Our talented team covers all the phases of software development from ideation, development, deployment, testing to maintenance. We ensure:
Excellent Communication and Management Skills
The blend of excellent communication skills in english of our project management team with our commitment to provide the clients with the best solution helps us to overcome the challenges faced due to different time zones and countries.
Converging Benefits of Freelancing and Outsourcing
DevNatives prides itself on providing the minimum costs of freelancing with the security of an in-house team. This unique advantage over others coupled with the technical capabilities and domain expertise makes us one of the best software outsourcing services providing quality services.
Risk Mitigation Processes
DevNatives have risk mitigation processes in place for data protection. We overcome this challenge by signing legally binding documents such as the non-disclosure agreement with the customer company.
If you are looking for a trusted outsourcing vendor and want to reap the benefits of in-house development in the freelancing costs, DevNatives is your best choice. You can contact us here for more information.