According to Statista, the software development outsourcing services market size went up to an astounding $92.5 billion in the year 2019. Currently, the market size for USA’s outsourcing industry stands at $132.9 billion and is predicted to augment 1.6% by the end of 2022.
But why is the software outsourcing industry seeing such rapid success?
The software outsourcing world is combing the best of both worlds in commerce: low prices and access to quality talent. There are regions in the world that excel in IT skills whilst others don’t. Add globalization to all of that, and you have the perfect recipe to cook up quality software that appeases ideal buyers. All of this coupled together adds to the boom in demand for software outsourcing services.
However, the main reason for global outsourcing’s increase in demand is because it makes other business activities much more manageable. In fact, globalization has made it easier for businesses to connect with suitable professionals from all over the world.
Benefits of outsourcing software development services
While we did touch upon the benefits of outsourced software services there is more to it than meets the eye. Getting software development services can be incredibly advantageous for businesses:
Access to Talented Professionals
Before outsourcing becomes about costs, it is important to find talent to evaluate the pricing. Searching and choosing the right team of people for your project is far more important than the cost. If you do not have the right team of people even a discount will not do you any good. However, by outsourcing software development services you come across seasoned professionals for a fraction of the price.
Assistance to In-house Teams
Some companies may choose to keep their in-house team while hiring outside help. While you might want to keep the primary workload with your in-house team an outsourced team can lend a helping hand. This is especially true if your in-house team is currently finding it difficult to handle a specific region of software development.
Addition of New Skills
Software outsourcing allows you to access new technical skills that your in-house team might be lacking. This can in turn help your organization grow. It is especially true if you want some software development services for a short span of time. Plus, this is also a great way for your business to stay up to date with the latest trends in software.
Affordability
If you are looking to cut corners when it comes to saving costs, then outsourced software development is your answer. Outsourcing software services help reduce your business’s internal costs while letting you focus on its core tasks. This helps you become technologically competitive since you are not concentrating on the more profitable sections of your brand.
Better Time Management
By outsourcing your software projects, you can significantly reduce your marketing time spectrum. Software developers who are perceptive and can rapidly understand your project’s requirements can put out a quality product far quicker. Also, having a long-term software development partner on an emergency dial can be beneficial for your future endeavours.
Choosing the Right Software Development Outsourcing Company
There are multiple facets to choosing the right software development outsourcing company. firstly, you will have to sift through the various types of software development sourcing services. Then there are places you can look for them, and lastly the type of provider you want to get software development services outsourced from.
Onshore/Local Outsourcing
This sort of software outsourcing will look for your perfect team depending on your geographical location. However, while a closer geographical location can provide easy access to the teams it will be pricier. Also, if you are in a region that is not too technologically inclined to find the right talent is tough.
Nearshore Outsourcing
This involves looking for outsourcing software development in a country near your own. This makes communication far simpler and poses a greater chance of having similar first languages. Plus, if there are alterations in the region that could impact production, both parties would be on the same page. This also means that it would be easier for teams to travel across countries for significant meetings and milestones.
Offshore Outsourcing
In this type of outsourcing businesses choose the best outsourcing partner who would parallel their skills to your requirements. in this sort of outsourcing factors like geographical location and cultural similarities are put aside. Instead, businesses here choose from a global talent pool and potentially looks to lower cost.
Hybrid Mode
Some businesses find better success in combing local in-house talent with offshore teams. The benefit of doing this is that you have the local team getting a reading on customer preferences and styling software requirements according. The offshore team, on the other hand, will add their skills and talent to produce a workable product.
For any of these options to prove advantageous you will have to first gauge what your organization needs. Not only that, but you will also have to thoroughly look at the current structure of your team. This will help you decide the outsourcing type to choose for better daily operations. For instance, you might have to ditch local outsourcing if your team is already pretty diligent and tight-knit. This would mean that it does not have space to deal with an external team.
Here a hybrid or offshoring mode might work better. These models give your in-house team more liberty to work autonomously.
Types of Software Outsourcing Providers
Typically, there are 5 distinct outsourcing providers you can work with:
Large enterprise-grade companies
Generally located in Eastern Europe, India, South America, and China these offshore companies are giants that employ developers, QA experts, and PMs by the dozen. However, these giants typically work on projects requested by large corporations with significant budgets. Since these projects are on a massive scale teams have to embark on long learning curves and make revamps.
Medium-sized companies
This is by far the most crowded type of provider. Here the outsourcing agency employs a headcount of 50 to 500 developers. These market players have a long-standing reputation for excellent quality standards, solid client bases, and punctuality. On the flip side, a lot of the companies within this realm are startups and are currently growing. However, this could also mean affordable charges for you.
Premium-grade small software agencies
These are small expert teams of 5 to 50 developers, typically managed by ex-pats. While they would charge higher rates they are known to work closely with the clients and produce quality work. Not only that, but because they are tightly selective about their projects, they are punctual as well.
Freelancers and startups
Every well-known web development outsourcing company must begin somewhere. Since this segment typically includes amateurs, experienced freelancers, and newly growing companies they will be open to working closely with your goals. while it might be daunting to work with a fresh company, there are hidden gems that house experienced professionals.
Independent Opportunists
These are individuals with a limited understanding of software development. They have little to no experience in the field and are easy to spot. Typically, these are individuals who make unrealistic promises, offer unbelievably low rates, and have taut deadlines.
It is important to do your homework when looking for a software development outsourcing partner. Don’t be afraid to aim high because the end result is often worth the investment.
