The Benefits of Software Outsourcing

Outsourcing software development has emerged as a key global trend in today’s digital world. According to the Global IT Outsourcing Market Report, the IT outsourcing industry is estimated to grow at a CAGR of 4.42% from 2018 to 2022.

Companies are no longer outsourcing software solely for budgetary reasons. Rather, they are beginning to recognize the other key benefits, including greater security, access to top software development talent and long-term flexibility. Even tech giants like Apple and Google outsource software development projects to specialist providers.

What is Software Outsourcing?

In short, outsourcing software development means hiring an external team of software engineers to fulfill a company’s IT requirements. It can include practices such as building brand new software from scratch, making upgrades to existing platforms and overseeing ongoing maintenance.

Access to the Latest Technologies

The software development industry moves at a rapid pace. New technologies and practices are introduced all the time and it takes an innovative outsourcing company to keep up with the latest movements. The emergence of Artificial Intelligence (AI) and Blockchain, for example, were just two of the key tech trends that dominated 2018.

It can be a challenge for busy in-house teams to keep up with tech trends, which is where outsourcing can provide value. Companies that lack in-house knowledge of new technology can hire an external development team with specialist expertise to implement it into their product.

A knowledgeable software development partner will recommend the most suitable technologies for specific projects. They will have the foresight to consider the future of the product and the market in which it is sold. A good outsourcing partner will ensure that products can be updated easily to be compatible with future technology.

Long-Term Flexibility

Outsourcing software development, when done right, can ensure that projects are completed on time and that companies stay ahead of their competitors.

External developers can work on a project as demand requires. The cost of recruiting full-time talent to complete a development project is expensive and doesn’t always provide value for money, particularly during quiet periods.

Working with a company that provides software outsourcing services means that developers are only hired for the hours that they are truly needed. This approach enables companies to stay lean and scale their business at a faster rate.

Better Security

Cyber attacks are a major threat to most businesses. According to research from Accenture and the Ponemon Institute, in 2017, organizations spent an average of $11.7 million USD on cybersecurity – nearly 23% more than in 2016.

Few businesses have a rock-solid cybersecurity strategy in place, which is why a growing number are turning to reliable, vetted outsourcing companies. Microsoft’s Small Business Insights Survey revealed that 70% of small businesses said they would prefer to pay for support in matters of cybersecurity than do it themselves.

Outsourcing IT can provide better coverage and peace of mind against security breaches. A good outsourcing partner will ensure that coding and processes are as safe and secure as possible. Having a team of security experts on hand ensures that risks are identified early in the development cycle and can be fixed before they cause any issues.

Increased Focus on Core Business Operations

According to Deloitte’s 2016 Global Outsourcing Survey, one of the top motivations for outsourcing is the ability to focus on core business functions.

Outsourcing software development streamlines business processes and frees up management resources to focus on other mission-critical aspects of the business. It reduces management workload while providing valuable updates that makes hands-off supervision possible.

Access to a Larger Pool of Talent

One key reason why companies outsource is the chance to gain access to global developer talent. Statista reports that software application development was the most commonly outsourced function by IT leaders worldwide in 2017.

Outsourcing companies recruit qualified, experienced developers that add genuine value where it may be lacking in-house. According to Deloitte’s 2016 Global Outsourcing Survey, 31% of companies outsource their development to enhance service quality. With highly skilled external development teams on-hand, companies benefit from shorter development times and are more likely to get their product to market quicker.

To summarize, we believe that the five core advantages of outsourcing software development are:

  1. Access to the latest technologies that are influencing the global market
  2. Flexibility in accessing developer talent as and when it’s needed
  3. Peace of mind that a robust strategy is in place to combat cyber attacks and mitigate risks
  4. Freed up resources to focus on other mission-critical tasks across the business
  5. The option to choose skilled developers from a global pool of development talent

One Comment

  1. Thanks for sharing! Very useful
    Indeed, the advantages of outsourcing software development are really huge.

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