Software Development Outsourcing: Benefits For Your Business In Times of Uncertainty?
The global economy, which had been strong until the beginning of 2022, is now on its knees, and businesses around the world are looking for ways to cut costs. Many businesses are at a crossroads where a recession can strike at any time, and if they are not prepared, they will most likely face a severe economic downturn.
Undoubtedly, managing consistent business growth during a recession is difficult, but with effective strategies, you can survive or even expand your business in challenging times. One of these strategies is software development outsourcing. Believe it or not, outsourcing in a recession has many benefits for businesses.
How Software Development Outsourcing Can Benefit Your Business?
Outsourcing is a great option for businesses looking to achieve their digital transformation goals while reducing risks and maintaining a cost-saving approach. Here are 5 additional benefits of outsourcing your custom software development.
1. Staffing & Development Cost Reduction
According to a recent Deloitte 2020 survey, 70% of companies are motivated by cost savings when outsourcing software development projects. The time and high personnel costs associated with recruiting, hiring, training, and managing technology teams play a significant role in these cost savings.
When you consider that these HR costs include things like benefits, paid time off, incentives and infrastructure required for full-time company hire, as well as the time and money commitment required to find a new employee, you can see how significant the savings can be.
Leveraging the IT skills of a software development partner will help keep the skill level in line with your budget and staffing requirements until the company is ready to invest in new full-time hires. A significant advantage is also the flexibility to scale outsourced software development teams from a quarter to a quarter or project to project.
2. Mitigating Project Risks
Developing and releasing new software comes with inherent risks, such as code issues, extremely tight deadlines, inaccurate estimates, and unrealistic goals, just to name a few.
When you outsource software development, you reduce the risks associated with software product development by working with a team that uses a quality project management system with an established and efficient workflow and a proven track record of building applications that deliver a return on constant investment.
3. Flexible Capacity & Scalability
When a project is progressing well and you want to speed up its development or add features that weren't originally planned, outsourcing gives you the freedom to move around quickly and efficiently.
When using an internal team, an increased workload or sudden project changes may necessitate time-consuming and costly hiring and training exercises. This is not the case when working with an outsourced team because your software development partner handles those decisions quickly because their teams are built to be flexible and ready to develop or acquire.
Even when projects handled in-house require a little extra expertise or more resources, additional work can be outsourced to one or more vendors. Outsourcing allows businesses to respond to changes as they occur and act to resolve them quickly.
4. Focus On Core Business Activities
No additional training is required from your team when you outsource software product development. Let the experts handle it and concentrate on your core business operations!
While it is good to upskill internal staff through product development training, this can affect the quality delivered in other areas of the business. It is best to delegate the development project to those with the skills to do it effectively.
This way you can maintain your company's quality standards and improve the overall productivity of your employees.
5. Continued Maintenance & Support
When it comes to software development, ongoing support and maintenance are crucial. An outsourced software development provider is not only responsible for developing custom software. The deal includes ongoing support and maintenance, implying that the company is obligated to provide ongoing support even after its implementation.
Because your business experiences are constantly changing, support must also evolve. This will assist the company in modifying and updating to accommodate the changes. As with most software development projects, there will be bugs/glitches to work out and updates to make. Your team may not always be qualified to handle many of these issues, but the continued and consistent support of your outsourcing partner will be an invaluable resource.
The Power Of Software Outsourcing In A Down Economy
Although adding something new to the budget may seem counterintuitive in a volatile economy, leaders need to step back and consider the bigger picture. Being cost-efficient entails more than just reducing line items; it also entails creating more streamlined and productive teams and processes.
Working with a software development partner who has years of experience and a proven set of skills reduces the common risks associated with developing and implementing new technology.
Finding the right software development partner can assist your business in gaining a competitive advantage through digital transformation and innovation. As you have just read, you can improve efficiency, cut costs, and accelerate time to market.
We create custom software and staffing solutions that are as unique as the businesses they serve, from startups looking for end-to-end technology enablement to established mid-size and enterprise companies looking to bridge mission-critical skill gaps.
