Why should businesses outsource software development when they can do it in house?
"Why do businesses decide to outsource their software development projects when they can do it in-house?"
Such a question is very often asked by many business executives before embarking on their software development projects. It’s a tough decision to give up control (to a certain degree) when outsourcing your development project.
At times, it could feel like too much of a risk, especially if the project is to develop an application that is critical to your business success. It may feel safer to hire an in-house team of software developers to build the application instead?
Having said that, in this article, let’s examine a number of factors in regards to software outsourcing to have an answer to the above question.
Hiring local vs. offshore software development outsourcing
For every business, hiring the right talents is essential to success. However, it’s important to know when to hire and when to outsource.
Outsourcing allows organizations to delegate tasks that are not of their competency, and focus on their core activities to improve overall business efficiency and boost productivity. For various roles that are important to daily operations, it makes sense to fill those roles with full-time positions.
Yet, for the jobs that require specialized expertise and only last for a certain period of time, it would make more sense to outsource as the cost of hiring and training full-time may outweigh outsourcing.
For the most part, if your business is not in the IT industry, then, most of the time, it’s better to outsource your development project to an external offshore software vendor than to do it in-house.
This is because it all comes down to two factors: expertise and development cost.
“In recent years, Vietnam has emerged as a leading offshore software development outsourcing destination where many western businesses outsource their development project to. TP&P Technology is proud to be among the top Vietnam software development companies trusted by clients across the global market.”
IT talents are hard to find — and even harder to pay for
When your business decides to develop an application that plays an important part of the daily operation - whether it’s a CRM customization, developing a mobile application, or building a machine learning chatbot – you’d likely to want the development to be done by the best, only for the best.
Unfortunately, due to the shortage of skilled IT professionals especially when it comes to advanced technologies such as Blockchain Developers, AI Engineers, Data Scientists, etc. - it could be very challenging to hire the “best developers” in the local market.
And it also costs, even more, to pay for “the best” candidates, which could exceed your project budget. As we have now entered the industry 4.0, in the US alone, the demand for software engineers is becoming higher than ever, salary and benefits expectations also rise up as a result.
Hence, businesses that are not in the software industry may find themselves at a disadvantage when it comes to hiring and attracting skilled IT developers.
Furthermore, when it comes to in-house development, the high salary cost is not the only cost item to consider. There’s also the cost of recruitment, hardware and software licenses, as well as onboarding and training.
Ultimately, if your company is not in the software development industry, it would be nearly impossible to compete with other software companies and competitors.
Outsourcing provides Small-Medium Businesses and Start-ups an advantage
By outsourcing your development project to offshore software companies, you can have quick access to a large pool of IT talents as well as the advanced technologies required of the project.
Moreover, Software Company already did the recruitment and hiring, and they come with a team of qualified and experienced software engineers who will help develop the application meeting your business requirements.
Besides, generally speaking, a software development project would require a multi-disciplinary team that consists of various IT professionals, including designer, front-end developer, software architects, project manager, etc.
Hiring a qualified team would require a lot of time and resources, let alone hiring a qualified team with relevant industry knowledge needed for your project. Thus, outsourcing to offshore software companies will enable your businesses to quickly have access to a qualified team of developers that are already experienced working on similar projects.
Of course, you are still expected to conduct due diligence in order to select the qualified vendor that is right for your software development project.
The important things to do are to verify the vendor’s credibility by studying the past projects, portfolio, and customer review, as well as conducting on-site visit for a thorough vetting process. Choosing the right development partner is worth the time and effort put into doing so.
In conclusion, when it comes to software development project, outsourcing to an offshore software company may provide your businesses with many benefits - but most importantly you’ll get your application developed meeting quality as expected while the project still stays within budget.
