Software development has become a critical aspect of any business operation that involves digital activity of any sort. With 84.7% of software development projects based on enterprise applications, 53.6% of software development projects based on company automation, and 38.50% being eCommerce operations, there’s no doubt this cutting-edge technology is good for business.
However, this doesn't mean that every company should have its own in-house software development team. Outsourcing these services can often be a more strategic and cost-effective solution. Recognizing when to outsource is crucial for maintaining efficient operations and staying competitive, so this is what this article will be all about. Here are 10 signs that your business may need to start outsourcing software development services!
Understanding Outsourcing in Software Development
Outsourcing is the process of delegating certain tasks or processes to external agencies or third-party freelancers. In the context of software development, it’s all about hiring an external software development team to handle various tasks such as application development, software testing, system integration, and software support. This strategy can help streamline your operational processes by reducing costs, improving efficiency, accessing specialized skills, and leveraging advanced technology.
Now, there are different types of software outsourcing. We’ve covered this in a previous article, but the short version is that these three kinds of outsourcing software development are: onshoring (outsourcing within your company’s country), offshoring (outsourcing to a faraway country with a large time-zone difference), and nearshoring (outsourcing to nearby regions).
How to figure out which type of outsourcing will be better for your company is a whole different conversation, so let’s focus on how you can tell if your organization needs it first. Here are the 10 signs your company needs to consider outsourcing software development services!
10 Signs You Need to Start Outsourcing Software Development Services
1. Your company struggles to meet project deadlines.
Meeting deadlines is crucial in not only keeping your business operations afloat but also in maintaining a competitive edge. If you constantly find yourself falling behind schedule due to an overwhelming workload, it may be time to consider software outsourcing. An external development team can help manage the heavy workload and ensure all deliverables are completed on time.
2. A high employee turnover.
High employee turnover can disrupt your operations and lead to increased costs. If your software development team has a high turnover rate, outsourcing can provide a more flexible yet equally reliable workforce, helping you avoid the many costs and company culture disruptions associated with frequent hiring and training of in-house staff.
3. Inability to keep up with the latest cutting-edge development technology.
The IT industry is constantly evolving, and staying updated can be a challenge as a new cutting-edge development technology emerges almost every quarter. If your business struggles to keep up with the latest trends and technologies, outsourcing can provide an affordable solution to this innovation-related problem. A good software outsourcing company often has access to the latest tools and technologies, thanks to their partnerships with developers from all over the world, allowing you to leverage these advancements and ramp up on development work without significant investment.
4. Your business operations require 24/7 support.
Providing round-the-clock support can be challenging for many companies, no matter the niche or industry they operate in. If your business operations require 24/7 support, outsourcing software development can be an excellent solution. Many software outsourcing providers offer 24/7 services, thanks to their global workforce, ensuring uninterrupted business operations around the clock.
5. Lack of focus on core business activities.
If you find that software development tasks are consuming too much of your time and resources - as well as your employee’s hours - therefore diverting your focus from core business operations, it's time to consider software outsourcing. This hiring strategy will allow you to delegate those tasks to experts and focus on strategic areas of your business to ensure the well-being of your company. Software development is a time-consuming process that can distract from your core activities, so it’s best to hire an external team to avoid risks. By outsourcing these tasks, your team can focus on what they do best, allowing your business to grow and thrive.
6. Your project requires short-term or one-time help.
If your project requires specialized skills for a short period or simply to help complete one-time tasks, building an in-house team may not be worth the internal recruitment efforts. In such cases, outsourcing is a more efficient solution as it allows you to hire experts on a project basis, allowing your business more staff flexibility and saving money on development costs as well as hiring expenses in the process.
7. You lack the necessary in-house expertise.
Training an in-house team requires significant time and resources, as well as a solid internal recruitment structure. If these are lacking, this is yet another sign that outsourcing software development services could be beneficial for your company. When you outsource your coding solutions, there's no need for staff training as the outsourced development team you hire will already have the necessary skills and expertise to carry out the project.
8. A need to scale quickly and efficiently.
As positive as it is, sudden business growth hase often requires an equally quick scaling of operations that can bring a few risks if not managed properly. Hiring an outsourced development team can give extra pairs of hands to do the work needed to scale rapidly. That’s why if you need to scale up your software development capacity quickly, outsourcing can provide an easy and flexible solution. You can easily adjust the size of your outsourced team based on your current needs, providing a level of scalability that is difficult to achieve with an in-house team.
9. Your organization wants to lower development costs.
Maintaining an in-house software development team can be expensive. These salaried employees require yearly bonuses, benefits, office space, equipment, and more. On the other hand, when you outsource, you only pay for the services you need when you need them. This can significantly reduce your overall expenses as outsourcing software development services eliminates most of these overhead costs.
10. Need for continuous support and maintenance.
Software development doesn't end after the launch of a successful application, as continuous support and maintenance are crucial for its long-term success. An in-house team may not have the capacity to provide this level of support - due to lack of resources/expertise or having to focus on core business activities. As a flexible and cost-effective alternative, software outsourcing ensures that you have access to round-the-clock support for a lower price, keeping your software up-to-date and running smoothly.
Ready To Start Outsourcing Software Development Services With Blue Coding’s Nearshore Software Development
Recognizing the signs that your business may need to outsource software development services is key to maintaining efficient operations and staying competitive. Whether it's a lack of in-house expertise, high development costs, or a need for scalability, outsourcing provides a practical solution. This modern IT hiring strategy allows you to access a pool of skilled professionals, ensures timely project completion, and can significantly reduce costs. If your company is experiencing any of these issues, it might be time to consider outsourcing your software development services!
Now, at Blue Coding, as a nearshore software development company, we understand the challenges of hiring overseas software developers for the first time. Our recruitment team is familiar with the right processes and potential blockages of this journey, and can easily connect you with our network of LATAM developers to help you find the perfect fit for your project. Whether you’re interested in hiring one nearshore developer or are looking for a fully-fledged outsourced development team, we can hire them for you. Contact us today to schedule your free discovery call and learn more about outsourcing software development services!