Outsourcing is the order of the day. More and more companies are opting to outsource certain areas of their business’s functions. For the uninitiated, outsourcing is simply the process of obtaining a service or goods by contract from an outside supplier. In this post, we will take a look at the benefits of software product outsourcing specifically. Read on to discover why it is a good idea for start-ups to outsource software development…
First and foremost, one of the biggest challenges faced by startups is to ensure their products reach consumers quickly. Time to market (TTM) relates to the time it takes for the product to be available for sale, once it has been conceived. This is typically a battle for startups, as they face a lot of hurdles along the way, such as restricted resources and a limited budget. These factors simply make the TTM even lengthier. Nonetheless, software outsourcing solves this issue. You are likely to benefit from a much less production time. The company you outsource this project to will have the expertise and experience to substantially reduce the time to go to market with a working product. This is even more critical if there are competitors who are also planning a similar business. Outsourcing will enable you to reap the rich dividends of being the first mover in the market. Contrast this with building all the expertise in house – you have the hassle of recruiting the right talent, training them on the technology and business, making sure they are ready to deliver results, and battling an incessant fight with the industry learning curve. You are most likely to end up losing the game even before it starts.
Apart from this, another significant challenge startups face is managing both fixed and variable resources. They have to maintain an effective balance between hiring full time resources and outsourcing a portion of the work that is variable in nature. Are you really going to spend a significant amount of time and resources on hiring and training individuals to carry out the variable tasks? It proves much more efficient to outsource a proportion of this. You will be able to take advantage of the necessary skills for the right task, rather than attempting to hire full time resources to cover any array of different requirements. The latter is a highly inefficient approach to take, especially for startups whereby resources are stretched as it is.
Another reason why companies choose to outsource software development is for the purpose of cutting project costs. This is particularly beneficial for start-ups, as most undoubtedly they have a tight budget. So, how will you be able to reap the rewards of cheaper costs? Well, if you outsource to a company in a different country, you will be able to take advantage of cheaper services and labor, without suffering a lack of quality. There are several countries that boast talented pools of programmers that too at a more affordable rate. This is highly appealing to start-ups.
Nonetheless, the monetary benefits do not end here. You will also enjoy the benefit of lower operating costs. It takes a substantial amount of investment to setup the IT infrastructure and keep it running. This is only the hardware part of IT, and then there comes the software. Most of the times you have an idea, yet you are not sure about the technology considerations and decisions you need to make to implement your idea. What platform should I use for development? Which programming language will be best suited for my application? Which database do I use to store my critical and valuable data? What analytics tools will help me make the most of the data to improve my business? These are critical questions that might make or break a business, especially when it is at its nascent stage. To create in-house expertise that will be able to answer the above questions will cost a fortune, which startups rarely can afford. The solution? Outsourcing, of course! A service provider, who will give you answers and also do everything for you; that too at a very modest price.
Apart from this, another key advantage in relation to outsourcing software development is the fact that your company will have more time to focus on your core business. There are primarily two kinds of tasks. One category is tasks that are routine, which are repetitive in nature and there are standards on how these should be done.They do not help you differentiate yourself from the competition.They do not create a unique value for your customer. The other kind of tasks defines your business. These are tasks that help you create unique value to your customer. Outsourcing allows you to concentrate on these tasks and innovate novel ways of creating a delightful experience for your customers.
In addition to this, you of course have the benefit that you will be able to take advantage of an exceptional range of skills. You can find a company that has high standard team of software developers. Moreover, you will be able to gain from the skills you lack, required to complete separate project sections. A prime example of this would be – a client requires some piece of software coded in a specific technology; however, they do not have qualified specialists in this area. Instead of hiring new personnel, which is costly and time consuming, you can outsource that task to a company that has all the skills you require. Simple and successful!
If you decide to outsource and do so offshore, one negative factor you may be worried about is the time difference. However, this is something that can actually be used to your advantage, rather than being considered a negative factor. Let’s say you are outsourcing to a company that is five hours behind. You can send across your brief or your requirements and they will be ready to work on those when they get to their desk. Having a time difference is not always doom and gloom. It can prove to be highly beneficial and much more convenient than you could imagine.
Besides the points that have already been mentioned, you should also consider the fact that you are always going to have the support you require when it comes to software development. What would happen if you trained your employees with the necessary skills and then you hit a stumbling block? You would have to pay for outside help – further delaying the process and enhancing costs. However, you do not need to be concerned about this when you outsource software development. It is up to the provider to ensure they deal with all issues. Moreover, as they have expertise in software development, chances of something going wrong are minimal. However, there are always going to be teething problems for those that have merely just been trained in the area.
When you take everything into account, it is really not difficult to see why outsourcing software development comes so highly recommended. However, this is not a decision you should rush in to. You need to choose a company with a great amount of care. For outsourcing to be successful, you need to build a relationship with the company that is built on strong communication. You also need to have a long term focus and vision. This is the only way to guarantee that there is a high success ratio and indeed a substantial return on investment (ROI).
If you do not believe you have the skills necessary to choose the best provider, this is where a value-added marketplace comes to your rescue. It provides you with the expertise of seasoned IT experts who outsource for the top Fortune 500 companies and create value based relationship with the outsourcing model.With their guidance and help in choosing Providers for your business – you are in safe hands.
So there you have it, all you need to know about the benefits of outsourcing software development. Not only will you be able to reduce your costs significantly, but you will also reap the rewards of better skills, better equipment, and less production time. This all works to guarantee that your start-up is competitive, even against the large players in your industry. Nonetheless, you will only reap all of these advantages if you choose a provider with care. Assess your options diligently before you make your decision.