A Complete Guide to Software Development Outsourcing

Aug 25,2021 by Neha Dubey
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Now that all the major industries have started embracing digitisation, an unprecedented demand for software development has emerged. But along with it comes the question of how to do it right and gain the competitive edge. Since not all industries are well-funded to have an in-house software development team, many SMBs, small enterprises, and established organizations are opting for outsourced software development services. Moreover, even for those who can, establishing and maintaining an in-house team is a task of its own.

As per the study performed by Statista on the most outsourced IT functions, software development is the most outsourced IT function. Around 64% of respondents have outsourced software application development services. Looking at such strong statistics, it is expected that the demand for outsourcing software development services will be on the rise as more businesses are preferring to digitize and are figuring out ways to optimize their business processes.

But before you decide to go for Software development outsourcing, it is vital to have a complete understanding of it and the benefits it can offer to your business. Here we are providing a complete guide to software development outsourcing.

What is Software Development Outsourcing?

In simplest terms, software development outsourcing refers to delegating your software development processes to a third-party service provider who is skilled and qualified to do the task for you. To get effective results, it is important to analyze business functions and pick the best business processes to outsource. Moreover, delegating allows you to handle the tasks related to your core competencies efficiently. It will also help businesses keep their strategies and progress on track.

In the case of software development outsourcing, the services get delivered in the remote operation models that enable customers companies to join hands with the best IT professionals who will dedicatedly work on their projects.

There are three ways your company can outsource software development outsourcing services. These are:

  • Onshore Software Outsourcing

Onshore outsourcing refers to both the customer company and the outsourced software development team being in the same country. The advantage of this type of outsourcing is that there will be no communication or language barriers between the teams, making the communication easier, offering effective results. However, this method might lead to customers paying a little higher price for development.

  • Offshore Software Outsourcing

It is a practice where a company collaborates with an external organization and assigns that organization some of its business functions. The product or service outsourced will be handled by the service provider in the destination country. It is the most cost-effective option as you can hire from the country where labor cost is low but skilled professionals are available. This form of outsourcing allows effective communication through online channels like VoIP phones, Zoom conferences, Emails, etc.

  •  Nearshore Software Outsourcing

Nearshore outsourcing refers to the practice of obtaining work or services from neighboring countries rather than an organization’s own country. Some of the most commonly outsourced tasks are technical support, software development, and call center tasks. It tends to work best if some members of the team are located at the provider’s site, and others are located at the client’s headquarters.

What are the benefits of Software Development Outsourcing Services?

Outsourcing your software development services to experts gives you the benefit of focusing on growth while improving efficiency and lowering risk. Software development involves a wide range of services, including building applications, integrating software, and analyzing data.

Many businesses cannot afford to hire an in-house development team, and many IT departments are overloaded, so hiring a third party can make sense.

If you are still thinking about how outsourcing software development services can help your business grow, here we are listing some benefits of outsourcing web Development Company:

  • Better access to skilled professionals

Companies often outsource their software development process because they do not have the skills or resources they need in-house. Outsourcing offers access to local and global experts like web developers, IOS developers, designers, and data scientists who may not be available in-house.

  • To gain flexibility

For short-term projects, hiring new employees is ineffective as it comes with the cost related to maintaining the additional employee. Outsourcing gives you flexibility as you can always hire employees as per the requirement. As the requirement comes, outsource for the particular project and eliminate the related costs.

  • Quick turnaround time

In complete product development cycles, it takes a lot of time to efficiently develop an app. It is dependent on the size and complexity of the project, as well as the business case. Native or cross-platform hybrid applications, however, can be developed fast. Using a specialist firm to build enterprise-grade applications can substantially cut development time, which would otherwise take years with in-house teams.

  • Future-ready Approach

Several emerging technologies, such as the Internet of Things (IoT), artificial intelligence/machine learning, 5G connectivity, and blockchain are accelerating change within organizations that have the ambition and skills to adopt them.

An experienced outsourcer can provide the technical expertise necessary to develop applications with a futuristic approach. Outsourcing will also help in meeting unique business needs, such as developing software using the latest technology.

  • Allows Cost-Saving

A software development outsourcing company helps you manage your development costs more effectively. Not only will it eliminate the cost of IT recruitment, but outsourcing software development services is also cheaper than hiring people permanently.

  • Delivering Better Customer Experience

Outsourcing companies can assist you in researching and identifying your target audience personas. Learning more about your audience helps you to build the software that your clients want. Your app or website may fail to succeed if you do not know the needs and expectations of your customers.

Before you hire any web development company, wrap up, make sure you have the right strategy to make the most out of the services. Firstly, you must know what processes or functions you want to outsource. It will give you clarity of what skills you are looking for in an outsourcing company. Secondly, be sure to check the portfolio and experiences of the company you are hiring.

So if you have not thought of outsourcing a web development company yet, think again and look for a reliable and trusted company to hire. You can also outsource from Cyfuture– one of the best software development companies in India. With Cyfuture’s multidisciplinary team and digital innovations, you will surely get the most effective results and software solutions that will surpass your expectations. So think no more and join hands with Cyfuture today and contact our experts at [email protected]

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