Software has become one of the major technology tools that help businesses be more efficient in their day-to-day operation. Businesses use software tools to manage sales, inventory, marketing, and lots of other core activities. Software used can either be generic or custom made.  Deciding between the two will largely depend on whether the generic software can solve the problem at hand.

If you decide to go with custom software, you will either choose to permanently hire a team of developers, or outsource another company to handle the project. Over the years, outsourcing software development has always been more beneficial, both in the short and long run. Following will discuss the benefits of outsourcing software development projects, and why it is a more effective strategy than using an in-house team.

What outsourcing means in software development

As far as software development is concerned, outsourcing refers to using an external company or team to handle a software development project instead of using an in-house team. An organization can choose to fully or partially outsource a software project based on the complexity of the project, and the size of its internal team that can handle such work.

why do companies outsource
Why most companies outsource software development projects – Deloitte.

Outsourcing software has both short- and long-term benefits, and some of them include the following:

1. More time to focus on the core goals of the business

When you choose to outsource software projects to an external company, your team will have more time to focus on their core roles. If the core business of your organization doesn’t involve the development of software on a day-to-day basis, it would make a lot of sense if you let a company that has more technical ability, and expertise handle these kinds of projects.

Once you outsource these one-off projects, your team will have enough time to strategize and execute the day-to-day tasks that are in-line with the objectives and vision of your organization. For instance, if you are running a construction company, most of your staff should be focused on how best to handle your construction clients, and not attending to issues related to software.

2. More efficiency

When you outsource your software development project to a company that knows what to do, they will most likely do it in less time and with fewer resources. The fact the company you are outsourcing does software development as their core business means they have most likely have done a couple of more projects that are related to yours. So, most of the challenges they will find along the way will be more familiar, which reduces the amount of effort and time used to overcome them.

So, if you want to have your project handled more efficiently, outsourcing is always the best decision. Your role will be to submit all your requirements to the company handling your project and following up to ensure everything is done just the way you need it to be done.

3. It is costs saving

Outsourcing will help avoid all the costs involved during the hiring process. The hiring process for developers involves costs like advertising, assessing the candidates, and training them to ensure they do what you want them to do. Besides the hiring costs, you will also have to procure all the necessary tools required for software development projects.

When you combine all these costs, you will realize it is way cheaper to outsource a software development company that already enjoys economies of scale in this field. It doesn’t make sense to hire software engineers and developers and train them to just do one project that may not last even more than six months. Outsourcing is the only decision that makes sense in this kind of scenario.

4. Outsourcing will help your organization to take advantage of external expertise.

If you choose to outsource, you will have access to external experts that have years of experience in the field of software development. This kind of experience is what you will need to work on robust software projects that come with lots of challenges to overcome. Experts will also recommend the best tools that you can use to get the best results from the software project you are building.

Experienced developers have in-depth knowledge in this field, which gives them the ability to look ahead and determine the best tools that will make your software more efficient and effective. This kind of guidance is crucial for the long-term sustainability of your project.

5. It is less risky

When you choose a software development company that knows what to do, the risk of failing to accomplish the project is lowered. Building a robust software platform is not something that anyone can do. It will require expertise and years of experience if you want this kind of work to be successful. It would be risky to give this kind of project to your internal team without the assurance that they will be able to accomplish it.

Outsourcing a company that has both software development and project management skills is the logical decision in this kind of situation. Even if it requires paying more, it is much safer to give your project to a team that you are sure will deliver than trying to save and end up with poor quality work at the end of it all. 

6. To cope up with the rapid technological advancements.

Technology tools and platforms used to build and run software are ever-advancing, and it might be hard for your in-house to cope with these rapid changes. On the other hand, a company that does software development as its core business can cope up with these advancements since that is what they do every day. Outsourcing your software development projects to this kind of company will enable your organization to take advantage of these new tools and platforms.

7. Management is easier

When you outsource your software projects to another company, your only role is to follow up on the progress, so you don’t have to be involved in the day-to-day operations of building that project. This makes the work of your management team much easier than when if you opt to have the project done by your internal team. Outsourcing also means you have a smaller team to manage, which reduces the burden of managing staff.

8. Outsourcing makes it easier to scale up your business.

When you choose to outsource your software projects, it is way easier to scale up your business since you don’t have to hire more people just to work on one project. So, your organization will be able to do more work without necessarily having to go through the hustle of the recruitment process that involves lots of costs.

When you outsource your software development work to a reliable company, results will come much faster, which is key if you are to scale up a business. For instance, if you are running a restaurant business and you want to build a mobile app where your customers can order food, it will be much easier and faster to have this app built by an outsourced company than having to hire a team to do it internally.

9. More satisfaction for your customers

Outsourcing your software development work to another company means you will have more time to focus on your customers and the products/services you sell to them. Using an in-house team to handle such projects could lead to divided attention. This affects customer satisfaction since your staff is not dedicating all their time and energy to serving them.

It even makes more sense to outsource a project if the software product being built will directly be used by the customers. A company that has done software development for many years will know how best to build a product that will enhance the experience of customers while using it.

10. Easier to diversify your business

If you intend to diversifying your business to offer more than one service/product, it will be much easier and cheaper to outsource software related projects than having to hire a team to do it internally. You won’t have to get into recruitment, hiring and training software developers. This means you have more room to get into several other lines of business without a lot of constraints. 

Tips for getting the best results when you outsource your software projects

  • Avail as much information as you can

When you outsource your software projects to an external company, it is always best to give them all the data they need to get the job done. When the developers you outsource have enough information, they will be able to deliver quality work and in less time. Before getting started, make sure you request the company you are outsourcing to give you a list of all the data they need to get started with the project.

  • Define the objectives and scope of your project

The company that you have outsourced needs to have a clear picture of what you intend to achieve. You will have to sit down with your team and draft the objectives of your project. Make clear how much you want the developer to cover within the project. The work of the developers is much easier when they know what you expect them to deliver at the end of the day.

  • Ask questions as much as you can

Before the company you have outsourced gets started with the project, it is important to ask all the questions about how they intend to do the work. Don’t let the project kick-off when you have certain things you aren’t sure about.

  • Review the project after each milestone

First of all, you have to breakdown your project into smaller milestones. Review each before the developer proceeds to the next one. It is much easier to identify issues that the developers can improve when you review it in bits.

  • Frequent communication is very crucial.

Make sure you are always in touch with the developer so that you attend to any inquiries they might be having as soon as possible. Effective communication also reduces the time the developers would spend working on your project.

  • Negotiate ownership rights before getting started

When you outsource a company, you will have to agree on who will own the software product being built. All this should appear in the contract/agreement that you make before starting on the project. If possible, use a lawyer to help you out with this.

  • Don’t forget to talk about the maintenance of the software after development.

It is advisable to use the same company that developed the software to do the maintenance, especially so for the first few months/years after it has been developed. Maintaining software that they built is cheaper and much easier. Outsourcing to a new company that wasn’t involved in the software development will increase costs and time. Details of whether the company will continue to maintain the software after development should also appear in the agreement/contract you sign.

Final thoughts

Outsourcing software has both short-term and long-term benefits that your organization needs to take advantage of. The key benefit is the fact that outsourcing gives more time to your team to focus on the core goals. Your business is not distracted by what is going on the software side. However, you will have to choose a reliable company if you are to enjoy all these benefits.

It is crucial to have effective communication with the company you have outsourced and also review the project progressively. If there are any changes you want them to implement, it is much easier and cheaper to have them done earlier. Major software changes are easier before the project becomes more complex.

Outsource with us

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