Globalization and innovation technologies give companies lots of opportunities for resource saving and business processes optimization. IT outsourcing is one of the most popular methods. Delegating some of tasks to other companies allows both significantly cut expenditures and concentrate on development of key activity areas. What is more, outsourcing is an additional way to bring in external resources such as knowledge, experience, to involve fresh blood without taking extra responsibilities and risks.
Here you are 9 reasons why a head of a company should think over the idea of software development outsourcing.
1. Saving money. Delegating particular work to offshore countries will help to reduce operational costs and increase profits. In this way you make your constant expenses temporary and become more flexible and competitive. Hiring a team of developers and then firing them after 6 months’ contract can negatively influence HR brand of a company, and outsourcing is a way to avoid such an unpleasant thing.
2. Delegating recruitment and team building saves time and gives an opportunity to develop. When we talk about small and medium businesses software development outsourcing helps to concentrate on key activity areas and use human and financial resources for administrative tasks more efficiently. You don’t need to choose a team, motivate it, streamline scrum processes – either it has been already done by outsourcing company managers or you will get your team build from scratch. Just one small remark – it is a team you have to delegate tasks to instead of doing everything on your own.
3. Stay focused on your work without dispersing attention to minor functions. If your key service is delivery, catering, agriculture or financial business, do what you do best and pass software development to those who specialize in this industry.
4. Get qualified and relatively cheap staff cut out for particular processes and functions. In outsourcing company, a team is picked up, work is well-managed and everybody knows his/her responsibilities. Teamplay and experience of working together increase the quality of completing tasks. How much time will it take to get used to new colleagues? That’s exactly the time you gain by outsourcing IT duties to a vendor.
5. Cooperation with a world-known service provider gives you access to external resources on other markets. You make useful social contacts, bring in human capital and knowledge, and also financial resources.
6. Outsourcing some of operations makes your company more independent. Outsourcing companies take their job seriously, it’s their business, not just a profession. To stay competitive, they have to track the performance, monitor the quality of provided services. and develop the expertise of their IT specialists. Sometimes it’s hard to achieve such level of commitment among your own employees.
7. Outsourcing of particular duties decreases management workload. The less tasks company is engaged in, the less time managers need to control processes and the more time they can dedicate to development of key areas.
8. Outsourcing helps companies to prevent uncontrollable growth. It is very useful if you don’t feel like hiring lots of workers and create complex corporate structure. You can use outsourcing for business reorganization or operating cost optimization. To achieve these one can also think about IT staffing service when a turn-key team is hired in Eastern Europe or South America. As a result, you get a remote office with developers chosen specially for your project. Remote team is integrated into in-house one and in this way you will have a complete team without office expanding or increasing the number of managers.
9. Some companies use function delegation to get (better) access to foreign markets. The closer production is located to the market, the better. This kind of outsourcing is called offshoring.
Companies choose IT areas depending on their needs and financial abilities. Some of them outsource recruiting employees for IT department and hire a few developers, some find it easier to outsource building a turn-key team of programmers and set tasks for them, others outsource a whole project, no matter if it is a small app that will be developed in 2-3 month or banking software. All of them have the same aim – to increase business model flexibility and decrease operating expenditures. Taking into account the growing popularity of outsourcing it does the job. Try it!
