The global software outsourcing market is expanding at a rapid pace, and experts predict a significant rise in its volume in the upcoming time. According to Statistics Market Research Consulting, IT outsourcing accounted for $314.92 billion in 2015 and is expected to reach $481.37 billion by 2022, growing at a compound annual growth rate (CAGR) of 6.2%.
Some of the major factors driving the software outsourcing market are improved efficiency, access to exceptional capabilities, time and cost reduction. Cost Efficiency being one of the major reasons here, is definitely not the only one you should consider while looking for software development partners. The nature of software development outsourcing market which is, as we talk, becoming more collaborative, competitive and colossal.
Numerous major companies are using offshore suppliers not just for maintenance and reengineering, but also to develop sophisticated new applications and web enablement. The larger reason is the inadequacy of IT talent in some of the earth’s largest economies.
Here in this post, we will talk about the major reasons why you should outsource and why cost is not the only reason for doing so.
Software Development, if not managed cautiously, can take ages to complete. It is a process that requires extra attention at every stage. It hardly matter how excellent are your internal developers, the time and effort needed for development does not reduce.
Getting new product to perform in the market is not an easy task for the sales and marketing teams. This pressure is also faced by the development teams, preventing them from developing the best products. The circle doesn’t stop spinning unless an external forces is applied.
The best way to champion the process is by getting in extra pair of skilled hands to work for you. And fortunately, the current shape of IT world looks after this need. There are many software development service providers ready to collaborate with your company and deliver even before stipulated time and beyond expectations.
Focus on Core Expertise
Every institution is built on a set of ideas, their competencies that got them to a level in the market. But it happens way to often that companies abandon their core competencies. It can be anything, cutting-edge technology, customer engagement, impeccable set of services, there’s ought to be something special about every company. For Damco Solutions, it’s our extensive experience of over 2 decades in successfully delivering outsourced projects.
If coding and programming is not your sore comptency, choosing to do it in-house can quickly interpret to wasting enough time and money that could have been better spent elsewhere. This is the prime reason why software development outsourcing proves highly resourceful for small to mid-sized companies, it contributes largely to their success.
Don’t hold back for the fact that you have highly invested in your technical team, it will surely pay you off, but combining it with offshore experts will yield, faster and better. With more time on their disposal, your engineers will be able to focus on your core competencies, enabling your company to grow and gain in value.
Bring in Domain Knowledge
As important as it is to maintain existing products and services, it is vital to keep your development pipeline stacked. Sooner than later, this will drive companies to enter new markets in order to leverage their core competencies for business growth and globalization. However, considerable planning and resources have to be invested before jumping into deep waters and attempting to satisfy a completely new set of customer expectations.
That’s where outsourcing software to a company within your target niche can come in very handy. In addition to coders, good software development contractors frequently employ in-house niche experts to help them understand the market from a user’s perspective. Their market-specific expertise will eliminate your otherwise inevitable investment in research and results in software tailored to its end-users.
Meet Customer Expectations
Merely outsourcing your software development doesn’t guarantee Quality. The truth is, there are as many IT service providers in the world as there could possibly be, and not all deliver results, many don’t deliver at all. The quality of your software will depend solely on the provider you hire and can benefit you immensely if chosen wisely.
Adhering to highest international standards for quality is a virtue of good offshore partner, and they will go extra mile to meet end users’ requirements and not simply deliver what is asked. They carry out market research, on the front-end and back-end requirements and propose the best possible solutions for your business, sometimes even what you have not thought of is on the cards.
A lot of people still believe that outsourcing is primarily about minimizing cost by taking it to the providers in the third world countries. Though outsourcing too comes with its own price tags, the most obvious and visible benefit relates to the cost savings that outsourcing brings about.
Now some might feel that low-cost mean low-quality, but that’s not the case. You can get your job done at a lower cost and at better quality as well. The cost reduction is due to the major difference in wages and pay scales between western countries and Asian countries such as India and China. Outsourcing you work to India could save you around 60% of what you end up paying elsewhere. Plus, the quality of the services provided is high thereby ensuring that low-cost does not mean low-quality.
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