Mehul Kumar

3 years ago · 2 min. reading time · ~10 ·

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9 Organizational Benefits of Software Development Outsourcing

9 Organizational Benefits of Software Development Outsourcing



What comes to mind on hearing Software Development Outsourcing? A team independent of the organization — designing and developing software based on their requirements. As per a report launched by Statista, the global IT outsourcing revenue for the year 2018 was $62 billion. But the elephant in the room is — why more and more organizations are opting for the outsourcing route? Isn’t it a risky venture? What about confidentiality? What if the project gets delayed?

To provide the answer to all the questions popping up in your mind, we’ve curated this blog. Today we’ll share a list of nine benefits, which are also the reasons why huge organizations opt for software development outsourcing.

  • Business Expansion and Growth

Constant innovation in products and/or services is the key driver for success. If organizations stop innovating, then their products/services will become outdated, and they’ll lose out to the competition.

Outsourcing the tasks not directly aligned with the businesses’ goals, can provide the mind space for business development. It will provide the owners with much needed time to focus and make decisions regarding further growth and expansion.

  • Access to Global Talent and Skills

One of the prime benefits of software development outsourcing to the organizations is getting access to the global talent pool. Organizations can’t have an in-house IT team equipped with every possible skill set. And the demand for required skills changes with every project/assignment.

By outsourcing the projects, organizations can get the apt workforce employed to develop the software. Thereby saving both time and cost required in setting-up the required team within the organization.

  • Saves Time and Money

As discussed above, outsourcing will not only get the job done but also generate economies of scale by saving time and cost. Save time by eliminating the need to run an entire process of recruiting, and save cost by removing all the hiring and training expenses.

  • Flexible Working

Outsourcing helps the organization expand and reduce the workforce as per their needs, which is not possible in the traditional form of recruiting. The numbers of IT outsourcing teams can be directly increased/decreased based on the project requirements.

Also, the teams are experts in their field and time spent on recruiting, hiring, training, gets abolished.

  • Risk Management/Mitigation

No organization can eliminate the risk. Some degree of failure always exists whether the project is outsourced or not. But with proper planning and research while choosing an ideal IT outsourcing company, the organization can mitigate risks to a greater extent. For example, the criteria for evaluation can be based upon project management system or past client satisfaction, etc.

  • Less Time Consumption on Maintenance and Support

All the top software development outsourcing companies offer post-delivery maintenance and support services. It will mean that your in-house IT team will have to spend less or almost nil time in fixing bugs/issues. This way, they won’t get over-burdened with work and only focus on handling the day-to-day operations.

  • Smaller Team Benefits

When organizations start outsourcing major projects to reliable companies, it becomes practical for them to downsize the number of employees. Smaller teams are easier to manage, and at the same time, an organization saves money in the form of salary.

  • Guaranteed Results

Company’s offering outsourcing services are pioneers in their field, hence the chances of project failure/delays are minimal. And when the requisite needs are fulfilled, the organizations can deliver their commitments, which aid in achieving the business goals.

  • Enhanced Security

Security breach is one of the major challenges faced by organizations throughout the world. And the organizations whose in-house IT team is not strong on skills, tend to have software prone to a higher risk of security breaches.

However, this drawback can be easily overcome by hiring experts in software development outsourcing. The professionals, via their strong knowledge and skills, provide better coverage against IT security breaches.

What are the criteria for choosing an ideal software outsourcing partner?

The criteria are subjective because it depends entirely upon an organization’s requirements. Some of the highly sought-after outsourcing companies offer.

  • The agile method of software development and follow the rules of business first.
  • An in-house, full-stack team of developers, QAs, testers, business analysts, and more.
  • Round the clock support and maintenance services.
  • Understanding the client’s business environment before offering solutions.

However, the list is not exhaustive but only throws light on the common ones. A client-oriented work ethic is what makes a software outsourcing company a perfect match.

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