How can software Product Company benefit from using a software outsourcer?

This is the age of technology, digitalization, and digital progress. More and more people and companies have turned their attention towards software development and hence, the market has grown to become quite dense. These Software houses or Software product companies provide services to a wide range of customers, from small and big businesses to educational institutes and even individuals. If you’ve ever had the pleasure of interacting with or reading about software development, then you’ve probably heard of a Software Outsourcer.

Before we delve into the importance of such Software Outsourcers and the benefits a company may be able to gain through them, it is first better to know a little in-depth what a software outsourcer is.

Who is a Software Outsourcer?

An outsourcer is, simply put, someone hired by a Party to do their work, instead of doing it themselves. For example, someone holding an event may hire caterers to serve their guests. The Caterers will be the outsourcer in this case. Another example may be of a plumber or an electrician, who you may call upon when you come across a problem at your house. Because you are paying them to perform the task instead of you, therefore, they are the outsourcers.

Software outsourcing, similarly, involves a company handing over the reins for a particular software development project to a third-party software developer, instead of utilizing their in-house resources. The Third-party developer is the software outsourcer. There are various reasons why a company may choose to hire a software outsourcer, which will be discussed in detail. First, it is better to understand the types of Software outsourcing and the range they cover.

Models for Software Outsourcing:

1. Onshore Software Outsourcing:

In this type of outsourcing, the customer companies hire software outsourcers located in the same country as them. This removes any language barrier that they might have, thus, allowing them to communicate more successfully.

2. Offshore Software Outsourcing:

The hiring of International Software Outsourcers by Customer companies is referred to as offshore software outsourcing. This is perhaps the most cost-effective means of outsourcing as the labor costs are generally lower and online communication also reduces extra charges spent on a shared office or such.

3. Nearshore Software Outsourcing:

Working with Software Outsourcers from neighboring countries is known as Nearshore Software Outsourcing.

Why do companies prefer Software Development Outsourcing?

According to a study done by Statista, surveying CIO worldwide about IT functions outsourced worldwide 2017, Software application development was the most commonly outsourced skill set in IT-related fields. In another study conducted again by Statista, it was revealed that the global IT Outsourcing market was worth a booming 66.52 Billion Dollars in 2019, and in 2021, the European It Outsourcing market alone is expected to reach a net worth of around 103.9 Billion Dollars. The growth rate is tremendous and has been observed to be expanding similarly all around the world.

Keeping these facts in mind, it is important to study what the reasons for this fast growth are and why exactly software development outsourcing has been trending so much. Outsourcing other skills or jobs has numerous benefits, which include lower costs, higher efficiency, faster entry into the market, and access to more resources. Viewing software outsourcing through this lens may make things a bit clearer.

Benefits of Hiring Software Outsourcers:

1. Expenditure:

The biggest benefit, perhaps, of Software outsourcing is the fact that is cost-effective and companies have to spend much less on labor costs. Hiring a third party company also enables them to cut down on their number of employees and they don’t have to pay for employee benefits such as travel fees, health insurance, training, paid leaves, etc. to the Software outsourcer. The outsourced teams are also usually paid at a competitive rate.

2. Flexibility:

The Customer companies need only hire the Software outsourcers for as long as the project is not completed. Afterward, there is no contract or legal binding that forces them to continue their working relationship with the outsourcer. As opposed to hiring permanent employees who need to be paid regardless of whether or not there is a project, this is a much better option for these companies.

Also, remote and online working has become more and more popular, especially during the pandemic. Due to this reason, companies don’t need to invest in bigger office spaces and better facilities, as developers can just do their word from their homes.

3. Faster Development:

Normally, the hired outsources are highly experienced individuals who are already well versed in the software development process. Hiring them saves the company the trouble of hiring less experienced individuals, who will first need to be trained before they start to work. Also, remote workers are more inclined towards finishing and delivering a project faster and they are also quicker to respond to any errors or revisions.

4. Access to Experts:

Finding an expert for a specific field can be quite an arduous task, especially if the field or project is complex. A successful project or software can only be possible with a team of experts who know what they are doing and also how to handle any hurdles they may face during the process. Software Outsourcing teams are usually composed of such experts and they provide their services at much lower costs.

5. Time Zones:

With Offshore Software Development Outsourcing, the biggest benefit is that the outsourcers can work around the clock and deliver way ahead of the set time due to differences in time zones.

6. Allows Focus:

Small companies, individuals, and start-ups often face the problem that they focus so much on the development process of the software they stray from their original idea or plan. Hiring software outsourcers give small companies, which do not have separate planning departments, unlike big corporations, the room to focus on what they had initially planned and not worry about the development process.

To conclude, Software Outsourcing is a very popular and cost-efficient method of getting things done on time. In recent years, its demand has only multiplied and it has been estimated that the industry will continue to grow manifolds.