Is Outsourcing a Good Decision for Your Business? Here are 6 key considerations to decide

illustration for outsourcing

In the field of software development, software outsourcing has become quite a natural decision. From startups to large companies, they turn to software development companies to outsource their technology needs, primarily, for the same reason - they lack the in-house expertise or time to develop digital products efficiently and profitably.

However, not because it is a natural decision, is easy to make or appropriate for every business, that is why you should consider not making the decision thinking only about the cost, but also about the risks, the efficiency and the delivery expectations of the product. Remember, your main focus should be on innovation and operational improvement so that you don't use outsourcing to solve internal problems.

Delving into these aspects, we will share 6 positive aspects that outsourcing has brought to many organizations and that they can definitely bring to yours:

Team build based on workload

Work levels tend to fluctuate, sometimes you need to expand or reduce the size of your development team based on the number or complexity of ongoing projects. Well, you can't do that with traditional recruiting and hiring processes can you?, since managing internal staff is not that simple. When you outsource, you reduce the overhead associated with hiring additional in-house IT Staff Augmentation, reducing the time and money invested and even the risks, as you are not directly responsible for setting up and managing the team. 

Access to latest technology & seasoned engineers

When you outsource, the struggle related to team training, niche needs, specific technologies, and experience levels ... is over, as you gain direct access to far more resources than you count in-house. Additionally, companies that provide outsourced software development generally have stronger recruiting capabilities as it is an essential part of their business, meaning they often have, or can find for you, the exact skill set you need.

Cost savings

Nearshore development can often save an organization a significant amount of money; we are talking about a cost reduction of up to 50-60%. Not only because the average salaries for development roles are much more competitive than in the local market, but because the expenses of staff hiring & retention, equipment purchase and office maintenance, are minimum or almost zero.

Better focus on your core Business

Freeing up management time is often one of the reasons companies choose to outsource software development. By handing over this responsibility to an outsourced expert, you can free up your human resource by delegating all associated operations that are outside of their competence. In this way, they can accomplish the tasks that really matter and are part of their goals, allowing you to focus on the key processes and business strategies that will help your company remain competitive, innovate, and prosper.

Avoid Legal, Security & Licensing risks

By selecting a reliable company, you can reduce the risks associated with legal job requirements, quality and safety assurance compliance, and all the certifications and licenses necessary to develop your product. Putting all of this together can take time and money and, in the end, it will remain your responsibility, so hiring an outsourced team will free you from that and help you to have more confidence in your developments.

Increase productivity and development times

Having a large number of to-dos can have a negative impact on your team's productivity levels. This is where outsourcing acquires a key role, since it supports its full-time staff in those activities that may take longer to develop than if they are carried out by a team with the appropriate knowledge. Also, if you need your software to be developed on certain dates, outsourcing development companies are always willing to negotiate timelines and even scale the team or increase the work hours needed to ensure project delivery.

Conclusion

Hiring a software development company like Azumo is becoming more common every day as it offers a large number of benefits for all types of businesses.

Outsourcing helps you focus on your core business and align your company's workflow, ensuring that your employees perform useful tasks for the growth of your business and delegate to those outside their expertise and work goals.

Additionally, an outsourced development team enables your custom applications to be built to the highest standards, without having to deal with all associated legal, contractual and monetary implications. Doesn’t sound great?