Today, one of the most common trends for companies worldwide is to outsource the software developers team. This helps speed up the development process and provides various experts with different skills that may not be possible within the company and is usually relatively cost-effective.
Outsourcing is becoming increasingly popular in the IT world because of its benefits, including cost optimization and agility. Outsourcing helps eliminate the inconvenience and time-consuming traditional constraints associated with in-house software/solutions development.
Why do companies prefer to outsource software development?
Let's get one thing exact – cost efficiency is no longer the primary concern, and the urgent need for qualified professionals leads to the decision to outsource software development. This decision is also based on numerous facts, some of which are listed below:
High-quality talent search.
In 2016, about 59% of companies decided to outsource their software development sections as it was considered an excellent option to optimize costs. In 2019, it reduced the same number to 35% to be responsible for product development. This reduction of about 24% clearly shows a shift from cost optimization to high-quality outsourcing. Also, 18% of companies outsource their teams to access higher-quality talent that is not available in their local labor markets.
Aligning with the right skills
IT professionals were more confident about outsourcing in 2019 than last year. Some 34% of SMEs have already outsourced several of their respective operations teams to meet their revenue targets at the expense of the large enterprise's professionalism. A handful of companies are developing their businesses through development departments due to a lack of capital investment. Alternatively, 37% of SMEs also choose to outsource their product development and support teams.
The reorganization of operations teams
About 24% of businesspeople outsource their software development teams to improve in-house teams. The overall goal focuses on improving efficiency and speed by minimizing the number of intervening human tasks, redundant operations, and bottlenecks. Many organizational process automation solutions are gaining popularity in the business-to-customer space. These efficient processes help companies generate revenue through better customer service, thereby improving the customer experience.
Opportunity for risk-sharing and collaboration
With rapidly changing business collaboration trends, companies are now adopting new standards for sharing responsibility and risk with their service providers and partners. As a result, traditional contract protocols are being revised, and a more revenue-based contract is being developed that encourages greater participation from both parties.
New directions for outsourced software development
Both North American and Western European mid-sized companies outsource their technology jobs due to multiple challenges such as talent shortages, costly and time-consuming development processes, and increasing market competition. In today's market, China and India are the most popular countries for outsourcing IT and business processes to large companies. At the same time, SMEs tend to look for technical talent in the emerging IT outsourcing markets of Eastern Europe.
This gradual shift from cost and quality perception to selecting an outsourced technical partner has also led to the emergence of an Eastern European technology-based talent market. In this region, Ukraine, Poland, and the Czech Republic are among the fastest-growing IT outsourcing hubs, with average development costs ranging from $20 to $45 and technical qualities at experimental levels.
If you wish to outsource software developers then you can look at top software outsourcing companies in India.
