Should Enterprises Outsource Software Development in 2022?

What does Outsourcing Software Development mean?

Software development outsourcing refers to giving your development project to any external software development company.

While services and support have a limited scope of engagement, outsourcing is professional support for the continuous operation of an individual and infrastructure on a long-term contract.

Custom software development companies provide the option of onshore, offshore, or nearshore outsourcing software development. The type of service selection depends upon who you want to give your software project. 

• Nearshore: refers to outsourcing to the enterprise software development company in the same geographical region as your company.
• Onshore: refers to outsourcing development to a company in the same country as your company.
• Offshore: refers to outsourcing development to a company in another country.

Worldwide the market spending on I.T. outsourcing services is expected to reach $519.3 billion by 2023. The statistics reflect the growth trajectory of the outsource custom app development services.

Due to the significantly low cost and shortage of talent in the local market, businesses outsource overseas to remain competitive and strengthen their market position. However, a correctly done outsourcing can help organizations unlock the actual value of an outsourced software development engagement.

Also, while companies constantly seek strategies to reduce their sensitivity to global economic volatility while remaining adaptable, agile, and innovative, the trends seem to flutter in favor of software outsourcing services in 2022 and beyond.

With this blog, we attempt to help you decide whether you should outsource your software development project or not.

Why Should You Outsource Your Software Development Service? 

• Agility and Quality:  

1. 1. • Agile software development strategy ensures greater collaboration between businesses and cross-functional I.T. development teams. It results in more incredible speed, efficiency, scalability, and flexibility.    
      • An Agile team significantly focuses on detecting and fixing bugs in iterations to ensure that the final product stands true to the expectation of the clients.  

• Faster Time-to-market: 

1. 1. • With the level of competition in the market, timely delivery of business software solutions is necessary to stay ahead of the rivals. Parallelly running multiple projects with your current development could strain their existing bandwidth. Moreover, hiring dedicated development teams can be tedious if you do not have an in-house development team.    
      • In such scenarios outsourcing some or all of your software development projects to a credible enterprise software development company can have a massive positive impact on the speed and quality of the project delivery. 

•  Future-ready Approach:  

1. 1. • The technology change rate demands that any current development project should take the future in its ambit. A future-proof software application can help the enterprise to keep pace with the rapid technology shifts.     
      • An onshore or offshore custom software development company can provide technical expertise to design applications with a futuristic approach. 

• Ongoing Support: 

1. 1. • A software outsourcing company can provide ongoing support to its clients. Software deployment is not the end of the story. All software undergoes bugs and downtime and requires immediate attention.    
      • A professional outsourcing company also regularly manages, maintains and updates the software.

•  Cost Saving: 

1. • Software developers working in countries like India work at salaries less than the developers’ operations in countries like the United States and the U.K. For instance, the skills that may cost around $100 in the U.S. may be available for $40 in India.

Offshore custom software development company can help you save hundreds and thousands of dollars. Also, by hiring a software outsourcing company, you can save on rent, product support, employee training, and regular employee benefits.

Why Should You Not Choose Software Outsource Development Service?

• Reduction in Morale: 

1. • Outsourcing is a simple activity for increasing the team’s headcount. However, it has a possibility of causing dissatisfaction amongst the existing employees as they may see it as a threat to their position. 
   • This can have a negative impact on the team’s productivity and outcome. Therefore, clear communication from leadership and management is essential to highlight the specific objectives behind outsourcing.

• Limited Control Over Development Team: 

1. • Hiring custom software development services already keeps the client one step away from the steering wheel. 
   • Further on, if the hiring company uses freelancers and gig workers, the hiring company takes you two steps away from the control wheel.

• Code Quality:  

1. • Many small-scale outsourcing companies use the strategy of “bait and switch.” At first, many outsourcing companies pitch an “A-team” of developers and slowly switch the project to low-level talent ill-equipped to work with client developers. 
   • This impacts the client’s project quality and pace of work.

• Communication: 

1. • Outsourcing can become a problem if there is a cultural mismatch with the partner company. Also, if the developers at the partner firm have poor language skills, it can lead to a severe communication barrier. 
   • In cases of offshore outsourcing, the time zone difference can lead to problems in proper communication.

• Delivery Failure: 

1. • Outsourcing your software development projects to external teams essentially puts the fate of your financial-wellbeing into the hands of another company. 
   • You must carefully evaluate the chance of them failing to deliver the expected outcome in the given time and cost. Will you get a refund in that case?

Carefully read the contract and only then agree to the terms and conditions. If you are unsure, be sure to ask these questions before you start working together.

Wrapping: To Select or Not to Select Outsourcing is the Question

Companies contemplating outsourcing should carefully weigh these pros and cons before making the final decision. They must consider the needs, budget, and time frame to complete a project. Investing in future-ready software solutions is a good investment. However, the costs of hiring in-house or outsourcing will ultimately result in significant returns in efficiency, customer loyalty, and speed.

After careful analysis, if you think the pros outweigh the cons, move ahead with finding an offshore software development company to get started. However, on the other hand, if the cons of outsourcing heavily outweigh the pros, you should probably stay on the safer side of the road and assign your development project to an in-house development team.