Outsourcing Software Development – Top 5 Reasons To Outsource Software Development

With the rapid developments in technology and businesses looking for alternatives to cut costs and increase productivity, outsourcing software development has definitely become one of the main strategic options that companies are looking to implement.

Seeing all these outsourcing trends, there are several commonalities in which corporations based their decisions to outsource their software development projects.

These five top reasons are listed below.

Cost reduction

One of the main reasons why companies are opting to outsource is due to the reduction of costs. These costs may be in terms of reducing labor, training and certification costs, office space rental fees, utilities, and other company expenditures.

Salaries of IT professionals, for one, are definitely lower in most of the outsourcing destinations when compared to their Western counterparts.

Increase in productivity

Outsourcing has made it possible to remove the limit of specific operating hours. Your company can afford to have an ongoing 24/7 operation. Your offshore counterparts can take over while your onshore counterparts sleep and vise versa.

Increased in productivity with barely increasing operating costs is definitely an attractive factor for a lot of organizations. Note, that 24/7 software development operation is very hard to set up and does not work that efficiently.

Diverse and abundant resource pool

Instead of limiting your company to a talent pool within your geographical location, you can now source for quality talent all over the globe.

Your company has a better chance of finding an offshore vendor that employs a team of top talented individuals in the IT industry, then finding them yourselves one by one. With this set up, you are ensured that you have the right and top people working on your software development project.

Quality of resources

Not only does your organization have access to diverse and abundant resource people, you also have access to quality and highly skilled talents. Majority of the top outsourcing destinations have a high rate of graduating students with a degree in software engineering and computer science.

This is because these countries such as India, Eastern European countries and China value education at a much higher degree compared to their Western counterparts. Consequently, these countries have a quite large number of resource people with high quality IT skill set.

Built in Processes

Constructing the right software development processes could be costly and time-consuming, especially when these are needed requirements that are not yet available in your organization.

Thus, it is often easier to build these processes with an outsourcing software development team who already has those processes in place.