Deloitte’s Global Outsourcing Survey shows that outsourcing penetrated software development services and only a few companies haven’t yet taken advantage of the potential benefits of offshore software outsourcing. The survey also indicates that companies that have never delegated their IT tasks to contractors plan to contact the latter in the future. In this article, you will learn why there is a strong tendency to providing outsourcing services, how traditional and disruptive outsourcing differ, and how you can benefit from leveraging the services of remote developers.
10 Reasons to Choose IT Outsourcing
Why might you need using the services of an offshore development team? Below are 10 reasons why a business might need to outsource IT functions or projects to other countries.
- Reason 1 – High expenditures and costs that are not properly controlled by in-house personnel.
- Reason 2 – Indefinite or complicated business focus.
- Reason 3 – Lack of in-house IT staff.
- Reason 4 – High project risks.
- Reason 5 – Lack of internal resources.
- Reason 6 – Time-consuming operations.
- Reason 7 – The need to enter new markets.
- Reason 8 – The need to reinvent business processes.
- Reason 9 – The need to get specific skills/expertise.
- Reason 10 – The desire to implement an innovative approach to software development or business management operations (BPO).
As you can see, the reasons to entrust remote developers to undertake your project are well understood. You might need outsourcing if you are unsure where to move or grow your business further. You might need it if you don’t have enough skills or expertise within your company. Or you wish to reshape your approach to software development by leveraging best practices of a more professional or successful team. There are many other reasons why you may need or want to cooperate with technology partners from other parts of the world. Below is an overview of the current state of global outsourcing.
Traditional vs Disruptive Outsourcing
Improving performance and reducing expenditures were the main objectives of outsourcing over the past few years. However, the situation changed. Today, companies are using the skills and expertise of remote developers to gain other objectives – automation and digital transformation.
Companies understand that innovation can change the way they run their business. Acquiring resources in the global outsourcing market is usually faster than leveraging in-house capabilities. Besides, expert teams provide in-depth business analysis services and can offer you higher scalability. Automation and cloud-based technology facilitate higher performance, faster scalability, cooperation with new markets, etc.
In the end, reducing expenditures fall by the wayside. Companies search for outsourcing mainly because they need some specific skills and expertise in a particular domain or industry. Getting a competitive advantage through innovative software solutions has become a priority over cutting operational costs.
Five Key Advantages of Outsourcing Software Development in 2019-2020
Over the past few years, the primary advantages of outsourcing IT services have been revised. What mattered earlier had now become minor. Let’s figure out what are the most important benefits you can get from offshore development.
Benefit 1 – Competitive advantage through innovative solutions like artificial intelligence, blockchain, Big Data, predictive analytics, etc. With advanced technology in place, your company can become a leading player in the market. Creating something different can help you stand out from your competitor, and offer your customers more user-friendly products.
Benefit 2 – Automation of operational processes. By implementing AI-enabled applications with the help of top outsourcing specialists you can replace manual and repetitive tasks with digital labor which will definitely result in reducing costs (the primary advantage of outsourcing that was observed over the past years).
Benefit 3 – Secure data migration. Cloud-enabled technologies provide instant access to valuable data from anywhere. The capability to securely migrate data to the cloud will preserve you from signing long-term contracts and extensive initial planning. It will help you be flexible, develop product offering faster, and develop business in the new markets.
Benefit 4 – Business systems optimization. Even if your systems function well, consider outsourcing. You could be mistaken thinking that your software runs perfectly. A thorough audit of the existing business logic will help you detect your strengths and weaknesses. Outsourcing providers are experts in exploring and identifying the strong and weak sides of any applications as they meet the tech challenges every day. By getting professional recommendations and optimizing the company’s systems, you’ll be able to streamline the entire workflow across the organization.
Benefit 5 – Talent Acquisition. Recruiting, hiring, and onboarding is rather a time-consuming process that requires many efforts. Outsourcing specific skills and expertise will help you avoid lengthy searches of the wanted specialists to work on site. Acquiring tech geeks offshore means you will have instant access to the talent pool at any time. Using the services of offshore teams can extremely cut costs on salaries and administrative expenditures.
As you can see, the top benefits of outsourcing in 2019-2020 are quite different from those we observed a few years ago. With the evolution of new technology, outsourcing breaks the new ground. Companies are trying to find new value in using external resources. Apart from the lower rates offered by outsourcing, business starts appreciating the importance of taking a competitive advantage.