How Outsourcing Software Engineering Projects Can Help Minimize Your Operational Costs

How Outsourcing Software Engineering Projects Can Help Minimize Your Operational Costs

How Outsourcing Software Engineering Projects Can Help Minimize Your Operational Costs

With the demand for groundbreaking programs and innovative technologies at an all-time high, many businesses now find themselves in need of capable, competent software engineers. As such, this pressing necessity has given rise to more companies choosing to outsource processes such as software engineering to onshore, offshore, and nearshore agencies—regardless of whether or not they already have their own existing in-house development team.

For larger businesses, outsourcing can be considered a worthwhile investment in terms of expanding teams quickly, and in a more cost-efficient way. For small businesses, outsourcing is—quite simply—the most beneficial option in terms of time, finances, and human resources.

Now, one of the things most commonly acquainted with outsourcing is the price difference. People are aware that businesses end up paying a lot less for outsourced employees than they do for in-house team members. What they don’t realize is that there are so many other ways outsourcing can help businesses cut down on costs than just presenting a lower salary option.

1. Performance/Program Quality

Anything you manufacture and distribute is a direct reflection of your company. If your product is difficult to use, has a slow response time, and lags constantly, customers will obviously search for a similar app with far more superior results. Every person that gets frustrated with your program is another person lost to a competitor.

Hiring the cheapest employees may save you a lot of money today, but it will eventually cost you more in terms of customers lost down the line. Choosing to hire top talent may mean paying twice as much than you would for the average or ordinary engineer, but the results would be so much better. Going with the first option means a high-quality product in the end, which makes the extra expense more of an investment than anything else.

Aside from keeping your clients satisfied, high-quality software engineering yields cleaner, sturdier products. This makes them easier to maintain and thus eliminates the need for complicated and costly maintenance in the future. And—as mentioned earlier—outsourcing top developers will still cost much less than hiring these competent individuals for your own in-house team.

2. Time Savings

WHow Outsourcing Software Engineering Projects Can Help Minimize Your Operational Costs1e all know that the longer it takes for a project to be completed, the more it costs. Besides the salary of your workers, you also need to take into account every opportunity you lose when things aren’t accomplished on or within the specified time.

The logic here is simple: the longer a project stays in software development, the less time the end product stays on the market. The result? Less revenue for the company.

By outsourcing software developers, the chances of projects being staying on schedule increase. Long-time software engineers who possess both industry experience and technical expertise are capable of staying on-track and in-budget regardless of the size and scale of the project.

It’s also important to note that most software engineering agencies quote per project—which means a fixed price. This ensures that the cost stays even if the project gets delayed.

3. Ease of Communication

Proper communication is essential when it comes to all operations in your business—especially software engineering. Working with everybody in your team should be a straightforward process, otherwise you end up wasting everyone’s time, money, and effort.

Related Content: How Great Communication Can Lead to Great Software Development

In the business world, time is money. And believe it or not, your communication with all involved parties can hugely impact your schedule. If communication isn’t clear, the project schedule is compromised. If you spend too much time trying to set up meetings, conducting brainstorming sessions, or explaining your ideas to your team, the project will experience critical delay.

And again; a delayed project equals lost revenue.

Free Cost Comparison Tool for Software Engineers

Despite the advancements in telecommunications technology, this part of the software engineering process is admittedly much harder for outsourced teams than it is for in-house teams because of geographical differences. If your outsourced software engineers are scattered all around the globe, working under different time zones, it can be difficult to achieve seamless communication—especially if you opt for offshore outsourcing.

Hence, when outsourcing employees, here are some factors to take into consideration:

  • Language
  • Geographic location
  • Cultural dissimilarities
  • Difference in IP laws

For these reasons, more companies are now choosing to outsource their development needs to nearshore employees.

Nearshoring is the process of outsourcing business operations—particularly information technology processes—to companies in a nearby country. For example, an American company might prefer outsourcing to Colombian employees instead of Chinese or Indian agencies due to similar time zones and cultural nuances. Hiring team members who are aligned with your plans and goals make the entire process of working together much easier.

Just for reference, the top IT outsourcing countries in the world include Bulgaria, Brazil, Costa Rica, Czech Republic, Egypt, Hungary, Malaysia, Mexico, Portugal, and Vietnam.

At the end of the day, finding an outsourcing vendor always requires an in-depth cost analysis. Which company is the most cost-efficient in terms of helping you achieve your goals? Yes, bargain rates are very appealing but remember: looks can be deceiving. Never put yourself in the trap of hiring cheap today and then paying more in the future.

How Outsourcing from Companies like Bydrec Can Cut Costs by Half



Bydrec is known in the industry because of its long-existing partnership with talented and highly-skilled nearshore developers. All of those employees possess substantial industry experience, as well as a wide range of technical skills that can help you take your business to new heights.

The best thing about these developers is that they are on the same level as US-based engineers. You are assured that they are competent and capable of completing any project on time. Despite the similarity in skill level, nearshore developers only charge half the usual rate of US developers without compromising quality.

This is not an issue for them since the standard of living in their country is much lower compared to the US. As a result, Bydrec can afford to provide all the services you need to grow your company at a much lower cost. You don’t need to worry about the outcome because they are not compelled to cut corners.

Read How Bydrec Can Save You 50% on Software Developer New Hires

save 50 percent on your dedicated software development team with Bydrec

Topics: software development outsourcing


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