Top 7 Reasons Why SME's Outsource Software Development

Top 7 Reasons Why SMEs Outsource Software DevelopmentMost entrepreneurs enter their chosen niche with the will to do everything on their own. They are determined to directly participate in almost all aspects of their business, from hiring employees to deploying certain programs. That’s why for these individuals, handing out crucial tasks to other people (e.g. software development outsourcing) can be quite scary.

But if you think about it, an extra hand from an expert isn't really all that bad. Do you have enough time and capital to come up with a product and market it afterward? The truth is, before you could even arrive at a final product, you still need to assemble the right workforce, keep quotations, and do a myriad of other small tasks.

To accomplish all this, owners of small to medium-sized enterprises (SMEs) have two options: either have your current employees do more things than they can handle or hire experts in software development outsourcing.

While neither of the two methods is easy, outsourcing your software development to a third-party organization is often the smarter choice.

Here are the top 7 reasons why software development outsourcing is a good idea for SMEs.

1. Reduced Development Costs

In the United States, software development services can be quite expensive for startups and middle-tier businesses. Outsourcing offers a simple solution to this problem by reducing operating costs in the development process. In fact, software development outsourcing enables you to secure over 80% of your success.

With IT outsourcing, organizations can take advantage of reduced expenses. If you’re running a small enterprise, you might not have the same resources that major corporations have. Outsourcing provides you access to those resources - like having your own software development department - without the hefty price tag that often comes with them.

When you opt for outsourcing, you save money not only on development expenses but also on employee benefits, overhead, office space, payroll, and hiring costs. You pay exactly for services that you want and need–and only when you need those services done.

2. Greater Efficiency

Before you can get a good place in the market, your business needs to be reliable and efficient in all your operations. Hiring an outsourced team for a software development project gives you peace of mind knowing you’ll always end up with a high-quality product in the shortest amount of time.

Outsourcing partners also help keep you in the software development life cycle by ensuring a detailed reporting and evaluation process. If you are not satisfied with how a product turns out, the software development team can make necessary changes without the extra cost.

3. Round-the-Clock Maintenance and Support

Long-term commitment, maintenance, and support are important factors when sustaining development. IT experts can help you solve all sorts of problems in the development process, from the simplest to the most complex. Software development outsourcing gives you the assurance that you will have a single point of contact for your in-house team, who will be able to work on your support, maintenance, and development 24/7.

Free Cost Comparison Tool for Software Engineers

4. Time Savings

Top 7 Reasons Why SMEs Outsource Software Development1No one can solve your tech issues faster than an experienced and skilled team of professional developers. However, hiring in-house IT professionals can be costly for SMEs. Even if you had the financial capacity, you will likely spend a lot of time recruiting and training new employees–valuable hours that could have been spent on more critical business tasks.

By outsourcing software development, you get immediate access to a team of dedicated professionals who are ready to start working on your project ASAP. There are no additional hoops for you to jump through, so you save time and other resources.

5. Better Outcomes

Even if you succeed at hiring and assembling your own development team in-house, it would take some time for your team to get acquainted with the project and start the ball rolling. Your team would have to make a plan, get to know each other, and then come up with ways to effectively collaborate before the development process begins. This can be a serious impediment to getting your product up and running.

Software development outsourcing lets you hand your project to an expert team that’s always prepared to dive into a new project. Jumping on one new project after another is what they do, which means they can orient themselves to a company’s set of goals quickly.

Since they already know each other and how to work together in order to produce an excellent output, you can focus on other core business tasks.

6. Flexibility

The intensity of software development work may greatly vary, especially for small and medium-sized businesses. Unfortunately, this does not sit very well with the interests of in-house members of the team, who normally expect job security. They need to be paid, regardless of how much work is needed to be accomplished. With software development outsourcing, you can extend your team to respond to actual needs through staff augmentation.

7. Tax-related Perks

One of the lesser-known benefits of software development outsourcing is reduced taxes. Countries that specialize in offering outsourcing services offer taxes that are relatively low compared to countries that create a large part of the demand for these services. Thus, outsourcing may help SMEs save money in taxes that would then be used for other areas.

Summing it Up

Software development outsourcing offers a treasure trove of benefits for businesses of all sizes. However, when choosing the right vendor, models or cooperation, and types of work to be outsourced, a significant amount of caution is necessary. The effort you put into making these informed decisions will make all the difference when it comes to the satisfaction you get from outsourcing.

Once you are satisfied with a particular IT company’s professionalism and delivery, the best thing to do is stick to it rather than constantly sourcing around. Build a solid relationship with them so you can continue enjoying the benefits from their services. After all, a long-term relationship with an established software development outsourcing company will always have a positive turnaround for your business.

Free Cost Comparison Tool for Software Engineers

Topics: software development outsourcing