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The Top Reasons to Outsource Your Software Development

by Josh Beatty, Jul 29, 2020

When deciding on what to do with your software development project people often consider whether they will hire their own developers internally or outsource the development to another company. In this article I will be explaining the benefits of outsourcing your software development.

1. Costs

With any project, cost is inevitably going to be a driving factor when considering options for delivery. These are some of the key benefits found with outsourcing your software development projects.

Payroll costs

Payroll costs are the largest expense for most businesses and when considering talent in the world of software development, it is often some of the most expensive in the market with senior developers often demanding 6 figure salaries. When outsourcing your development you don't need to worry about any costs other than the agreed rate with the agency.

Hiring costs

When building a software development team there are costs associated with sourcing and onboarding that talent. These costs include: advertising on job boards, recruitment agency fees, staff turnover (20% of new hires leave in less than 12 months), onboarding time etc.

2. Experience

Albert Einstein said it best "the only source of knowledge is experience." 

This is true across all industries, and especially evident in software development. When deciding who will develop your software it is important to ensure they have a wealth of experience. Outlined below are some of the systems and processes that an experienced external software company typically offers.

Ideating

Often, external development teams have significant experience with helping ideate your software solution. External teams are required to work on a broader range of projects then an internal team. This equips them with a greater perspective on the potential avenues and opportunities. 

Broader team input

When engaging an external team, you are tapping into a much larger team than you typically would when building a team internally. For example, not only do you have access to the development resources, in many instances there will also be specialists designers, solutions architects and DevOps personnel. This allows for a larger group input on your project.

Cutting edge technology

Because external developers are working on new projects continually, they are exposed to new and upcoming technologies on a regular basis. This exposure means they can leverage this information and experience to inform and educate you on what may work within your project.

3. Speed

Because you are working with a company with a broader range and depth of resources, you have the opportunity to scale the team and increase your speed to market. If you are working in an industry that is highly competitive and speed is important than this may be the driving factor behind working with an external agency.

4. Focus on what matters to you

When you agree to work with an external software company, you are outsourcing work that would otherwise detract from your focus. Managing a project team is a full time job that prevents you from growing your business or focusing on key KPI's. Outsourcing enables you to focus on your core business and on your bottom line. There are some tips we recommend to foster a strong relationship with your outsourcing company.
In summary, when outsourcing your software development, you can often mitigate a large amount of the risks associated with building an internal team, allowing you to focus on what is important to you and your business.