There are many situations in which these problems can arise. Perhaps there's simply an increased workload placing greater demands on your people’s time and energy. Or your business is in the process of scaling. With growth comes greater internal demand to welcome increased external demand, causing your team to spread itself thin. Maybe you don't even have an internal team. But what you do have is an idea for a software project that you wish to deliver internally or to your clients.
All of these are reasons why companies outsource software development. Here, we explore the key benefits of outsourcing software development so you understand why it is the best choice for creating new software solutions.
How Do Software Development Outsourcing Companies Work?
An outsourcing company typically follows some fairly standard steps when you contract them for work. These steps start with a planning phase. Your software outsourcing company sits down with you or your internal project lead to determine the project requirements and gain context around how this project serves your business goals. A plan results from this early step that covers the project development cycle, timelines, and check-in processes to ensure you stay updated.
With the plan in place, you essentially set your outsourcing software development pros to work. They'll handle the build based on the plan you collectively produce. You should also expect regular check-ins, determined within the plan, that provide updates and opportunities for scope tweaking when needed.
Maintenance and software updating also fall under the outsourced software development remit. At least, it should. A good outsourcing partner understands that software isn't "done" once it's handed over. Continued maintenance to account for issues such as updates to integrated software as needed. Your software may also need to be updated based on changing business requirements, with your in-house teams also requiring access to consistent support to keep the software running.
In short, a good outsourced team doesn't simply work on a software development project and then leave your business to its own devices. Your provider should look to form a partnership to ensure your software continues to operate as expected while leaving the door open for work on future projects.
Why Outsource Software Development?
So, what are the advantages of outsourcing software development? There are several, some of which affect companies with in-house teams more than those contracting an outsourcing provider to complete a project on their behalf. Each of these benefits comes with the caveat that they only exist when you work with a competent external software company.
01 - Relieve Pressure On an In-House Team
Burnout is a major issue in the software development community. Over 80% of developers say they feel it, with the likely causes being tight deadlines and the constant need to adapt to changing requirements. Time pressure is often the result of teams being understaffed or having to stretch capabilities across multiple projects.
A pressure reliever is needed, which is where hiring an external team helps. Your outsourcing team can carry some of the development burden on your in-house team's behalf. How much is carried depends on your needs. For instance, your outsourcing providers can offer team members who handle aspects of the project like quality assurance and similar manual processes. This frees your in-house developers to focus on the main build. You can also assemble outsourced teams to take on entire projects so your in-house developers don't become so stretched that they start struggling with burnout.
02 - Software Outsourcing Typically Delivers Cost Savings
Outsourcing software development is cost-effective in several ways.
The most obvious way relates to labor costs. As you gain access to a global market of world-class talent, you also discover that external developers often require different compensation structures from your in-house team. Typically, you pay less for an outsourced developer as providing a competitive wage for these developers requires a lower outlay than it does in-house.
Hiring costs are also reduced. Lightci specializes in augmenting IT and software development teams with external talent. That augmentation involves a full recruitment process that locates prospective members for dedicated teams at a lower cost than a search of your company's local talent pool. A competitive edge arises from these cost savings. You can find and hire people for less money, as well as enjoy lower costs throughout the development process.
03 - Gain Access to New Capabilities
Building upon the local vs. global access mentioned above, gaining access to a wider talent pool is also one of the most important benefits of outsourcing software development. Those working in a business based in a non-tech location will understand this. Many of their challenges come from struggling to find full-time developers capable of achieving project goals. In some cases, local talent simply doesn't exist.
With outsourcing, you're no longer restricted to finding talent in the same country as the one in which your business is based. You're not even restricted to a nearby country. The entire world becomes your talent pool, giving you access to highly skilled individuals who can work with practically any tech stack based on your requirements.
04 - Get a Dedicated Team That Aligns with Your Company Culture
The impact on core business structures is often a dissuading factor for those considering outsourced software development. That's understandable. Your company has intellectual property to protect and a pre-existing culture into which any new team member must integrate. Bringing in outside developers, no matter how talented they may be, could threaten the infrastructure that underpins your business.
That isn't the case when you work with an appropriate outsourcing company. As mentioned earlier, good outsourcers aim to become partners in addition to service providers to your company. That partnership extends into learning how your company operates so this information can be communicated to the developers recruited for your specialized projects. Think of this phase as an extension of your in-house hiring processes. The team you create aligns with your company's culture and values so you don't have to worry about clashes or communication challenges.
05 - Rapid Scalability When Outsourcing Software Development
The ability to adapt to market demands is what gives the best software developers a competitive advantage. That adaptation extends into scalability. Ideally, your company will be able to scale at a pace that aligns with the demand you face. When more work comes in, the team should grow to account for the increased demands placed upon it. Conversely, slow periods call for team and cost reduction, which is a form of scaling too.
Outsourcing enables you to scale in alignment with the demands your team faces. The right company can provide niche experts and talented software developers quickly whenever you need to grow. If demand declines, the same company can reduce the scale of your outsourced team to allow you to keep your in-house teams stable.
06 - Software Outsourcing Development Companies Serve as Partners
We've touched on this concept several times already. However, it's one that deserves expansion - one of the main advantages of outsourcing software development is that your vendor isn't merely a source of fresh talent. They're a partner. One that works to understand both the projects on which you're working and your business needs.
Your external team becomes an extension of your own team. It works to the same standards while providing access to wider capabilities, with your company's in-house processes being applied to the outsourced team as for your vendor, think of them as the enforcers of your company's policies. Their role as partners ensures they help your business save time by serving as your intermediary to deliver information about your core activities and processes to your outsourced teams. A streamlined workflow is the ultimate objective, which can only be formed through a proper partnership.
07 - Operate Across Time Zones for Software Development Projects
Imagine that you operate a software development company in the United States, with most of your business coming from clients in Western Europe, Asia, and similar faraway places. Time zones present an obvious challenge. Your team is off work at times when your clients' teams are clocking in. The result is often communication bottlenecks that can lead to breakdowns in processes and partnerships.
Software development outsourcing delivers a useful solution to these types of challenges. Your external team is typically located in a country other than your own, presenting you with an opportunity to create extensive time zone coverage. Your external team operates as your internal team is off work. Clients benefit because they always have a throughline to somebody who knows the progress of their projects. This time zone benefit also has implications for our next advantage of outsourcing software development.
08 - Faster Project Turnaround Times
Software development outsourcing leads to faster turnaround times in several ways.
The first relates to the time zone benefits highlighted earlier. If your external team is working on the same project as your internal team, you create a software development flow that is no longer restricted to the eight-hour standard working day. Work takes place on your project even when you're not actively in the office overseeing that work. Progression can even be made as you sleep as long as you work with external developers you trust with the project's requirements.
Secondly, don't underestimate the impact that hiring specialists who match or expand upon the core competencies within your team provides from a time-saving perspective. Your outsourced software developer may have specific skills within your chosen tech stack that don't exist within your internal team. Those skills allow for problems to be solved faster and, in some cases, can even be transferred to your internal team to streamline future software projects.
09 - Your Software Developers Can Focus on Core Competencies
Sometimes, you don't need an external team to expand upon the core competencies already present in your internal team. Your business instead needs immediate access to skills it doesn't currently possess. Core competencies are one thing. But what happens when you're presented with a project that stretches those competencies beyond your team's capabilities?
The only solution is to find programmers who deliver the competencies needed for the new project. That comes with its own array of challenges. Many businesses find that even the most efficient software engineer hiring policies still require at least a month of searching and interviewing before a single member can be added to the team.
Software development outsourcing benefits such companies by offering access to a wider talent pool, a stronger network of potential candidates, and a broad range of competencies. Your team becomes more versatile. Its members are also able to focus more intently on their core competencies rather than having to take the time to learn new tech stacks or onboard the team members you hire.
Outsource Software Development Today with Lightci
In the space of a single blog post, you've developed an understanding of the benefits software development outsourcing delivers to your business. Your question now is simple:
Where can you find the right outsourcing partner for your current or upcoming projects?
Lightci is the answer. We serve the dual function of augmenting in-house teams with talented software engineers and building software for your company from scratch based on your requirements. Reasons to work with us include:
- Gain access to the best software engineers in 10 days or less thanks to our streamlined hiring processes.
- Work with a company that provides access to a global talent pool while confronting local and national compliance challenges on your behalf.
- Develop hiring processes that cost between 10% and 50% less than typical hiring practices on average.
- Experience why major brands like Google, Walmart, and Coinbase trust us to deliver exceptional talent for new work and scaling of already developed software.
We are experts at hiring talent across almost every capability within tech. We're also happy to talk to you about your needs without the pressure of any further obligation on your part. Book a demo with our team today to discover the magic of Lightci.
