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advantages of outsourcing

7 benefits of software outsourcing

In this post, we cover the seven most essential benefits of outsourcing your software development.

  1. Focus on core activities

    Outsourcing will enable your business to shift focus from secondary tasks to ones that are crucial to you, hence enabling to better set priorities

    Every business has limited resources and time. During the growth period the focus on collateral activities increases which uses resources (human and financial) creating a trade-off for core activities. Letting a third party provide non-core activities will allow key resources to focus on key business tasks.

  2. Flexibility and time

    One of the most important resources is time. Why spend it on recruitment, selection, and training of new employees when you can outsource to already established teams?

    Outsourcing will boost operations with uncertain demand such as seasonal or cyclical work. In software development, this would be for instance adding a mobile app on top of your current website. There is a comfort to be flexible regarding the headcount because the additional resources can be added and released when needed.

  3. Access to a talent pool

    When hiring an employee, your company may only have access to a small, local talent pool.

    As mentioned before, there is no need to invest in recruiting and training. If a company would have to do it by itself, the limitations are that it would have an access to a small and local labour market or a very competitive one. On the other hand, when companies outsource they are able to use skilled talent from all over the world.

  4. Develop internal staff

    Cooperation with the outsourcing partner allows knowledge transfer to own employees.

    A large or a technologically niche project often demands skills the internal staff might not have. By outsourcing a project you bring people with the required skills to work on it. Hence, your employees can gain some new knowledge and skills by working alongside the outsourcing partner

  5. Better Risk Management

    Outsourcing will add a level of continuity while lowering the risk of an below average level of operation.

    Each business investment proposes some kind of reward while facing some risks. The reason is that external factors such as competitors, legislation, financial and economic conditions, technological advancement, and market trends, all change at a fast pace. Outsourcing service providers and consultants assume and manage the risk for you, and they generally are much better at determining how to do it in their areas of expertise.

  6. Give your business a competitive edge

    One of the best benefits of outsourcing is it provides your company with an opportunity to gain competitive advantage.

    Through strategic outsourcing to an external software development company, you are not only providing your customers with best-of-breed service but also increase your productivity while managing your in-house resources intelligently. Working with subcontractors can be useful in order to excel and outperform your competitors who have not yet realized the benefits of outsourcing.

  7. Save costs

    You do not want to trade quality for a lower price, but outsourcing often allows you to get the best of both worlds.

    At Eastsource, we believe that saving costs is the by-product of software outsourcing. Clients sometimes misunderstand the nature of outsourcing and think the main objective is lower labour costs. However, what makes outsourcing so attractive is the lack of additional variable costs connected to recruitment. These include selection, training, equipment, utility costs, and overhead taxes. And this is on top of all the above-mentioned benefits.

Finally, here’s an infographic to sumarize it all.

7 benefits of outsourcing

Author: Ronald Klacman

Sources:

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