Software development outsourcing has been a popular practice amongst many small and big firms. Did you know that about 75% of companies outsource IT services? By 2021, the majority of these firms plan to maintain this practice or even expand it. This information is not surprising at all!
The success rate of companies partnering with IT managed service firms is rather high. Many companies have turned massive profits because of successful partnerships with third-party IT developers. Even with this in mind, the questions remain – will outsourcing be a short-lived trend and fade away? Will it benefit companies in the long-term? Will software development outsourcing still be relevant in 2021?
Many IT and outsourcing companies shared their insight on the topic and what it offers to the IT community. Almost all of them agree that outsourcing is almost always less expensive than hiring internally. The average annual salary of an IT technician (around $73,825) proves this right. And this sum does not include expected benefits such as life insurance, tuition reimbursement, or parental leave.
The most common problem IT companies face when hiring internally is employee retention. Switching companies and employee poaching are rather common. This is especially true when it comes to experienced IT experts because they still lack in quantity.
A problem that most larger companies face when hiring internally is workers’ reaction to standards improvement. IT engineers tend to become reactive and complacent when asked to improve their work standards.
Imposing accountability in a relationship between employee and employer is harder than in the relationship between a client and a service provider (outsourcing partner). Even engineers that do their job the best they can't have enough experience or training to handle certain tasks or problems.
Smaller companies and outsourcing
It is a well-known fact that most smaller companies need a larger range of IT experts and general resources. But, companies usually don't need them for full 40 hours of work a week. Smaller companies and businesses are more likely to benefit from outsourcing or staff augmentation. This is because they can not afford to hire an in-house technical full time.
Outsourcing allows smaller companies to get access to specialized IT experts for a reasonable price. Almost all IT outsourcing firms offer flexible and scalable services that can easily fit the concrete needs of their partners’ growing businesses.
Another interesting thing companies can get from their outsourcing partners is specialized IT assistance. This means that IT experts can help companies through relevant consultations about long-term business improvements.
Whether it is the implementation of new technology or other long-term business planning, having in-house employees do this is usually less productive. This is because additional work shifts their focus from primarily daily tasks and current issues.
What's usually the best option for larger companies?
Opposite from smaller companies, large companies often hire in-house engineers to handle specialized jobs, while they turn to outsource for handling day-to-day routine tasks. These day-to-day tasks usually involve things such as software updates, cybersecurity management, or basic coding (development).
This way, outsourcing companies enable their clients to save money they would have spent hiring additional IT staff, while at the same time allowing in-house experts to focus on important projects.
Many larger firms can benefit from outsourcing if they have the outsourcing partner handle more monotonous and mundane work. This allows their in-house IT experts to focus on the company's core goals and long-term projects that they are more familiar with. This can improve the general quality of companies' customer service and improve employee efficiency.
Other general benefits of software development outsourcing
Each company is different and a perfect outsourcing partner can bring you more benefits that relate to your business and its strategy. For you, as a client, there are truly are many benefits of software development outsourcing to keep in mind.
Besides a good quality-price ratio, with outsourcing, you can save time and get faster service. Outsourcing also allows you to tackle multiple projects at once while having time to focus on core areas of your business.
But, everything can come with its possible downsides. In the world of outsourcing, these can be communication issues, time difference or lack of control, and insight. These can all be avoided with a careful and thoughtful selection of the outsourcing partner.
With a decade-long experience, Addria knows how to overcome challenges in software development outsourcing industry. If you wish to read more about the pros and cons of software development outsourcing, check this blog post!
Will software development outsourcing still be relevant in 2021?
So far, it’s easy to understand why outsourcing software development is not just a passable industry trend. There are many different benefits of outsourcing and staff augmentation that will keep software development outsourcing relevant in 2021.
A large number of companies have found how efficient and beneficial it is to outsource some or all of their work to an outsourcing partner. With good management, and with a perfect outsourcing partner, it is not that hard to achieve and maintain a quality, optimized, and secure software development set up.
If you are a business owner interested in outsourcing your work or project to another firm, you are in the right place! Addria is a modern consulting IT firm that provides staff augmentation and custom software development. Our highly diverse and experienced team is always ready to tackle new tasks.