Is Outsourcing Custom Software Development Right for You?

Custom software development, right now, is one of those things that is being utilized by almost all kinds of businesses. It is its ability to meet business unique needs effectively that made it this popular. The challenge is not in deciding whether to opt for custom software development or not. Instead, it's in deciding where to choose from. Should you get it from an in-house team or outsource it? That is the real question.

Through this article, we are going to help you find an answer to this question by not only mentioning the benefits of outsourcing custom software development but also comparing the same factors with an in-house team as well. So without any further delay, let’s begin.

Benefits of outsourcing

Cost-Effectiveness

If we compare outsourcing custom software development to that of building an in-house one, the former proves to be more cost-effective than the latter. The reason for so is that when businesses build their own custom software development team, they have to hire developers which is going to be expensive. Not only this, the businesses also had to give them health insurance, paid leaves, and other benefits as well, which will again contribute to the expenses.

Moreover, not to forget the process of hiring developers is not only time-consuming but will also take resources. Even after the recruitment process, the businesses had to provide developers with training, equipment, workspace, software, and overall a dedicated IT infrastructure, thus again increasing the expenses.

On the other hand, if a business decides to outsource a custom software development team, they neither have to do the recruitment nor provide them with any kind of IT infrastructure. Also, the cost of hiring a team is significantly less than hiring developers independently since no additional costs such as insurance or training are included with the team.

Another benefit that businesses get from outsourcing a custom software development team is that here they have prior information about the cost which helps them plan their budget properly and also reduces the risk of cost overruns.

Access to Top Talent

Hiring developers is not as easy as it seems. Finding developers who are good at the desired skill sets takes a lot of time. Sometimes, either you have to compromise with the expertise or wait for a long time for the right match. But when you outsource custom software development, you get a pool of highly qualified developers to choose from.

The outsourcing companies have a network of developers that too have specialization in various skill sets. Be it mobile development, or web development, the outsourcing company makes sure you get the right match i.e. developers with the specific skillset your project requires.

Another thing that outsourcing companies ensure is that they stay up-to-date on the latest tools and technologies. Therefore, it is highly unlikely that your project will miss leveraging the most innovative solutions available. This assurance not only improves your project but also gives you a competitive edge.

Increased Efficiency and Speed

The most common thing that we have heard in almost every industry is that time is money which means if you are wasting your time, you are wasting your money! Thus we need to save time as well which is a bit difficult in the case of an in-house custom software development team as they can be slow because of the following reasons:

• Firstly, since the internal team will be your only team they have to juggle between multiple tasks and projects, thus leading to delays.

• Apart from this, the internal team will most probably work within set business hours, meaning limiting the overall development speed.

Whereas in the case of outsourcing custom software development, business hours won’t be an issue. As many outsourcing companies operate across different time zones which means if one team is offline, the other can work, thus allowing continuous development.

Moreover, reputable outsourcing firm often uses agile methodologies i.e. breaking down projects into smaller manageable tasks which promote faster iteration, quicker bug fixes, and a more streamlined development process.

More Focus on Core Business Processes

With custom software development being handled by an outsourcing firm, it allows businesses to focus more on their core business processes. Whether it's the resources, time, or money, they can invest all of them into those tasks that directly impact their core operations.

Outsourcing also frees up your internal IT team thus letting them focus on on functions like network maintenance, user support, and data security. Apart from this, the burden of project management tasks like scheduling, communication, and resource allocation also gets removed from the business’ shoulders. 

Lastly, these outsourcing firms have a team of experienced developers having a wealth of knowledge and expertise which ensures that the complex technical challenges are handled well and the project stays on track. Due to this, the business doesn’t have to get much involved in the project, instead, they can solely focus on their core competencies.

Mitigating Project Risks

Software development carries various kinds of risks with it. The project requirements may change over time which can lead to delays and budget overruns. Apart from this, sometimes technical challenges also arise during the development part or a miscommunication can happen leading to more errors and rework.

All these above-mentioned challenges can be overcome by outsourcing. These firms have established development methodologies that ensure clear communication. Moreover, as we have already mentioned a couple of times, outsourcing firms have a team full of experienced developers who ensure technical challenges or changes in requirements are handled properly.

Improved Scalability and Flexibility

There will be times when your business requirement will grow or you have to take a step back at tough times. In both these cases, the software requirements will follow the same path the business does. With an outsourcing firm, this transition becomes much easier as they are trained to do so. On the other hand, if you have an in-house custom software development team, then a lot of things have to be done by you. Employees need to be sacked or hired, which will consume a lot of time as well as resources. Thus, we can clearly see how outsourcing firms provide much better scalability than an in-house team.

Coming to the flexibility, it is quite similar to that of scalability as here as well, requirement changes. For example, businesses might require some new technology or software solution, which will be easier to meet with outsourcing firms as they have access to the latest technologies and skillsets. However, the same would have been a hectic task in the case of an in-house custom software development team as the business would have to go back to stage one to fulfill the new requirements.

Additional Benefits

Outsourcing firms offer a lot of advantages but one such advantage which is not often talked a lot is that these firms foster a culture of collaboration. When you partner with an outsourcing firm, you are giving your team a chance to learn from their expertise and best practices. This knowledge transfer will surely develop them in the long run.

Secondly, bringing the outsourcing firm with your team creates a broader range of activities, which can lead to more creative solutions and a more robust final product.

Lastly, how can we forget communication skills? If you want to have a successful partnership with an outsourcing firm, clear communication is a must. Now to make this happen, the team has no other choice but to improve their communication skills which will not only enhance your partnership but also their performance within the organization.

Conclusion

Pheww! Lots of benefits. Isn’t it? Well, from cost and performance to soft skills and overall development, outsourcing custom software development provides all of these to businesses. Yes, it does have flaws as well, but who knows they won’t be able to outweigh its benefits. Overall, hiring an outsourcing firm for custom software development can be a strategic decision that could propel your project forward. You will not only gain a competitive advantage through it but can also bring your innovative ideas to life faster and more effectively.