We continue a series of articles about outsourcing software development and previous ones can be found at this link. Today we want to answer the question why do big companies use outsourcing services?
In short, outsourcing services help companies of different sizes in:
- Reducing fixed costs
- Speeding up/scaling your development team
- Finding skilled developers fast
Below we have written in detail about each of the points and even more. 🙂
How to Reduce fixed costs with outsourcing services?
Is your business not provide software developing services? You don’t need a full-time developer? But do you want to create a website or software to automate your business process, etc? In this case and the like, it is best to use outsource software development services. Let’s see on the figures:
Your project is estimated at 100 hours. The average rate of a software developer is $ 40 per hour. Total expenses = $4000 + 10% (“contingency”) = $4400
If you hire a specialist in your company. We will not take into account the time with the selection of a specialist and verification of his expertise. The choice is yours
TIP: If your core business is not software development or technology – outsource it.
How to scale and speed up your development team?
- One hired developer will create your project for 2-3 months. In an outsourcing company, you can be offered to do the same issue as a team in 2-3 weeks. Hurry up!
- It usually takes 43 days to hire a developer. Because most of them have 3 months before leaving the company under the contract. Within three months, your project may have already been made by a team of developers from the outsourcing team.
How to find experienced developers fast?
- Do you want more developers or specialists from the IT sector (designer, project manager, internet marketer, and etc)? You will certainly be offered they or hired specifically for you.
- Is it hard to find an experienced IT specialist in your area? Don’t worry! Find a reliable outsourcing company and work with them remotely. Working Remotely is becoming a worldwide standard.
What Types of Tasks are Normally Outsourced?
There are three main types of tasks:
- Repetitive Tasks: For example, data entry, shipping inventory, as well as accounts payable, could fall into this class.
- Official or Highly Skilled Tasks: For example, you could have a CFO-level individual to arrive in a couple times every month to provide you financial analysis and guarantee that the employee is taking care of the tasks well.
- Specific Knowledge: For example, IT support for your office. You will most likely be unable to manage the cost of a full-time IT professional. It is a wise decision to hire an outsourced provider.
We recommend reading our article on the topic: “Where to find a reliable outsourcing software company?” If you already need to start developing your project just write us on email@example.com.