5 December, 2019
There are dozens of articles about the reasons standing behind decisions to outsource custom software development. Doing the pre-outsourcing research and reading another article which looks like the enumeration of truisms – such as time and money savings – don’t make it easier. That’s why I’ve decided to come up with an article which analyses some reasons for software development outsourcing from a slightly different perspective. All the cases below are simply based on the most common scenarios we help our clients with.
The most commonly presented reasons for outsourcing software development services are the possibility of time/cost savings, lack of experience in-house, access to a larger talent pool and to the latest technologies provided by an external vendor. No one says that these are irrelevant. However, it’s worth looking at them from a different perspective.
Scenario #1: You found your product-market fit but… what’s next?
Let’s analyse a scenario in which you achieved great success with your software in your core business. You have your product-market fit and already sold a big project. After that, you’ve sealed the new, big deal. And you need to deliver a new, high quality product and deliver it on time.
Unfortunately, you are not ready for a situation like this in terms of in-house developers’ availability. You declined the option to extend your internal team because you don’t know how many developers you may need and for how long. The recruitment process may take ages and you have no time to waste.
That’s the reason why outsourcing is the best possible solution for you. You can see the vision to outsource software development services to the third party company. It sparkles with gold on the horizon. You need an experienced and battle-tested outsourcing company and developers who can deliver a top-quality product on time and this is exactly what a reliable software house has to offer.
You can shape your team accordingly, deliver a product and decide whether you need to cooperate with an external vendor for a longer time or you don’t need any more help with further custom software development. It’s clearly a win-win situation.
Scenario #2: You need to develop your software further. Super fast.
It’s relatively easy to imagine the situation when you have a stable piece high quality custom software but also some investors standing behind it. They require it to be upgraded constantly. Their expectations are rather high, they want the app to be fully stable and get some new features regularly. The problem is that you have no internal resources capable of taking care of further development on a daily basis. Similarly to the situation mentioned above, you need additional developers to work on that but you don’t want to recruit a new group of specialists.
Therefore, software projects outsourcing looks like a tempting solution. Why? First of all – you can shape an external team whatever you like and after some time you can decide whether resources you have are enough or you rather want o scale up and need to extend the outsourced team. So, if for example, your product needs to be upgraded regularly, depending on investors – you can decide for outsourcing of software development to the trusted IT outsourcing company and make sure everything is delivered on time. In the meantime, you can focus on project management and your usual business within your company.
See also: 2019 software outsourcing guide for CTOs
Scenario #3: You need specialists with unique skills and competences ad hoc
It may happen that you face the situation when you need a team of developers with unique skills and competences. For example, when you have to develop a mobile app as a part of the extended deal. Or when you need top-notch DevOps services to spruce up the infrastructure your existing project. You may lack this kind of resources internally and again – you don’t want to recruit them on a permanent basis. It’s because you don’t know when (and if) you may need them in the future.
That’s why outsourcing partner is surely what you are looking for. It may be a solitary situation so it’s better to invest some time and find a third party software development company which proved to be successful in an area you’re looking for rather than to organise a whole recruitment process. Thanks to software development outsourcing companies, you can outsource software engineers and take advantage of using the skills of an external vendor to complete the project seamlessly.
See also: How to avoid the risks of outsourcing?
Scenario #4: You can’t afford a big and experienced development team
And it’s not because your company isn’t good enough. Not at all. It’s because your company may be yet a relatively small startup which operates on a market led by big fish.
Obviously, you need experienced developers, however, you can’t offer as much as the biggest corporate competitors around (and we all know that software developers can be very picky). You are yet to become as recognisable and popular on the market as some really big companies and therefore it’s way more difficult for you to attract the best specialists. Even if you do – most probably you will struggle to keep them in the long run. It doesn’t put you in a totally lose position though. It’s because there’s outsourcing which comes with a helping hand.
Having your own niche and well-established vision, outsourcing your software development to the experienced team may be a great idea at the very beginning. It can help you grow and strive for more in the future. After that, who knows – maybe it would be your time to shine and to become the big fish yourself, right?
Scenario #5: You are a non-tech company but you are aware that good software can boost your business
The final reason for software development outsourcing is the most prosaic one. You are a well-prospering non-tech company. You have no internal IT department, but you are fully aware that good software can boost your business and give you some real competitive advantages.
You are smart so you know that trying to create your own IT department would exceed your competences. However, you are a non-technical person so you have no knowledge to assess potential candidates. Also, conducting the whole recruitment process will be time-consuming and pretty expensive. That’s why, at the end of the day, you still may not be sure about the skills of your newly born IT department.
That’s why the most reasonable option for you is to outsource your software development to the experienced software house which will take you by hand and walk you through the whole process seamlessly.
I hope that these few short stories presented above can help you understand that there’s a variety of reasons for software development outsourcing. It doesn’t matter if you are the owner of a promising startup or a CTO of a company which already has its product-market fit – there are plenty of possible scenarios in which you can use outsourcing to take business advantage and reach further.
If you want to deepen your knowledge about software development outsourcing, I recommend reading our free e-book “Developing Software Abroad”. And if you have more specific questions, feel free to drop us an email on [email protected]. Initial software consultations at The Software House are always free of charge.