05 December 2019
5 software development outsourcing scenarios for CTOs
There are dozens of articles explaining why companies outsource custom software development. Cutting time to market is one obvious suspect. Reading another list of truisms – such as time and money savings – doesn’t make it easier. That’s why I’d like to give you a couple of lesser-known reasons for outsourcing your software work. All the cases below are simply based on the most common software development projects we help our clients with regardless of their business model or development processes.
Rarely discussed software outsourcing cases
Obviously, CTOs leverage software development services from outsourced partners to drive digital transformation and save on time/cost. By default, they do that when their development team lacks experience and the latest vendor technologies. However, dig deeper, and you might find cases for outsourcing development you overlooked before.
Scenario #1: You found your product-market fit, but… what’s next?
Let’s analyze a scenario where your core business grows because the company achieved great success with its software. A new, fat contract has just come in, so you put your dedicated team on standby. It turns out you need to deliver a top-level software product for an app store, sharp.
Unfortunately, your in-house software developers aren’t as ready and steady as you thought. Too many projects, intellectual property paperwork circles around, and a quality assurance specialist is missing from the development team.
You decide to extend your internal team, because you don’t know if you need one software developer or many. The recruitment process may also take ages, it costs a bunch, and you have no time to waste.
This is where outsourcing companies can help you carry on. You can already envision how you outsource software development to a partner with an HQ building sparkling with gold on the horizon.
You need a squad of experienced developers who can deliver top-quality software on time to help your digital transformation efforts. Sounds like what a reliable software house can offer.
If you partner with a software development company, you can shape your team accordingly with the guidance of an open-minded project manager. After you deliver the product, you can decide if you’ll continue the work with that vendor on full-time custom software development. Software development outsourcing can lead to a win-win situation. Worry not – there are many software outsourcing models available.
Scenario #2: You need to develop your software further. Super fast.
Imagine the situation when you have a stable piece of custom software that’s backed by investors. They demand constant upgrades, stability fixes, and features that are just too much load for the team.
The problem is that you have no internal resources capable of taking care of further development on a daily basis. Similar to the situation mentioned above, you need additional developers for the team, but you don’t want to recruit a new group of employees.
Here, software project outsourcing might be a tempting solution. Why? First – you can shape an outsourced team however you like to match your development project.
Down the line, you can decide whether the resources you got are enough or if you would rather want to scale up with the outsourced team. If for example, your product needs regular upgrades, partnering with a company rated 4.9/5 on Clutch (Eastern Europe says hi) gives you a good chance of getting application development done 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 an outsourcing team with unique skills and competencies ad hoc
It may happen that you need a team of developers with unique skills and competencies. 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 of 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 an 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 software development company that proved to be successful in your project area than to freeze for the time of the recruitment process. Thanks to software development outsourcing services, you can access software engineers and take advantage of using the skills of an external vendor to complete the development project seamlessly.
See also: How to avoid the risks of outsourcing?
Scenario #4: You can’t afford to grow your team right now
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 that operates on a market led by big fishes.
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 recognizable and popular on the market 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 lost position, because outsourcing is a viable option.
Having your own niche and well-established vision, a decision to outsource software development to an experienced team may be a great idea in early-stage growth. It can help you expand and strive for more in the future. After that, who knows – maybe an outsourcing team is what you need to become a big fish yourself?
Scenario #5: You lead a non-tech company but you know that reliable software boost the business
Trying to create your own IT department can exceed your competencies. You might not have the knowledge to assess potential candidates. Also, conducting the entire recruitment process will be time-consuming and pretty expensive. You want certainty that you can depend on the developers from your newly formed IT department.
That’s why the most reasonable option for you is to outsource your software development to an experienced software house. Most of them can take over project management from you to lead the two combined teams seamlessly while you observe KPIs.
Outsourcing software development can be a win
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 that 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. Considering practical scenarios can also help you avoid many problems of outsourcing software development.
If you want to learn more about effective software development outsourcing, I recommend reading our free e-book “Developing Software Abroad”. And if you have more specific questions, drop us an email at [email protected]. An initial software consultation with The Software House is always free.