Should you outsource your Software development needs?

Custom development is a process that encompasses various stages, including requirements analysis, design, coding, testing, and deployment. The development of software may be performed by an in-house development team or outsourced to a software development partner. The decision to outsource the development of custom software is often made based on the size of the project and budget constraints. As a result, it is essential to understand the advantages and disadvantages of either approach and know what to expect from an outsourcing partner. Here are four questions leaders should ask when deciding if outsourcing their company’s software development needs is the best option.

Does the existing team have the right experience and resources?

The leadership team has an idea – but does the organization have the resources on staff to bring that idea to life? If not, outsourcing to a third-party company will typically cost less than developing new in-house talent. By outsourcing to an experienced software development partner, the organization gains access to a large pool of qualified candidates from around the world with expertise that they wouldn’t traditionally have in-house, as well as experience with technologies that may be otherwise unattainable. If the company does have the talent needed to develop the next big idea, ask the following question.

Can the in-house team afford to put aside current responsibilities?

Outsourcing helps a business focus on what it does best. Companies can use outsourcing to get more done with less risk. In-house teams are typically busy working on existing products with significant backlogs or development roadmaps. These products have internal or external customers that are expecting continuous development progress. If the in-house team is in this situation, what would the costs (direct, indirect, fixed, and variable) be to reallocate them to work on a new project for months or years?

Is Outsourcing Cost-effective for the business?

The decision to outsource software development needs can be costly. However, the alternatives might be even more expensive, especially if it doesn’t already have the required skills and resources in-house. Outsourcing has proven to be cost-effective for many organizations by expanding their team to cover the exact technical profile needed to achieve their vision. In this case, a company may not want to hire a full-time in-house team member because they may not have a place for them when the project slows down. As projects ramp up and demand for new skills arises, QAT Global can provide the additional technical resources required. Conversely, as project activity slows down, it handles transitioning away resources that are no longer needed.

Have you identified the organization’s outsourcing goals? Are they achievable?

Reducing costs is often a leading reason why companies outsource their software development, especially to offshore teams. However, companies shouldn’t choose a technology vendor solely on price. Specific and achievable goals should be identified, such as capitalizing on new technologies, streamlining processes, reducing risk, and improving security. It is important to outsource to a vendor who takes a partnership approach and can deliver on the organization’s specific goals.

Final Thoughts

Outsourcing software development is one way to take an enterprise company to the next level and achieve greatness. But not all outsourcing is without risk. Be sure to research any software development outsourcing partner before committing to them. Outsourcing to “just anyone” could lead to a lack of transparency, miscommunications, incorrect requirements development, or delays in time to market.

The right software development partner, however, can change everything. QAT Global’s 25+ years of software development expertise and agile development methodologies ensure that results align with client expectations. Get in touch with us today if you are looking to outsource, scale your company, improve your bottom line, or gain a trusted, long-term development partner who will help lead your enterprise to success!