While historically New Zealand companies have tried to remain local and keep their development both in-house and locally outsourced, there has been an upward trend in outsourcing software development internationally over the past 15 years. With an increase in globalisation it has become even easier for business to outsource their software development to all areas of the world, an article written by Grant Thornton in 2014 revealed that over half of NZ businesses (52%) either outsource or plan to outsource work, ranking NZ 9th out of the 45 economies surveyed and this has only continued to increase over the last 7 years.
There are many benefits to outsourcing software development and we have compiled a few of the reasons you need to consider when making your development decisions.
- Cost Savings
- Saves time
- Reduces Risk
- Gain access to top level developers
The main drawcard for businesses when considering outsourcing software development is the savings that can be gained. According to research by in 2016 by Deloitte, almost 59 percent of companies outsource with an aim to reduce or control their costs.
When relying on an in-house team to develop software there are many expected and unexpected costs. For smaller companies when it comes to developing a new product they may not have qualified staff for the job and therefore need to look to hiring new staff. This can be a lengthy and expensive process and in many cases the salary of a full time staff member and the ongoing support needed to maintain the product ends up far more expensive than outsourcing development.
In many cases when businesses develop in house their staff have multiple projects on the go at once and therefore it takes longer to complete certain tasks. In most cases when you outsource your software development there are timeframes and contracts in place so work is completed when needed and you have more time to focus on the roll out and marketing of the software.
Outsourcing also frees your staff up to focus on other aspects of your business such as customer services and support of other products and services. You will also save time on the hiring process in the instance that you currently don’t have staff that are capable of the software development requirements.
As with all parts of a business outsourcing software development comes with its own risks, but with the right research and business relationships you can significantly reduce the risks involved in software development when you choose to outsource it. As mentioned, in most cases where businesses develop in-house, staff are not focused on only one task at a time and this can lead to unplanned errors and delays.
When you outsource, you reduce risks by signing an agreement contract with the outsourcing company. The hiring process will also be done by the outsourcing company and thereby the time, stress and risk involved in hiring adequate software developers is taken off your shoulders.
Working with a company like Advanced Business Manager you have access to experienced developers who can work with you to create high level software that suits your needs and removes the risks involved if you were to work alone.
Gain access to top level developers
Outsourcing your software development gives you access to some of the best at what they do. You can base your outsourcing company choice on the basis of their experience and reputation so have access to developers you wouldn’t usually have the ability to work with.
In most instance, when hiring in house developers you would want them to have a broad range of capabilities in order for their skills to be used across your business. With outsourcing you have the ability to use developers with a specific skillset that is exactly what you need for that exact role. This usually results in a higher level product that better meets your needs and with a faster turnaround.
When developing in-house you become the source of support throughout the process and often after the product is released. When you are the software developers you are responsible for the maintenance and issues involving bugs and downtime that need constant support. Outsourcing your software development means these situations are maintained and updated by the outsourcing company, removing the support pressure on your team and giving them opportunity to focus on future development and increasing your business efficiency.
The support benefits that come with outsourcing software development don’t just relate to the continued maintenance of the software but also throughout the journey of development. With in-house development there is a lack of external support and all the pressure is on your team to get the product developed on time and to the level expected. Outsourcing your software development shifts the pressure to the outsourcing company and means once the product is ready to go to market and its your company’s turn to take the reins you have the support and guidance of the outsourcing company.
There are many reasons to consider outsourcing your software development. For larger companies it is usually more cost efficient and reliable to develop onsite but for SMEs it is likely that outsourcing is the better option. Taking into consideration all the above points is essential in making a decision that’s right for your company.