Why Companies Should Outsource Software Development?

Vaibhav Srivastava
24 August 2020

If a business should outsource software development or not is a matter of never-ending debate. While many companies are in its favour, there is a section which is still not much convinced with the idea. But the fact is, having an in-house IT can be expensive for some companies who don’t have forte into software development. Maintaining infrastructure, paying hefty salaries to developers and getting licences for everything for a short-lived requirement is not just painstaking but also add burden to the organisation. Considering all this, one may easily compare how quickly this costing will dilute in comparison to the benefits part. So, in this post, why companies should outsource software development.

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Cost Saving

Businesses who opt for outsourcing tend to save around 50-60% on their development costs. Well, we are not giving you some random figure, in fact, you can get a fair idea with a simple calculation. For those who have a small requirement or have a legacy software which needs some maintenance from time to time, setting up an in-house tech team is not at all a good idea. Why companies should outsource software development is because they will have to pay the salaries, spend plenty of time on hiring, their medical insurance, and have to provide them with annual increments. All this ultimately add up to the cost to the company which could have been channelised into other business areas.

Get Skilful IT Professionals

The software industry is evolving every day and something new, something better, something innovative is launched every now and then. So, it becomes imperative for the application developers to stay abreast with the latest IT developments and require training from time to time. But, when an organisation opts for outsourcing, they dodge this problem as the pain would be taken care of by the development companies on your behalf. The project managers would build a team of talented developers blessed with all the skill set required for the job to be completed on time. It will be them who will plan, develop and test the application that too in a fixed budget. This is why companies should outsource software development.

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Flexibility to Scale Projects

One of the biggest reasons why companies should outsource software development is the flexibility to scale projects. In today’s fast-paced corporate environment, it is quite difficult and time taking to hire, train, and on-boarding a candidate. Contrary to all this, outsourcing provides flexibility to choose the professionals they required. Other than that, these professionals will use their own software, laptops and equipment needed for the completion of the project. Also, why companies should outsource software development due to the scope of scalability they offer. For instance, an already deployed software in a manufacturing unit that requires a little care can be outsourced to vendors as such a company won’t have the expertise to deal with its technicalities.

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