Software Development provides one of the few anomalies in professions with a worker shortage compared to saturation in most other works. According to statistics, although the field enjoys an 87% employment rate, only one developer is still available for 5 different jobs in software projects.
- Mobile App Developer Skills: iOS and Android operating systems, Java, Swift, Objective-C
- DevOps Developer Skills: Docker, Apache Mesos, Jenkins, HashiCorp stack
- Back-end Engineer Skills: Java, C, C++, Ruby, Perl, Python, Scala
These software projects come from organizations worldwide and individuals, particularly those looking to set up a new venture. But, how will organizations just setting up satisfy their software development needs without a dedicated software development department that deals in internal development? The answer is outsourcing.
What is Software Development Outsourcing
Software Development Outsourcing refers to delegating the software development task to an external vendor for a fee. You can read more about the different models in software outsourcing, some of the most prominent examples and the essentials of outsourcing effectively. Still, this article focuses on the needs and characteristics of software development outsourcing.
Outsourcing in software development has become a significant trend in software development, and the field of software outsourcing is expected to reach around $220 billion by 2020. This trend is not new, and even some of the most prominent names in the eCommerce industry have used software outsourcing. Take Alibaba, for instance, which used a software development company in the US to manage its website development.
Is Software Development Outsourcing Beneficial?
But of course, it is not necessary that if Alibaba outsourcing to establish their business, you must also use it. The fact of the matter is that most companies find themselves wondering whether they should outsource their development or get software developed in-house. To highlight which is better, here are some advantages of outsourcing:
- Costs of Outsourcing are Lower
The first area of consideration when asking whether to outsource or develop in-house is cost. Will it cost lesser to outsource or to build in-house? If the organization has no development department, it is evident that developing in-house is not an option. Creating in-house would mean that you set up an entire department for a single project. Even if you intend for the in-house to be used later, it is not advisable to set up an entire department without explicit predefined responsibilities.
However, deciding if the organization has an in-house opportunity gets more challenging. In such a case, developing in-house software means using resources already available in the organization rather than going for the best in the business. When considering the quality options, it looks pretty likely that outsourcing will get you the best options at a lesser cost rather than taking the trouble of putting together an entire team for development.
- New Ideas
Another lucrative advantage of outsourcing is the inflow of new ideas. This works particularly well with organizations that do have a department in-house. Such a business can take advantage of by working and collaborating with an outsourcing firm. It might then find the different ideas used outside of the organization in development procedures. This can bring in new ideas in the organization and help it get acquainted with more efficient methods outside the organization and hence adopt them.
- Leaves time for Businesses to Focus on Core Competence
Outsourcing an external organization means the business can leave its core operation teams free. As a result, the focus remains on what the company excels at: its core competence. That helps the business to improve where it matters and helps it grow.
Although these benefits might seem very tempting, and your business might find outsourcing a necessity, there is more to the story than a simple description of the pros of software development. Your business needs are more critical in deciding whether your organization should outsource. No decision can come simply because one factor seems beneficial. Every decision to outsource has to be applied to your business model, and the ideas are specific.