Software development outsourcing has become the new normal with organizations where Information Technology is the key enabler to business performance. The continued growth of digitized industries is depleting local talent pools in many countries, making more and more businesses turn to an alternative approach to hiring talent — outsourcing.
In 2018, the global IT outsourcing market reached $85.6 billion, which is a sure sign of steady positive growth of the industry in years to come. About 52 percent of small businesses stated their readiness to outsource software development projects.
Although software development outsourcing offers a number of benefits, the key advantage being that it helps businesses achieve greater economies of scale (a proportionate saving in costs gained by an increased level of production) and also focus on their core competencies without spending ample money or time.
So why is software development outsourcing beneficial for your business?
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Focus your efforts on your core business
Innovate or Die… With increasing competition and dynamic nature of business, companies need to spend time in innovating and diversifying their business as a survival strategy. Outsourcing software development improves concentration on strengthening other core processes and helps to free up and allocate more resources to other processes that help make the business tick.
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Ready access to latest technology skills
Software development outsourcing gives companies access to global talent since maintaining every skill and talent in-house can prove to be next to impossible. India and China remain the most popular IT and business process outsourcing destinations for big businesses globally. With software outsourcing, businesses get ready access to skilled workforce all over the world, thus expanding their technical capability and horizon, at the same time have shorter development time and faster time to market.
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Cost Savings
For growing businesses, the carousel of spending never stops. There is a considerable wage difference between Western countries and India and also in African countries availability of skilled resources is a challenge there by increasing the resource costs. In addition to expending high costs in paying salaries, software outsourcing also helps in reducing other costs like cost of onboarding resources, cost of training, cost of infrastructure, cost of maintenance as well as cost incurred in statutory payments. Software outsourcing helps achieve at least 30% cost reduction thereby reducing the burden on the bottom line.
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Effective Risk Management
Why keep all eggs in the same basket? With increasing dependency on the technology for business operations, its high availability is of prime importance. As such it does make sense for companies to split software operations between in-house and offshore and help mitigate risks.
For startup companies facing the highest amount of risks it is all the more apt that non-core business operations are outsourced to keep risks lower. With the same objective in mind, there many startups who outsource their software operations so that most of their focus could be on nurturing and growing the business.
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Demand Management
During peak loads, businesses face challenge in terms of resource allocation and management. This ends up in increased costs and decreased efficiency. Software outsourcing benefits businesses by outsourcing resources during peak demand so as to balance work load, maintain costs and improve efficiencies.
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Better Security
Certain mid-sized businesses do not have in-house teams specializing in all areas of IT. There are pretty good chances that your software’s security is not in safe hands and sensitive information about the company at risk.
Outsourcing software development will give you better coverage against IT security breaches. The software team will ensure the security of the code and processes that go into developing applications.
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Less time on support
Outsourcing application support ensures businesses the benefit of round the clock support. The transcontinental outsourcing provides businesses with the benefit of time difference there by providing the benefit of support during non-working hours of the company. This ensures faster resolution time.
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Faster time to market
Faster time to market is the essence of competitive advantage. Software outsourcing will ensure defining strict timelines for launching of products with dedicated resources at your service. Businesses can then focus on other important aspects before going to market leaving the software development activity to the vendor’s specialized resources.
In 2018, MindWorx Software introduced its state of the art software outsourcing services, Win-on-Win Model (WoW Model™) with some distinctive advantages which score over the conventional outsourcing services, viz;
- Uniform resource rates across industry standard technologies and the same charges for resources with different technology skillsets
- Flexible billing option to cater to unutilized resources during slack in demand, thereby saving on cost of unutilized resources
- Dedicated resources putting in efforts of 45 hrs per week or 180 hrs per month giving you the advantage of optimum utilization
- Ramp up or Ramp down resources with minimal lead time.
- No expenditure on hardware and software costs
- Idea Incubation platform which helps nurture creative ideas from the dedicated team
- Benefit of 6-month trial period with a guaranteed benefit of 30-40% cost reduction
To know more on WoW Model™, click here…