There are several reasons why companies tend to increase their development staff by outsourcing software rather than hiring and retaining an in-house teams in-house team. The first thing that comes to mind is that outsourcing can save you a lot of effort and resources.
Scaling the development team through software outsourcing prioritizes your company's core competencies. They should spend less on recruiting, hiring and training. Moreover, you will not exhaust your resources on comparatively less important tasks.
1. Cost optimization
According to research by Joseph G. Hadzima (senior professor at MIT), the exact cost of in-house software developers can be around 2.7 times the base cost. This is due to all payroll taxes, rent, benefits, and office equipment. And all non-billable hours that add to the total cost.
Research shows that the average base cost for an internal employee is $50 per hour. Double that to $100 per hour when you add up all the costs. With software outsourcing, temporary teams can be set up quickly, which can also translate to faster development.
2. Reduce the risk of hiring the wrong people
Every step of the recruiting process needs to be done carefully, and even then, you could end up hiring the wrong person.
It's been said that even if you're doing the right job about 50% of the time, it's safe to assume you're good at recruiting.
As a business owner, you spend a lot of time interviewing. Then you have to pay someone to select the right candidate. They also take care of onboarding, paperwork, setting up a new computer, and more.
3. Increase and evolve teamwork
Software outsourcing can be thought of as an on-demand service where you know exactly your hourly cost for each third-party developer.
In this era of development, you can add or change developers to a project. If you need more front-end, back-end, or UI skills, you can easily do that with a third-party software development partner.
4. Follow the global remote work trend
GitLab is a very good example of a fully decentralized company with around 160 employees working together. It is a platform for developers without any of them sitting in the same office.
The location of your company's software development team is increasingly irrelevant to your business. When these large companies can run their business smoothly without the need for an in-house team, so who says you can't?
5. Prioritize your company's core competencies
Software outsourcing is essential for the overall stability of a business. This directs the company's attention to its core competencies. This gives it a competitive advantage. You need to focus on your strengths and outsource everything else. There is no denying that software outsourcing is a good choice for many businesses.
Solid statistics show that the demand for software outsourcing will continue to grow. Additionally, companies are now looking for ways to digitize and streamline their business processes, laying the foundation for the digital transformation of their organization.
Site-note:
Need Help With Your Software Projects? Contact TP&P Technology - Leading Software Engineering Company in Vietnam Today
Comments