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5 Key Reasons Why Companies Outsource Software Development

by Emma Wilson

When an organization is developing new software or enhancing an existing solution, they often think that the only viable option is to build their own in-house team of software developers. However, there is a faster, more scalable option. 

While building an in-house unit is sometimes the way to go, if you choose the right outsourced software development partner it should feel the same. Whether they are working in-house or as part of an outsourced team, all developers will share the same objective; to develop software that drives your business forward and allows you to achieve your objectives. 

With the increased popularity of remote working, engaging with outsourced software development partners has become even more popular. Below are some of the key reasons why more and more companies are choosing to work with a software outsourcing partner. 


  1. Access to a larger pool of talent

For companies looking to hire developers in the United States, the software engineering and software development market is incredibly competitive. Demand is at an all-time high and hiring highly-skilled workers can be extremely difficult and time consuming. By engaging with an outsourced software development partner, you bypass this issue and open up a whole new pool of talent from locations outside of the US.    


  1. The Ability to Scale Up and Down Resources

One of the main reasons that organizations engage with software outsourcing partners is the ability to scale up and down resources. Organizations often only need a bigger team for a short period of time. When a project finishes, and you’re left with a massive payroll, it can put a major strain on finances. When working with an outsourcing partner you don’t need to hire developers on a full-time basis. This removes a major headache for CTOs.

Note: It’s important to remember that outsourced software development teams can work alongside in-house teams. Companies can have a small group of permanent employees alongside a flexible outsourced software development team.  


  1. Gain Expert Domain Knowledge 

When building a software development team, organizations need to think about more than just technical skills. Companies also have to think about industry experience and domain expertise. Developers and engineers need to understand the industry that they are working in.

Great software development partners choose an industry and work solely in that industry. This might be banking or FinTech or MedTech for example. This allows their developers to gain a complete understanding of a certain industry. For scaling companies, this is hugely beneficial as market understanding is already baked-in. Developers with industry experience can help you decide what are the best features for your product, they can suggest a suitable tech stack and ask questions that you might not have even considered. 


  1. Focus on What Made You Successful in the First Place

All too often, fast-scaling companies lose sight of the very thing that made them successful in the first place. A much more sensible approach is to outsource the projects that you are less experienced in so you can focus on what you’re best at.


  1. Faster Time to Market 

The time it takes to get a product to market can make or break a business. Getting your product to market before your competitors can provide a huge competitive advantage. However, when you are building an in-house team from scratch, a lot of time can be wasted on hiring, and then training, new recruits. With an outsourced software development team, businesses can scale up resources quickly and effectively. This allows them to focus on getting their product to market as fast as possible. 

Image by Pressfoto 


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