How Outsourcing Software Development Team Helps you Save Costs
The Global pandemic affected businesses radically in terms of sales and revenue leaving cost reduction and optimisation at the forefront of what needs to be prioritised. A recent survey conducted by Deloitte in 2020 revealed that 70% of companies are motivated by cost reduction when outsourcing their software development partner over other crucial factors like improved user experience, flexibility to scale, competitive edge, and faster launching.
Outsourcing is a complex and vast system and companies do it in very different ways. We are going to look together in what aspects do businesses save money by choosing to outsource instead of hiring in-house team members.
Various Ways to Outsource Software Development
a. Software Development Outsourcing
This approach is used by companies, and startups who want to avoid the hassle of spending time hiring team members and setting up new departments. Think of this as hiring your technology partner company, which will not only be limited to developing your product but also to deep dive into doing the necessary research for your product development.
We at One World Coders, an offshore software development company use this approach to work with our clients in a way that when we start working together you feel like you don’t only have a technology partner company but also a tech-cofounder who will take care of all your product development queries.
How does this approach help businesses save costs?
Whether it’s startups, big companies, or SMEs, adopting this approach will help them save costs in the following ways.
Less Infrastructure: You’ll save costs that would have been spent on building infrastructure for your product development team
Structured Software Development Company: All you need is to find a reputable and well-structured software company and get offers from them and they will let you know what to do next.
Save time and focus on what matters most: They say “time is money” and if you agree with this phrase then everything will be super clear. This approach will give you time to focus on things that are really important to your business such as improving customer experience or realizing other business goals.
b.Hiring Single or Multiple Developers
The second common approach that companies use is hiring single or multiple developers that work remotely from known outsourcing companies. This practice gives businesses an opportunity to hire from a global talent pool of developers across the world.
Companies that use this methodology start by hiring single or multiple developers and as the company grows they can end up building a complete product development team from one outsourcing software development company. Another great advantage of this practice is that it gives companies an opportunity to hire in many different countries, let's say India, the Philippines, Ukraine, or some African countries like Rwanda, Kenya, Nigeria, and Uganda, or from South American countries. And due to the time difference between these geographic locations, those companies have a competitive advantage of having employees who work on their products almost 24/7.
How does this approach help businesses save costs?
There is a cost-saving for companies who use this approach in many different ways. A company that hires developers from Africa for instance Rwanda enjoys a cheaper cost per as compared to companies who hire from Ukraine, Poland, or India.
c. Building a dedicated tech team.
Another strategy that companies use is hiring a complete set of the product development team from a known IT Outsourcing company.
This approach involves hiring all positions that your company needs from Frontend, Backend, Fullstack developers, to Graphic Designers, and UI/UX. All these positions from one IT outsourcing company. Building a dedicated team this way will make it sound like an in-house team only that they will be based in an offshore location.
How does this approach help businesses save costs?
Partnering with an offshore Software development company to build your dedicated team will give your business an advantage in the following ways:
You’ll only need to hire a project manager to work closely with your dedicated team working remotely.
You’ll benefit from the offshore software development company in managing your product development team to ensure that they’re delivering so that the contract will be renewed for more years to come.
You will save money that you would have used to set up office space and other resources that employees need to perform better
You’ll benefit from working with experts who are dedicated to your product while sitting in a remote office.
Other Various Factors that Help Companies Save Costs While Outsourcing
1.Easier Scalability
Growing a software development team can be difficult especially if you’re located in a location that has a limited talent pool of developers to choose from. Plus, also hiring in-house developers can take forever and also cost you a lot of resources during the hiring and onboarding process. Therefore, outsourcing a product team from a structured IT Software Outsourcing Company, not only gives you a chance to easily scale the team up but also to scale it down when necessary.
2. Save Costs on Training
One of the best advantages of outsourcing remote developers is that you’ll not need to spend money training them on how to work on your project or using certain technologies that your companies use. Remote workers are more dynamic and always help themselves to find the right resources they can use to onboard themselves. In this way, you’ll save costs that would have been spent on training in-house workers during the onboarding process.
3. Affordable Wages.
The hourly wages of developers in Rwanda or any other African countries are away cheaper than those from European countries such as Poland, or Ukraine, or Asian countries like India, and Philippines. So hiring a structured IT Software Company from Rwanda to work on your product would save you costs as compared to doing the same in India or Europe.
4. Rapid Launch
As you would probably guess, the time you would spend on hiring and building an in-house product team would be saved but instead, the outsourced company would jump in fast and start working on your product hence faster launch of your product to market. The faster you launch the more chances you have to acquire your first customers or early users of your product.
5. Less Infrastructure is Needed
One of the challenges startups face is infrastructure expansion when the team is growing. If the team is growing more infrastructure is needed which costs a startup business a fortune. However, if you outsource a Software Development Company, you can save all of these costs and invest them in other areas of your company that need a boost.
What is Next? — Hire One World Coders for your Next Outsourcing Project
At One World Coders, we have been developing software across both geographical and cultural borders. With that, we pride ourselves as a team of world-class programmers and cross-cultural experts that operate in multi-cultural environments. We have a great team of developers that you could hire to develop your product. You can hire single developers or a complete team to support your existing in-house product development team. We help you save costs on product development and also keep everything confidential while respecting and observing GDPR laws.