As the competition in the software development industry gets tighter, businesses around the globe look for ways to scale. Thus, a viable solution for growing your company is outsourcing, which started around 1989. In like manner, numerous studies have found how this company strategy can deliver value to any client with detailed management between two parties.
So What Is Outsourcing and Why Is It Worth the Investment?
Outsourcing is a business practice wherein a company hands over job functions or operations to a third-party vendor. Also, outsourcing certain services or tasks outside the company could be on a contract or ongoing basis. Moreover, commonly outsourced operations include human resource management, marketing, sales, accounting and finance, customer support, administration, and information technology.
The main focus of this article will be on the IT industry and supporting facts about outsourcing for technological solutions. In fact, the IT outsourcing industry is a lot bigger and more beneficial than you think:
- Between 2020 and 2030, demand for software developers, testers, and QA specialists will increase by 22%. [U.S. Bureau of Labor Statistics]
- The estimated value of IT outsourcing in 2023 is $430 billion. [Statista]
- 45% of businesses stated cost reduction as the goal of outsourcing IT functions. [Fortunly]
Outsourcing, in its essence, is a fast and effective solution to cost cutting, heightened efficiency, improved agility and flexibility, and overall leveraging the skills and knowledge in your business supply chain.
The Rise of Software Development Outsourcing
Software development outsourcing is where companies delegate projects to a service provider. Moreover, according to a report by Statista, this is the most outsourced IT function worldwide.
Any company can trust outsourcing from planning, analysis, product design, development, and implementation to maintenance of software applications.
Software Development Outsourcing Will Grow 70% by 2023, Commit Study Finds
In this modernized world, tech companies work on elevating their digital tools and services toward digital transformation. Also, there are opportunities to grow one’s business outside the company whether it is a start-up, small-scale, or corporation. Even more, outsourcing the software development life cycle is in demand anywhere.
Research indicates the growth of outsourcing for software development by more than 70% from 2022 to 2023. Further, the survey was composed of 200 senior tech leaders working within the high-tech industry. As a result, this in-depth survey tackled how outsourcing took part in the future of successful tech development.
Growth of software development outsourcing
Source: Commit
Most importantly, the top tech services outsourced in 2021, according to Commit, are as follows:
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UI/UX (34%)
UI, or user interface, allows users to interact with or control a computer system, software, and applications. Also, UX, or user experience, encompasses the user’s overall journey with a product.
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Software Development (31%)
This involves designing, creating, testing, maintaining, and developing software applications.
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Quality Assurance (28%)
QA, or quality assurance, is a part of the quality management process where people determine whether a product or service meets specified requirements.
On the other hand, it would take over a month for companies to recruit developers. Thus, the result of outsourcing showcases immense growth, and opportunities keep coming toward hiring anywhere in the world. Subsequently, as more and more people prefer remote work rather than working in an actual office, outsourcing has become a solid solution, especially in the tech industry.
Furthermore, according to the survey, 99% of people believe remote teams are beneficial for a company to scale. For the same reasons, the benefits of remote teams include more productivity (53%), more cost savings (33%), and better cross-team collaboration (32%).
Top Benefits of Outsourcing Software Development
From here, we know that outsourcing can maintain a cost-effective approach and help tech companies to scale their businesses. Additionally, below are a few more advantages of software development outsourcing:
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Cutting-Edge Technologies
A company equipped with the most modern technology stack can add more storage, reduce network risks, and make the user experience more seamless. As such, resources from an outsourcing company can have in-depth knowledge of many technologies to keep up with the changing digital industry.
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Technological Experts
Sourcing top talents anywhere in the globe can fill in any skill gaps on the in-house team. Also, equipment maintenance can get expensive these days, but those wouldn’t be a need to worry anymore as outsourced talents already have the tools to work with. Not only this, but software development specialists can bring domain knowledge and promote a fast software development life cycle.
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Scalability
The problem comes along when there is a need to increase the employee count to work on a project. In a similar manner, a business can cut the hassle of recruitment and onboarding efforts through outsourcing. Moreover, software development outsourcing can become flexible as a company can adjust the team counts anytime.
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Software Support and Maintenance
Outsourcing the support and maintenance of your software development needs may free up the time of the in-house IT team. Also, clients can rely upon continuous monitoring and tracking of software application performance and efficiency.
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Top-Notch Quality
This also produces excellent product quality for short-term or long-based projects. Similarly, an outsourced software development team like RipeConcepts only provides the best-in-class outputs. Most importantly, RipeConcepts help build end-to-end software development solutions at a fraction of the cost with an existing fast turnaround time.
Other benefits of software development outsourcing are stated in the Commit survey.
Source: Commit
With the rapid advancement toward digital transformation, tech companies must keep up with the latest technology and skills to stay on the market. Thus, outsourcing a software development team can take the load off a company’s plate and concentrate more on core business functions.
Are you looking for the best-in-class technical talents? Connect with RipeConcepts through rc.connect@nagarro.com. Let our world-class experts help you with your software development needs.
Outsourcing , Software-development
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