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Sometimes, it makes sense to outsource software development services depending on the scope of the project and size of the company. Outsourcing software development means seeking the help of an outside software development company to assist with any number of tasks, including the creation of a new product, complete an existing project, or assist with a specific task within a software project. Outsourcing software services could also be used to perform an IT infrastructure audit as well.

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Why Companies Outsource

Through software outsourcing, companies are able to focus their attention on their core business operation.

There are a lot of benefits to outsourcing software development projects. Through software outsourcing, companies are able to focus their attention on their core business operation. Through outsourcing, companies will be able to improve their ability to streamline business processes without worrying about overwhelming their in-house employees with tasks that do not meet their skill level.

Outsourcing reduces costs.

Outsourcing certain aspects of a software project or even entire projects can drastically reduce costs. Hackernoon says “companies can save 30% on operating costs by outsourcing their software development.” In addition to saving money on project costs, companies will see savings “in the form of employee salary and benefits.”

Outsourcing software development services allows access to a large, global talent pool.

Make no mistake; even though software outsourcing is cost effective, that does not mean you get lower quality engineers. It’s quite the opposite. With software outsourcing, you will have access to a skilled talent pool all over the world. This access allows a company to expand their technical capabilities.

Why Companies Outsource to Foreign Countries

A company looking for software development services may outsource to a software development Austin or they may decide to outsource their software development needs to a developer in another country. Like all things, there are pros and cons to outsourcing to a foreign contractor.

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Outsourcing to a software development team in a developing country is relatively inexpensive. Full Scale says, “a software developer in the U.S. requires an average salary of $69,083 per year. A software developer in India doing the same type of work would require an average salary of Rs 390.970 ($5,427.12) per year, while a developer in the Philippines will require an average of PHP 367,066 ($6,789.89) per year.” By hiring foreign contractors, you can save a ridiculous amount of money and with the savings reinvest in areas that your business needs.

When considering whether to outsource your software project, you want to make sure you understand the trends in IT outsourcing. Remember, general IT services are always in high demand because, in IT, there will always be common issues like troubleshooting, and fixing bugs. A few trends in software development outsourcing include:

  • The rapid increase of demand for outsourced IT services
  • Latin America is quickly becoming an outsourcing hotspot.
  • Customers expect high-quality and low costs.
  • Outsource software service providers are increasingly being viewed as invested partners, as they should be.
  • Companies look for specialists when seeking outsource service providers.
  • There’s a growing demand in outsourcing for the internet of things and blockchain.

If you didn’t already gather, low costs are the driving force behind the continued growth in outsourcing software development services. Why wouldn’t you want to gradually reduce your project budget without sacrificing quality? More companies turn to outsourcing each year because it’s an excellent way to help take the load off of in-house staff so that the team can focus on running the business and other completing other vital projects.

Whether you decide to outsource your software development project to a company in Austin, Chicago, or Ukraine make sure you research the company well and ensure that they have the capabilities to provide the services you need.

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Written by Saddy is a content writer at 10Twick and a sales and Public Relations (PR nerd), obsessed with research, sleeping in as much as possible, and listening to podcasts. When I am not at home with my fam I enjoy long walks through the beautiful city of Jerusalem.