top of page
  • Writer's pictureZeddBytes

Why You Should Outsource Software Development in 2024

Many companies nowadays are turning to outsourcing their software development projects instead of hiring engineers in-house.


According to Statista, the global IT outsourcing market is anticipated to reach $504.9 billion by 2024, reflecting the heavy reliance on outsourcing for business functions:


Chart showing IT outsourcing revenue globally from 2016 to 2025

There are several reasons behind this shift. Access to global talent, cost efficiencies and scalability needs are contributing to this trend.


What is Outsourcing in Software Development?

Picture this: You have a great idea for a new internal company project, and you're quite excited to execute it.


Obviously, you would need software engineers, project managers and UI designers to work on it. You now post job listings on platforms like LinkedIn and Indeed, sift through hundreds of resumes and conduct multiple rounds of interviews.


After weeks of efforts, you've finally onboarded your new team. You also have to train them about your company's processes and guidelines


This entire scenario is inherently time-consuming and quite complex. Now, consider outsourcing as an alternative.


In software development, outsourcing means that you hire an external agency or team and assign specific tasks or projects to them.


Instead of going through the complexities of the hiring journey, outsourcing lets you assemble a team of seasoned professionals who can begin work immediately.


It's similar to bypassing the hiring procedure and diving straight into your project with a team that is already well-versed and has experience working with multiple companies like yourself.


Benefits of Outsourcing Software Development

1. Cost Efficiency

Outsourcing not only fuels innovation but also helps you achieve considerable cost savings. Deloitte's 2022 Global Outsourcing report highlights that businesses can attain up to a 60% reduction in costs by outsourcing their IT projects.


This statistic underscores the economic benefits that outsourcing brings, making it an appealing option for corporations looking for efficiency without compromising on quality.


2. Access to Global Talent Pool:

Another key advantage of outsourcing is how it brings access to a diverse and skilled pool of global expertise. Statista reports that the global labor outsourcing market is poised to grow to $397.6 billion by 2024, indicating a heavy reliance on outsourcing for various business activities. This growing market allows companies to utilize specialized skills and expertise for their software projects.


3. Focus on Core Competencies:

Outsourcing allows you to pay attention to your core competencies by offloading non-core functions like software development. In this way, your in-house teams can focus on strategic initiatives like product strategy, marketing and sales, improving the overall business performance.


4. Faster Time-to-Market:

By utilizing your software partner's expertise, you can accelerate your time-to-market. External teams, which are equipped with the right skills, can swiftly execute tasks, expedite development cycles, and fix any hurdles like bugs and downtime.


Through this active collaboration, you can achieve faster and more efficient product delivery. This reduces the time required for product launch and gives you a solid edge over your competitors.


5. Risk Mitigation:

Outsourcing partners often have extensive experience in managing and mitigating risks with software projects. From adhering to industry standards to ensuring license compliance, outsourcing firms bring a wealth of experience to the table, reducing the risk of your project's failure significantly.


6. Greater Productivity:

Outsourcing lets you leverage the productivity of specialized teams without the need for constant supervision. According to a report by Harvard Business Review, outsourcing enhances productivity as teams are focused on specific tasks, resulting in quicker project completion and higher overall efficiency.


7. Access to Latest Technologies:

Outsourcing firms regularly make investments in the latest technologies like AI, cloud computing and DevOps tools to stay competitive. By partnering with them, you gain access to a rich ecosystem of advanced tools that you can implement in all aspects of your business.


8. Flexible Scalability Options:

Outsourcing brings flexibility to your team. You can easily make adjustments in your team size and reduce the members whenever the project requires less members. Unlike hiring in-house, where downsizing permanent staff is difficult, outsourcing allows you to make adjustments whenever needed.


This adaptability helps you manage costs efficiently, ensuring your team aligns with project demands without worrying about the contractual obligations you'd otherwise have with permanent staff.


How to Choose a Software Development Partner


Stock image showing a man and a woman working

1. Define Your Requirements:

Clearly outline your project requirements, goals, and expectations. Understand the specific features, functionalities, and technologies needed. This clarity will help you find a partner with the right expertise.


2. Evaluate Expertise and Experience:

Assess the software development partner's expertise and experience in your industry and with similar projects. Look for a proven track record of successful implementations and a skilled team with the necessary technical proficiency.


3. Review Testimonials and Case Studies:

Explore client testimonials and case studies to gauge the partner's reputation and performance. Insights from past clients provide valuable perspectives on the partner's reliability, communication, and ability to deliver quality results.


4. Communication and Collaboration:

Evaluate the partner's communication style and collaboration approach. Choose a partner that values transparent and open communication, aligning with your project management preferences. A collaborative mindset ensures a smooth and efficient development process.


Welcome to ZeddBytes

At ZeddBytes, we bring a blend of expertise and experience to the forefront. Our seasoned engineers from NYU and with hands-on experience at companies like Uber, Careem, and Bayzat, form the backbone of our technical strength.


We would love to get started and add value to your business. Reach out to us below with your idea:



Comments


bottom of page