Is outsourcing software development services right for your business?
If you are a startup of an established IT Company, you might be wondering if you should outsource certain tasks that your in-house team is not able to handle. Indeed, IT outsourcing can be a great tool to save time and optimize resources. According to reports:
- The IT Outsourcing market is set to amount to US$404,646M globally in 2020.
- More than 37% of small businesses outsourced a business process in 2019.
On the other hand, you have every right to be concerned. The problem is, if you choose to work with “affordable” IT providers, this may cause huge time and financial losses. Among the common causes of failures there could be:
- Substandard code
- Communication barriers
- Lack of tech knowledge
- Failure to understand project scope
- Culture clash
- No flexibility
Another big concern for an IT business is outsourcing its key competencies. If you hire a remote team, you might end up not developing the pool of your in-house technical skills, because the knowledge and the competencies stay with your remote provider.
In lots of cases, a little tweak in the mindset combined with streamlined procedures could help deal with those challenges. Instead of “outsourcing”, think “dedicated team”. This means that the provider’s team is deeply integrated into your business. In this case, the two teams are synced and start functioning as one. How exactly can you achieve this? The best practices might include:
- Continuous communication
- Code agreement
- Onboarding procedures
- Using efficient reporting techniques
All those tools help reduce time-to-market with optimized costs and resources.
The global experience shows that outsourcing IT services might be very efficient, especially in the time of crisis when every business is trying to reduce costs. But it’s going to work only if you choose the right partner.
