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Outsourcing is the new norm. When outsourcing work, a company hires an external party to do a specific type of work for them that could have also been completed by its own staff. However, when hiring their own employees, companies must invest time and incur significant costs for recruitment, salary, insurance and other benefits. If on the other hand a company recruits an existing company with the required expertise, they will be able to save both time and money. This, in turn, creates economies of scale and ensures that latest technologies arrive and stay in the company.
The Information Services Group has estimated the annual global turnover from IT outsourcing at somewhere between 60 and 70 billion dollars. In this article, we want to tell you about the benefits of software outsourcing and how it can be the key to revolutionizing your business.
Organizations today need to be agile and continuously embracing the new technologies in order to remain successful. However, no company can expect their employees to have expertise in every technology that is out there. In addition, hiring more of your own employees means becoming more dependent on a limited pool of local talent. However, with outsourcing, companies gain unrestricted access to highly specialized workers around the world, thus making their talent pool bigger and more qualified. Everything, from prototyping to development and testing and project management, is taken care of by the outsourcing team, often with minimal training or guidance due to the existing expertise of the workers. This results in the reduction of skill gaps and a bigger access to top talent and top technologies, along with the competitive advantage for your company.
Nowadays, your company can only survive if it adds some real value to the existing market. This means that you always have to find different ways to innovate in order to stay ahead of the competition. By outsourcing processes that are not a part of the core business of your company, you increase and improve your focus on the core processes. Your employees can concentrate more on the strategic goals of your organization.
On average, companies can save 20-35% on their operating costs through outsourcing. Obviously, the wage difference plays an important role in this whole process. But let’s not also forget the economies of scale (savings through the increased productivity) and the reduced operational and recruitment costs, which make it even more interesting for a company to outsource their software processes than to keep them in-house.
How do you reduce risks? By spreading them out! Risks can be reduced by dividing activities among different teams. And since the company you outsource to is an expert in their field, they can better help you reduce risk.
Without outsourcing, peak demand necessitates hiring new employees or reallocating available internal resources to activities for which they are often not specialized. Both options result in lower efficiency and higher costs. With outsourcing you can hire a scalable team for the peak period only and without any obligations.
Now let's assume that your internal team doesn't specialize in IT, and you outsource work because you don't want them to spend too much time researching and testing a new technology. If you expect your internal staff to work with that new technology, the risk of security related errors increases, since your staff is not experienced with it. Software development teams that you outsource often have a very good idea about all sorts of security breaches, and they know how to prevent them or deal with them efficiently.
Every software needs regular maintenance and support. That is why you need a team to take care of the current bugs and changes, so you can focus on attracting and retaining customers. When outsourcing, you can often make very good arrangements about the availability of a support service.
Speed and adaptability of a company is extremely important in order to achieve and maintain competitive advantage. With outsourcing, you don't have to rely on your available internal staff for product launch, and you can significantly reduce time-to-market because your outsourcing partner has dedicated developers available.
FFWD has 20 years of experience in software development and provides IT-Outsourcing services through its offices in the Netherlands and Serbia. Our people are selected on the basis of their professional skills, but soft skills such as communication skills and work attitude also need to be on a high level before they can be included in our outsourcing team. Existing clients such as Citrus, Gateway and Vicert value us for our proactive attitude and the advantage of Dutch support.
We specialize in SilverStripe, React & React-native, Angular, Nwjs Development and Node.js. We have a lot of experience with booking systems, visitor registration, digital signage, community portals, touchscreen applications, mobile apps and web development.