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It can be challenging to recruit needed talent directly into your company. Outsourcing allows you to access such talented engineers easily and get them on your project. For instance, with a company like YouDigital, you gain access to a pool of well-trained engineers that can deliver top-notch execution for your projects.
Outsourcing allows you to scale up and scale down as necessary. This means you only have to engage third-party software development teams when needed and on a project-by-project basis. As opposed to permanent employment, you do not have to pay these teams all year round, even when you might not require their services as much.
A primary motivation for most companies to outsource is lower overhead spending. With outsourcing, you do not have to spend on salaries and other employee costs for a large in-house team. Instead, you can simply outsource to third-party teams at competitive rates. YouDigital, for instance, reduces software development costs by 30-50%.
Given that many software development projects involve handling confidential customer information, outsourcing may increase the risk of leaks for your business.
Low-quality standards are an inherent risk when outsourcing software development to external agencies. This is because you do not have direct control over the training standards of engineers. Similarly, it is challenging to manage an outsourced project directly.
An external software development might not be very proficient in English, severely impacting communication. Similarly, time zone differences could constitute an issue, particularly with respect to remote teams.
This involves setting out the functions of the software development team and setting timelines. While this might seem like the least activity to be outsourced, there might be some merit to outsourcing planning. Large companies often engage third-party vendors to handle aspects of software development planning.
Requirements refer to the description of what a software product does and how it connects with the needs of relevant stakeholders. This is another stage of software development that can be outsourced to an external specialist.
Often, an in-house IT team might not have the necessary creative professionals to handle the design and prototyping of the software properly. In such scenarios, outsourcing to a digital design agency with the required skill set could be a great option.
This refers to the actual software programming aspect of a project. As explained in this article, there are many reasons to outsource software development. These include cost efficiency and lack of expertise or capacity.
Testing is often viewed as a source of delay during software development projects. The in-house team can carry out testing while software development is outsourced. However, this could lead to communication hitches, causing further delay. As such, where the outsourcing engagement is large enough, testing could also be outsourced to the vendor.
This refers to how the code progresses from testing to production. When outsourcing software development, creating a continuous delivery pipeline might be necessary to reduce organisational risk.
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As businesses seek to expand their operations, the need to scale software development and cut costs will become even more prominent.
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