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According to a Technavio report titled ‘IT Outsourcing Market 2018-22’, the global outsourcing market is expected to grow at a CAGR of 5.84% till 2019. Organizations across the world are showing a strong preference towards outsourcing vendors to develop and support their IT function.
According to Deloitte ‘Global Outsourcing Survey’ report, companies across the world are on the lookout for outsourcing to small and medium businesses, as a part of their executive strategy and are planning an increase of 31% for IT outsourcing. Though, the primary drivers of outsourced product development include cost benefits and ability to scale on demand, reasons to outsource is growing in number.
Here, we explore some of the top reasons why organizations prefer to outsource product development efforts to smaller agencies or startups with a good potential.
Ready Access to a Qualified and Experienced Resource Pool:
Organizations need a dedicated team of IT professionals, comprising developers, quality analysts, testers, and subject matter experts to come up with an ace product. This cannot be achieved with an under-staffed team. Building a project-specific team is a time-consuming and costly affair. Finding the right resources with the required skill sets is difficult. Therefore, hiring an outsourced product development company is the best option. An agency that already has all resources can start development faster than an in-house team.
Latest Tools and Technologies for Success:
Having access to the latest tools and technologies is one of the best advantages of hiring an agency for outsourced product development. Buying software packages that you do need on a regular basis, add up to operational cost, and are completely unnecessary.
You can have access to special tools and software for fast and accurate research, analysis and strategy, less repetitive activities, faster implementation, optimum ROI and faster achievement of business goals. What is even more surprising? All of these come with no extra cost. Almost all companies for outsourced product development have yearly subscription for these tools and will most likely not charge you for this.
Better Business Insights and Transparency:
Hiring a good, outsourced product development company gives you transparency. With adequate resources and systems to continuously review and fine tune the development strategy, you may expect improved ROI. Also, they maintain transparency on the client’s investments and channels where it is being deployed.
Faster Turnaround:
Smaller businesses work within tight schedules to ensure that work is done is right and on time. Armed with a ready team of experts on outsourced product development, they are known for speed and precision. You get to see the first cut sooner than a big shot executive would find time to document your project requirements. Faster and better delivery is the motto of most start ups and small companies, one of the main reasons there is an increased demand for outsourced product development.
Simplified Project Management:
Working with a large corporate house comes with a stamp of quality, but brings with it, the burden of complex project management. Enterprises suffer largely because of this. Quite often projects are caught up the mesh of never-resolving issues and protocols. Outsourcing to start ups or smaller organizations gets your work done in less than half the time. Smaller product lifecycle, lesser management issues, and faster delivery models takes away your worries, and gets the work done on time.
Level the playing field:
Most small businesses cannot always afford to match the in-house support services that larger companies maintain. Outsourcing helps small companies have access to the technology, and expertise that large companies have. An independent third party takes care of managed cost structure and economy of scale promises of competitive advantage.
Increased Efficiency and Competitiveness:
It goes without saying that an external agency or a start up performs better than in-house resources. The focus, commitment, and dedication of an outsourced product development company are far more effective than large organizations. Quite often, projects are not given due importance and work suffers as a consequence. This is one of the main reasons why companies prefer start ups or small organizations for outsourced software development.
Reduced risks:
Most organizations run the risk of incurring huge losses from government regulations, financial conditions, and technological outages. Another major reason why companies prefer outsourcing partners for businesses is because they take care of security and compliance issues. Most outsourced product development companies have resources with the right knowledge of security and compliance and are better at decision making. Issues are resolved faster, as compared to large organizations which do not always respond to petty concerns and have a long checklist to maintain for every matter.
More Focus for your Core Business:
Outsourcing product development to a reliable IT vendor saves you time and energy, so that you focus on your core business. Enterprises today are opting for outsourcing non-core activities to third parties. You can now focus on other key areas of your business, without having to worry about product development.
More Cost-effective:
Last, but not least, cost is one of the most important reasons for you to outsource your software development efforts. If you want to have a well performing team, you need to find the right people with the right expertise. You have to set aside money for their salary, benefits, salary taxes and any additional expenses that come with bringing on a new employee. Also, you must miss out on the time and money it takes to recruit, hire, and train that individual or multiple new team members.
In contrast, hiring an agency takes away all the worries of recruiting, maintaining, or training a team. Also, you may negotiate and go for a better delivery model or make alterations when you want to. Organizations need the right outsourcing partner to develop a roadmap focusing on user story, epics, and high-level features and align their vision with technology.
Pixel Solutionz, one of the leading outsourced product development companies in India, has more 200 successful projects to its credit, across 13+counties. The company helps start ups and enterprises design and develop software resources, software expertise for design, development, and testing of software applications.
Counted among the most preferred outsourced product development companies in India, Pixel Solutionz’s experienced consultants will guide you through the entire path of crucial software development decisions, destined to find the best solution for your business.
They have built multiple business-critical and consumer-facing applications leveraging various technologies such as Grails, Node.js, AngularJS, Java, Drupal, iOS and multiple others in an offshore delivery model. A good number of global brands have chosen Pixel Solutions as their outsourcing partner for product development.
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