Outsourcing is a well-established practice across plenty of elements of enterprise IT. Perhaps you outsource your technical support or incident response functions. Maybe you use a third party for handling the IT related to finance and accounting.
But what about your software development?
There are myriad reasons why outsourcing the development of your business software – whether onshore, nearshore or offshore – can bring powerful benefits to your business.
Software development cycles can involve large teams of highly-skilled experts. Recruit and retain those in-house, and whilst you have immediate access to a great deal of dedicated expertise, you have also drastically increased your wage bill – for the long-term. Outsourcing software development can still grant you access to a team of experts, but because you pay only for the projects as required, this is far more flexible. Depending on where your outsourced development function is based, labour may also be more cost-effective in itself.
An in-house software development team can be fantastic if you have a constant stream of high-profile projects – and the workload for these remains fairly consistent and predictable throughout the year. The trouble is, most organisations’ software needs are not this predictable. You might have one or two short-term, simple projects, then a gap, then a major piece of work which requires an entire team. You might oscillate between projects which are not particularly time-sensitive, and then a critical piece of work which needs to be completed by yesterday.
These fluctuations are not well-served by an exclusively in-house development function; either you are scrabbling to keep an expert team busy, or you are scrabbling to hire contact resources to top up the team.
Skills and experience
Any decent provider of outsourced software development should be able to offer a broader array of skills, qualifications and experience than a small or medium sized enterprise can support in-house. In short, outsourcing your software development gives you access to resource that would be otherwise out of reach – via a highly flexible model. This can give you the edge on competitors, especially if you look for a provider with an established track record in your space.
Major software development projects undertaken in-house can be devastating if they fail to deliver. You’ve allocated a huge amount of internal time and money to a project which simply hasn’t delivered the returns you need.
Outsourcing software development not only improves the chances of success in the first place, because you are able to be highly discerning in terms of the expertise and experience you select; it also enables you to set service level agreements and key milestones for delivery in a client/supplier framework. This gives you added protection in the case of a piece of software not being able to achieve what you need it to.
Time to market can be the difference between business success and failure when it comes to deploying new software and new functionality. With an outsourced development function you can set stricter parameters for deliver and rapidly scale the resource up if time pressures increase.
Ultimately, outsourcing your software development can be a powerful factor in achieving digital transformation. Contact Adept4 today to find out more.