Top Reasons to Outsource Software Services

Top Reasons to Outsource Software Services

Software services outsourcing is a vibrant global industry with annual revenues of almost USD 100 billion. The growing sophistication of outsourcing companies and their increased flexibility to provide services to any client has contributed to the growth of the industry.

Software outsourcing has many benefits for businesses. It helps them save costs, enables shorter time-to-market cycles, and provides access to cutting-edge development expertise. In this article, we look at some of the top reasons why outsourcing is helping businesses.

Cost reduction

Cost reduction is one of the most important reasons why companies outsource. Outsourcing to countries like Pakistan, India, or the Philippines where the skilled worker is 2-3 times cheaper helps to save money. It is much cheaper than onshore outsourcing because in onshore outsourcing the cost doubles as the employee work on-site. By outsourcing, companies save on resources since they don’t have to provide technology solutions or IT infrastructure. Additionally, companies are no longer committed to investing in employee training, purchasing expensive software, or investing in the latest technologies. This helps to yield higher returns in the longer run.

Fair Competition

Researchers have found that small firms and new startups gain more from outsourcing than large corporations. Outsourcing helps companies deliver quality software through well-defined service-level agreements. It allows quick scale-ups and scale-downs, and also offers the facility of on-demand services like SaaS. This enables startups to provide quality service within a reasonable time.

Skilled Expertise

Most businesses outsource to utilize the services of skilled technical experts which they lack or can’t find in the resource pool. Some companies require skilled expertise for a limited time and are not looking for a long-term commitment. These skilled technical experts ensure the quality of work is completed on time. Having an outsource partner with skills in multiple areas broadens the skills availability of an organization, and enables an organization to quickly utilize skilled experts without worrying about the hiring process or laborious tasks of finding a skilled expert.

Reduces Risks

A business investment carries a certain amount of risk which includes market competition, government regulations, financial conditions, and technologies. Outsourcing enables businesses to share and minimize associated risks with the offshore partner which helps to reduce the burden. A task performed by an inexperienced staff is not worth the risk when it can be outsourced to a competent outsourcing partner who has expert staff to complete the task efficiently.

24/7 Support

Companies can increase overall support for their product by providing 24/7 support. They can share work with their outsourcing partner. The time difference between the USA and Asian countries is almost 12 hours. When it is morning in the USA, it is nighttime in Asia. When office hours are about to end in the USA, work can be transferred to the Asian partner to continue with the task. Similarly, the Asian partner can transfer the work back to the USA client when their office hours are about to end. This will ensure continuous workflow and also save money as companies won’t have to pay overtime money to employees. Companies end up paying less because of cost reduction benefits when the work is outsourced to other countries.

Improve Core Areas

This is one of the biggest benefits of outsourcing. Many companies, especially software startups, try to complete tasks themselves. By doing this, they spend a lot of time and money. If work is shared with an outsourcing partner, companies will have enough time to focus on other important business areas like sales. They can also manage team management issues as the offshore partner will be managing the working team. This will also help companies manage and support other key issues besides being worried about project completion.

Software Services outsourcing has many benefits if utilized properly. It is important to outsource to a reputed partner that can complete the projects on time to reap the benefits of outsourcing.