Benefits of Outsourcing Software Development and Testing

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Software development outsourcing has been around for quite a while, with a list of successful examples worldwide. At this point, the numbers speak for themselves. Global information technology outsourcing revenue is projected to reach 430.5 billion US dollars in 2023, while the global revenue of business process outsourcing reached approximately 350 billion US dollars in the preceding year. Nearly 92% of IT companies from G2000 outsource IT services. 

Let’s take a closer look at the advantages of offshore software development services and find out why many companies prefer to hire an outsourcing software development company instead of using the skills of the in-house talent pool.   

Large companies that used outsourcing development

You may not believe it, but today’s extensive market players once started by outsourcing their software development to third parties. It was, and remains, a reasonable step for young startups to look for technology expertise elsewhere to save time and costs. 

Just to name a few companies:

  • For instance, Slack, which is one of the best samples of design outsourcing. 
  • Opera was built by a distributed development team from over 25 different locations.
  • MySQL was developed by a distributed team that continues to support its operation at the present time.
  • Skype used offshore software development services for the backend.
  • Alibaba outsourced their web design to a U.S.-based company.
  • At the very start, Whatsapp also went after custom web application development from a third party. 
App design

10 benefits of offshore software development services 

Many companies today hire JavaScript developers, backend specialists, software quality assurance, or any other dedicated development team via outsourcing. It has many advantages that do not come with hiring an in-house employee or a team of employees to do the job. You have access to a much larger talent pool of various technology experts from all over the world. You also get the opportunity to integrate more diversity and discover new concepts that can benefit your business.

1. cost efficiency

You can save up to 30% on operating costs by outsourcing your software development to an offshore outsourcing software development company. There’s a considerable difference in salaries, for example, if you hire devs from a Ukraine IT company. For example, you may cut by as much as twice your salary expenditures compared to outsourcing to a UK company. Additionally, finding online devs with the needed technical expertise for your project is generally a much faster process than interviewing local experts in-house. 

2. better security 

Companies specialized in custom web application development are good with security issues too. Software experts know about security features much more than an in-house marketing team. In brief, you’ll get better coverage against IT security breaches by outsourcing software development.  

3. huge talent pool and top-notch technology

Whether you’re looking for JavaScript development or quality assurance testing services for outsourcing, you’re getting access to a global talent pool. With outsourcing development, you can reach skilled experts and expand your company’s technical capabilities.  

Software developers

4. avoid micromanagement

You don’t have to deal with managing similar tasks. The Project Manager from the outsourcing team does it all for you. The project is coordinated by a PM who contacts the dedicated development team and handles all matters related to product development and launch.  

5. scalability

When it comes to custom software development, sometimes the scope of work can grow or shrink. It means that the initially-selected team for outsourcing has to scale up or down depending on the project needs. Contrarily, compared to in-house development, outsourcing makes your team highly scalable.

6. accommodate peak loads

With outsourcing, you can smartly re-distribute your available in-house resources in order to leverage peaking workloads without hiring. You just contract dedicated developers for a set period of time with absolutely no commitment.  

UX design prototypes

7. optimization 

Small teams of dedicated developers are usually the most productive and agile in the tech world.

8. improved risk management 

Distribution of tasks and operations between different tech vendors can enhance your risk management.  

9. quality guaranteed

By hiring a dedicated team, you can be sure that your JS developers have all the necessary skills to deliver a product on time that meets your requirements in terms of quality software development.

10. flexibility

Software outsourcing is all about great flexibility. You can boost your digital transformation and growth through innovative technologies and enhance risk mitigation and cost-effectiveness, consequently increasing your income.  

Outsource software developer

Get a competitive advantage by minimizing costs

Software development outsourcing gives businesses a competitive advantage by minimizing costs, ensuring product quality on a limited budget, and improving customer service. Contact ELITEX, the leading custom software outsourcing company in Ukraine, with JavaScript and React.js experts, to get your project set up for you.

You may also be interested in our article about hiring nearshore web developers for your startup.

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