Navin is an experienced finance and accounting (F&A) operations specialist with 20 years in the outsourcing industry. He has strategically led the development of several workflows, reconciliations, process re-engineering, operations management tools, and setting up greenfield operations like Payroll and Financial Research.
We live in the age of startups. Globally, more and more start-ups are being established every day. In a nutshell, the reasons are simple, high potential and unlimited possibilities. One way or another every startup delivers a unique selling proposition. However, there is significant pressure on startups to prove to the market and investors that they have a solution to real-world problems. As in this fast-changing and competitive world, businesses are expected to offer better solutions today than they did yesterday.
Digital entrepreneurs are drawn to the thought of bringing their business concepts to life through one sector that changed the way businesspeople purchase services: software development outsourcing. Because outsourcing providers already have all the necessary resources – people, processes, and equipment to complete the task, outsourcing speeds up movement and decision-making for startups. This helps the startups’ clients by increasing productivity and providing better service. By 2023, Statista estimates that the global market for IT outsourcing services will spend $519.3 billion, exhibiting a growing pattern that will be seen around the world. This sum covers the outsourcing of IT administration, IT applications, IT offshore software development, and IT infrastructure.
How outsourced software development is beneficial for startups?
The process of developing custom software is becoming easier and more accessible as we approach the year 2022. Below are 4 reasons why all startups should begin to outsource their software development in the new decade.
- A One-stop shop
Saving money and time are the ideal outcomes when choosing a one-stop provider for outsourced software development. Although far from best-of-breed, a one-stop-shop business model can help unleash limitless value throughout the entire project lifecycle by streamlining communication between the vendor and the client, having multiple processes in one location, and having access to a talented talent pool of developers with in-depth knowledge of various technology stacks. A one-stop software outsourcing firm offers a full range of product development services, including ideation sessions, strategy creation, UI/UX design, product development, and maintenance and support services, all under one roof.
- Lower operational costs
Taking into account the advantages of outsourcing software development. Startups would set aside funds for infrastructure development, training, hiring procedures, and even rent if having an in-house software developer was their plan. Up to 60% of your expenses can be reduced through outsourcing. The agreements with the external developers are short-term. Therefore, if you work with a team of in-house developers, you won’t be left hanging when the project is over. bringing about resource efficiency for you.
- Outsourcing software allows you to scale because it frees up your internal resources
Software development outsourcing frees up internal resources so that additional outside talent can be brought in to assist organizations to fill in the gaps and streamline operations. It permits the internal staff to concentrate on more important issues and delegate the remaining chores to experts. You may swiftly, flexibly, and dependably scale your software development team by collaborating with an outsourcing partner. You can scale your staff up or down without it having a detrimental impact on your brand.
- Access to Deep Knowledge, Skills, and Experience
When you come up with a new product idea, you create a business plan that includes solutions for each development stage. In this situation, you realize that there is a lack of resources, experience, and expertise in most or several aspects of building and launching a product. In addition, established businesses offer generous remuneration packages and there is a shortage of software developers. With outsourced product development, you gain access to all competencies in a cost- and time-effective manner. An outsourced product development team is the perfect choice for startups who want to build and launch their businesses quickly. Nowadays, software outsourcing companies can provide turn-key solutions that meet most of your project needs, specifics, and budget.
If outsourcing software development is a viable option, the choice to do so will be influenced by a variety of commercial and cultural considerations. And if you do decide to contract out software development, make sure you choose the correct partner.
Statistics demonstrate the growing trend among businesses to assign some tasks to outside vendors. For the majority of sectors, notably product development firms, it makes outsourcing custom software development a standard practice.
Outsourcing helps entrepreneurs speed up their time to market, which is essential for any firm. It also enables them to put ideas into reality. You can go out to seasoned professionals who can assist you in creating your product rather than investing your efforts in establishing your workforce.