By Linh Nguyen Mai Khanh | February 8, 2017
In this fast-changing business environment, it is not easy to handle everything on your own perfectly within budget and time. Thankfully, many outsourcing agencies are out there to help. Outsourcing has become a useful business tool nowadays for companies of all shapes and sizes, especially for startup companies.
You may hear some argument that doing all the works on your own would be faster and easier, which begs you the question “Why do I need to outsource my project?”. But when it comes to something that is not your cup of tea and may cost you a large number of resources like software development, you can see the point.
There is a fact that 70% of companies all over the world are using IT-outsourcing and the future of in-house IT is looking bleak may also give you a consideration of outsourcing your software development. And if you still want to write down “pros and cons”, MobyteLab will provide you the top reasons you should add to the “pros” column.
Let’s be honest, the very first thought you’ve ever made when consider outsourcing your project is to lower costs. This is also listed as one of the chief reasons.
The cost when outsourcing is typically less than what it would cost to do the same work internally, which means you have to build a system of fixed assets including technical equipment, software, working space as well as hiring staffs and paying for their salaries, income taxes, health insurances, etc. Outsourcing agencies have those things available, and not to be said, much more professional.
Once free up internal resources that could be put to more effective use, you can reduce product cost and enhance your competitiveness in the market.
In fact, the majority of doing-outsource companies have been able to cut down 20-30% of the software development cost.
“Companies need to keep their eyes on the prize, which means focusing on the business, not on the technology that runs the business.” – said Brian Honigman, CenturyLink.
If you do all of your software developments internally, you have to handle a bunch of different technical priorities. Outsource means to delegate you-know-they-will-do-better-than-you work, which in this case is software development, to your outsourcing agency. Washing your hands off functions that are difficult to manage will release valuable time and resources, which let you mainly focus on your core functions instead of troubleshooting software and user issues. This advantage allows you to be more efficient in your work.
In the situation of the tough market nowadays, your business faces risks with every action it takes. For startup companies, every risk can beat you out. Outsourcing is the key to share the risk burden. You’re offloading some of these risks to your outsourcing agency and let them assume and manage for you, which allows your company to be more agile, flexible and dynamic. Experienced software development agency also can help you avoid costly mistakes.
Having the advantage of human coordination is obviously a big strength of outsourcing agency. Your employees may have personal leave or resign, while you need to ensure workloads are not interrupted. Outsourcing agencies always have contingency choices for personnel issues to ensure that works are operated continuously and smoothly. Therefore, some of them can now offer longer and more flexible service hours, some even offer a 24/7 support.
If you have limited resources and experiences in software development, you may have difficulty meeting your business needs, as the world of technology changes rapidly.
However, processes that are not the core of your business, are core processes for outsourcing agencies. Therefore, they have the most likely ability to deliver the highest quality of service in this area. The agency will provide you higher levels of technology and resources that are not available internally, which helps you to expand your business.
In this competitive market, outsourcing agencies are continuously investing new technologies and improving quality in an effort to remain at the forefront. Reaping the benefits from this will help you up-to-date with the latest software technology and advanced processes.
Last but not least, you may not have enough budget to hire experts or skilled employees to devote in all areas of your business. By outsourcing to the right agency, you can have the right talents for where and when you need it. You can also save a lot of time and money from building a training system but still have experts who give you software development strategies right away.
If you’ve made a decision to jump right into this outsource thing, think carefully as reading tips to find out your best outsourcing agency below:
The first and most important tip is to carefully analyze your business requirement. The clearer you form on what services you intend to outsource, the easier you will connect with your most suitable outsourcing agency. For example, when it comes to software outsourcing, MobyteLab can be one of the best choices, but not for accounting outsourcing.
The main reason for you to outsource your project is minimum the costs. But you don’t necessarily have to go with the cheapest option. So among those proposals which suit your business requirements, the one comes at the most reasonable cost should then be selected. You also consider offshore locations with lower prices. Vietnam’s labor costs are 90% less than those in the U.S, which makes this place an attractive outsourcing destination.
Here are some of the most important points that you need to consider before you sign a contract with an outsourcing agency:
– They should be familiar with the type of task you are asking and have professional experience in the field. Especially in software outsourcing, they should be aware of the latest technology changing.
– They are able to make good communication and always let you know the progress of the project.
– Security and Confidentiality: you need to make sure that your project details are secure in the hands of your outsourcing agency.
– Good time commitment: it is critical to ensure that your outsourcing agency is capable enough to meet the deadlines with the desired quality.
If you still have any doubts, it is time to check references. Contact friends or customers who have ever been working with your outsourcing agency for several years. Taking time to hear their references can give you first-hand information about whether the relationship between you and the selected outsourcing agency will work.
However, don’t stop there – do your own research as well!
In fact, many Japanese and US companies have chosen developing countries such as Vietnam or India as locations for outsourced software development. These fresh and dynamic markets will surprise you with endless abilities as well as promising growth in the outsourcing market.
There are many reasons depending on your vision and purpose for your decision of choosing to outsource your project or not. But it is undeniable that in an increasingly competitive market, many companies have found outsourcing a beneficial technique and been successful. If done well, outsourcing not only helps to reduce costs, but also add flexibility to the technology teams, and that’s one way to grow intelligently.