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Top 5 Benefits Of Hiring A Software Development Company

Is custom software development on your mind to extend your business reach or optimize business operations? Are you in dilemma whether to develop a software product in-house or invest in a custom software development company? In the accelerating digital economy where competitors are vying to win customers, there is no room for any fatal error, and the learning curve to avoid getting the development wrong is very short. Therefore, it makes sense for a number of reasons to outsource the expertise, skills, and experience to run your software development project and achieve digital transformation and growth that you’re seeking at minimal risk on your end.

This blog aims to discuss why software development outsourcing is important and the top 5 benefits of outsourcing software development companies for your next custom software project.

Software Development Outsourcing is The New Normal

US Tech Market Outlook 2021 by Forrester, says that software spending will go strong even in the uncertainty, with growth accelerating to 10% in 2021 and expecting an increase to 11% in 2022.

Apart from the pandemic’s tough year, the business world is keeping its dynamism awake to come up with more technological innovations at an unprecedented pace.

In the post COVID world, most businesses are relying on software to pivot quickly and navigate their market challenges. They are more inclined towards outsourcing software development to shape the future and bring innovation faster. Another important reason for outsourcing is a significant reduction in operational costs. 

Setting up an in-house department can be rather expensive and for you, it might even be inefficient due to high overhead rates that are only going to increase with an employee’s experience and expertise. On top of that, there is a slew of extra investments that come with upgrading development tools, getting licenses, hiring specialists, and the list goes on.

Related: Leveraging Custom Software Development in a Changed World  

Getting the Requirements Right When Hiring a Software Development Company

While hiring a partner for your custom software project, the very first step is to get the scope of the project right on the basis of informed, well-focused technical analysis of your requirements.    

This might seem pretty straightforward, but getting the requirements right is important to cover each and every aspect of the development, which is best taken care of by professional software developers. While having a detailed breakdown of your project requirement, these technical people ask questions on the basis of requirement analysis that you might not have thought of before.

Requirement gathering is the process of compiling a list of requirements which include functional, system, IT, etc. from all the key stakeholders (customers, users, IT staff) that will be used to define what exactly the project is. So, not investing your time in writing detailed requirements and making them clear to software architects and developers during project development will lead to project failure.

For example, XPO Logistics, an American freight transportation company, partnered up with Icreon to develop a robust software application that would help thousands of their internal employees, drivers, and technicians to get their job done quickly and efficiently. The organization was facing a lot of dependency on third-party platforms for key components in the supply chain. Icreon agency, with expertise in custom software development, did thorough research and analysis of what the product would look like and what would be required to deliver on it. Icreon team reached out to every core member of the supply chain team to identify bottlenecks in the existing system. By understanding the requirement correctly, the team started working on the blueprint for end-to-end integrated platform for the logistics supply chain. This way, the team helped the organization to cater to their needs by bringing   flexibility into their entire logistics function.

Top 5 Outsourcing Benefits Explained

Software development outsourcing has become a key competitive edge for organizations. According to the Mordor Intelligence forecasting, the global IT outsourcing market was worth USD 318.5 billion in 2020 and it is projected to reach USD 425.19 billion by 2026. 

With digital transformation happening across every industry sphere, companies are counting their success on implementing the right technology to power their customer experience through creative custom web, mobile & software applications that IT outsourcing. Let’s see what are the top benefits of outsourcing that make it the best choice over in-house development.

Cost Savings

In 2021, remote product development has picked up pace because of one big factor i.e., cost savings. Of course, pandemic affected businesses in many ways, but hit very hard, especially in financial terms. This made companies turn to outsource software development to reduce costs in terms of hiring, onboarding, retention programs and expanding their infrastructure for product development teams.

In fact, the Deloitte 2020 survey revealed that 70% companies prioritized cost reduction while finding the right software development company.

That equates cost reduction is no longer an ancillary benefit to objectives like gaining a competitive edge, launching products faster, agility, or improving user experience. Outsourcing has become one of the crucial benefits for organizations to get their software developed by an offshore company.

Team with Diverse Expertise and Skills

One primary reason why you choose hiring an agency for your software development project is exposure to global talent. A large pool of resources including designers, developers, project managers, QA experts, etc. with expertise in diverse skillset and technologies that cannot be found on-premises altogether. These developers have worked on multiple projects belonging to different industries and therefore have rich expertise to deal with any project.

Today, most outsourcing software development companies work on the latest technologies like AI, ML, IoT (Internet of Things), Cloud, Blockchain, etc. Thus, they understand your business use case and align technology which suits best to your requirement to drive innovation and impactful results.

Agility with Quality

Agile development methodology goes a long way to ensure great product quality. Outsourcing companies work in an agile software environment that promotes collaboration between businesses and cross-functional teams, providing efficiency and productivity in delivering quality results. With continuous iteration, there is consistent follow up bug fixing and improvement for each production. As a result, the final product meets the business needs of the client. Software companies that are CMMI Level 5 standard help establish a fail-safe process by following agile methodology to ensure that service level agreements (SLA) are met while delivering the final product. 

Efficient Project Management

A custom software development agency doesn’t just deliver application code for your project, but also collaborates with cross-functional team culture and manages tasks efficiently within the teams. Business analysts gather project requirements from the client, study them in detail, prepare suggestions, and then create a technical document that defines the scope of work. Your outsourcing partner organizes project meetings including all the team members to let everyone know what’s going on in the project at each development stage. Project managers also involve clients in the meetings to communicate project progress and how they are planning to meet the deadlines. With an agency like Icreon, you don’t need to appoint any CTO or a specialized project manager who looks after the development lifecycle. The agency will allocate a dedicated manager to your project who acts like a bridge between the client and the development team.

Trusted Backstage Partner 

Outsourcing company acts as a trusted business partner that offers IT support and maintenance services which allows you to focus on your core competencies. Software often requires patches upgrades and modifications to scale it further to balance the load. Sometimes, businesses run on complex legacy old architecture and needed an uplift to respond to the new needs. Choosing a digital innovation agency can help your organization to look after the real-time support & maintenance of systems, timely upgrades, and migration activities you needed. All these support procedures are carried out by ensuring the best measures for compliance management and cybersecurity. 

Summing Up

The need in today’s business environment is to embrace digital at any cost to thrive. But what if the cost can be significantly reduced while getting the incremental value in terms of achieving competitive advantage, flexibility to scale, and great user experience.  With software outsourcing, you can achieve all these benefits and more so that you can drive innovation faster and can focus on your core and vital business goals.

Choosing an outsourcing partner for your software needs is a prudent way to get high quality products for reduced costs and in a short period of time. Contact Icreon to get your software development done.

Questions?