5 Reasons Why To Outsource Software Development

What really is software development outsourcing?

Software development outsourcing is a strategic model in which companies delegate their software development tasks to external specialists or agencies.

This model allows companies to leverage global talent and advanced technologies without the overhead of expanding their internal teams.

This approach allows companies to focus on their core business functions while leaving the technical challenges to experienced professionals.

The process typically involves partnering with a software company that provides a dedicated team that acts as an extension of the client’s own staff, but operates from a different location.

For example, a company might partner with a software house to develop a personalized recommendation engine for its online retail platform.

This dedicated team would handle everything from initial software design to ongoing maintenance, allowing the retailer to focus on refining its product offerings, marketing strategies, and customer service.

This collaborative model is particularly beneficial because it combines the client’s deep understanding of their market dynamics with the remote developers‘ technical expertise, resulting in customized solutions that enhance the user experience and drive competitive advantage.

Five reasons to outsource your custom software development project

Outsourcing is most often associated with cost reduction.

While that’s a valid reason, working with a custom software development company offers a much broader range of benefits.

From accelerating time-to-market to leveraging top IT talent to develop cutting-edge solutions, here are five compelling reasons why companies choose to outsource software development, each of which plays a critical role in allowing companies to focus on core competencies and scale effectively in the global digital landscape.

Lowered software development costs

As we’ve already mentioned, one of the primary and most obvious benefits of outsourcing software development is cost reduction.

When companies undertake custom software development projects, they often look to countries such as Poland, where the rates for skilled developers are significantly lower than in countries such as the United States or Western Europe.

By hiring developers from regions with lower labor costs, companies can manage their budgets more efficiently, allowing them to allocate resources to other critical aspects of their business, such as research and development, marketing, and customer service.

There’s an important factor to consider here.

Lower rates do not necessarily mean lower quality work.

In fact, custom software development companies bring a high level of expertise and specialization that can enhance the quality of the final product.

Custom software development companies like Stratoflow are committed to delivering high-performance software solutions that are not only cost-effective, but also meet high standards of quality and innovation.

Stratoflow is known for its high-performance, scalable software solutions that efficiently handle large-scale tasks such as processing billions of financial transactions or managing hundreds of millions of travel requests daily.

Taking the concept of cost optimization in software development even further, platforms like Openkoda are revolutionizing the efficiency of custom software development by reducing development time and costs by nearly 60%.

What is Openkoda?

It is an open source software development platform that offers a variety of benefits that contribute to the cost and time efficiency of the custom software development process.

This efficiency is achieved through a suite of pre-built templates and AI-powered tools that accelerate development and reduce the need for extensive coding, thereby lowering labor costs.

Openkoda‘s flexible framework allows for extensive customization and seamless integration to meet specific business needs without the usual constraints of vendor lock-in.

In addition, the platform ensures that applications are scalable, secure, and adhere to enterprise-grade standards, which is critical for companies in industries such as finance, travel, and e-commerce.

By maintaining full ownership of their code, companies can deploy their applications across various environments, ensuring adaptability and control over their software solutions.

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Access to expertise and technical knowledge

A second significant benefit of outsourcing software development and working with outsourcing companies is the access to expertise and specialized technical knowledge.

Custom software development companies bring a wealth of experience in creating high-performance and scalable software solutions that are critical in today’s digital marketplace.

Companies like Stratoflow often have a deep understanding of specific industries, such as travel, e-commerce, or insurance, making them invaluable partners for companies operating in these fields.

By partnering with an outsourcing company with industry-specific expertise, organizations can leverage targeted insights and proven methodologies to improve the efficiency and effectiveness of their software solutions.

This industry-specific expertise and knowledge not only accelerates the development process, but also ensures that the software is robust, secure, and tailored to meet the unique challenges and compliance requirements of the industry.

At Stratoflow, we pride ourselves on being a reputable software development company known for our ability to develop world-class, high-performance software solutions.

Our approach integrates sophisticated development practices with a deep understanding of industry nuances, enhancing project outcomes through technical excellence and strategic insight.

Greater scalability and adaptability

A third key benefit of outsourcing software development is scalability – the ability to adjust the size of the development team as project requirements fluctuate.

By partnering with a software house and hiring dedicated developers, organizations can dynamically scale their development teams to meet project needs without the overhead of permanent hires.

This flexibility is especially valuable in environments with variable workloads or when scaling up for large projects.

Dedicated full-stack developers from a software house like Stratoflow can be quickly integrated into your in-house development team to accelerate development processes, or strategically expanded to include specialized skills not available in-house.

Outsourcing software development projects is a practical solution for companies looking to expand their development capacity flexibly and efficiently, ensuring that they can respond quickly to market changes or project requirements without the burden of fixed labor costs.

[Read also: How to Find App Developers Near Me in 2024? Comprehensive Guide]

Faster Time-to-Market

Another compelling reason why companies outsource software development is the ability to achieve faster time to market.

This approach allows companies to accelerate the development cycle by having access to a ready pool of expert developers who can jump right into projects without the delays associated with hiring and training new employees.

This is especially beneficial in a competitive market where the speed at which a product reaches consumers can significantly impact its market success.

Outsourcing eliminates many of the typical bottlenecks in software development, such as lengthy hiring processes and ramp-up times for new employees.

Instead, companies can focus on rapid prototyping, iterative development, and faster stakeholder feedback cycles facilitated by experienced developers accustomed to agile and efficient project delivery.

Platforms like Openkoda are particularly valuable in this context.

Openkoda enables organizations to rapidly develop minimum viable products (MVPs) of software products by providing pre-built application templates and customizable solutions that can drastically reduce development time.

With features such as AI-driven customization and a robust set of out-of-the-box functionalities for various business needs, Openkoda helps companies not only get their products to market faster, but also ensure that they are scalable and tailored to the needs of the market.

This rapid development capability makes Openkoda an ideal tool for companies looking to innovate swiftly and efficiently, maintaining a competitive edge in fast-paced markets.

Focus on core business

The final notable benefit of outsourcing software development is the ability of companies to focus on their core competencies and strategic decisions.

By delegating software development to external professionals, companies can reallocate their internal resources to activities that drive their primary business objectives.

This focus is critical for companies seeking to innovate and gain market share, as it allows them to devote more attention and resources to developing unique value propositions and improving customer experiences.

Outsourcing turns software development into an operational expense rather than a capital expenditure, with a professional team responsible for technical execution.

As a result, key company personnel can focus on strategic growth areas such as market expansion strategies, customer relationship management, and product innovation without being distracted by the complexities of software development.

[Read also: Outsourcing Software Development for Startups: Complete Guide]

Outsourcing software development statistics

The value of outsourcing software development is nothing new to many enterprises and startups worldwide, and it’s reflected in the rapid growth of the global IT outsourcing market.

To drive home the argument for outsourcing software development, let’s look at some key market statistics:

• The global IT outsourcing market is projected to reach $512.50 billion in 2024.
• The average Spend per Employee in the IT Outsourcing market is projected to reach $146.10 in 2024.
• The year-over-year growth rate for the market between 2021 and 2024 is estimated at around 3 to 5%.
• According to a 2020 study by Deloitte, 70% of companies who choose to outsource their software development projects, do so to save money.

[Read also: How to Hire Offshore Developers in 2024: Tips & Trends]

Conclusion

Outsourcing software development offers distinct advantages that can significantly benefit businesses across various industries.

By tapping into global expertise, scaling teams flexibly, accelerating time to market, and maintaining focus on core business functions, companies can achieve more efficient and innovative outcomes.

Ultimately, outsourcing does not just cut costs—it also enhances the capacity to deliver high-quality software tailored to specific business needs, ensuring competitiveness in a rapidly evolving digital landscape.

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