While analysts have point towards studies which indicate that outsourcing has become a necessity more than a choice, there are still companies that dwell on possibilities with regard to choosing between outsourcing and in-sourcing, especially when it comes to software development. One of the arguments for using in-house resources is that they are readily available and that one is more familiar with what is available within one’s proximity than how a project would turn out if it were outsourced.
Though this is a valid argument for in-sourcing, it falls short on many basic advantages that outsourcing presents itself with. For instance, outsourcing not only reduces the cost-burden but also frees up valuable resources that are part of an organization’s ecosystem. Consequently, outsourcing seems to be the most popular and widely accepted solution when it comes to software development.
In this article, let us take a look at why it is important for organizations to outsource their software development requirements, instead of getting it all done in-house.
1. Outsourcing is great for both long and short term projects
If companies do not have long-standing and on-going software development requirements, short term projects can easily be outsourced. Though outsourcing is great for long term projects, it is particularly helpful when companies seek software development especially when it isn’t their domain anyway. By outsourcing short term development projects, organizations can focus more on core-competencies. This helps to build a company’s niche and will increase its standing among its competitors.
2. Outsourcing negates the need to assemble teams from a scratch
One of the problems with in-sourcing is that for every project, employees need to be shuffled, team leaders and project managers need to be assigned and basically, a team needs to be assembled from the scratch. When a project is outsourced to a dedicated software development company, the responsibility of finishing the project with the right software developers falls on the vendors. This saves you from the nightmarish situation of having to build a software development team from the scratch.
3. Outsourcing provides access to specialized skill sets
It is simply unrealistic to find employees and build teams that have every software skill that is required. Moreover, different projects may need different skills, which in-house employees may not possess. Most companies realistically cannot hire IT professionals who are well versed with all the programming languages that one might need to know for different projects. Outsourcing helps you to access specialized skill set of resources and to developers who have years of experience in handling different kinds of software development projects.
4. Frees up in-house resources
IT infrastructure is usually very expensive. Even more expensive is hiring great IT talent. When organizations invest in IT-related talent, they can be used for other tasks in which they are skilled at. In-house IT employees can be assigned other tasks depending on requirements. All in all, outsourcing frees up valuable human resource which will otherwise be assigned with mundane IT projects which can otherwise be outsourced.
5. Outsourcing is pocket-friendly
Last but not the least, outsourcing reduces the cost burden within organizations. Many studies have pointed towards statistics that reveal that outsourcing reduces expenditure in the long term. Increasingly, many studies have also revealed that even short term projects reduce company IT expenditure significantly. Thus, it becomes easier for companies to allocate financial resources to more pressing needs. Outsourcing works well for those with reserved budget plans well.
When we look at global IT trends, outsourcing is no more a choice but a necessity. While in-sourcing is still popular and can be used for certain tasks that are very company-specific, most regular and specialized IT projects can be outsourced in order to reduce work load, increase cost-efficiency and enhancing productivity within an organization.
Gradually, we have begun to witness a reality where outsourcing is more of a norm than a method. Companies no longer feel the need to hire full-time employees for every IT project demand that may arise. Outsourcing is increasingly being seen as the only way to go to enhance IT productivity. Going forward, outsourcing will become the de-facto method of doing business in companies of all sizes.