Running an IT department can significantly drain your business’s resources, primarily due to the need for specialized equipment and the extensive hiring and training processes required for staff. In the USA, the median annual salary for software developers exceeds the national average by over $64,000, making the financial burden even heavier. This is where software outsourcing development presents a practical solution. By leveraging external expertise, you can either enhance your IT operations or completely replace them, ultimately boosting your business’s revenue.
In this article, we’ll delve into the benefits of IT outsourcing services while also considering the associated risks and costs. This comprehensive approach will help you make a wellinformed decision about whether outsourcing aligns with your business strategy.
What Is IT Outsourcing?
IT outsourcing involves engaging a third party to handle specific IT tasks. This third party could be an individual software developer or a team from a company, and you may choose to work with multiple IT firms simultaneously. These companies can be categorized as onshore, nearshore, or offshore, depending on their location relative to your own. For instance, a software company based in California would be onshore for a business located in the USA, while a company in Mexico would be nearshore, and one in India would be offshore.
Types of Outsourced IT Services
A software company can offer versatile support for your IT needs. Whether you want to outsource all your IT tasks, delegate a single project, or enhance your existing IT team, these companies are equipped to meet your requirements.
Once you partner with a software company, you gain access to a wide array of outsourced IT services tailored to your business needs, including:
Software Design Consulting: Expert advice for creating software that meets your specific requirements.
Project Management Outsourcing: Professional management to ensure timely and budgetcompliant project completion.
Infrastructure and Architecture Design: Designing robust IT frameworks for efficient operations.
Full Stack Software Development: Comprehensive development services covering all software stack layers.
DevOps Strategy & Consulting: Streamlining collaboration between software development and IT operations.
AI & Machine Learning Development: Tailored development of cuttingedge artificial intelligence solutions.
Discovery Consulting: Identifying opportunities and challenges in your IT environment to better tailor solutions.
User Interface (UI) Design: Crafting intuitive and visually appealing interfaces for software applications.
User Experience (UX) Design: Ensuring software is userfriendly and designed with the enduser in mind.
Testing and Support: Rigorous testing and ongoing support to maintain software quality and functionality.
Cloud Application Development: Creating and deploying scalable cloud applications.
Infrastructure Migration: Transitioning existing infrastructure to new, more efficient systems or platforms.
It’s important to note that not all software development companies specialize in every area.
Benefits of IT Outsourcing
Outsourcing offers modern solutions across various industries. Reports indicate that 37% of businesses outsource IT services. Here are some key benefits of this approach:
Wide Range of Talent: Outsourcing provides access to diverse software development skills, allowing you to find specialists for specific projects without disrupting your core operations.
Cost Savings: If your internal developers don’t have enough work to justify their fulltime employment, the costs associated with hiring, training, and retaining them can exceed those of outsourcing. Often, outsourcing may be the more economical option, even within the software industry.
Increased Productivity: IT outsourcing can enhance productivity by increasing development speed while maintaining highquality output. You can scale your team quickly without the lengthy training process for internal hires.
Superior User Experience: Experienced thirdparty developers can deliver superior user experiences, improving engagement with your products.
Business Scaling: As your business expands, your internal IT team may struggle to meet demands. External developers can augment your team and optimize operations, enabling you to take on larger projects and seize new opportunities.
Faster Development: Outsourcing leads to quicker product development since there’s no need to train external developers on specific programs or coding languages. You can also hire developers familiar with emerging technologies as needed.
How Much Does IT Outsourcing Cost?
Reports suggest that using external software developers can reduce IT service costs by up to 60%. However, costs depend on factors such as the location of the thirdparty company, their experience, specialization, and the volume of work required.
In the USA, software developers earn between $23.08 and $79.81 per hour. While the costs for nearshore and offshore developers may seem comparable, it’s crucial to factor in benefits, equipment, and training when hiring internal developers. Typically, highly skilled offshore developers cost less than their USA counterparts.
In summary, the benefits of IT outsourcing include access to a broader skill set, increased productivity, superior user experiences, and faster development timelines. Considering outsourcing your IT services can be a strategic move for revenue optimization, reducing expenses related to hiring, training, and equipment. Partnering with a reputable outsourcing software developer, like Devnatives, is essential to effectively address your IT needs and scale your business efficiently.
