Why Businesses Should Outsource Software Development

1. Why Businesses Should Outsource Software Development Software development outsourced solutions allow businesses to grow and expand and it is one of the best cost cutting tools that drives profitability and also assures flexibility. Managed Outsource Solutions 8596 E. 101st Street, Suite H Tulsa, OK 74133

2. In the present competitive business world, enterprises, small, medium or large, are pushing themselves to adapt to new and innovative ways to improve their functioning. To increase productivity, businesses are adopting digitization that helps them deliver a good digital business experience to customers. A strong IT team is vital for businesses, which will enable them to utilize advanced technologies and stay competitive in the market. To make strategic decisions and also to focus more on core processes, enterprises rely on outsourced solutions. The IT department of a business is a highly complex environment that includes hardware, software and computer networks that enable a seamless workflow. Not only web development, the IT section handles other activities such as installing spyware and malware to provide maximum protection, cloud storage facility, software and hardware development and so on. Even a minor mismanagement can cripple the entire business. So to make things easier for the IT department, businesses are utilizing software development outsourcing solutions. It enables the business to ensure business competency. According to the Information Service Group, the annual global revenue from information technology outsourcing is estimated to amount to between 60 and 70 billion U.S. dollars. Software development outsourcing is a process wherein business organizations choose to hire a third party programmer to offer service related to software development. It helps businesses accelerate business operations, improve profitability and competitiveness, and ensure a good customer experience. www.managedoutsource.com (800) 670 2809

3. The following are some of the reasons why outsourcing software development could be beneficial. ✓Access to skilled workers and advanced technology: To expand the business, enterprises need to embrace advanced technologies. An in-house team may not have expertise in every field whereas outsourcing provides access to a skilled and experienced workforce. They will be well-versed in everything from wire framing to development and testing and project management. This minimizes the skill gaps and ensures quality service in less time. ✓Focus more on business: For businesses to survive in this competitive world, they have to look for new ways to expand and grow. By outsourcing, business leaders can focus more on improving core business activities, allocate resources optimally and also work towards strategic organizational goals. ✓Minimizes costs and saves money: Businesses always look for strategies to minimize costs. Running a business is not an easy task, it involves many costs such as salaries of in-house staff, operational and recruitment cost, development environment costs, training, and maintenance among others. According to research data, businesses can save up to 30 percent of operating cost by outsourcing IT requirements. This is because outsourcing ensures better economies of scale and is an affordable option when compared to carrying out the entire operation in an in-house setup. ✓Useful at the time of peak workload: Outsourcing is a great relief, especially when businesses are experiencing peak workload. Usually at the time of peak workloads, businesses redistribute resources to operations and processes that they not specialized in, or hire new employees. But both these methods are expensive and www.managedoutsource.com (800) 670 2809

4. could lead to declining productivity. However, with outsourcing, businesses can meet the needs of their clients during peak time with increased flexibility. ✓Less time on support: Software requires regular maintenance and support. So it is always best to assign a team to take care of this aspect. This will help you focus more on attracting customers and also on providing a better customer experience. If outsourcing offshore, there is usually a significant time zone difference between you and your vendor and this support ensures round-the-clock business operations. ✓Improved security: Usually in-house teams may not be specialized in IT and it can lead to human errors and mistakes and can also put critical data at risk whereas outsourcing team will have skilled team members who know how to prevent data braches and ensure data security. ✓Good risk management: Proper risk management is essential for the success of any business. To mitigate risks, operations can be divided among different vendors. Typically, the outsourcing company will have experts in that field and this will enable better risk mitigation. The key to efficient outsourcing is transparency. ✓Less time to market: Enterprises have recognized the need for speed and how it helps to gain a competitive advantage. By outsourcing you can complete your project in less time. Businesses often consider outsourcing as a daunting task that is highly expensive but in reality outsourcing, especially software outsourcing, has proven to be efficient with better productivity at reduced cost. www.managedoutsource.com (800) 670 2809

5. Following some of the companies that outsourced software development and gained revenue in billions: • Google: In 2014, Google outsourced IT functions to a Latin American software company. Their near shore outsourcing led to the successful development of Project Ara and related software. With customer service outsourcing and software outsourcing, Google earned $26billion in revenue in 2016. This shows that outsourcing is beneficial for businesses. • WhatsApp: WhatsApp is the most popular messenger app for people who are looking to keep in touch with their network friends and family. In 2014, it was acquired by Facebook for $19 billion. Before Facebook took over WhatsApp, it greatly relied on outsourcing software and core development. • Skype: Skype is the pioneer of video calling since the early 2000s. While the programmers were eventually integrated as partners, their work as an outsourced team allowed the product to become a common tool for businesses worldwide and Skype was ultimately acquired by Microsoft later for $8.5.billion. The above-mentioned examples show that any business, big or small, can benefit from outsourcing. It is one of the best cost cutting tools that drives profitability and also assures flexibility. Software development outsourced solutions allow businesses to grow and expand without massive investment in maintaining servers or building suitable infrastructure. Make sure to partner with a business process outsourcing company to use your resources wisely and achieve your business goals. www.managedoutsource.com (800) 670 2809