Scaling Your Development Team Using Outsourcing

There are a number of reasons as to why a company might opt for having its day-to-day software projects outsourced as opposed to hiring and maintaining an in-house team. The first and foremost thing that comes into anyone’s mind is that outsourcing can save you a considerable amount of your company’s effort and resources. This is because you can prioritize the core competencies of your business with the extra time that you otherwise would have spent in the whole recruiting, hiring, and training process. Moreover, you won’t end up exhausting your company’s resources on comparatively less important tasks if you opt to have those outsourced.

These are just two of the vast amount of reasons as to why outsourcing software development is to be considered a viable alternative.

Basically, working with a software development company will enable you to achieve the following three things:

  • Reduction of fixed costs
  • Scaling your development team
  • Finding highly skilled developers fast

Listed below are the top reasons as to why you should have your software development projects outsourced:

  1. Cost Optimization

In case you have been wondering what the precise employee cost is, then you should know that according to the research from Joe Hadzima, a senior MIT lecturer, the precise cost of in-housing software developers could be roughly 2.7 times greater than the base cost. This is owing to all the employment taxes, rent, benefits, office equipment, and all the non-billable hours that add up to the total cost. A platform called Toptal made a tool to calculate the precise cost of an employee. According to their research, the base cost for an internal employee of $50 per hour will double to $100 per hour, adding up all the costs.

 

  1. Reduce the Risk of Hiring the Wrong People

Every step of the recruiting process needs to be done thoroughly and even then, you can end up hiring the wrong person.

It has been said that even if you get the hiring right about 50% of the time, then you can safely consider that you have a talent for recruitment services.

As a leader of a company, you will spend a significant amount of time in the interviewing process. Then you will have to pay someone to choose the right candidate, someone to handle the on-boarding, do the paperwork, configure a new computer, etc.

As reported by DevKillers, it takes roughly 43 days to find a new developer which can wind up costing you between $22k and $32k.

 

  1. Increasing Team Skills and Scale It

Outsourcing can be perceived as an on-demand service where you are clearly aware of your costs per hour for every outsourced developer.

In this era of development, you can add or switch developers on a project. Moreover, if you need more front-end, back-end, or UI skills, then you can do so easily with an outsourced software development partner.

 

  1. Following the Global Trend of Remote Working

GitLab is a very good example of a fully-remote company where roughly 160 employees are working collaboratively on a platform for developers with none of them being in the same office. The location of your company’s software development team is starting to prove more and more irrelevant for your business. If these massive companies can very well run their businesses without needing an office or an in-house team, then who’s to say you can’t?

 

  1. Prioritizing Your Company’s Core Competencies

It is highly important for the overall stability of a company that it redirects its focus towards the core competencies that enable it to have a competitive advantage. You should focus on your strengths and outsource all the other things.

 

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