By Arpit GautamAug 2020
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5 Benefits of Software Development Outsourcing for your Enterprise

Software Development Outsourcing has been done by enterprises for many years. The primary reason for this approach is to minimize the operational costs of in-house app development. But, the entire development outsourcing process is not that simple. Many hurdles like cultural nuances, language barriers & other issues make global software delivery models more complex.

According to leading reports, around 60% of companies outsource to reduce costs while 57% do it to focus on business objectives. Around 50% of enterprises use it to solve capacity issues whereas 31% do it to improve service quality. Statista states that only the European IT outsourcing market which comprises of IT administration outsourcing, IT application outsourcing& IT infrastructure outsourcing will reach around USD 104 billion by 2021.

As we look at these humongous numbers, it is clear that software outsourcing has many advantages that can be availed by enterprises for a gamut of benefits. So, let us look at 5 perks of Software Development Outsourcing for an Enterprise.

5 benefits of software development outsourcing:

Agile development along with Quality:

Software outsourcing promotes an agile software development environment which results in a seamless collaboration between enterprises & Cross-functional IT development teams. An agile team can effortlessly focus on bug fixing, software optimization & many other important tasks. This results in enhanced efficiency, productivity & speed of software development.

Significant Cost Reduction:

If an enterprise outsources the software development to an overseas company where the relative salaries are less, then it saves huge capital. Leading analysts state that businesses can achieve a competitive edge with the help of outsourcing. A typical software developer in the US charges about USD 100/ hour whereas the same work can be done by offshore developers at relatively less price. By taking into consideration the non-requirement of in-house infrastructure, employee training, regular employee benefits & other revenue consuming operations, an enterprise can save huge amounts of money which can be invested in other productive works. This ultimately results in exponential benefits for an organization in terms of revenue generated & efficiency.

Faster Delivery:

A complete product development cycle takes up a lot of time. This cycle depends on factors such as business use case & scale of the project. Enterprises can easily develop native or hybrid software within a few months. However, if organizations are engaged in creating sophisticated software, then it can take many years to develop & deploy it. By choosing IT application outsourcing, complex tasks can be delegated to offshore specialists while enterprises can focus on other crucial activities of software development. Current industry standards showcase that a reliable vendor dealing in software outsourcing can easily deliver a Minimum viable product (MVP) within 12 weeks if they stick to an agile method. This results in faster development & delivery of software for your enterprise.

Improved Emphasis on your Idea:

Budding startups or businesses start with an innovative idea that leads to a solution. However, if the limited amount of resources & time is devoted to developing an application in house, then you might lose your focus on the idea itself. This can prove to be very counterproductive as you might eventually lose sight of the solution that you thought of in the first place. This is where outsourced software development comes into the picture. With outsourcing, you can focus your energies on core idea & business activities like providing valued services, brand building & research.

Any Business can avail the benefits of outsourcing:

A few years back, it was thought that the advantages to outsourcing software development can be reaped by large enterprises. However, that is not the case. While large scale enterprise outsources software development to offshore specialists to reduce costs, startups & local businesses do it to cut spending on IT infrastructure & Human resources.

These are the 5 amazing benefits of outsourcing software development for an enterprise. We at ARSR Tech provide seamless software development outsourcing services for startups & leading enterprises to drive business growth via agile development methodologies with robust quality.

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