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According to a Statista survey of CIOs worldwide, a study on "IT functions Outsourced Worldwide 2017" revealed that 64% of respondents said they outsourced software development. In fact, software outsourcing is a major factor in the growth of global IT outsourcing.
Statista recently published a report that stated the size of the global IT outsourcing market in 2019 was 66.52 Billion U.S. Dollars. According to a report from Technavio entitled "IT Outsourcing by Service, End User, and Geography: Forecast and Analysis, 2020-2024", the IT outsourcing market is expected to grow USD 98 billion in the forecast period 2020-2024.
These statistics indicate that the demand for outsourcing software will continue to grow as businesses are on a quest to optimize and digitize their business processes. This is the foundation of their digital transformation.
Technology is changing at such a rapid pace that the technology of today could be obsolete next year. It's more competitive than ever, and it is essential that companies continue to evaluate and adapt to new business trends. This includes offshore outsourcing as a viable option to stay ahead of their competition.
Software outsourcing is becoming increasingly popular as businesses choose to outsource software development projects. This service offers many advantages, such as a low development cost and easy access to an extensive pool of IT talent. Software outsourcing can be a great option for businesses that want to gain an advantage in the market by collaborating with IT talent around the world.
Let's examine in depth the current state of outsourcing software and how it can be done effectively.
Why is Software Outsourcing Important to Businesses?
Outsourcing can be cost-effective. Offshore software outsourcing, in particular, helps reduce development costs. This translates into lower market prices and increases competition. According to a recent report by Deloitte & Dubai Outsource City, companies have started to consider software outsourcing for a variety of business objectives beyond cost.
IT decision-makers and business owners are increasingly turning to outsourcing in order to improve their company's efficiency and make it more lean. Delegating allows companies to concentrate on their core competencies and keep the strategic goals on track.
Let's now dive into the different types of software outsourcing services and their engagement models.
Outsourcing Software Services
Outsourcing services in 2024 will include mobile and web application development, along with other advanced technologies such as Robotic Process Automation and Artificial Intelligence. These are expected to have an enormous impact on the industry.
Many software vendors also offer a portfolio of services to meet the needs of the customer company. This can be at any stage in the project or during the whole development cycle. From planning to delivery to product release, the software vendor has the expertise and resources necessary to guarantee the success of the project.
Software outsourcing is delivered using remote operation models. This allows companies to collaborate with the best IT talent in the world who are committed to their project.
What are the different Models of Software Outsourcing?
Businesses can outsource software development to vendors around the world, with the development centers located onshore, off-shore or nearshore. Consider in detail the following:
Onshore Software Outsourcing
Onshore outsourcing is the process of working with software development outsourcing companies/ software development outsourcing teams that are based in the same country. Onshore outsourcing has the advantage that there are no language barriers, which allows for easier communication and, ultimately, more efficient outsourcing. Customers may be required to pay higher development costs in exchange for onshore outsourcing.
Offshore Software Outsourcing
Working with offshore development teams means collaborating with other countries. It is the most economical option because of low labor costs and online communication channels (e.g Email, VoIP phones, Zoom video conferences, etc. Remote management of software projects is now possible.
Nearshore Software Outsourcing
Nearshore outsourcing firms work with clients in neighboring countries.
How can you Outsource Software Development?
Software outsourcing model is influenced by a number of factors. There are a few things that companies need to keep in mind.
- Outsourcing goals should be clear
- Participate in project management, and collaborate with remote team members.
- Be realistic about your expectations.
- Track your progress and set milestones to get feedback.
There's still no way to guarantee a project will be a success. There are some things that companies can do to increase their chances of success. Customers should also choose outsourcing partners that use Agile methodologies to manage their development projects. This will allow them to release more frequently and with better quality, as well as improve collaboration. It is also recommended that advanced tools be used for project task management to gain visibility on project progress.
Success Case Studies of Software Outsourcing that you can Learn from
Since the COVID-19 outbreak in March of this year, both companies and employees have been working remotely. In the U.S., 16 million employees started working from home. Gartner's CFO Survey revealed that three out of four CFOs intend to move at least five percent of employees who previously worked on-site to permanent remote positions after COVID-19. It is time to act.
As a result of the current situation, businesses are forced to use technology to run their business remotely. This has led to an increase in successful case studies of outsourcing. During crises such as this, business owners have realized the importance and benefits of outsourcing software development and remote work. While there are many arguments on the pros and cons of working remotely, the fact remains that both remote work and outsourced services are viable options in order to keep the business going by leveraging 4.0 digital technology.
The shortage of tech talent is making outsourcing more attractive. Outsourcing also helps solve several other problems, such as reducing software development costs, finding specialists, developing business intelligence, cloud-based solutions, building websites, etc.
Outsourcing Software Development Has Many Advantages
Outsourcing is the transfer, based on an agreement, of certain types of entrepreneurial activities or industrial functions from one company to another in the area. Outsourcing is different from services and support, which are episodic or incidental and have a limited duration. It's usually professional help to ensure the continued operation of systems and infrastructure through a long-term agreement.
IT outsourcing allows for increased efficiency in the entire enterprise and the use of freed-up organizational, financial, and human resource infrastructures to develop innovative directions. Outsourcing allows customers to focus on strategic initiatives that don't require more attention. The research shows that nearly 75 percent managed IT support services, and 87 percent plan to do so.
The Outsourcing Institute (USA) states that outsourcing is a new type of business optimization. "IT Outsourcing" is the use of external service providers for IT services such as application development and maintenance as well as infrastructure solutions. This allows the customer organization to focus on its main business, cut costs, and maintain its market position. This can also include software-as-a-service (SaaS), Cloud & Mobile solutions, cybersecurity, and other related IT managed services."
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Flexibility
Companies can use software outsourcing vendors as and when needed. Contrary to permanent employment, customers are not legally bound to a long-term agreement. This allows them the flexibility to pay for the outsourcing services during the project. It is a great alternative to hiring in-house team or full-time developers who may not need their expertise as much after the project has been completed.
Remote working is becoming more and more common as cloud computing makes it possible to work anywhere or from home. Remote working offshore team/offshore company is increasingly about the machine and human interaction rather than micro-management. In the modern world, the location of remote developers has become less relevant. The appeal of hiring remote IT tech talent to work on software development projects has never been greater.
Focused Business Strategy
Remote dedicated development teams can provide new opportunities for companies to learn about new modern technologies, such as Blockchain and Artificial Intelligence. This allows them to transfer their knowledge and best practices to their internal teams.
Clients can implement projects quickly and efficiently with the help of a large pool of IT talent. They also have more time to concentrate on their core competencies. This is especially true if the customer company does not work in IT. Employees can spend more time on important tasks that generate revenue, such as marketing and sales, which will enhance business growth.
Accelerate product development and reduce time to market
Outsourced workers are already familiar with the tools and technologies required for the development process. This means that customers can save a lot of time by reducing the time spent on training. This is especially beneficial for large multinational corporations where the approval and decision-making process may take longer than normal.
Moreover, any changes will be dealt with quickly so that projects can continue on schedule. The remote team is motivated by the need to deliver projects quickly, giving customers an edge over their competition.
Reduce overhead costs and development costs
Outsourcing development projects is a common practice for businesses because it allows them to drastically reduce their costs. Reduced spending and budgeting allow businesses to scale up their business and grow effectively. Outsourcing software development teams is a cost-saving strategy for companies.
By contracting out work, companies can reduce their labor costs and save on employee benefits like insurance, training, leave, etc., while still paying the team a competitive price.
The hourly rate for talented developers is usually used by outsourcing vendors to determine development costs. This is done without considering the above expenses.
These costs are passed on to customers by companies that do everything in-house. Companies can gain an advantage in pricing by partnering with a company that offers IT outsourcing. It is more cost-effective to hire a specialist IT outsourcing company to manage the IT department. Outsourcing companies can perform important IT functions. This has these key benefits.
- Only qualified specialists are employed in these organizations.
- Reduced office, hardware, software, and cloud infrastructure overhead costs.
The customer is also solely responsible for the results and work done. The benefits of IT outsourcing can be revealed when you choose a reliable outsourcer.
cisin Systems offers one of the highest returns on investment in the industry. The portfolio of solutions is cost-effective and provides access to a talented pool of professionals in strategically located facilities across the globe, including the USA, Ukraine, Mexico, Argentina, Poland, and Costa Rica. cisin Systems allows you to save money when developing software. It offers clients a complete cycle of development and maintenance of IT projects.
Resource Maximization
You should not delegate your team to handle every single issue, even if they are talented. It's crucial to first evaluate the amount of time and effort required for each task in order to assess the stakes. It's often not cost-effective or efficient to dedicate your best talent to IT support. Your company's skilled developers may be busy with tasks that directly support your business goals. Outsourcing is a way to optimize resources because it allows talented employees to focus on their most important tasks.
Experienced and reliable outsourcing companies provide flexible options and teams with dedicated members that can start working immediately. No need to spend time on training. The developers who join your team will be productive from the first day, no matter how large your internal team may be. Outsourcing ensures that your project will be completed smoothly and without interruptions due to illness, vacation, or other unforeseen circumstances.
cisin Systems allows customers to maximize their resources. This is particularly useful for those who require developers with a wide range of skills, including web application development, full-stack development, mobile app development, DevOps test automation, data science, and more.
Read More: What are Different Types of Software Outsourcing in 2023?
Quick Time to Market
cisin has an enormous pool of resources to develop information systems. Customers have access to the necessary resources for development very quickly. This allows them to deliver products in a short time. The project is started by our developers, testers, and DevOps.
cisin Systems also works within the frameworks of Scrum, Agile, and other approaches to set the priorities necessary to achieve the desired result for the customer. It reduces Time to Market and provides the framework needed to deliver the project to users. The customer might first need a proof of concept, an MVP, or a ready-to-use solution.
Latest Technologies
In modern IT projects, it is crucial that the client uses the latest technology stack. It is important to hire specialists who have extensive experience in the field. The technology stacks change dramatically every year, and developers at many companies are unable to master all areas of IT. Outsourcing is the best way to get the latest technology stacks.
cisin System is a company that pays attention to the latest technology stacks. It has senior developers who are experts in several areas. We will be able to provide our customers with the projects and solutions they need based on the most recent technical solutions and methods.
Source Top Talents
Small companies do not have the resources necessary to implement the systems and services that they require. Software licenses and subscriptions can be very costly. Equipment maintenance can be expensive, and only large companies can afford it.
Outsourcing IT services gives small businesses the same opportunity as larger companies. Customers often have a specific local problem to solve that requires highly-qualified performers. It makes no sense for such a business to hire, recruit, and search for highly qualified talent. Either this process is very expensive, or it takes a long time. cisin Systems gives you the opportunity to access highly qualified talent quickly and efficiently. cisin Systems will solve the IT tasks of clients as quickly and efficiently as possible while maintaining the high performance required.
Advanced Scalability
Rapidly growing companies need to be ready to adapt to new demands. Many companies are scaling their IT support at this stage. It is expensive and difficult to find the right resources within a dedicated team for this task. The size and scope of these development teams are usually fixed. It can be time-consuming and expensive to expand an internal team in order to meet the changing needs of a business. Partnering with an external vendor will allow you to avoid this and utilize a solution that is scalable and can be expanded easily to meet your business needs. cisin has the resources to scale up almost any project. We have a large database of senior candidates and can increase the project's resources in a very short time.
Improved Product Quality
Quality is a very important factor in the operation of software products today. A minor software malfunction can cause serious problems, as many information systems are now used by millions of people.
cisin System provides the necessary level of quality in software outsourcing. Our customers receive a complete cycle of software development, including manual and automatic testing. Test Driven Development is used by our experienced architects and software developers to guarantee the quality of their solutions. cisin System also offers outsourcing services to test complex software systems. Our senior developers create sophisticated automated tests that are efficient for different programming languages and frameworks. Our DevOps Team ensures that our customers' cloud-based information systems run smoothly. This ensures that our customers' quality standards are met.
Time Zone Differences can be Beneficial
Outsourcing offers the advantage of being able to use developers in different time zones. cisin has offices in different parts of the globe. We can therefore provide virtually any overlap of time with our clients in Europe and the USA. Our offices are able to cover the time zones of Australia and New Zealand, so we can work with our clients. Our customers can build a correct overlap system with our outsourcing team in time. Both Scrum Agile syncs, as well as developers' working hours are covered. We cover all time zones with offices in the USA and Mexico, Costa Rica, Argentina, Poland, and Ukraine.
All Necessary IP Rights are Provided
Outsourcing software development company has other significant benefits, including the ability to master the rights of the software developed. cisin Systems offers all necessary information for transferring full ownership of developed code and systems to customers. This is a key difference between our company and other software developers. cisin has been working with large corporations and successful startups for many years and provides the best intellectual properties to clients. This is a crucial part of our offering that all our clients appreciate. Visit the page to learn more about cisin System's relationship with its customers.
Concentration on Core Business
By partnering with a service provider, companies can concentrate on their core objectives. You can easily get distracted if you divide your energy between activities that are important to the business but not the core goals. This problem can be solved by outsourcing, which allows business leaders to focus on their core competencies.
System enables clients to focus on their business requirements for projects and manages all the processes involved in the development and maintenance of IT products. We work with the team expansion model and integrate easily with the customer team.
We have outlined the advantages of outsourcing software. cisin Systems, with its many decades in the market of software outsourcing, has delivered results on over several hundred projects. Our customers have been working with us for years in a reliable and stable environment. Our company has a long history of outsourcing, especially in IT fields such as R&D and Big Data. Computer Vision, Machine Learning, and AI.
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Conclusion
Cisin Systems is unique in its features and benefits when it comes to outsourcing custom software development services. We offer the complete cycle of custom software development. We analyze the problem and come up with the best solutions. The development time is high, and the quality standards are also.
Our company's decades of experience confirm all ten of the advantages listed above. Our senior developers, who are the majority of our staff, also possess high expertise. Our young employees are encouraged to grow and develop, bringing in new technologies so that customers can work efficiently on projects without bottlenecks or over-management.
Cisin has completed hundreds of successful projects. Our experience in developing innovative IT systems and software systems is scalable for new projects.
