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From Tesla to Apple iPhone to Airbnb applications, these organizations are outsourcing or have outsourced many services related to their respective product development. Outsourcing is not a new trend, the first outsourcing took place in the 18th century during the Industrial Revolution.
In the age of digital transformation, IT outsourcing has become a prominent outsourcing service. As per the data released by Statista, the revenue of the IT outsourcing market is projected to reach 460.10 BN USD in 2023. It is expected for IT outsourcing to have an annual growth of 11.07% (CAGR 2023-2028) resulting in a market volume of USD 777.70 BN.
Beyond mere cost savings, outsourcing software development offers numerous unacknowledged benefits and requirements. IT outsourcing encompasses essential factors like code quality, adherence to product development timelines, punctual product launches, and crucial ongoing support to maintain your software product’s accuracy and bug-free status.
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Before exploring the advantages and significance of IT outsourcing, it’s crucial to grasp the necessity of having an experienced and skilled outsourced product development partner. Additionally, let’s discern when you require an outsourcing partner for your product development endeavors.
Why Should You Outsource Product Development?
In 2022 Staffing Partner surveyed the IT talent gap. As per the data released by Staffing Partner, 75% of IT recruiters are still looking for enough qualified candidates for their company. So, IT outsourcing is crucial to fill the void of the talent gap and get skilled talent on board for product development.
Product or software development is a time-consuming as well as complex process that involves research and analysis, product development cycle, testing, and deployment.
Outsourcing product development partners helps you save money and provide you access to experienced tech talent on board. Having an in-house team will cost you more as you will have to invest time and money in their training, building infrastructure, sometimes providing accommodation, transport facility, electricity, internet and whatnot. So, hiring an in-house team for software development can be a complex process.
Outsourcing product development could be more effective and simpler than building it in-house. You just need to take care of certain things while selecting your outsourcing partner and your half job is done.
Let’s put some light on a few of the many benefits of IT outsourcing.
Benefits of Outsourcing Product Development
IT outsourcing is not just limited to saving a few dollars by getting a talent on board at competitive rates. The following are some primary benefits of outsourcing software development that truly matter to businesses, regardless of whether they are startups or established companies.
Cost Benefits
Having an in-house developer could put a hole in your pocket. Resorting to an outsourcing product development partner can help you get an experienced developer at a very competitive rate ranging from 20-30 USD per hour.
Also, you can save expenditure on the workspace, hardware, infrastructure developments, and software licenses if you manage to work with an outsourcing partner. You can invest that saved money on marketing, branding, quality improvement, and business development.
Expert’s Assistance
Developing engaging, accessible, and highly functional software products requires more than a software developer. Depending upon the project requirement, you may need a unique and varying skill set. For that, you might need a front-end developer, back-end developer, database engineer, project manager, UI/UX designer, and QA test engineer.
However, getting partnered with a software development company will give you access to all these skills.
Scalability
Once your app or software starts having traffic and new users get enrolled, it becomes crucial for you to expand the infrastructure and stack advanced technologies to provide a standard quality user experience to the users.
For scalability, you will need a highly experienced software development team to make advanced software infrastructure development, embody your software with the latest technologies, and add the latest features. It couldn’t be possible to have an in-house talent on short notice or for a brief period. In that case, having an outsourcing partner can be beneficial in terms of investment, experience, and technical expertise for undergoing the scalability process.
Market at Proper Time
Never miss the opportunity and be a trendsetter for your business. Majority of the people know Neil Armstrong because he was the first to land on the Moon- contrary to that very few remember the second one.
You can get the better of the business by leveraging the first mover advantage. Even if you are not the first mover you can still manage to stay ahead of the competition having limited players and introducing new features, services, or business models in the market. You can set a standard for the quality, and user experience and become the epitome of standard service or product in your respective business.
Having an outsourced product development partner can help you with a rapid development process and market the product in less time.
Maximum Output with Limited Resources
Outsourcing product development yields you maximum output with limited resources. You don’t need an office infrastructure, technical infrastructure, licensed software, and other things that are required to accommodate a full-fledged development team. With an outsourcing partner, you have the luxury to focus on main business operations rather than investing your time and efforts in the development process.
You can make your team focus on important business operations such as training, marketing, sales, and product or service quality enhancement.
Also, you can avail unwavering support from the development team as many IT outsourcing partners provide 24*7 support and technical assistance whenever you need it.
Process of Outsourcing Product Development
Every product has a different development process that depends on many factors like the product type, development model, and technical approach.
Here we are listing standard processes of outsourcing software development that can help you undergo IT outsourcing effectively and accurately.
1⃣ Goal Definition
Have a clear goal definition for your business model, objectives, and operations. Stay clear about what you want to accomplish with this product development.
Whether you want to have MVP first or a full-fledged software. Having clear communication and goal definition helps you as well as IT outsourcing partners with having a proper budget, project timeline, development process, and technology stack to meet your business objectives.
2⃣ Documentation
From a non-disclosure agreement (NDA) to a comprehensive contract that includes a project timeline, data security norms, pricing, legal terms, and privacy policy in compliance with all legalities needs to be documented before starting the development process.
Have proper documentation fulfilling all legal formalities with a proper exit plan, project map, and third-party integrations if included. Start the project development process after the documentation process to ensure transparency and better understanding between the client and the IT outsourcing provider.
3⃣ Project Timeline
After having a clear definition of goals and objectives it’s time for you to have a detailed plan regarding the project timeline and development process. You need to include the following listed points in the project plan:
- Project objective
- List of features and tools to be included
- Distinctly defined roles for each team member
- Milestones that are to be achieved with every sprint
- Mentioning specific dates for important deliverables and deployment
- Probable challenges, or risks that could affect the project timeline and budget
- A backup plan to mitigate the challenge or risk and overcome it
4⃣ Software Validation
Quality assurance (QA) is the most unsung process of software development. However, developing a viable product and introducing it in the market is essential.
After passing through the vigorous QA process, it is possible to conclude all the functionality of the product. The Quality Assurance (QA) process helps in finding bugs that could interfere with the functionality, compatibility, and security of a product.
5⃣ Deployment and Launch
Whether you’re launching a completely new application or upgrading an existing one, this is the point where your creation interfaces interact with various platforms and systems. After deployment and launch, you gain insights into how your product will perform under various conditions with real users.
No matter how meticulously you’ve designed and tested your product, deployment often reveals unexpected discoveries. You need to be ready to welcome suggestions from the users and address the imperfections they have encountered.
What Care Should You Take While Outsourcing Product Development?
To ensure a successful and secure partnership several considerations and precautions need to be taken care of. It’s crucial to meticulously research and choose a reliable as well as experienced outsourcing partner. To know more about your outsourcing partner, track their past projects, read client reviews, and assess their technical expertise.
Provide a well-defined project scope, objectives, and expectations, and maintain transparent communication channels throughout the project. Hold regular meetings, and follow-ups and track the project development with each sprint to keep the entire team on the same page.
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Ensure that the outsourcing partner for product development has robust security measures to protect your data, sensitive information, and intellectual property. It is advisable to have comprehensive non-disclosure and confidentiality agreements between you and your outsourcing partner before outsourcing software development. A well-structured contract outlining project timelines, milestones, deliverables, and payment schedules can help you have a smooth product development process with timely delivery.
Conclusion
The IT outsourcing sector has evolved and flourished through technological advancement, industry needs, and ever-changing trends. Cost-effectiveness and efficient solution for the talent gap has made IT outsourcing to be the strategic choice for businesses of all sizes and sectors. Access to global talent, unwavering support, and market competitiveness has thrived businesses to have outsourced product development partners. We have contributed to the IT outsourcing sector for more than 2 decades and have always thrived to serve the industry with top-notch quality and professionalism. For any service, assistance, or consultancy regarding outsourcing software development, feel free to contact us.
