5 reasons to outsource software development

In many industries, gaining a competitive advantage is now impossible without custom software development. Without them, we can't modernise our business processes, and our ideas don't get implemented. When is it ideal to outsource IT work? What makes it more efficient to outsource to a hired team in many cases? When should we decide to build our team of in-house experts? Learn about the benefits of outsourcing and what to consider before deciding.

/Update, 2023.05. - New information added to this article/

Outsourcing software development is now common practice in IT. It is a useful option for companies to expand their scope when they need software development capacity for a project. This can ease the workload of their IT team. Outsourcing is also ideal if a company does not want to hire extra staff for a project or does not have such a specialist. In such a case, hiring a development company like LogiNet can be a convenient and efficient way to implement the project. In the frame of outsourcing, it is up to the task at hand to determine whether this means providing the client with a single specialist or a complete, cohesive team. The specialists then work with the client's staff to ensure the success of the seasonal or project work.

The volume of IT outsourcing is growing steadily: it is forecast to exceed $680 billion by 2027, up from $526.6 billion in 2021. An interesting statistic is that 92% of the world's 2,000 largest companies have used IT outsourcing in recent years. 

As digital solutions become more integrated into companies' operations and demand increases, outsourcing could be the solution for more and more companies in the future. This may also lead to a change in the relationship between companies and development companies, which may increasingly look at outsourcing as a long-term solution. Companies are no longer looking for the lowest price, but are more concerned with value and quality service. It is also possible that companies may "borrow" resources from several development companies for a project to assemble the best people for their team.

What are the benefits of outsourcing software development?

1. Faster implementation

Because you don't build your team, you don't have to spend time on recruitment and selection processes, and you save on the paperwork and training time associated with contracting. Nor can you be faced with situations that inevitably occur with in-house staff, such as holidays or sickness. 

Once the right partner has been selected, project preparation can begin immediately on the client's side, setting objectives, expectations and a timetable, which can be followed by contractors to ensure that work progresses efficiently. In such cases, the problems of labour migration are not an issue, as it is the partner's responsibility to ensure that the number of specialists needed to meet the deadlines is guaranteed.

2. More predictable, lower costs

Outsourcing software development also saves on costs. Whether you need development resources for the short term or the long term, you can count on predictable costs. Since you only use the service to meet periodic needs, it is a more financially advantageous arrangement, as you have to plan for salaries and benefits throughout the year when hiring IT professionals for your team.

3. Use of the latest technology

Outsourcing development makes it easier to adapt to changes in market trends or unexpected needs. You can bring in expertise faster than the standard recruitment process for a new colleague, even as soon as the need arises. It allows you to focus on the implementation and its issues straight away.  

4. More focus on the core business

Outsourcing allows your company to focus exclusively on its core business. Because outsourcing means that the IT tasks are handled by the outsourced team, there is free capacity in-house for other business processes that are equally essential to success: marketing, content management, customer service, and other core services.

5. IT projects with the right professionals

Thanks to outsourcing, you always have the ideal team of experts working on the task at hand. In the case of an in-house IT team, it is not practical to hire or fire backend and frontend developers, designers, consultants, etc. on a task-by-task basis.

When should you build your in-house IT team?

If the development involves the core business of the company (for example, as a taxi company you need an ordering application), then despite the points above, you may want to consider bringing the development in-house. After all, you need a unique solution that needs to be constantly updated as part of your daily routine, and its maintenance requires continuous, rapid work. 

However, before recruiting an in-house team, it is important to keep in mind that a business need does not translate into a successful solution with a development team by itself. To achieve success, you will also need a business analyst, project manager and testers.

It's also worth taking into consideration the salaries of these professionals before making a clear decision to outsource or increase in-house capacity.

These are the questions to answer before choosing IT outsourcing

• To what level is the task related to the company's core business?
• What is the time frame that can be dedicated?
• What is the budget?

If development is complementary to your work in a specific area (e.g. e-commerce solutions), and price and time are also a factor, outsourcing may be a better option. This way, you can have the software development done quickly, based on proven solutions and cost-effectively by external experts.

What are the criteria for choosing a software development outsourcing provider?

When selecting a software development partner, they must use the latest technology, have a skilled workforce and can deliver to you on a short deadline. It is essential that they can provide a complex service and can be flexible to meet your needs, which may include expanding resources over time. 

You may also need help in estimating your resource needs, so it is useful to get the necessary consultancy service from the software developer. 

LogiNet covers these needs. It has years of experience in resource outsourcing, with a team of over 90 IT professionals covering a wide range of competencies. This includes frontend developers, backend developers, PHP developers, Java developers, Symfony developers, software testers, mobile app developers (iOS developer, Android developer), UX designers, Business analysts, and IT consultants.

Multiple resource outsourcing solutions are possible: a dedicated team for the project (team includes backend, frontend developer, UX/UI designer, QA, business analyst, project manager), one developer to cover the missing competencies, end-to-end software development (providing IT professionals for the whole process of IT project, from ideation to implementation and ongoing maintenance).

LogiNet outsourcing projects

Vodafone Portal

After nearly a year of development, the Vodafone website redesign, New Portal, went live in the summer of 2021, for which LogiNet outsourced a larger frontend and backend development team. 

Since 2009, LogiNet has been supporting Vodafone with development services as a partner in an agile collaboration, with a full team of backend and frontend developers, business analysts, UX designers and researchers. 

The tasks were wide-ranging, including Vodafone Portal development based on Liferay, Vodafone New Portal development based on Vue.js, webshop operation, and integrations.

• Read the case study of the project

Graphisoft mobile project

Graphisoft has been continuously using the outstanding expertise of LogiNet professionals to develop the ArchiCAD architectural design software. In addition to web solutions, it also collaborates with the company's developers on mobile projects (BIMx mobile app).

On the LogiNet side, senior iOS and Android developers; senior Java and Java developers, and senior frontend developers participated in the development. 

• Read the case study about the project