Should Companies Outsource Software Development for Digital Transformation?

The competitive business environment and the growth in the fields such as AI, ML, Blockchain, and more have pushed start-ups and established businesses to embrace the boons of a custom software development company, to meet their digitalization goals.

Digitalization occurs throughout the organization and even impacts the company’s culture. The global spending on an enterprise software development company for digital transformation is estimated to peak at $6.8 trillion between 2020 and 2023.

The business landscape today is fast-paced; therefore, the management needs to focus on several critical things. First, given the cutthroat competitive nature of the market, organizations prefer to outsource software development to an external partner. An on-shore or offshore custom software development company is adept in the most recent technology stack. Moreover, they help the business save costs and time, which they can deploy upon more critical and creative ventures.

Digital transformation is a trend that is picking up fast among all industries. To implement it seamlessly, organizations outsource digital transformation projects. The blog has identified and highlighted the reasons behind considering hiring an external digital transformation partner.

Top 5 Reasons that Justify Outsourcing Software Development Services to meet your Digital Transformation Objectives

Outsourcing software development means delegating the task of designing a software solution to an external partner, such as a consultancy. But why must you not simply hire in-house developers? Here are the key reasons that may bend your decision towards signing a software development outsource contract.

• Medical imaging is crucial when it comes to disease diagnosis. However, doctors go through hundreds of images every day. It becomes tiresome and troubling.
• Computer Vision, along with other mhealth app development solutions, offers better image analysis. It can identify patterns and details that might go unnoticed by the doctors. The technology has improved to a great extent that it can identify almost 99% of problems from the image.

1. Reduction in Cost:

• Outsourcing your software development projects to an external partner helps bring down the software’s development cost. Raising an army of in-house developers would require installing and maintaining permanent infrastructure and financial resources to support them.
• Outsource software development cost is meager as a business only needs to pay for services when it needs them.
• Outsourcing software services to countries like India may cost you as low as $30 to $70 each, though, in developed nations, it would cost about $70 to $150 each.

2. Flexibility and Scalability:

• In contrast to off-the-shelf software, the customized software built by your outsource software development company is built to scale as per the future requirements of the business.
• This helps the product manager to control the cost of the software product. In addition, you can hire resources as long as needed or enjoy the advantages of different types of enterprise software partners working as an extension of your in-house employees.

3. Improved Security:

• Surprisingly, it’s not the in-house developers who show the expertise in developing secure systems. The outsource software development model has proven to be more helpful in developing particular custom web applications.
• This is because the outsourcing partner has more experience delivering software solutions across industries and clients globally. In addition, the experience teaches them to make cyber security a core part of development for each application development project.
• Moreover, the digitization of specific legacy systems is a challenge in itself for the in-house development teams. However, outsourcing experts can provide immense business value to organizations by tackling such security concerns.

4.Focus on Core Operations:

• Developing a highly functional application to meet a specific requirement requires time and detailed analysis of every technicality. It is a waste of time for businesses that do not have software development at their core.
• A wise idea would be to hand the development baton to any on-shore or offshore app software developers. This would save your cost, free your bandwidth, and allow you to focus on more important core activities.

5. Delegating the Risk:

• It’s a risky job. One wrong decision could lead to the wastage of crucial person-hours and cash. And never discount the opportunity lost to the competition.
• There is a reason why the number of companies looking to outsource software development is increasing. The expected outsource software development trends suggest a growth rate for the market between 2022 and 2024 at around 4 to 5%.
• A competent IT solutions provider is brave enough to brave all the risks. They are confident in managing all the challenges since they have that kind of experience daily. To achieve success, they know what steps to take and when.

Best Countries to Outsource Software Development

The quality of countries to outsource software development to are lower costs, a highly developed IT infrastructure and market, a quality educational system, and the ability to communicate in your preferred language. Keeping this in mind, here is a short list of preferred offshore development countries –

1. India: India is the second largest English-speaking country in the world. This makes it the ideal choice for US or UK employers interested in outsourcing. The Indian education system specializes in mathematics and produces as many as 2.6 million STEM graduates in a single year. The annual salary for a developer in India is around Rs. 779,700, or $11,139.
2. Ukraine: The country focuses on the education of its citizens. As a result, it has produced some of the brightest technological minds in the world. It is also the home to the most significant number of C++ programmers globally. The annual salaries for Ukrainian developers range between $11,936 and $46,787. An average software developer in Poland earns a yearly PLN 85,069, or $22,273.88.
3. Poland: It is the home to the third most skilled programmers in the world. Their programmers ranked first in HackerRanks Java assessment and were listed in the top for other mainstream programming languages like Python and Shell.

Conclusion

The software development outsourcing patterns are apparent. Consistent surveys confirm that more and more businesses are looking for partners who can help them with digital transformation at a lower cost from any location in the world.

Businesses need outsourcing partners for further improved efficiency and cost saving. The myths and scary aura of software outsourcing are rapidly busting. No doubt that more and more organizations will hire outsource software development partners.

The future is clear. Software outsourcing will jump high because of the wave of digitization taking over heavily. If you are looking for a digital transformation partner, lookout for a credible outsource custom app development service.

Originally published at https://www.digitalgpoint.com on July 20, 2022.