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Software Project Outsourcing Company — Why Use One?

You have probably heard about software project outsourcing. Despite the concerns about how and when to outsource software projects and if it’s worth the effort, consider the market itself — it is estimated to spend $133.3 billion on outsourced software development by 2025.

So, software project outsourcing is worth our attention, but what is it, and how do organisations get started?

What is software project outsourcing?

In its simplest sense, outsourcing is delegating specific tasks to an external partner instead of using in-house resources. Software project outsourcing is now utilised in nearly every industry. Within the tech field, software application development is the most commonly outsourced IT function, according to Statista.

Why should a business use a software project outsourcing company?

Project outsourcing is quicker and more cost-effective than in-house development without the requirements for office space, finding software specialists or building up the entire development infrastructure.

  1. Access to specialist talent and experience
  2. Able to have the best professional project team
  3. No micromanagement
  4. Effective team communication
  5. Uses Agile methodology
  6. Easy to scale

How to set up your software project outsourcing strategy?

Outsourced software projects offer only a few benefits increasing productivity, improving product quality, and saving costs. Businesses won’t successfully outsource software development without thorough planning, so having a solid outsourcing strategy is the first step toward hiring an outsourcing partner to cater to a company’s needs.

But how can you create one? Below are a few points to consider.

  1. Define goals with the outsourcing partner
  2. Define tasks for delegating
  3. Determine the technological profile
  4. Cultivate an excellent project environment

How are outsourced software projects usually done?

Software products, despite their complexity, must be flexible, easy to maintain, and upgradeable. Together, you can achieve this by planning each step, from brainstorming to maintenance. The software development phases differ from partner to partner. They could include a number of the following:

  • Ideation
  • Planning
  • Design
  • Coding
  • Testing
  • Deployment and maintenance

Where to outsource?

Cost optimisation is one of the primary reasons why people outsource. Factors including project price, taxes or the cost of office space vary from country to country.

However, partners with the lowest cost may not deliver the best quality. Analysing different countries based on the following criteria will help you identify the optimal balance:

  • Tech education opportunities
  • Positions in global ratings of IT destinations
  • Time zone difference
  • The level of English proficiency
  • Resources availability and tech competency diversity
  • Cultural mindset

Based on these criteria, Estonia is considered one of the best for hiring a nearshore software development team.

Estonia’s extensive educational backgrounds and comprehensive skill sets paired enabled Estonian software development outsourcing to consistently demonstrate their ability to produce a high-quality end product and provide services to meet their customers’ needs.

Moreover, you can find the latest technology, whether you need customised software development, mobile app development, or even modernising legacy software.

The advantages listed above make Estonia an attractive country to outsource a project. So, it is no surprise that enterprise giants like OECD, Kuehne+Nagel and Telia are leveraging its rich IT ecosystem.

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