Thanks to the internet!! Because of this our business Relationships now ain’t limited by distance. The internet made it easy for people and businesses to connect, and this is one of the primary reasons why outsourcing is gaining popularity in development decisions over the past few decades. Besides, many outsourced development companies are offering a broad range of technical services and management support as they used to earlier. Moreover, I’d say the cost-quality ratio, technological experience, diverse skill set, and flexibility of outsourcing are well worth the investment.
4 Reasons to Outsource Development Projects
- Affordable prices with no loss in quality
- Well Developed IT systems
- A more diverse set of skills
- Flexibility related to operational changes
1. Affordable Prices With no Loss in Quality
At times, clients doubt services’ quality because most of the outsourcing countries offer low rates, as compared to the countries like the USA, UK based companies. Let’s take a look at the costs per hour for different European Countries
1. Eastern Europe: $25-$50/hour
2. Central and Western Europe: $68 – $100/hour
3. The Baltics: $35 – $50/hour
4. Scandinavia: $50 – $175/hour
That number jumps to $150/hour for US-based developers. These low prices are a product of these countries’ more economical cost of Living. If you’re planning to home in on a company with a highly affordable rate and worried about quality, then you shouldn’t be. Many of these company’s home countries have sizable resources to technical resources and digital growth.
2. Well-Developed IT Ecosystems
With many governmental and educational initiatives, most of the eastern European countries, foster the development of their IT industries. For Instance, the Belarussian government has already instituted a tax breaks series and entrepreneurship-friendly legislation, also allowing the visa-free entry to visitors from almost 80 countries. The country’s president is moreover focusing on lessening restrictions on currency transfers so that it could attract venture capital investment. Talking about the education front, both the software development curriculum and the extra-curriculum hackathons produce a steady flow of high-quality developers. The relatively high wages entices the graduates to stay in the country and further develop the country’s IT infrastructure.
3. Diverse Skills
With the increasing demand for outsourced development (companies are allocating their budget to outsourcing), service providers need to stand out. One way is by offering high-quality technologies that are high in demand. But they aren’t, in general, a developers speciality. For Instance, in Eastern European and Asian countries, several specialists work with Python (a nod to Machine Learning) and Shell. Outsourced Development enables people to isolate the skill set they need to look for developers with well-suited experience. It is like assembling a dream team, which is nearly an impossible task while hiring local developers.
During in-house hiring, developers provide companies with security and grants easy and effective collaboration, and it sacrifices a specific degree of flexibility and agility. And, outsourcing allows you to minimize hazards from both operational and financial changes. Another benefit you get while accepting the outsourcing development is that while initiating outsourced relationships, additional resources could be added to the project much more quickly. This is, in general, beneficial and optimal for the seasonal businesses, companies, and industries that mostly experience downturns after the contracts are fulfilled. The lack of overhead would minimize financial risks, as well. Outsourcing possesses many monetary advantages, as well. At last, depending on the specific contract you enter into, you may be able to terminate the relationship without incurring a substantial penalty.
All you need to consider is whether outsourcing is a better option for your company or not because it is not without its drawbacks. While you search for an outsourced vendor, you need to pay attention to its portfolio, and you should check out reviews of the company online. Equally crucial is crafting a clear communication plan for your company. During negotiations, you not only need to spell out your communication but also reporting requirements. The more detail you could provide the vendor with ahead of time, the better it would be. A more thorough communication system would help you monitor your project’s process. Ultimately though, regardless of location and the amount, the best way to be successful and reach your goals is to search for a developer that meets your criteria and possesses the skills you need.