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Why You Should Consider Outsourcing Software Development


Software developers are in demand. Sometimes viewed as the “creatives” of the IT department, software developers typically create the applications that make it possible for employees to perform their jobs and for organizations to innovate, gain competitive advantages, and better serve their customers. Every organization needs expert developers to succeed. This explains why unemployment for software developers is about half that of the national average.


Clearly, it’s a seller’s market. Software developers are able to ask for the moon and pick and choose from organizations that are in desperate need of their services. Hiring a full-time employee or contractor tends to be a long, expensive process. Organizations that lack in-depth understanding of software development risk prolonging the process by making the wrong choice. From a cost perspective, there is much more to consider than the employee’s compensation package. You have to purchase hardware, software, tools and licenses that the employee will need to do the job.


If you hire a software developer and that person leaves six months later, who will be able to handle those tasks? When talent is in demand, you have to be prepared for them to move on to the next opportunity, and have fresh talent ready to assume those responsibilities. Hiring in-house software developers can easily turn into a never-ending cycle of rehiring and retraining that drains time and resources and hampers the innovation that you were hoping to enable.


You can eliminate most of these challenges by outsourcing software development. Instead of looking for, relying upon and struggling to retain one superstar, you get a whole team with redundancy in skills and expertise. That means you only pay for the services you need, and you don’t have to worry about gaps in skill sets that often result in project delays and internal finger-pointing.


The firm you hire is also responsible for providing their software developers with the tools and infrastructure required to perform their jobs, which can dramatically reduce your capital and operational costs. Because each project is typically managed according to predefined milestones and objectives that are spelled out in a contract, outsourcing software development adds a layer of accountability and keeps projects on schedule.


In the next post, we’ll discuss what factors you should consider when contracting with an outsourced software development firm.