TECHNICAL

Why Are More Businesses Outsourcing Software Developers?

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NEKLO Team

Why Are Businesses Outsourcing Software Developers?

A 2022 tech staffing report revealed that more than 68% of companies spend a month or more recruiting a single developer, and most of the time, one in five recruits ends up being replaced. This results in delays and further costs due to the hiring and training of new employees. Business experts said that outsourcing skilled talents can help solve this problem. The same report also showed that software development outsourcing will increase by 70% between 2022 and 2023. Despite these challenges, companies are still actively recruiting software developers because they play a vital role in the business world.

Therefore, more companies should consider IT outsourcing to quickly address their technological needs. Maryville University shared how software developers are responsible for determining the software needs of the organization by evaluating their existing systems. From there, these professionals create new software designed to address these potential shortcomings. They are also the ones who introduce the software to the organization and provide necessary training to ensure the smooth adoption of the software. Ultimately, software developers always promote the development of efficient systems to improve a business’s performance. Companies that fail to adapt because of the lack of software developers will eventually fall behind their competitors.

4 Reasons to Start IT Outsourcing Services

Of course, there are various pros and cons of outsourcing software development. Business owners are often afraid to face low-skilled outsourcing staff, the risk of information leakage, or delays in responding and resolving issues. 

However, the benefits outweigh the drawbacks. Thus, apart from having a more efficient hiring process, here are four reasons why you should start outsourcing software development services.

Reduces potential overhead costs

One of the main reasons why companies prefer opting for outsourced IT services is because it allows them to control their costs. With outsourcing, you only need to pay for the work that is done and hire IT solution companies when you need them, which reduces your human resources costs. Outsourcing software development services also means fewer expenses on onboarding and training employees. You will also save money because you will no longer need to spend on renting office space and purchasing office supplies and equipment. Because of the above, almost 70% of businesses outsource their software development rather than employ in-house developers.

Accelerates product time to market

Another benefit of IT project outsourcing is that it speeds up the development process of goods and services. Our previous article on ‘Outsource IT’ explained that when you outsource a software development project, you can significantly reduce the time you spend on the product development stage and introduce your product to the market ahead of your competitors. This is because hiring skilled professionals for a specific project allows them to finish the task on time without compromising the output’s quality. When you release your product before your competitors, you can build a long-lasting competitive advantage that will be beneficial to your business.

Related: Magento Development Company vs Magento Developer: What To Choose?

Expands your talent pool

The US Bureau Of Labor Statistics revealed that the employment of software developers is projected to grow 22% from 2020 to 2030, which is faster than the average for all occupations. This suggests that demand for highly-skilled software developers will increase, and businesses may have difficulties hiring the best candidate in the future. If you cooperate with an IT outsourcing company, you’ll be able to expand your pool of talent and hire experts regardless of their geographic location. Instead of hiring software developers just in the US, outsourcing allows you to find and hire highly-skilled developers from different parts of the world.

Allows you to focus on core business competencies

Although being able to accomplish various tasks on your own is commendable, it’s more efficient to spend your time doing whatever you’re good at. Let experts such as software developers accomplish projects that are within their expertise to ensure that you’re delivering the best product and service possible to your customers. For example, Slack outsourced to user interface specialists who helped them build the popular messaging application that we know today. If your company doesn’t specialize in software development, consider opting for an IT outsourcing service since this will allow you to focus and grow on your core business competencies.


The article was submitted by Ramona Joanne, a blogger with strong competencies in writing and sharing views on relevant business topics.