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BETTER CALL AN AGENCY: HOW TO UNDERSTAND YOU NEED OUTSOURCING

Modern business world has proven that having a numerous payroll happened to become ineffective and unprofitable. Digital transformation has highlighted the urge of qualified employees even more. In the tech industry, the traditional approach towards software development used to be forming an in-house development team, however, it has become more and more challenging to find the right and qualified professional due to the increased competition on the market and high demand. But what if an employee (or a dozen of them) are needed here and now? Seems like a rational solution would be to integrate with third party companies, namely, outsourcing agencies.
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WHAT IS OUTSOURCING?
Outsourcing, or «outer-source-using» , is the process of delegating several business processes to third parties who have profound specific field experience. It would be false to suggest that such cooperation is beneficial only for short-period. On the contrary, such integration works best as long-lasting bilateral and mutually profitable - like most partnerships.
Talking about outsourcing in the tech sphere, it is the process of transferring development and maintenance of software development and IT systems to third-party companies. It covers a wide range of services and processes, such as software development and its maintenance, web development, hardware maintenance (e.g. servers), data processing, etc.
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WHY IS IT COMMON FOR SOFTWARE DEVELOPMENT?
To keep a high-professional engineer on a payroll is quite a costly thing for a company, provided that keeping him or her busy with various daily tasks for the whole month is even more challenging than costly. Meanwhile, it is related not only to small IT systems in the companies but also to huge banking and industrial systems. For instance, such international Russian tycoons as Rosneft and Sberbank have outsourced their tech departments long ago, leaving only strategic segments of the corporations in-house.
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WHAT ARE THE BENEFITS OF TECH OUTSOURCING?
Outsourcing software development, as any business process, has its several
benefits for a client.

Let's cover the most influential ones:
1
Ability to focus on core business processes without delving into new activities which may become time-consuming;
2
Liaison with top-notch tech professionals thoroughly hired by outsourcing agencies;
3
Elimination of idle time and missed deadlines which may be caused by sick leaves or other personal circumstances;
4
Reduction of payroll costs (as the expenses are covered by the vendor);
5
Qualitative transformation of the inner business processes due to the fresh look outside the company;
6
Guaranteed outcome based on the SLA (Service Level Agreement);
7
Flexible pricing based on used technologies and qualifications.
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ARE THERE ANY DRAWBACKS?
However, each process has its downsides:
1
It is simply a must to conduct a preliminary deep analysis of the current situation, whether the outsourcing is reasonable at the standpoint, whether there is enough budget now or will be in the near future. It is vital to take into account resources investments into knowledge transfer and risks based on work model alteration.
2
Potential risk of internal data leakage. The tech world has faced some unpleasant situations when a client was not able to receive source code of their projects. At Selecty.io, we work under a strict NDA without any breaches because we respect the partnership.
3
Challenges with monitoring the outsorcer's activities coupled with evaluating the potential of the involved employees.
4
Possible miscommunication between in-house and outsourced teams.
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WHEN IT IS TIME TO TURN TO OUTSOURCING SERVICES?
1.
You are making the very first steps into the tech world. In other words, you own a startup, and the most fragile moment of the startup cycle is the beginning. Business angels have not so far formed a line to invest their $100K into your idea, plus, there is barely an MVP on its way. That's why it is extremely risky to undertake salary and rent obligations while there is no end product which makes real money. From this standpoint, outsourcing your development team is more reliable and predictable.
2.
You have a small or middle-sized company and there is a lack of the budget and resources for the in-house development team. Another option would be that there is no need for a constant team as their services would be required once in a several period of time. In both cases, it is way more beneficial to cooperate with an outsourcing agency, like Selecty.io, which will conduct a one-time project or multiple cycling tasks. It is a case when you do the job once and use it for the rest of the time.
3.
You own a big company but its core activities are not related to the tech industry (e.g. banking/ retail/ industrial, etc), and there is a business urge to develop, for example, a CRM system. Another case would be if you employ a number of HTML/CSS engineers in your tech department, however, you need to develop a mobile app which requires another set of specialists. Hiring them can be both time and money consuming, and outsourcing this task can be the best fit.
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SO WHAT SHOULD BE DONE?
To make a final decision whether outsourcing is the best choice, think of the following questions:
1
Are you going to develop a product that will make profit, or is it about a website or an internal app for internal purposes?
2
Is it a one-time business task or a long-lasting scalable project?
3
Is the time to market crucial for your project?
4
Are there enough qualified developers in your city?
5
Is there enough budget for an in-house dev team?
Keep the answers to these questions in your mind and our article in your back pocket, and that will assist you in making a calculated decision. If it's a yes for outsourcing services, our team at Selecty.io is happy to share our expertise and provide the best service and experience to cater for your business needs regarding software development. Fill out the form below or give us a call and we will contact you in no time!
Want to learn more? Contact us
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