Advantages of outsourcing a software product

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  • 4 min
  • Apr 15, 2022
Julia T.

Julia T.

Business Development Manager

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When you want to create a new product from scratch, you can either employ the insourcing strategy and gather the in-house development team, or adopt the outsourcing model and assign the whole software development process to the professional outsourcing company. Both solutions have their strengths and weaknesses.

What are the advantages of outsourcing software product development? Here are the key reasons why it is becoming increasingly common among both startups and big market players.

Advantages of outsource software development

Shared risk

You might think that outsourcing a project to an unfamiliar external team involves greater risks to your business than doing it in-house. However, a Ruby on Rails outsourcing team typically consists of professionals who care about their reputation in the IT world and are aimed at continuous cooperation with the client. This means they not only take responsibility for the final result but also plan your risks.

Lower costs

When outsourcing a project, you do not need to invest in infrastructure and pay for operating costs and HR services. In some countries, wages are simply lower than in others. This provides great opportunities to cut expenses. Choose outsourcing vendors from locations with a comfortable time zone, culture fit, and rates to make remote collaboration comfortable and effective

Greater efficiency

Outsourcing partners hire skilled professionals to their teams. They know how to handle different business challenges and generally have a wider understanding of how your goal can be achieved. Taking advantage of your outsourcing partner's experience is plain sailing to the successful product you want.

Flexibility

When outsourcing software development, you can easily adapt to a project’s changing scale. Say you decide to develop a mobile app for both Android and iOS instead of for a single platform as initially planned. Most development vendors would be able to add the required specialists to your project. In the same way, you have the flexibility to speed up development if the need arises.

Hassle-free partnership

When it comes to working on the project, there are many details that you are usually loaded with — like how to keep an eye on the progress, how to avoid misunderstanding and generally how to supply the team with everything it may need. An outsourcing partner takes care of this.

Faster time to market

Most companies aim to release their products as fast as possible to outpace competitors and start generating revenue. Hiring a skilled and experienced team without time-consuming recruitment and onboarding helps you reach these goals.

Agility

Besides flexibility in adapting to the project’s growing scale, one of the core IT outsourcing benefits is agility. When you outsource your project to a development vendor, you are better able to handle external changes that may affect your business: new laws, restrictions, technology limitations, and potential problems related to your company’s physical location. For instance, Chinese giants like Alibaba outsource software development to foreign vendors to cope with local internet restrictions.

Access to top talent and technologies

With IT outsourcing, you can cover any talent gap in your in-house team. If your project requires specialists with expertise in artificial intelligence, augmented reality, or any other advanced technology, it is significantly easier and quicker to find relevant talent among outsourcing providers than to find it locally.

Greater effectiveness

While the outsourcing vendor is busy with bringing your product to success, you can focus on your company's core business processes, pay attention to its brand awareness or invest into marketing or research.

Greater chance of success

When it comes to online products, any outsourcing vendor is interested in making a product that will become well-known for its success and quality. That is why an outsourcing partnership is even more appealing and has greater potential to succeed than building the product in-house. It may involve not only building the product itself but also designing it from scratch, pivoting if required, relaunching it, and repeating until the product blows up the market.

Final words

Outsourcing makes you a stronger market player due to numerous advantages. However, to leverage IT outsourcing benefits, you must choose the right development partner. We have created a detailed guide on how to interview potential candidates and find a perfect match among development vendors.

The RubyGarage team has vast experience in software development, both for our own in-house products and our clients’ projects. Our aim is to harness technologies to enable business success through high-quality and innovative software products.

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Author:

Julia T.

Julia T.

Business Development Manager

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