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September 15, 2014

Should US Companies Outsource Software Development?

Should_US_Companies_Outsource_Software_Development_2If you want expert software programmers, better profit margins, a more flexible development group and up to a 24-hour development cycle, then outsourcing is an option you should be considering for developing your next software project.

At the same time, it’s important to recognize which situations benefit most from outsourcing. Here are 5 instances where you should consider outsourcing software development to improve the chances of success.

1. You’re Creating Your First Software Product (Version 1.0)

If you’re just starting your first software product, outsourcing a significant portion of your development can bring a level of technical expertise and cost saving that can mean the difference between success and failure. By working with a carefully chosen outsourced software development team, you can ensure that your project is being worked on up to 24-hours a day, an important factor when trying to meet project deadlines and goals.

In addition, the right outsourced developers often have years of experience developing MVP (Minimal Viable Products) and version 1.0 platforms while also providing a fresh perspective on how to make your software product stand out in a difficult marketplace.

2. You Need to Create a New or An Additional Software Application

When pursuing a new software application, it’s important to understand your budget considerations, what you want your application to achieve, and who your target market is.

If you’re looking for experienced developers who know what it takes to build an excellent piece of software, the right development team will help you overcome different roadblocks in the application development process.

Outsourcing some of your software development can help you meet budget deadlines and work towards building the application you want.

3. You Want to Augment Your Internal Development Team

At some point, you may pinpoint specific shortcomings within your internal development team that need to be fixed. These often include gaps in technical or vertical expertise and the need to be more cost effective. However, reorganizing your team could take time and domestically hiring new team members to fill those gaps can lead to cost overruns. That’s why outsourcing can help you fill the gap by strengthening your internal team’s existing skillset, and overcoming any pre existing disadvantages your team may face.

4. You Need to Do Maintenance Programming on An Existing Product

Once you finish a development project, it doesn’t mean your work is over. Software needs updating, enhancements and maintenance work to ensure your customers keep coming back and that your product is meeting the needs and demand of those customers.

Instead of devoting resources to debugging code or improving code, it’s much easier to outsource software development for short or long-term maintenance work. This will let your main team focus on the important work of developing new software and applications to secure the future success of your business.

5. You Must Cut the Burn Rate to Enable Your Company to Survive

Developing software and running a company can quickly lead to negative cash flow, underlining the difficult situation companies can face before they become profitable. Startups need to be nimble and parsimonious. When you outsource software development you can help manage burn rate at your company and help ease difficult financial situations; an important factor especially if your company is just getting started.

Ultimately, your existing team might not have the knowledge, skill sets, agility or cost effectiveness to meet deadlines, reign in costs or properly develop the product you’re trying to bring to the market. Outsourcing, done correctly, can provide all of these benefits, giving you a significant boost in your software development operations.

Andy Hilliard

As CEO, Andy leads and advocates for the globalization and collaboration of great software teams with companies in search of talent, innovation and a globally-distributed extension of their engineering function and culture. Andy founded the ground-breaking nearshore software development services company, Isthmus Costa...

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