Outsourcing of Technology Development: 5 Reasons Why it is a Good Idea

The decision to outsource IT professionals involves many considerations. To ensure that your choice is the right one, it is worth leaning into several aspects related to the outsourcing IT employees process from outside companies. Will this form of employment allow you to reduce project costs? What will you gain by relying on outsourcing of technology development? Read our thoughts in the article below.

1. Outsourcing IT specialists - Staffing Flexibility

With intelligent outsourcing, you can commit to the resources internally you need long-term while leaving yourself the flexibility to adapt. That is not to say that outsourcing is always better - quite the opposite. 

Your core, long-term differentiators might well be insourced. But remember: that core is probably not the majority of your financial commitments. This fraction of your finances could become an investment with a huge return!

IT Staff Lease and a Company’s Identity

The internal and external staffing process reflects the company's identity and mission. The key is to view the process not as the content of Excel cells but as managing authentic resources with the experience you need. 

For example: if you are developing publishing platforms, you probably should have internal staff in the tech development department, but not in content. If you are in publishing and have eProduct, the opposite is probably the case since you are actually in the content business.

Companies can use different cooperation models. What are they about? We explain in the article Outsourcing in IT - forms of cooperation

2. Outsourcing of Technology Development - Diverse Expertise

We mentioned the topic of specialization in IT outsourcing matters above - and its weight plays a prominent role in your final choice. Your technology base evolves - that is just its nature. But your technology developers may or may not be on board. Remember, they also change - not necessarily along the same lines as you. 

The constant goalposts move in the tech industry as well as the general market means a need to adjust. The best way to do that is to commit expenses to shift your staff to new frameworks and features.

IT Outsourcing and Cycles of Business

Also, outsourcing allows you to scale with your business cycle. True, the project management aspect of scalable and flexible outsourcing is challenging. But you need to consider it a valuable investment in two main facets:

• Your project,
• Product management. 

That is visible - especially in the scope of the developers' expense over time.

Agile Method in the Scope of IT Specialists Outsourcing

The tech development cycle undergoes extreme staffing fluctuations - from the concept stage to the final product’s launch. Finding the right outsource partner willing to work with you in your market reality allows you to save countless dollars and aggravation. 

At any rate, if you claim to be agile, then commit to agility! The core knowledge of agile development is project management, and your development success will depend on it.

3. Benefits of IT Specialists Outsourcing - Internal Staff Improvement

Your staff, especially those accompanying you for years, have developed a skill set well-adapted to your company, products, and culture. The key reason they stay is that - they like working for your company and feel fairly treated.

But on the minus side, this can create a culture of groupspeak and false consensus that can delay or block new and innovative ideas, approaches, and products. In short - in today's corporate world, everyone’s primary focus is their problems and inbox.

IT specialists outsourcing - allow fresh perspectives

By hiring a trusted outsourcing partner, you enable yourself to rely on expertise that can provide an unconventional outlook, constructive comments and criticism, and out-of-the-box thinking. Whatever product you are developing, some, most, or all of it already has its counterpart elsewhere. It is the outsourcing company's job to be on top of trends in a way that is not exclusive to your company.

IT employee outsourcing - Your product is in good hands

An outsourcing partner provides a comprehensive knowledge base of solutions and approaches to creating a strategy for your business. 

Perhaps you are concerned about the security of your customers' data. Stay calm - the process of outsourcing IT resources does not violate the secrecy of your product. A good outsourcing company never breaks these rules. 

But remember: your employees know your company best. On the other hand, an outsourcing company must comprehend the trends for its entire sector. Use this difference to your advantage.

If you want to know more about how to get support from the best specialists, check out the article: Software development outsourcing - the best developers

4. IT Staff Outsourcing and Cybersecurity

The cybersecurity field shows how IT outsourcing benefits low-scale companies. The fundamental usefulness of IT employment outsourcing is ensuring the company's network and infrastructure security. Increasing digitalization has brought several new opportunities. That, however, has also led to an increase in threats. 

According to the Outsourcing report, attacks by cybercriminals cause $11.4 million in losses to the world every minute. Businesses can use many measures to help protect themselves from various hacking attacks.

The Accessibility of Cybersecurity in Poland

Unfortunately, such security measures often require access to specialized knowledge and various technologies. According to the data from 2020, the percentage of companies adopting IT security measures equals 95.2. The vast majority of this number, however, consists of large companies which can afford extensive expenses.

Small and medium-sized businesses, however, do not possess such resources. A sad example is the astonishingly low number of 23.7% of small companies deciding to conduct security audits in 2020.

Cybersecurity - IT Outsourcing for Small Businesses

IT staff outsourcing facilitates cybersecurity matters for smaller companies. It allows providing specialized support related to ensuring cyber security. This aspect is one of the most important reasons why small and medium-sized companies choose to work with a technology partner. 

5. Outsourcing Technology Development - Cost Reduction

It is not coincidental to leave this aspect to last. On the contrary - it is intentional because unit cost is the least significant element of our calculation. If you start with the unit cost, your chances of finding the right partner decrease significantly. 

That is due to you being held captive by several factors, which we can include:

• flat-rate budgets, 
• hourly costs, 
• estimates. 

That is not to say that cost is unimportant. However, the software is like any other product - and demands proper treatment. 

Quality of the Product and the IT Employee Outsourcing Services Cost

Within reasonable financial bounds, having a great product leads to earning a lot of money. Moreover, the short-term hourly cost is not getting in the way. 

From the other point, if your product lacks in some departments, you are not making money - no matter the cost. The best way to make a great product is to have the most flexible, expert, and diverse developers available.

IT Outsourcing Partners - Value Quality over Cost

Outsourcing IT services is nothing less than an investment - in both product and quality of personnel. Under the right conditions, this service can bring tremendous benefits to your business and employees exposed to new experiences in their work. Finances can be a factor holding you back from making a final decision. You then face a dilemma - is it worth putting the financial aspect first?

Our advice? Refrain from dividing the salary and benefits of a full-time employee by 162, and do not try to do everything on your own. Partner up with trustworthy IT outsourcing partners to become the best you can be. Do the work on the most sensible budget. Do not start with the budget.

IT Specialists Outsourcing - Ask Those Questions

Consider applying the first three points before focusing on the budget:

1. Quantity: If you lack staffing flexibility, you will spend more money over time on inefficiently tasked staff. Quantitatively, you lose the war, even if you win a 3-month battle.
2. Quality: If you lack diverse and scalable expertise, you are in the same leaky boat. Over time, you have the wrong people for unsuitable tasks.
3. Outsider point of view: If you staff everything internally, everything becomes equally important, and your team does not develop new perspectives and different points of view.

With the knowledge you have just acquired, you can now make a prudent decision about how to approach the collaboration. Check out Softnauts' offer for the service:

•  IT Outsourcing.