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  • Olga Veremenko

Why Companies Use Outsourcing Instead of In-house Development?



In the world of technology, there is one heated debate that never ceases to exist: what is better, outsourcing or in-house development?


Deloitte predicts that global businesses are likely to spend about $731 billion in 2023 on outsourcing. These figures say a lot about the current state of IT affairs. More and more companies opt for outsourcing instead of increasing the number of their internal staff. What are their reasons? Let’s find out together.


Reason #1. Companies Outsource the Projects to Accelerate Development


Let’s be honest here: finding, recruiting, and retaining people is no easy task, especially in the competitive technology industry. The search for qualified developers might take a while, and time is of the essence if you want to launch a brand new product or finish your customer’s project by the deadline.


Outsourcing significantly saves your time because the vendor provides you with ready-to-go teams, including everyone you need for the project. You can start out immediately instead of desperately searching for new recruits. Instead, you can actively work on the project and take your time to hire the best people for your company.


Reason #2. You Can Focus on Improving Your Business and HR Processes


As we mentioned above, outsourcing spares you the headache of racing for candidates without checking their skills properly.


By having an outsourcing company by your side, you can focus on the core processes within your organization, such as recruiting and hiring, establishing your company’s culture, creating new product features, and setting up long-term business goals.


Reason #3. Outsourcing Helps You Reduce Costs


Talent in the United States and Europe is expensive, especially if we’re talking about senior-level software engineers who are hard to win over.


Outsourcing, on the other hand, can help you collaborate with the top talent remotely. You can hire a team from another region at a lower price. This is how the outsourcing and dedicated team model appeared initially: to help fast-growing companies scale and cut down costs along the way. Businesses can strike an agreement with outsourcing vendors to hand them over some parts or stages of the project and deliver the product to the market on time without breaking the bank.


Reason #4. You Can Meet Great Developers


If you’ve ever felt like your own team lacks the expertise in your niche, making them work side-by-side with professionals from an outsourcing vendor can be beneficial.


In case of outsourcing, you enlist a pre-vetted team with great software development experience. And the best part? You can describe your project to the vendor and get people with the most suitable skills for it.


Reason #5. You Can React to Market Changes Faster


In business, your best asset is your time.

By outsourcing repetitive, routine tasks, you enable yourself to concentrate on the market changes and have your best people work on more sophisticated assignments. At the same time, if the tide is turning, you can easily reorganize your priorities and ask your outsourcing vendor to support you in any new endeavors.


The Bottom Line


Outsourcing dominates the technology world for a reason. It’s a cost-effective measure that allows you to focus on your company’s vision and future while having the best software engineers work for you.


Choosing between in-house vs outsourcing is a perpetual doubt, since both solutions offer their strong points. When in-house development is well-known for face-to-face communication, shared culture, outsourced development offers unrivalled cost reduction and global tech talent. If you’re looking for a technology partner, development team augmentation, or just a company for your software development initiatives, we are happy to offer you CLARITY services.

 

CLARITY is a market-leading SAP partner that has proven the highest quality of delivery working with the customers.

We are happy to help your company with SAP support, business analysis, development and testing of your existing SAP solution as well as to increase the capacity of your project team.

CLARITY can support your project team with our certified specialists:

- SAP Developers

- Quality Assurance Specialist

- Functional Consultants

- Enterprise & Solution Architect

- Project Manager

- Product Owner

- SCRUM Master

Learn more about our services: https://www.clarity.cx/services

Book a call: https://www.clarity.cx/book-a-meeting




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