“To Outsource, Or Not To Outsource, That Is The Question”

20.05.2019
Michael Gorelik, COO, Nitka Technologies Inc. | Reading Time: 4 min
Slack. Skype. WhatsApp. GitHub…

These are just a few applications that decided to outsource to an offshore software development company in their early stages.

Similarly, there are many more examples of successful startups that have made the decision to outsource their software development in order to achieve their goals faster and more efficiently.

Don't be fooled; outsourcing does not mean the absence of investment, it is simply a much more cost-effective solution. Moreover, whether it be a startup or an established company, outsourcing allows corporate entities to develop, promote and market their products more successfully. Here's a peak at some of the benefits outsourcing can offer your corporation:

 

#1 Access to the best talents worldwide.

You are not limited by your location. As your primary choice criteria should be the team’s skills and professionalism, you can select a company with senior developers with great expertise in software development.

Using skill-based hiring methods, your recruitment team should hire world-class programmers in a very short time. When selecting programmers, recruiters could use a screening test as the first part of the hiring process and then conduct a screening interview. This stage follows with a set of technical tests and a technical interview. Before presenting a candidate to the client, a final interview might be conducted by the company’s senior leadership. These latter-stage interviews are generally extended to a very small pool of top candidates.

The goal for the outsource company is to hire the best candidate for the job, not the best interviewee.      

 

#2 Reasonable balance of skills and rates.

The outsourcing geography is wide. “Offshore” means “located in another country”. Eastern European countries, such as Belarus, are quickly rising in the outsourcing ranking and their development rates are lower than in Western Europe or the US. Anyone who has ever used sources other than in-house knows that it could be much cheaper.

Expenses are reduced mainly due to the distinct difference between the rates and salaries of the staff.

There is no need to pay more to hire a professional from home if you can get a developer at the same or higher expertise level elsewhere.

 

#3 No need for micromanagement and no need to be the company’s HR manager.

If you are not an HR guru, then you are in for a big surprise: it is not easy to hire a real team player. Hiring, training, and onboarding take considerably a lot of time when working in-house. You can avoid such troubles, as outsourcing companies have their own professional HR in charge of this. This is part of the package you get upon hiring such company; it is an operating company, with a functioning management in charge of everything from top to bottom.

This will give you more time to focus on your core business.

 

#4 Easy scalability.

In the course of the project development, the scope of work may either reduce or expand. In an event of change in either direction, the number of developers needs to be increased or decreased which is extremely difficult to do with in-house development. With outsourcing, you are less likely to encounter any issues. The outsourcing agency usually has enough staff to cover the project needs and, when certain special skills are required, the agency can provide a part-time contractor on an hourly basis. Similarly, reducing the team is no problem; an agency may be running more than one project simultaneously and it has the flexibility to transfer members from one assignment to another assignment.

 

#5 Business owner’s time.

Development of the product is important, but it is not the only task standing before you when starting a new business. The end result of functional software should not be your only interest; the process includes important in-depth research and brainstorming prior to such development. If you hire a project manager along with a team of developers, you won’t need to dedicate any more of your time to supervise the project. Simply communicate your ideas to the project manager – and let him do the rest.

 

To Sum Up

Whether you require a team of 5 or 50 workers, it is much cheaper to outsource an entire project then to hire each developer individually. Additionally, you don’t need to purchase equipment or other supplies required for software development. You have flexibility and still get to save time. By teaming up with a company like Nitka Technologies who has a proven track record of excellence, you can significantly reduce time to market.

Although most benefits you get from working with an offshore software development company would certainly impact and reduce the cost, it is not only a matter of budget. Certain expertise and specializations available to you in outsourcing, allows you to focus on your company’s main goals.

 

It is time for startups to realize that outsourcing software is a great practice that can help their companies prosper.

 

Outsource, or not to outsource … is that really a question?





Michael Gorelik has over 15 years of experience managing within dynamic IT
organizations, including building, restructuring and leading large teams. He spent the most recent period of his career working as Chief Operation Officer establishing policies and procedures to promote successful company culture and vision while overseeing projects operations, maintaining internal development resources to sustain projects lifecycle. Michael holds a Bachelor of Science in Mechanical and Civil Engineering, and BS in Teaching Science.