Is Outsourcing Custom Software Development Effective in 2024?
The global IT outsourcing market is expected to reach $397 billion by 2025. Considering the boom of the industry, outsourcing to a custom software development company is becoming increasingly popular. From cost reduction to access to a pool of talent, outsourcing offers a wide variety of benefits.
The fourth industrial revolution is imminent. Web 3.0, NFTs, Digital Currencies are changing how the IT world operates today. Apart from efficiency, innovation is a priority for enterprises that want to meet the changing customer requirements. And since digital transformation is on the rise, companies are hiring professionals for software development services to build their enterprise of customer-centric apps.
But the question arises – is hiring an offshore custom software development company still effective in 2024? While outsourcing has been the choice of companies for several years, there have been changes during the pandemic. Cost-cutting has become a priority, but taking advantage of new technology still leads the way.
This article will focus on why companies should hire a custom software development service provider, the outlook of the industry in 2021, and how IT outsourcing landscaping is changing.
The Need for Outsourcing Software Development Services
Outsourcing is an important aspect of any company’s technical infrastructure. It offers multiple advantages to companies. The need for outsourcing arises essentially because companies want to :
1. Cut down development costs
The biggest advantage of offshoring to a full-cycle custom software development services provider is to cut down development costs. Developers in countries like India, the Philippines, Vietnam, Poland, etc., are more affordable than those in the US, UK, and Canada. Apart from that, companies don’t have to pay recurring salaries – they can let the company go once the project is complete.
2. Talent expansion
When companies need talented individuals that they can’t access, outsourcing makes sense. The best custom software development company will have a pool of talent in different technologies. Enterprises can expand their talent zone without going through the hassle of hiring people. They can also add this talent to their existing team and augment the IT staff with ease.
3. Focus on core operations
When offshoring occurs, companies can focus on their core operations. They can deploy the custom application development company for support services, for example, and let their core team build the product. And if they don’t have access to expertise, they can outsource the entire development process to the offshore partner.
4. Timely product delivery
Suppose the enterprise has to outsource Python development. Now the company taking the project will have an obligation to deliver the project on time if it wants to maintain credibility. Therefore, offshore development also offers the advantage of delivering products on time. And when there’s any modification needed, they can be made extremely swiftly.
5. Flexible development
Another major benefit of outsourcing custom software development is flexibility in development. BoTree Technologies, a custom software development company, essentially follows the agile and lean methodology. It provides maximum flexibility to the company as they can make iterations whenever the need is and build high-quality products.
IT Outsourcing Effectiveness in 2024
During the pandemic, a lot of companies outsourced their non-core functions to achieve optimum performance and efficiency. As a result, the profits boosted, and the IT industry saw tremendous growth. A lot of companies went through the corporate restructuring phase, which essentially brought outsourcing to the forefront. During this period, more companies focused on offshoring software development to increase their revenue.
However, the IT outsourcing landscape is changing dramatically in 2024. Its effectiveness is still evident, but the trends have changed. Today, an offshore custom application development company needs to be on its toes to meet the B2B business requirements.
1. Specialization is increasing
Enterprises today want companies that work in a niche industry. Specialization is important to achieve the desired results. For example, a FinTech enterprise will now look for a FinTech app development company because of the expertise and technical knowledge it will have over others. Similarly, in different technologies like Blockchain, AR & VR, and Machine Learning, hiring niche experts in custom software development services is becoming the norm.
2. Companies need adaptability
More than anything, companies require adaptable offshore partners – those who can change without any problems. Since the technical world is changing so rapidly, companies want a custom software development service provider who can adapt to new technologies, processes, and structures. On top of that, adaptability is important to take advantage of the latest innovations that companies want to integrate in their technology stacks.
3. Strategic collaboration is important
Another factor that companies consider is building strategic partnerships. Today, a full-service software development company of engineers isn’t just about writing the code. Most companies outsource all their IT activities to save the headache of offshoring to multiple vendors. Therefore, that company becomes an associate or the sister company that works on the software needs.
4. Focus on customer experience
While high-quality products have always been a priority for companies, customer experience is becoming a major part of that quality. Therefore, software development services must now focus on customer experience rather than just satisfying the client. Outsourcing companies now need to walk in the customer’s shoes rather than their client’s because it will give a clear idea about what the market actually needs and how to build it.
5. Technology advancement & progression
Last but not the least, the best custom software development company is the one that works with the latest technology in today’s changing landscape. Blockchain, AR, VR, Cloud, ML, AI are some of the major technologies that offshore partners must adapt to. Enterprises are looking for ways to integrate one or the other technology to assist companies in gaining a competitive advantage.
In 2024, if an offshore enterprise software development company wants to stay relevant, it needs to adapt and innovate. More and more companies now want partners that can contribute to more creative processes, ideas, and outcomes. Therefore, outsourcing is becoming more of a full-time strategic partnership rather than just a part-time process of writing code for software. It is important that offshore software development companies walk on this track and work in alignment with the latest trends to deliver effective outcomes.