Evolution of business and technology has left companies between a rock and hard place, when it comes to human resource outsourcing. As the demand for technology talent seems to rise, the talent pool within some geographical locations seems trifling.
Occasionally, businesses have found themselves in need of software talent that is not available internally. We believe hiring is the most important step for any business, it is especially important when hiring a software development company. However, the process might be characterized with a lot of inconvenience and frustration. Today, globalization has transformed the means to hiring software development teams.
Many big firms will hire outside software development companies. The hired companies are usually tasked with staffing their employer with technology teams to work on on-site software projects. Binary Folks CEO, Jyotirmay Samanta attributes the many roles placed upon the internal information technology, as the sole reason why business should outsource their software development.
Usually outsourcing software development companies is an agreement signed between a business enterprise and a third party software contractor. The contract entails the third party software company to carry out all the software related work that would rather have been done in house. This agreement saves the business both resources and time that would have been spent in creating an in house software. In fact, not all businesses have the financial power to have an extended IT department that handles its software development. In such situations, a business will turn to hiring a software development company.
Below we will outline the pros and cons of hiring a software development company for your business. We created this blog post to help businesses learn why do companies outsource software development and whether it is even worth it.
Pros of Hiring Software Development Company
Access to a large pool of talent and resourceful technology
Not all businesses can afford to employ all sets of skills in its IT department. This is especially common with businesses that are not software related. Therefore, hiring outside software development companies helps such businesses gain access to global expertise.
More focus on the core business of your company
Outsourcing software development companies gives an enterprise an upper hand on strengthening its main business. Additionally, the work strain on the business’ in house team will be reduced, since they won’t have to do work that does not match their skills. Business processes will be streamlined, while all attention will be focused towards achieving the goals of the business.
Outsourcing software development enables a company reap more savings from economies of scale, thus making it cheaper and more affordable to run your business. The difference in cost between hiring a software development company and employing an in house team is huge. This hefty amount could be saved, especially when a company decides to hire from developing nations.
Accommodating peak loads
Since all business prevail during different times of the year. The different peak periods might help a business save costs by hiring a software development company during such periods; rather than employing an in house team throughout the year, even during periods that it is not convenient to scale software related work.
Improved and better security
There are many chances that your business is not in safe hands when your IT department is especially not seasoned in cyber security issues. Security loopholes might put a company’s critical information under threat. Therefore, a full house software company will save you the troubles of security breaches.
Cons of Hiring Software Development Company
- Problems with quality control, it is considerably difficult to manage the code been created as much as it’s hard to actually judge the end result before it’s been delivered.
- Code collaboration is a challenge; difference in business culture could easily affect how your internal IT department collaborates with the outsourced software development team. This problem is especially motivated by difference in business contexts for both the hiring business and the outsourced software development team.
- A challenge with Logistic, This challenge is more common when hiring a software development company from overseas. This problem is cultivated by factors such as different time zones and language barrier.
The question whether to employ an internal in house software development team or hire an outside software development company depends on various factors. These factors include, your business needs, the focus area of your business, software budget and the management model of your business. In fact, we would not recommend hiring an outside software development company where your business focus is software related. Consider the above pros and see whether an outside software firm will tire down with your business needs.
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