Why Do Businesses Outsource Software Development? (and Win)

Written By staff

Why Does my business need the services of a software outsourcing company? When you are the successful owner of an IT company, this is a question that you must find asking yourself a lot of times. However, the answer is easy but not so simple.

You must outsource a project whenever you don’t feel that you have all the expertise or have enough time and resources to deal with the related problem. Consequently, several IT firms in Argentina and across the globe face a similar situation. Additionally, outsourcing is like assigning tasks – if you keep avoiding it, the chances are you won’t get enough time to expand your business. Learn to let go and find IT professionals who can work for you remotely and help you build the best possible software for your company or clients.

In this article, you’ll find how working with a dedicated software development company will help you win and find success. Let’s get started:

Minimizes Software Development Cost

Have you ever calculated, what is the actual cost that you have to pay for every employee? According to the research conducted by Joe Hadzoma, senior lecturer from MIT, the actual price of your freshly hired in-house software developer could be three times the base salary.

Additionally, suppose you cover all employee benefits like taxes, rent, insurance, equipment, and every non-billable hour (meetings, training, organizations, team integration events, business trips, etc.). In that case, you may need to pay a full-time developer around $300K per annum – which is a hefty amount of Sum to be spent on an individual. Also, if we try to calculate it in terms of hours, the actual cost of an internal software developer is $50 per hour. And if you add all the benefits, it could double up to $100 per hour.

But when it comes to hiring or outsourcing a software development company, the exact cost would not go any further than $60 per hour. This gives an employer a considerable chance to save capital and invest in principal business operations to expand the organization further. For this reason, IT companies always tend to outsource Software Development Argentina as it helps them save a significant business cost. Moreover, every penny saved is a penny earned, especially when you are a business owner in the competitive IT industry.

Enhance Your Team Skill and Size Anytime You Need

Outsourcing is an on-demand service. When you want to outsource, you always know the costs you will pay till the end of the project. As a result, it is a much faster and affordable solution than hiring an in-house team of software developers.

Nowadays, you can also add or remove developers on a project when you are outsourcing. So, if you require more developers at the front-end or backend, you can manage it easily with your external developers. Therefore, the next time you hire an in-house developer, make sure you need an in-house developer.

To Sum it Up

The working environment in the IT industry is constantly changing, and working with the same old team of developers can create more problems than solutions for your business. For this and the reasons mentioned above outsourcing, a team of software developers is necessary for your business to find continuous growth in the industry.

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