What types companies should outsource web development

Global markets and improvements in technology have changed the way businesses work. For many, staying competitive means capitalizing on the world being a smaller, more tech-savvy place, and enjoying the benefits of outsourcing.

Hiring an overseas workforce to outsource certain business functions can lead to lower overheads, increased growth, and greater focus and service quality. Combined, these benefits mean a happier-looking bottom line. On paper, it all sounds great. But for a business sitting on the fence about whether to offshore, promises and benefits that “sound great” aren’t enough.

In this article, we’ll discuss which industries can benefit most from outsourcing IT services and how to choose a reliable and good option.

Why businesses outsource

How do you hire an outsourcing company that would be a reliable partner for your business? That question can get tricky, especially when there are so many options to choose from. But a great partner will help deliver your software project from the initial idea to a full-fledged product.

In 2021, Clutch surveyed 500 organizations in the U.S. and discovered that the reason 80% of survey respondents planned to outsource was to realize a host of benefits, including improved efficiency, business growth, and the chance to work with experts. The reasons behind their decision to outsource varied:

• 27% outsource to improve their efficiency and save time.

• 19% outsource to support business growth and scalability.

• 33% outsource to access flexible resources.

• 26% outsource to work with an offshore expert.

Which industries benefit the most from outsourcing?

Businesses are feeling positive about their outsourcing relationships, and some business functions and industry sectors lend themselves better to outsourcing than others. This boils down to practical issues around setup and management. According to Deloitte’s 2021 report, the most commonly outsourced services are IT services (54%), finance (44%), payroll services (32%), and customer service or contact centers (22%).

The tasks that can be outsourced may include the development of:

• Mobile apps

• Desktop software

• Web solutions

• PWAs

• Internal management systems (EHRs, EMRs, ERPs, CRMs).

Among the cons of outsourcing IT services, companies note the following features:

Flexibility. As it was mentioned, outsourcing companies consider every detail to offer good outsourcing software development services. They typically offer a variety of models of cooperation to reach the flexibility their clients need.

Well-organized development process. The teams in small software development companies usually consist of developers that work together permanently and know each other better. They have already built a solid team and can cooperate more effectively.

Constant growth. Specialists want to satisfy the growing demands of customers, so they tend to expand their knowledge and integrate new tools and technologies into the development process

Tips for hiring an outsourcing company

Given that your outsourcing software development partner will not be local in most cases, it makes sense to schedule a call to get to know them better. This can help you get a feel for the people of the company and whether you can establish a good cultural fit. 

The process of arranging the call can say a lot about the company itself. It shines a light on their communication practices and level of diligence toward clients-to-be. To the extent that it is possible, do follow up the call with a face-to-face visit and survey the company headquarters.

Define your agenda

It is critical to outline the mission plan from the onset. The more details you can put together about your project, the easier it will be to hire a software development company. 

Negotiate

If you have any prior experience in business, you will know that negotiation is key. Leave no stone unturned and make sure to speak about anything and everything that might raise a red flag. Make sure to ask whether you should go with hiring a software outsourcing company to complement an existing team or form a dedicated team from the ground up.

Evaluate

This is the step where you make that list shorter by weighing the pros and cons of everything you have heard up to this point.

To make finding the right company for outsourcing easier, do collect the company deck to sift through as you make the choice of who makes the cut and who does not. It is always good to have reference material when choosing a software development company.

Summing up

At the end of the day, which software development company to hire will be your call? Whatever the requirements that guide your hiring choice, opt for a development team that has the right cultural fit and is aligned with your business's processes.

Do not forget that communication is key, and communication must be ongoing. Pick a developer that is ready to engage in open dialogue. And, of course, do not just go for the lowest-hanging fruit in terms of pricing. 

Know that you can always back out of a bad deal. By following through with the tips we have outlined and being ready from the start, you might just find a great development partner. Now that you are armed with this knowledge, we want to wish you good luck in your search!