Benefits of outsourcing businesses receive

The outsourcing way may save entrepreneurs money. Benefits of outsourcing are truly limitless, if the approach to the process was wise and calculated properly. There are always people willing to do your work for less; however, is cost reduction the only thing driving outsourcing? We at QArea find that hard to believe, so we have conducted research amongst our customers to determine what led them to us and on the path of outsourcing? According to our customers, these are the top drivers and reasons for outsourcing:

  1. Development cost reduction and better control over the budget – 41%
  2. Access to unavailable IT resources – 38%
  3. Business improvement and adjustments of customer focus – 31%
  4. The need to free up internal resources – 28%
  5. Acceleration of company transformation/reorganization – 20%
  6. Project acceleration – 18%
  7. Access  to unavailable internal management expertise – 11%
  8. Time to market reduction – 3%

Surely cost reduction is in the first position; however, it is there with a meaningful and valuable addition: better control over the budget. Technically, outsourcing is a flexible business model where customers may choose the exact services they require, which grants businesses with better control over their development projects. And this is, apparently, the key game-changing factor for outsourcing.

Data visualises benefits of outsourcing

Why businesses invest more and more in ITO?

We have gathered data from all over the world on the matters described in the previous research, in order to get a clearer picture of what businesses actually expect from outsourcing and what they are gaining. You can never determine why a certain business model is successful and useful without data related to business expectations. Very much like our own clients, businesses all over the world are looking for the very same benefits they may gain from the outsourcing way. The statistics are only slightly different:

  1. Development cost reduction and better control over the budget – 44%
  2. Access to unavailable IT resources – 34%
  3. Business improvement and adjustments of customer focus – 31%
  4. The need to free up internal resources – 28%
  5. Acceleration of company transformation/reorganization – 22%
  6. Project acceleration – 15%
  7. Access  to unavailable internal management expertise – 15%
  8. Time to market reduction – 9%

The road of outsourcing benefits

Success drivers

Now that we are clear on what entrepreneurs expect from outsourcing, let’s review what they are gaining exactly:

  • Cost reduction: Outsourcing does provide prepared and trained specialists, which, in turn, means that retirement plans, employment taxes, trainings, management oversight, and health insurance are no longer your business to worry about. You are also gaining the ability to choose a perfect package of services that will be serving your goals, and you will be paying for those services only.
  • More funds are available: If you are outsourcing any non-core business functions, you have the ability to invest more in marketing, business strategies, your employees and customers, or branding; thus increasing sales and earning more.
  • Outsourcing makes a difference when hard times come: There are times when any particular task or function is either unresolvable with in-house capabilities or the solution is more than you can afford. Outsourcing such tasks and functions to teams of professionals experienced in cracking such cases might be the only reasonable solution.
  • Access to talent unavailable in your region: The place you are conducting business in may not have all the required talents you need for successful operations. There might be a small amount of designers or Java coders or QA Team Leads; whatever the case, outsourcing teams are already staffed and equipped. Surely there are no unresolvable issues and you will eventually find the perfect person for your team. But that might take time and effort, and those two resources are more crucial than air in the IT industry, where new applications are hitting the market on a daily basis. If you waste time the odds are you will be out of the market before even noticing the change. 
  • Resources and equipment you will require once do cost money: Resources, equipment, testing and development environments, and tools cost a lot of money. And you will need a variety of those tools, equipped to fit project goals and needs; hence, this might turn out a little more than expensive. More to that matter, some of that equipment is only used once. But outsourcing service providers are already in possession of the equipment you may require in the majority of cases.
  • Company focus may also be improved with IT outsourcing: Nobody can be everywhere at the same time. There are high and low priority tasks. There are also tasks required for business that may and will demand more attention than others. Outsourcing development allows your team the break required for sorting and managing other tasks of high priority. Outsourcing allows companies to focus on things that really matter to them and their community.
  • Access to talents, skills, and experience also affects your ROI: ROIs or Return on Investment are significantly higher when outsourcing is your option. You may have several IT experts in your team; however, outsourcing companies have dozens of experts on their staff that have gone through training and have years of experience behind them, meaning you will be working with people who know exactly what you require and how to serve your needs in the best and most effective way possible.
  • Outsourcing often goes faster than in-house development, reducing your time-to-market: We live in a world of competition nowadays, especially in the IT cluster. Every second matters because your direct competitors may launch a solution with functionality similar to yours before you, annihilating your chances for success. Outsourcing development is faster than arranging appropriate dev. and test environments, hiring appropriate people, etc.
  • Outsourcing reduces risks: The software industry is crowded with risks big and small, which are literally behind every corner of the development process. IT outsourcing companies require being aware of all best practices, as well as possible risks and ways to manage them in order to stay in the flow; hence, it is the only way to satisfy customers. Knowledge, skill, and expertise come along with the package when you are hiring outsourcing providers.

Those are among the top reasons that business owners of all kinds are choosing software development and testing outsourcing as one of the primary tools in achieving their goals. these are some of many actual benefits of software outsourcing to professionals. Those are also the reasons driving the outsourcing market to more success. And those are the reasons that have probably triggered you into researching outsourcing, and that is why you are reading these words. However, not all that glitters is gold, and there is significantly more to the outsourcing way than the data given above.