Considering Outsourcing Software Development
There are many reasons why a young company would start looking for software outsourcing services.
Pros of Software Development Outsourcing
- Cheaper than hiring an internal team from the get-go
- Ability to scale quickly
- Global talent pool
More Efficient Cash Expenditure
The most common one is the same reason why outsourcing software development in general has been on the rise: it's simply too expensive to hire a full-time development team when you're starting out.
The salaries are accompanied by other costs associated with hiring full-time employees, such as benefits, office space, and equipment.
You need to be able to put your money into other areas of the business in order to get things off the ground, and outsourcing can help you do that.
With an outsourcing company, you know what you pay for - a focused group of professionals that, while don't necessarily know the ins and outs of your company and/or business model, follow the best practices of software development and are lead by a professional project manager.
With that, you can focus on what you do best and achieve some serious business growth.
Ability to Scale Quickly
One of the biggest advantages of software development outsourcing is the ability to scale quickly.
If your product takes off and you start getting a lot of users, you're going to need to be able to respond quickly and add more features or functionality.
With an internal team, that can be a long and difficult process.
You need to find the right people, get them up to speed on your product, and then hope that they're able to deliver what you need in a timely manner.
With an outsourcing company, on the other hand, you can simply add more resources as needed and know that they'll be able to hit the ground running.
Hiring an outsourcing company also gives you the flexibility to scale back if necessary.
If your product doesn't take off as planned or you run into cash flow issues, it's much easier to reduce your outsourcing budget than it is to lay off full-time employees.
Global Talent Pool
Another big advantage when choosing to outsource software development is the ability to tap into a global talent pool.
There are outsourcing companies all over the world, which means you can find the perfect mix of skills and experience for your project.
You're no longer limited to hiring people in your city or country - you can find the best developers in the world and have them work on your project, no matter where they're located.
Cons of Outsourcing a Software Development Company
However, there are some drawbacks that come along with an outsourced software development project that you should be aware of before making any decisions.
- Difficulty of finding a reliable partner
- Lack of control over the process and product quality
- Requires good management and communication skills
Difficulty of Finding a Reliable Partner
For one, it can be difficult to find a reputable outsourcing partner. There are a lot of companies out there that will take your money and then deliver subpar work, or even no work at all.
It's important to do your research and make sure that you're outsourcing to a company that you can trust.
To go around this, you can ask for referrals from other businesses that have outsourced software development in the past.
Hiring a company that has been recommended by someone you trust is a good way to ensure that you're getting quality work.
These alternatives are not as direct, although a company's past work can give you a pretty good idea of what to expect from the outsourced team.
Lack of Control Over The Process and Product Quality
Another potential downside of outsourcing is that you might not have as much control over the development process as you would if you had your own team.
When you're working with an outsourcing partner, they might not be as invested in your project as you are, which can lead to subpar work or delays.
If something goes wrong, it can be difficult to get it fixed in a timely manner.
Again, this is why it's so important to do your research and hire a reputable outsourcing partner.
A good outsourcing company will keep you updated on the progress, listen to your feedback and make sure that you're happy with the final product.
Hiring software development companies can be a great way to save money and get your product off the ground, but it's important to do your research and make sure that you're working with a reputable company.
Outsourcing Requires Good Management and Communication Skills
In order to get the most out of outsourcing, you need to be a good manager and communicator.
It's important that you're able to articulate your vision for the project and that you're available to answer any questions that the outsourcing team might have.
If you're not good at communicating, it will be difficult to get the results that you want.
Additionally, you need to be able to manage the project effectively. This means setting clear deadlines and milestones, as well as keeping track of progress.
If you can't do this, it will be difficult to ensure that the project is completed on time and within budget.
Of course, this is very much in line with what will be expected of you if you choose to satisfy your software development needs with an internal team.
However, we want to stress that these competences are also required up to a point when dealing with a software outsourcing team.
Considering an In-House Development Team
Now that we've looked at some of the pros and cons of outsourcing software development, let's compare it to having an in-house development team.
There are advantages and disadvantages to both options, so it's important to weigh all of your options before making a decision.
Pros of an In-House Team
- Cost savings in pure cash
- Improved communication and collaboration
- Basis for company culture
Cost Savings in Pure Cash
The first advantage of handling the whole project scope in-house is that if achieving project success is not that complicated, you can start from hiring one or two interns that can start building your custom software solutions or do software testing.
Although this is definitely cheaper cash-wise than an outsourcing software development company, you will have to spend some time training these interns which can be costly in terms of time and your personal effort.
In addition, if the project is more complicated, you might need to hire more experienced developers, which can get expensive.
Improved Communication and Collaboration
When you have in-house software developers, communication and collaboration are usually improved because everyone is in the same office (or at least in the same country).
This makes it easier to schedule meetings, share information, and work together on projects.
There is also usually a stronger sense of camaraderie among team members because they see each other every day.
Of course, with hybrid working modes being normalised in today's economy, it might be hard to achieve these benefits, especially with the software development process, as programmers tend to prefer working from home.
Basis for Company Culture
The final advantage of organising your business processes to favour having in-house developers or your own remote team is that they are usually more invested in the company's success because they have a long-term stake in it.
They're not just working on the project for the money; they want to see the company succeed because their own job depends on it.
This can lead to better work and more dedication from team members.
In addition, if you have good in-house software developers, they can act as mentors to new hires and help with the training process.
This can save you time and money in the long run.
Cons of an In-House Team
- Cost of redoing work twice
- Risk of hiring inexperienced employees
- Lack of flexibility
Cost of Redoing Work Twice
The first weakness of having to set up the entire development process in house is that you will have to do it all again should you need to make changes in the future.
For example, if your product needs to be updated for a new operating system, you'll need to either hire new developers or train your current team on the new platform.
This can be costly and time-consuming. In addition, if you have to make changes to the product mid-development, you might have to start from scratch or pay someone else to do it, which can also get expensive.
Agencies are experts in their craft and they will advise you how to plan your product roadmap in the optimal way.
Risk of Hiring Inexperienced Employees
The second weakness of having an in-house team is that there is always the risk of hiring inexperienced employees.
Even if you spend time and money training them, they might not have the same level of experience as someone who has been working in the industry for years.
This can lead to mistakes being made and can set back the development process.
Outsourcing software development to an agency can help mitigate this risk because you will be working with experienced professionals who know what they're doing.
In addition, if something does go wrong, it's usually easier and less expensive to fix it when you're outsourcing than when you're dealing with an in-house team.
Lack of Flexibility
The third drawback of not outsourcing is the lack of flexibility.
If you use existing software developers in-house, you're usually stuck with them for the duration of the project.
This can be problematic if someone on the team decides to leave or if there are disagreements among team members.
Outsourcing software development gives you the flexibility to change agencies or developers if something isn't working out.
It's also easier to scale up or down when you're outsourcing because you can simply add or remove developers as needed. This is especially helpful for startups that are constantly changing and evolving.
In conclusion, there are both advantages and disadvantages to outsourcing software development.
The decision of whether or not to outsource should be based on your specific needs and situation.
Best of Both Worlds: Hiring a No Code Agency
In recent years, there has been a rise in the use of No Code platforms to build applications.
These platforms allow anyone to create an app without needing to write a single line of code. Because of this, they are often much cheaper and faster than traditional development methods.
This, then, can be a tempting alternative - to build an app for your business yourself, with neither local software engineers, nor outsourced teams.
However, they still have a learning curve (albeit much shallower than traditional coding) and building a good app still takes knowing the fundamentals of good app design.
No Code software development outsourcing also makes sense - here are its key benefits:
- Faster time to market
- Lower cost than software development outsourcing
- No Code core competencies
Faster Time to Market
Outsourcing software development to a No Code agency can help you get your product to market significantly faster.
This is because since No Code tools require no coding, professional developers can use their significant coding expertise for solving complex logical problems, database architecture and ensuring scalability, instead of obsessing over syntax and wasting excessive time on QA.
This is especially true when combined with the Agile methodology of software development that these companies use. With these elements in place, you will get your product finished in no time.
Lower Cost than Hiring a Traditional Software Outsourcing Company
Traditionally, hiring an outsourced team of developers is seen as the expensive option to the whole in-house/outsourced team debate. Software development projects like launching native mobile apps can cost $100,000-200,000.
No Code agencies, on the other hand, can provide you software development processes multiple times quicker and, therefore, cheaper. Our agency, for example, usually charges $10,000-30,000 for the entire development cycle of a mobile app.
They will have a team of developers who are familiar with the tools and technologies needed to build your product quickly and efficiently.
In addition, they will also have access to a larger pool of talent, so if you need additional resources for your project, they can be brought in as needed.
No Code Core Competencies
However, there are some drawbacks that come along with using a No Code platform.
No Code platforms often have limitations in terms of what you can do with them, and you might not be able to create the exact product that you want yourself.
However, this is not an issue when hiring a professional No Code agency like Idea Link.
This is because these agencies have strong internal resources, the expertise and experience needed to create a custom product that meets your specific needs and requirements.
We, for example, can hook up any existing external API to your No Code product to circumvent any weaknesses of the No Code software architecture we are building with.
And if an external API does not exist, we will make you one ourselves. We have vast experience of custom plugin development for the software projects of our clients. Here's an example of what we can make.
In addition, we also have a team of designers who can create a custom user interface and user experience for your app that is both beautiful and easy to use.
Conclusion: Is it Worth to Outsource Software Development Processes?
So, which should you choose? Outsourced software development, keeping it in-house or working with a No Code agency?
All things considered, hiring a No Code agency is usually the best option for the following reasons:
- Less commitment than having an in-house team. Once your software project is over, you will not have multiple developers on your payroll. However, if you want to continue your software development project after the first iteration, you will already have found a dedicated team that will happily work with you.
- Lightning fast time to market. With No Code development, you can get your product to market in a fraction of the time it would take with traditional development methods. This is because the code in these platforms is automatically generated while the developer works in a visual development environment. No Code mobile app development, for example, is around 5 times faster than it would be with coding.
- Lower cost. Not only does outsourcing save you money on overhead costs, but No Code development is also significantly cheaper than traditional development. This is still work that requires significant skill, so the hourly rate of a No Code developer is not necessarily cheaper, but since the whole development process is multiple times shorter, so is the final price.
Overall, there are many advantages in software development outsourcing to a No Code agency. If you're looking for a fast, cheap and efficient way to develop your product, then this is definitely the way to go.
We would also like to remind you that the final result of No Code software development is indistinguishable from custom software development. Go ahead - see it for yourself here!
Cover image by Chris Montgomery
Why Do Companies Outsource? Arizona State University.
With No Code Builders, Why Should Clients Hire a Developer? Kyle Prinsloo on Dev.to.