The Benefits of Outsourced Software Product Development

October 6, 2022

The Benefits of Outsourced Software Product Development

A decade ago, getting outsourced software product development was not an option. Either you develop the product in-house, or you don’t get it developed at all. Today, however, outsourcing has become a norm in our industry.

If you’re a startup owner, you’ve probably thought about outsourcing product development at some point. After all, why not let someone with expertise handle the development process while you focus on other aspects of your business?

In this blog, we’ll explore the services and benefits of outsourced software product development. Let’s begin!

What are the Typical Software Development Outsourcing Services?

Outsourced product development services

Product development is essential for bringing new products to market successfully. As long as you know the product development services you should get, you can source them from an agency or vendor specializing in them.

Here are the key product development services you should consider outsourcing:

1. Custom Software Development

This service is perfect if you have an innovative idea for a new software application but lack the resources to develop it in-house. With custom product development processes, you can get a team of experts to develop the software according to your specifications.

2. Mobile App Development

Undoubtedly, the demand for mobile apps is higher than ever. If you have a great idea for a mobile app, it makes sense to reach out to an outsourcing company that specializes in developing mobile apps. This way, you can be sure that the final product will meet the highest standards.

3. Web Development

In today’s digital world, every business needs a website. If you don’t have the time or an in-house development team, consider outsourcing web development to an agency that specializes in this service.

saas services startechup

Among the web building services now include:

Content Management System (CMS)

A CMS is a platform that enables you to manage the content on your website without any programming knowledge. It provides a user-friendly interface that makes it easy for you to add, edit, and delete pages on your website.

Static or Dynamic website

A static website is a website that consists of fixed pages that do not change unless you edit them manually. While a dynamic website features content that changes dynamically, and any user can change the content on these pages without any programming knowledge.

Websites built on specific technologies

PHP, Java, .NET, and Node.js are some of the most popular website technologies. If you want your website to be built on a specific technology, you can find a web development company that specializes in that particular technology.

4. Cloud Computing

Cloud computing is one of today’s technological solutions that allow you to store data and applications on remote servers. It provides you with the ability to access your data and applications from any location and device.

outsource product development quote

5. IT Consultancy

Feasibility study, business analysis, project management, and quality assurance are some of the essential services you should consider when outsourcing software development. With IT consultancy services, you can get expert advice on how to develop and improve your software products.

7 Benefits of Outsourcing Software Development

The decision to outsource software development has become increasingly popular in recent years, and for many good reasons!

Here are seven benefits of outsourcing software development:

1. Cost-effective

One of the primary benefits of getting product development outsourcing is the significant cost reduction. When you outsource product development, you only need to pay for the services you require. This way, you can save money on overhead costs, such as rent, utilities, and employee salaries.

An outsourced team can come from different places with different rates. To give you a brief, the rates depend on the team’s location. Here’s a quick run-through of different outsourced developers according to SumatoSoft:

  • United States: $100-150 per hour
  • Eastern Europe: $35-45 per hour, any other part of Europe is $50-$60 per hour
  • Asian region: $25-$30 per hour
time and money

India and the Philippines are the outsourcing development team leaders in the Asian region. While they are cheaper, you have to consider the language barriers and different time zones.

2. Access to talented developers

Another benefit of outsourced software product development is that you have access to skilled labor. In many cases, the developers you work with will have more experience and expertise than those you would be able to find in your own country.

Every team varies according to project scope. But these are the essential roles in an outsourcing team:

  • Project manager
  • Business analyst
  • Software developers (front-end and back-end)
  • UI/UX designer
  • QA engineer

By informing your outsourcing vendor of the roles you need for your project, they will put together the perfect team of experts for you. Simply tell them if you desire any other role on your team, and they will take care of it.

3. Faster turnaround times

Outsourced product development can also lead to faster turnaround times. GoodFirms reported that a typical software with basic features could be delivered in less than 2 months product development cycle!

product development quote

Depending on the type, requirement, and technology used, the product development process takes a range of time periods from one to nine months. A specialized company can deliver a custom software product in short 4.5 months.

Whether you want to develop mobile or web apps, you want to do them quickly to enter and be established in the competitive market. Product development outsourcing is the answer!

4. Focus on core business activities

No more additional training for your in-house team when you outsource your software product development. Let the experts handle it and focus on your core business operations!

While it’s good to upskill your in-house employees with product development training, it may compromise the quality they put out for the other aspects of your business. It’s best to leave the development project to people with the skills to do it efficiently.

In this way, you can maintain your company’s quality standards and improve the overall productivity of your employees.

5. Increased flexibility

The software development life cycle has many phases that you can choose to be involved in or not. As you may know, different projects require shorter or longer time to complete. And with an outsourced company, you can be flexible with your involvement.

From pre-development to post-development, you can choose which ones to be as hands-on or hands-off as you need in the software development process. Choosing an outsourcing model may also help you be more flexible about how you want to work.

It all boils down to your preferences and what you think would work best for your company. But, of course, we recommend that you be involved as you can to keep track of the project outcome and development costs.

5. Improved quality

In this competitive market, you want a fresh perspective on your project and come up with new ideas you wouldn’t have thought of yourself. A software outsourcing company can provide you with that.

outsourced product development strategy

With the expert eyes of a development team, they can help in coming up with a better product strategy and improve the quality of your software product. They have had exposure to work on different projects that makes them identify what idea will last and which is just a trend.

When done right, outsourcing product development can lead to improved product quality. That’s because the dedicated team you’re working with is composed of experts who are focused on delivering the best results.

Additionally, they may be more familiar with new technological solutions and trends, leading to a better final product!

6. Easier scalability

In addition to improved quality, outsourced software development allows more effortless scalability. Compared to working with an in-house team, outsourcing allows for easier addition of more resources to the project as needed.

For example, suppose you need to add new features or change existing software. In that case, it may be easier and less expensive to do this by working with a team in another country rather than trying to do it yourself or hiring new staff members.

The outsourcing market has become a go-to for companies who want to scale up or down their team size without compromising quality. For startups, it’s where they get a dedicated team to work on their project from start to finish!

7. Risk reduction

risks in outsourced product development

Many startups are afraid to take leaps because of the risks that come with creating a new development project. Will my product be a flop? What if it’s not what my target market wants?

These anxieties are valid and may help choose an experienced outsourcing partner. An ideal software development outsourcing company will have a team of experts who have experience working on different projects.

Whether it may be losing data or having your project delayed due to political instability or natural disasters, you can minimize these risks with the right outsourcing partner.

5 Tips to Find the Best Software Development Company

Whether you are looking for a short-term or long-term business partner for your outsourced product development, the wrong company can set you back months or even years. Therefore, you should be critical when choosing your outsourcing software development company.

Here are our tips to help you choose the best for your startup project:

1. Prioritize referrals

There are probably thousands of software development outsourcing companies out there. But, thankfully, you don’t have to know each of them to find the one for you.

referral list

When you’re looking for a product development outsourcing company to outsource your project to, prioritize referrals from your network. Friends, family, and colleagues may have personal experience with different companies and can recommend the best one for your needs.

2. Do your research

Online directories such as Clutch and GoodFirms are excellent resources for finding companies for outsourcing your product development needs. Here, you can read reviews from past clients, compare services offered, and more.

Don’t stop at just one company, though. Create a list of potential candidates and then narrow it down based on your preferences in outsourced product development, among others. Do you want them to follow any outsourcing model, such as the project-based, fixed price, time and materials, and dedicated team?

It’s also important to do a bit of research before making a decision. You wouldn’t hire just anyone off the street to build your home, so why would you do that with your website or app? Trust that a little bit of research upfront can save you a lot of headaches down the road.

3. Determine your budget 

This may seem like a no-brainer, but it’s important to know how much you’re willing—and able—to spend on this project before you start talking to different outsourcing product development companies.

budget plan

As much as possible, get an estimate of the project’s scope and timeline before reaching out to companies. This will give you a better idea of how much you need to budget for and also help weed out companies that are way out of your price range.

4. Set some ground rules 

Rules are crucial, especially when hiring developers located in a different country. Think of this as your company’s way of setting expectations for the project.

Some things you may want to consider include the project’s timeline, regular check-ins, what happens in case of delays, and more. By setting these ground rules early on, you can avoid misunderstandings and conflicts down the road.

Notably, a non-disclosure agreement should be in place before any work starts. This will help protect your company’s intellectual property and trade secrets.

5. Ask the right questions 

The interview process is key to finding the best software development outsourcing company for your startup. Here, you can gauge their technical expertise, as well as get a feel for their communication style and company culture.

Some questions you may want to ask include the following:

  • What is your experience in this industry?
  • Do you have any case studies or testimonials I can read?
  • How do you communicate with clients?
  • What is your development process like?
  • What are your rates?
  • Can I see your portfolio?

Remember that the right company for you may not be the cheapest. When it comes to outsourced product development, you often get what you pay for. It’s better to invest in a quality software outsourcing company that can get the job done right rather than going with a cheaper option that may cost you more in the long run.

shaking hands

Tell us about Your Product Development Needs!

Product development outsourcing can be a great way to get your project off the ground without breaking the bank. But, as with anything else, it’s important to do your research and ask the right questions to find the best company for you.

If you’re ready to take your project to the next level, StarTechUP can help. We’re a leading product development outsourcing company in the Philippines with years of experience in the industry.

We have a team of skilled developers who are well-versed in different programming languages and can work with you to create a high-quality product that meets your business needs. From product ideation to product development, we are the team you can trust to get the job done right.

Contact us today to learn more about our services or to get a free consultation for your project!

About the author: Andrea Jacinto - Content Writer

A content writer with a strong SEO background, Andrea has been working with digital marketers from different fields to create optimized articles which are informative, digestible, and fun to read. Now, she's writing for StarTechUP to deliver the latest developments in tech to readers around the world. View on Linkedin

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