There are several good reasons why Aussie companies prefer to outsource developers to satisfy their software development projects. But, what is outsourcing?
Outsourcing refers to hiring another contractor to develop custom software solutions. Companies do this if they are understaffed or not an integral part of the business. The idea to hire dedicated developers to work as a team is beneficial for both parties. In this article, let us see why Australian companies outsource developers.
The benefits of outsourcing developers
- Cost-reduction. Employing contractors from abroad can significantly reduce the cost of production. If a company hires contractors from countries with a lower cost of living, the expenses will be substantially lower. However, the same quality of service can be expected. This phenomenon is why almost 64% of businesses worldwide deal with staff outsourcing.
- Local developers can focus more on their expertise. Employers want the best out of their business and their staff. Giving weight to your staff over their capacity can result in poorer service. If you hire talented and highly skilled offshore developers in what they do, your local team can focus more on their expertise. After all, outsourcing staff does not require you to build another room for developers, which can be more expensive. In-person developers can work on their core functions while learning more from offshore developers.
- Round the clock operations – 24/7 for 365 days. Because offshore developers provide service in different time zones, your business can work virtually round the clock. In-person developers can work the usual while outsourced ones can do the rest. It is one of the main reasons Australian companies prefer to hire third-party contractors to perform specific business functions.
- Noticeably increased efficiency. When you outsource several business functions to an outsourcing partner, you integrate your partner’s experience and skills into whatever development projects. With this integration, the development project can better utilise their skills and understanding. Of course, increased efficiency will not just positively affect the products and services you provide but the overall reputation of your company itself.
- You can save on technology and infrastructure. When you outsource talents, it eliminates the need for investing in technology and infrastructure. Third-party contractors often have all it needs to complete development projects they receive.
How can you outsource developers for your software development projects?
The benefits of outsourcing developers outweigh all disadvantages. Having these in mind, how can you enter into a contract with the best outsourcing agency? What considerations should you reserve?
There are outsourcing agencies you can look up online, but you have to be cautious in entering contracts. As much as possible, check for the background of the company. Their presence over the internet is a good indicator of their performance over the years. In one way or the other, initiate checking for feedback from previous clients if there are any.
Moreover, consider these:
The number of years they have been into outsourcing service providers mainly on the specific functions you are requesting.
- The number of talents you will hire.
- The budget of the project compared to the scale as a whole.
- Timeframe of the project.
- Most companies outsource talents for the long term. Call centre companies and other support services may enter into contracts for years.
If you plan to have a long term relationship with your outsourced talents, be mindful of its essence in the company and whether it can be sustained financially. Most of all, it must bring financial flow to the business.
Indeed, Australian companies outsource developers for five potential reasons: cost-reduction, focusing on core functions, round the clock operations of the business, increased efficiency, and a save on technology and infrastructure.
Whichever of these are your reasons for outsourcing staff, the benefits always outweigh the disadvantages if there are any. Of course, proceeding into outsourcing talents and developers depend primarily on the needs of the company. All other factors must be considered.