Why Are Software Development Projects so Difficult, and Why Should You Outsource Them?

In today’s world, if you’re not doing business digitally, you’re not doing business at all. To stay competitive, a company will have to invest in software. This can range from a web platform or app, CRM, blockchain integration, to multimedia with advanced CGI. But software development comes with a multitude of challenges that not all companies are equipped to deal with in-house. That’s why many organizations choose to outsource software development to specialist teams.

Pitfalls of Software Development

Software development projects are notorious for going over budget and over deadline. This is due to multiple factors, most of which are related to the fact that software development requires specialized technical knowledge. CEOs, sales, marketing, etc., may not realistically grasp the effort or scope of a software development project that they desire, or be able to articulate their needs in a way that translates to action on the part of the developers. On the technical side, software developers, engineers, security specialists, and QA may end up straying from the goals of the project due to poor coordination or a lack of experience in the particular type of software. With all these potential issues, it’s no surprise that the majority of software development projects exceed their allocated time and budget. There’s also the possibility that that project may be unsuccessful. It may fail to capture the market or be riddled with bugs and errors, damaging a company’s reputation and requiring even more work to fix post-release. Software development is expensive, and the risk is high, but the chance of success is much higher if the right talent is hired. For the best experience, one should hire a team with not only specialist expertise in the project area, but also a proven track record in collaboration and communication. Most companies struggle to meet all of their software development needs with their in-house team, but outsourcing is an efficient and cost-saving alternative.

Advantages of Outsourcing

Keep up with the Pace of Digital Transformation

As the economy continues to digitize, the tech demands on companies increase exponentially. It’s not only enough now to have a web page, but also mobile apps, customer portals, data protection systems, digital marketing, etc., are all becoming necessary to compete in the modern economy. Most businesses cannot afford to scale up their IT staff to build what is needed to keep up, but outsourcing allows you to ramp up your software development capability as and when it is needed to meet the demands of a changing market.

Specialized Knowledge and Expertise

A common mistake of managers is to assume that their IT staff are capable of everything computer-related. But different types of IT work require different skill-sets, so rather than get an in-house IT team to develop your software from scratch, it makes sense to hire a team with experience in creating similar products for similar companies. Particular software products, such as smartphone apps, online stores, VR experiences, cybersecurity systems, etc., also require specialized knowledge. Any given company’s IT is unlikely to have them all. When outsourcing, you can select the talent with the exact skills you need for your project, avoiding delays and errors that increase costs in the long run.

Access to Global Talent Pool

Software development is an attractive career path, with a reported global population of 26.8 million software developers active at the end of 2021. This number is predicted to grow to reach 45 million by 2030. But these talented individuals are not evenly distributed all over the world. If you’re not based in a tech hotspot such as Seattle or the California Bay Area, you might find it difficult to source the talent you need. Software development agencies are typically connected to global tech hubs and draw from the top talent around the world. Thanks to the ease of remote working, distance is no barrier to communication. Furthermore, outsourcing also allows access to upcoming tech talent from developing markets, which, if selected carefully for language ability and time zone, can result in considerable labor savings.

Save Labor Costs

The average salary for a software developer in the United States hovers at around $100,000 per annum or $46 per hour. This is raised in areas with a high cost of living, which includes tech hubs such as Silicon Valley. But through outsourcing, you can hire developers which are just as talented as those from US tech centers but demand much lower salaries thanks to the lower cost of living in their home areas.

Streamline Management

Developing software in-house can lead to organization issues and office politics as different levels of management become involved, demands of other projects on IT interfere, and the cost of onboarding/training specialists slows things down. When outsourcing to an agency, the agency will typically assign a project manager for you, and they will liaise with your company representatives to deliver your software project on time and on budget without any distractions. At AccelOne, our nearshore software development team is experienced in developing a variety of software solutions for industry-leading clients.

To learn more about how we can help you realize your digital transformation goals, contact us online or call 800.863.6814.