How IT outsourcing helps reduce development costs
Innowise Group
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Outsourcing is not a buzzword in the IT world anymore. According to recent statistics, the global IT outsourcing market was estimated at USD 526.6 billion in 2021, and the tendency to steady growth preserves.?
Companies offer the benefits of outsourcing IT services since they have enough competence and experience to deliver qualitative solutions for enterprises, corporations, and individuals. For non-IT domains, outsourcing agencies can help avoid errors and misunderstandings related to digital technologies. These agencies offer skilled software developers, UI/UX designers, business analysts, QA specialists, DevOps engineers and other experts who know how to solve complex challenges seamlessly and build products that customers want to see.
Types of IT outsourcing
IT outsourcing can be classified as follows based on the means for providing services:
Offshore outsourcing is the process of outsourcing IT-related processes and services to a service provider in a distant country. Many companies choose offshore outsourcing because it offers favorable conditions (low rates, high supply of comprehensive specialists).
outsourcing to neighboring countries that are typically located in the same time zone or have a 1-2 hour time difference. The advantage of such a model is in the physical and cultural proximity between the customer's team and developers.
In this model, a client company contracts with IT providers operating in the same country.?
In this model, a customer delegates the work on network management (e.g. migration to the cloud, cloud administration and support, etc.) to the third party.
The staff augmentation model involves enhancing in-house teams with one or several remote developers to speed up internal projects or fill the gap in technical expertise. The client is primarily responsible for the project and team management.?
In this IT outsourcing model, the vendor provides a dedicated team of employees led by a project manager to work on the client's project. A dedicated team model includes a hand-selected team of professionals that are focused on one particular project.
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What are the benefits of outsourcing IT services??
Taking advantage of IT outsourcing goes beyond cutting employee costs. The benefits of IT outsourcing include more efficient monitoring and support, as well as a reduction in hardware & systems costs.
Maintaining an in-house team of developers is commercially disadvantageous for customers with a single complex project. A project may take 6-9 months to complete, while in-house developers' contracts typically last for one year or longer. In this situation, specialists may be underloaded with work, costing employers more than they yield.?
In contrast, outsourcing gives companies the flexibility to manage the project's terms and the number of specialists employed, scale development teams up or down depending on the volume of work and the deadlines, and hire the needed specialists for up to 20 hours.
About 53% of Western European countries report difficulties in recruiting qualified developers. The UK, Germany, and the Netherlands tend to pay more attention to the CEE and Baltic countries since it offers an extensive base of dedicated developers that are highly valued in the IT market.
Hiring and managing a team of in-house specialists is time-consuming and complicated. By opting for IT outsourcing companies, customers may rely on a dedicated project manager who controls the development team and focus on more essential acute business objectives with confidence that their projects will be completed successfully.
It usually takes about three months to recruit developers that fit the needs and requirements of a particular business. When addressing IT outsourcing companies, clients can entrust them with the responsibility of finding qualified candidates possessing both technical skills and relevant industry experience within 2-4 days.
Last but not least, IT outsourcing eliminates the need for hiring and training new workers, which is a very costly procedure. This is particularly useful when a company needs a certain skill for a short period of time.
IT outsourcing services at Innowise Group
The development and maintenance of solutions of any scope and complexity for our customers in FinTech, Healthcare, Education, Retail, Manufacturing, Media, Entertainment, and many other fields is a pleasure that we constantly strive to improve upon. Innowise Group aims to provide undeniable benefits of outsourcing IT departments so that customers have no doubts about delegating tasks to us. Discover how we can help your business grow here.