IT Outsourcing: The Benefits of Outsourced Software Development

Finding dedicated teams in times of pandemics is the optimal solution for startups and companies. Collaboration on IT outsourcing terms will remove all product development tasks by distributing them among remote experts. So, why is outsourcing better than hiring in-house experts?

Reducing SDLC – Software Development Life Cycle

When you have decided to create a product, there is a lengthy stage of recruiting experts for the team. Finding dedicated developers takes three times less than offline interviews with local candidates. It is enough to contact a proven outsourcing company, which will choose a remote employee according to your criteria.

Staffing the team can also be much faster if you hire long-time employees on the side. It will save time on more critical tasks, such as drawing up detailed terms of reference for a future application. Moreover, bringing the product to market will get more clear deadlines.

Team Cohesion

When you hire a formed and well-established IT team, you can entrust them with the whole process of building a new product. The model allows the customer to focus on the main business tasks and get a ready-made digital solution within the specified timeframe.

Unlike freelancers, dedicated teams consider long-term cooperation. They perform revisions, fix unexpected bugs, and offer support for the product after its presentation to users.

Budget Savings

A contractor is usually needed for project work, not on a permanent basis. Cooperating on a civil-law nature, the customer crosses out four items in the “expenses” column. They are exempt from paying sick pay, vacation pay, insurance, and pension charges. Also, the outsourcer can work in any other country, and there is no need to provide space or even rent the whole office.

Prices for the services of a remote IT specialist are more loyal, reducing product development costs by up to 35-40%. And hourly rates vary depending on the country where the IT project performer is based. For example, developers from the USA cost $70-130, and Poland or Ukraine cost $35-55.

Diversity of Tech Professionals

Statista predicts that ICT employment will reach 62 million worldwide in 2023, up from 53.2 million in 2019. Global trends in the daily emergence of new IT professionals show that finding a performer for any project is possible. The greatest variety of IT talent among these specialties are: software developers, user support specialists, and systems analysts.

It is essential to choose a proven outsourcing company with many years of experience before looking for a performer. In contrast to freelancers, it will independently select specialists to meet the customer’s requirements. The main stages of hiring, verification of skills, experience, and technical expertise will be the prerogative of the external company, which will simplify your task if you do not work in the IT industry.

Matching Skills and Technical Stack

Implementing any product (from an online store website to a fitness app) requires appropriate skills. For example, an iOS developer must be proficient in specific programming languages: Objective-C, Swift, Java, C/C++, C#, and Kotlin. And UI/UX designer has to have the necessary stack: Figma, Balsamiq,, Adobe Photoshop, and Illustrator.

Outsourced teams are tailored to specific projects and requirements. If new work tools arise, the developers master them immediately. As a rule, they have many years of experience and know at least two programming languages. Adaptation to the next project takes a few days, allowing the dedicated team to start working on the product without delay.

Toptal serves as a premier platform for hiring elite outsourced developers and coders. Esteemed CEOs, CTOs, and management personnel from leading companies and startups collaborate with Toptal’s freelancers to enhance their development teams and successfully accomplish their business requirements in areas such as application development, web development, and various software development projects.

No labor nuances

There is no need to get into labor legislation if you work with an outsourcing company. As a rule, signing a nondisclosure agreement (NDA) and a service agreement is enough.

An outsourced IT company handles all labor issues internally, contacting the customer only regarding critical issues. They include vacation schedules, sick leave, payroll for each remote team member, etc. The customer keeps in touch with the hired workers and monitors the execution of the TOR.

Time to Choose: The Ratio of Pros and Cons of Outsourcing

Highlighting the advantages of a dedicated outsourced team, let’s note the main risks of this hiring method:

  • Breach of confidentiality. Future product data may become available to service providers and other developers in cooperation with third parties.
  • Time difference. Dedicated employees from abroad may live in a different time zone, affecting online meetings and urgent issues.

The customer can avoid major risks when working with outsourcing service providers. For example, cooperate with a nearshoring company when the difference in 1-2 hours is not noticeable. And also specify in the contract all the nuances of data security.

Entrust the hiring of remote developers to the Moqod agency! Our employees will choose specialists who speak the same language as you, share ethical and cultural views, and quickly get to grips with the task. Choose software development outsourcing to ensure the launch of a perfectly made and tested product this year!

This article was written by the software developer company Moqod

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