9 benefits of outsourcing
In this blog post, we provide 9 advantages of outsourcing and answer the question: "Why is outsourcing good?" Read about the latest trends, changes, and news in the digital world in our Ivorysoft blog.
Peter Drucker's words: "Do what you do best, and outsource the rest," most accurately explain what stands behind outsourcing. The current form of remote task delegation proves to be cost-effective and time-saving. During the pandemic period, we all have reconsidered our values as in life, so at work, and shifted towards a more conscious approach in everything we do. This is why now we will witness an era of more in-depth IT outsourcing, which eventually may result in the emergence of more high-quality products.
Outsourcing before and after the pandemic
During the 2000s outsourcing has been gradually earning its place in the IT world and was in great demand even before the COVID-caused lockdown. In the past when an employer could not manage to find a fitting job in his/her country the only option was to relocate and tempt fate abroad. The rapid growth of technology has enabled the dream of outsourcing which means having a satisfying job along with living in the place you want to live in.
This transition from the national market business model to the global one was smooth but stable, opening more opportunities for scaling up businesses and providing more working places. Of course, the new work-from-home reality has given a special boost to outsourcing, it has become even more normal than ever before. Over the years of the 21st century, we witness how fast technological innovations change and impact our lives, making it easier and easier for us to communicate and work with each other, spending less effort, time, and money.
If looking at the specific numbers, according to Statista we see that the worldwide IT market has gained around $200 bn of revenue since 2008 and is expected to grow further by $110 bn between 2019 and 2021. The IT spendings difference between 2020 and 2021 years is forecasted to be only 5.5 percent due to the pandemic's influence.
Why outsourcing is good today
Let’s discuss the most typical advantages to opting for outsourcing these days as well as some which are not that frequently mentioned.
It is remote. In the COVID-19 reality, it is the most risk-free benefit of outsourcing. While the actual work is being done, physical contact with the employees is entirely unnecessary.
Cost-effectiveness is a core reason why outsourcing is good for companies. Actually, you pay for the work only without any additional expenses in comparison to the in-house employment.
Time-saving. The precious time you gain when outsourcing your project gives you the opportunity to concentrate on more important things, like, for instance, looking for investors or compiling a winning marketing strategy.
The abundance of choice in the global talent pool. The other outsourcing advantage is the possibility to choose from a big variety of specialists. You are not restricted by one country and can consider different options before making a final decision. This way it gets possible to find the balance between price and quality of the performed work.
The whole team at an instance. In case you need to hire a whole development team along with a UI/UX designer and a project manager, you can save time and money, and find an outsourcing development agency that provides all the services you need. It is much better than looking for each expert separately.
The difference in time zones. Yes, it may prove to be a significant benefit of outsourcing. If you use it to your advantage you can get the project done quicker than expected. For instance, if your development team is working at night, while you are doing your work during the day, eventually you can get more than 16 hours of effort put into your project daily.
Quality over quantity. When choosing to outsource you get a bigger chance to find one professional from overseas, who delivers a more high-quality code at a lower rate than for instance three less skilled developers you can hire in your country.
The wider spectrum of technical expertise. Logically, in the global talent pool, it is easier to find an agency or individual with a portfolio showcasing the projects alike to yours.
The experience and critical approach. Making business in one country is always limiting to a certain extent. Therefore working with foreign partners can give you a different perspective on your overall business idea.
Why outsourcing is a simpler option now
Despite the current world crisis outsourcing is supposed to thrive and gain more ground. Needless to say that due to its growing demand the number of countries that supply IT services worldwide will increase, thus enhancing the talent pool as well. So, now is actually the perfect timing to outsource your project as the market is not yet overloaded with suppliers and consumers of IT services, leaving more possibilities to find a qualified overseas partner.
Adaptation to the work-from-home world has forced the appearance of many useful tools that make remote cooperation easier. We see the tendency of many large companies to improve and enhance their video communication services, like adding the possibility to invite many participants on the calls.
Google Meet, which is now a free service, gets integrated into Gmail, giving you the chance to e-meet with someone right there. Popular messengers are also improving the video connection feature and some are promising to add video chats in the nearest future. Hence this implies that having a high-quality video call with anyone will be getting easier and easier.
We also start building more trust in outsourcing, as more clients have started to contract out their projects out of pandemic necessity. The more they outsource, getting satisfying results, the more they recommend this option to others, bringing more work opportunities on the international market.
The splash of creativity during this period cannot be underestimated. So many ideas have sprung up, pushed by the users’ urge for something that can fulfill their newly-appeared needs.
Wrapping Up
Even though the pandemic reality has strengthened the concept of outsourcing, the world crisis has caused a reduction in the investment flow, this can be proved by the statistical forecasts for 2021. However, outsourcing is still in demand and is expected to gradually expand further, only a bit slower.
Due to an even bigger variety of tools and services that now simplify remote work, you can easily contract out your project to the third party and monitor its progress. Thus, outsource wisely and consciously. Choose to cooperate with reliable overseas partners, make sure that they have profound expertise in your sphere, offer a team of skilled professionals, can provide you with honest feedback on the project, and share your goal to deliver only top-quality products and services.
