The COVID 19 crisis has not just affected humans but has also affected businesses severely. The coronavirus wave has pushed thousands of businesses into doom and is pulling the economy backward with each passing day. The crisis on business has not just shown its impact on the business owners or outcomes but also on its employees, stakeholders, operations, and reputation! To survive the situation, organizations all around the world need to adapt, develop, and keep going. There is also a need to rethink business strategies where outsourcing is the new normal.
If you too are struggling to beat the 2020 recession and looking for solutions that are cost-effective and agile, Outsourcing is the solution! Throughout the world, organizations are turning to outsourcing models for flexible solutions. The prolonged economic slowdown caused by COVD-19 has compelled companies to go for rigorous budget cuts. This calls for flexible and resilient business models like outsourcing. Experts have found that for companies with digital products, where the dependencies are on software solutions, outsourcing a software development company acts as the best solution to save cost. by outsourcing web/app development services, companies can also identify their critical dependencies and focus more on their core business activities.
How outsourcing App/web development services can help you sustain the storm?
In the post-COVID-19 environment, regardless of any product or service, your company is offering, having a strong digital presence is a must to sustain the storm. To make the most out of the situation, you can develop a mobile application that offers your products and services. This will ensure that the downturns caused by COVID-19 will not affect your business as everything can be managed online.
In this process, while you are planning to roll out your mobile application or getting your website developed, you first need to hire a dedicated development team. In the recession phase where companies are reducing the payroll and headcount, hiring an in-house team for your project is a daunting and expensive task. On the other hand, outsourcing web development services is a proven way to get cost-effective, flexible, and quick solutions.
As you plan to outsource your software development needs to the right company, it provides you with the flexibility to figure out the best plan & get the best solutions for your business. This can spare you from spending a hefty amount on hiring a dedicated development team.
Benefits of outsourcing
Outsourcing software development during the pandemic offers a wide range of benefits such as:
- Outsourcing is cost-effective: Cost-efficiency during the pandemic is one of the overriding factors that make outsourcing an easy option for businesses. Unlike hiring an in-house team which costs you a heavy amount, outsourcing is available at a much lower price. Research conducted by the Telegraph suggests that companies can save around 30% on operating costs by offshore outsourcing. Keeping the current situation in mind, IT outsourcing vendors are making their rates even more attractive to make it a suited option for companies.
- Reduced development time: Outsourcing companies have experienced & talented developers that hold high expertise to support your project at any stage of the development process. You can either get your product developed from scratch or can only get a particular segment developed. The outsourcing companies also ensure that your project gets delivered within strict deadlines, which reduces your launch time in the market.
- Reduced workload on your employees: Organizations are increasingly reducing their headcounts during the recession period. This can create more burden on existing employees. Here comes the need to outsource! Having the team outsourced can handle your project efficiently without you having to worry.
- Access to global talent: For small & mid-sized companies that are currently having a talent shortage, outsourcing is the best solution. Outsourcing can give you access to a wide talent pool where you can simply have the brightest minds by your side. As the development process requires experienced and talented developers to make your product over the top, you can have the best developers across the globe at the most competitive rates.
- Increased scalability and flexibility: The outsourcing model is substantially effective in the post-COVID-19 environment in terms of better scalability and flexibility. Whenever you are willing to scale up, scale down, or meet the ongoing market changes, you can rely on your outsourcing partner to come up with the best solutions.
- Seamless remote development: The pandemic has brought the practice of remote development where several companies require collaborative software, tools, guides, and training. With this, managing and monitoring become a major challenge for companies. This is where outsourcing comes into the picture! The offshore outsourcing companies are well familiar with remote working and development & come up with the best practices to help you.
Why is outsourcing a proven solution during the pandemic?
This year has emerged as one of the most challenging years for businesses. The entire world is continuously looking for effective ways to recover from the health and economic challenges posed by the COVID-19 pandemic. The situation has impacted almost every industry, leading companies to revise their budgets & reduce their headcount to minimize the effects.
To survive the pandemic and beat the fierce competition, businesses must take advantage of areas they can leverage to improve efficiency and reduce costs. This calls for an outsourcing model where companies can hire third-party agencies or service providers who are highly competent in all complex tasks related to software development. This can help companies overcome productivity challenges, cut down their operational costs, streamline operations, and get access to resources that may be lacking in-house.
In the current scenario, where maintaining a steady cash flow is crucial for the survival of any business, it makes a viable option for start-ups and SMEs to consider the outsourcing model. This is also a preferred model also because hiring an offshore software development company will ensure that your own in-house team will need to spend less time on maintenance and support.
Some stats on Outsourcing:
- NTT Ltd.’s 2020 Global Managed Services Report, based on a survey of 1,250 executives in 29 countries conducted by IDG Research, suggests companies are expected to outsource more work due to the Covid-19 pandemic.
- The same research said that 45% of organizations will outsource more than insourcing in the next 18 months, with 57% citing security risks as a key challenge of managing IT in-house.
- The average hourly rate for hiring a senior software developer in the US is around $60. On the other hand, a developer with similar experience and skills can be hired for $40 in Asia. The offshore software development rates in Asia’s tech hubs like India are even lower.
- As per Entrepreneur, 74% of companies outsource IT, 52% of companies outsource HR, 43% of companies outsource procurement, and 39% of companies outsource finance.
- As per Deloitte’s outsourcing statistics graphs, the top reasons for outsourcing is to save money and cut costs (59%), focus on core business functions (57%) and solving business-related capacity issues (47%).
- As reported by Statista, the global outsourcing market was worth $92.5 billion in 2019. The statistics also show that the market size of the outsourcing industry in the US in 2020 is $132.9 billion and it is expected to grow by 1.6% the same year.
- As per Delloite, a recent survey revealed that as much as 78% of businesses cultivated a good relationship with their outsourcing partners.
What makes India the best outsourcing destination?
Compared to other regions, Asian countries have the least software development outsourcing rates with a huge talent pool. The average rate of the developers varies from $18 to $25, making it the most cost-effective outsourcing destination in the world. This implies that outsourcing your software development to Asian countries can help you save big bucks on your developing budget without compromising on the quality of your development product.
Among the different Asian countries, India is one of the largest IT hub in the world, with more than 100,000 corporates and over 5 Million Software developers registered on the business platform. India’s time zone allows every region of the world an overlap in working hours which makes it an ideal destination for any company in the world to set up an offshore team here.
Being one of the largest IT outsourcing markets in the world, the country holds around 55% of the global IT outsourcing share. Over the past decades, the sector has also been among the top 5 priority industries to the Indian government that further results in lower IT taxes, improved business schemes, fewer legal issues, and better security, thus, making India the best outsourcing destination.
Tips to find the best outsourcing software development partner
Wondering how you can find a reliable outsourcing partner? We have listed down a few tips when choosing an offshore development partner during the coronavirus crisis:
- Clearly define your requirements: Before collaborating with your outsourcing partner, you should first understand your own needs. You can start by evaluating the nature of your business and understanding the requirements of your software development process. Identifying these parameters can help you give your outsourcing partner a clear picture of your business requirements.
- Do adequate research: Among thousands of outsourcing companies out there, finding the right outsourcing partner is a challenging task. To make sure that you are collaborating with the right company, make sure to conduct some research. Thus, you must research on the internet, go through the company’s reviews, check the company’s profile, and browse its website completely.
- Cheaper is not always the better option: Cost is undoubtedly one of the main factors to consider while choosing your outsourcing company. However, always keep in mind that cheaper is not always better. Your decision should be based on comparing other factors too like flexibility, the company’s experience, reviews, and portfolio. If you find a better outsourcing partner at a slightly higher price, you must go with them.
- Put forward your project requirements: Based on your research, you should shortlist a company and discuss your project. Make sure to discuss what technologies would they deploy, the time duration to complete the project, what would be the overall costs incurred, how any developers would be working on the project, among others to determine whether they fit your needs or not.
- Check the company’s previous work & reputation: You want the best outsourcing partner in the market, isn’t it? To find the right company, you must see their market reputation. Customer feedback and market history can tell you a lot about IT outsourcing partners. Before finalizing your outsourcing partner, you must also make sure to check the past projects they have undertaken to know their ability.
- Check if it is a flexible outsourcing partner: Keeping in mind the current situation of COVID 19, it is necessary that you find a reliable and flexible outsourcing partner. You must make sure your potential IT outsourcing service provider offers different models & different pricing models such as fixed cost, time, or a dedicated team to fit into your specific demands and adjust the models as per your preference and needs. Whether you want to hire android developers, hire iOS developers, hire PHP developers, or any other, you must discuss possible hiring models.
- Check the company’s security policy: You will find that most of the reliable outsourcing companies pay attention to their security policy at all levels. Especially during the pandemic, where remote working is the key, you must make sure that the company has an effective security policy in place.
How can we help businesses as an outsourcing partner?
SunTec is a one-stop solution for all your outsourcing needs! Our company has been rated among India’s best multi-process IT outsourcing companies, providing cutting-edge solutions to companies from all around the world. Other than providing mobile and web development services, we specialize in offering data entry services, data processing services, sales & marketing support services, professional eCommerce development services, e-publishing services, and photo editing services.
As an outsourcing partner, we focus on giving our clients a definite competitive edge and ensure that our service offerings exceed their expectations. Catering to your business needs, we develop unique and innovative mobile & web development solutions through remote development teams to help your business stand strong during the pandemic crisis.
Our certified developers assure you unwavering support in these unprecedented times as we focus on complete recovery and restoration of your business. As your reliable strategic outsourcing partner, we’re constantly monitoring shifting trends and improving our services to help your business stand strong in the COVID-19 environment. Talk to our outsourcing experts and discuss your project now!