Current challenges
Reduction of overhead costs
For customers from the United States, the United Kingdom or even Australia, the internal costs of their own development team can be great. If we add to this the uncertainty or lack of resources, operational efficiency and technical developments, all this can become a serious argument for refusing to develop within the organization. In the case of outsourcing, you only pay for product development and do not incur any other expenses related to operation, technologies or training.
Reduction of labour costs
In terms of operating costs, labour arbitration is often seen as the most obvious advantage of outsourcing. If you can get more productivity for your money, when the work is done elsewhere, it makes no sense to pay more to your employees.
The fact is that many third-party development companies offer IT outsourcing services only for a fraction of the cost of the same services within the company. At the same time, it is important to choose for your needs a supplier of IT solutions with a good reputation, especially when a well-established and clear relationship is an important factor of your success.
Say goodbye to long-term obligations
This is probably one of the most underrated advantages of outsourcing. Most organizations choose outsourcing by virtue of the ability to hire a team of professionals for the project based on the "as consumed" model. This relieves them from long-term obligations and the need to pay any related costs, such as health insurance, bonuses, annual bonuses, etc., often accompanying the hiring of their own team.
Freedom from problems related to infrastructure and resource management
When your project is implemented, maintaining the development, internal infrastructure and resources often becomes a heavy burden both in terms of necessary resources and costs. But this can be easily avoided when the company invites a third-party IT team to implement the project.
Outsourcing (of a qualified team) saves time, money and resources
Although company management always has the best intentions, in some cases, projects implemented by company's own forces can lead to deadlines delay, wasted effort and money of sponsors. All these uncertainties can be avoided by transferring the execution of the project using a pricing model based on the achieved rates and objectives.
