Are you captivated by the possibility of what outsourcing could do for your organization? But you still on the fence whether it’s a good idea? Find out what you can expect from an outsourcing project and learn 10 common reasons why companies outsource.
Are you captivated by the possibility of what outsourcing could do for your organization? But you still on the fence whether it’s a good idea?
It’s normal to struggle with why your company might use an outsourcing partner. Why hire someone else to do work that you could do? On top of that, outsourcing can be a scary undertaking. Evaluating companies can be hard especially if it’s not your area of expertise. Plus, managing an outsource project has its challenges.
But just because outsourcing has added complexities, it shouldn’t completely deter you from it. Your company can cash in from finding an outsourcing partner they can trust.
So what can you expect from an outsourcing project? Why do organizations choose to outsource software projects? Below are 10 common reasons why.
Improve company focus
Delegating your software project allows you to focus on your core competencies. Rather than spending resources to bring a weaker competency up to par, you can partner with another company. The vendor company fills a void and meanwhile you can strengthen what you already do well.
Use vendor’s expertise in leading-edge technologies
Nobody can’t be an expert at everything, and the same goes for a company. It might not be in your best interest to be an expert and on the bleeding edge. Companies use vendors with proven expertise that can deliver their vision. Because of the rate technology evolves at, they feel outsourcing is their best option.
Free internal resources
Is your company struggling to find time to work on projects due to the lack of manpower? Bringing an outside company can free up your team to work on other more critical projects.
Meet development schedules unattainable with internal staff
Outsourcing can help achieve milestones faster. Is your company looking to reach short, time sensitive deadlines? A company will reach out to vendors when their internal team lacks the required skills and time to develop a suitable solution
Reduce and control operating costs
Profitability and cash flow is a sore point of any business especially ones just starting out. Is your company not ready to maintain an in-house team? If not, then outsourcing can help. Outsourcing can reduce operating costs without compromising quality. Apart from not paying salaries, companies also avoid overhead like recruiting or HR issues.
Gain access to world-class capabilities
Companies outsource projects when struggling to solve complex problems. They are looking for an expert team to help them bring these projects to completion. Outsourcing gives companies access to capabilities not available within their internal teams.
Leverage vendor’s project management experience
Not every company excels at delivering projects on time and budget. Does your company struggle with managing projects? You can leverage a vendor’s project management experience to increase the chances of success.
Scale up for a specific project
Outsourcing enables startups the ability to scale their product using a team of experts. It also allows established companies to work with an outside team to introduce a new product.
Avoid problems with internal projects
Is your company frustrated with failed previous attempts to deliver products in-house? Have previous internal projects been difficult to manage and not produced the expected results? Companies turn to outsourcing to avoid repeating problems associated with previous internal projects.
Share project risk
One way to mitigate risks is to share the risk with another party. Is your organization about to take on a risky project? Partnering with another company let’s you to share the responsibility and risk. Risk sharing is helpful when the vendor has expertise and experience which the other lacks. If a risk event does occur, then the partnering company absorbs some of the negative impact.