6 Secret Reasons Why Organizations Outsource Software Development
Given all the hype about outsourcing these days, you have likely wondered what benefits it could have for your organization. The answer can be found in global services outsourcing market facts and figures. Let’s have a look at some of the statistics.
Statista reports that the outsourcing market amounted to $92.5 million globally in 2019, predicting significant market growth by the end of 2020. For instance, in the US IT outsourcing industry, the market size has reached $132.9 billion, and is due to expand by 1.6% during the forecast period. Markets in other geographic regions are expanding too. Market researchers predict 0.6% growth in Japan and 1.9% in Canada from 2020 to 2027. The German IT outsourcing market is growing at 1.2% and more yearly.
It’s also worth noting that, unlike other business areas, the outsourcing industry’s growth is not affected by the COVID-19 crisis. By 2027, the global outsourcing industry is predicted to reach $410.2 billion.
The IT outsourcing industry has been gaining momentum over the last five years and keeps on thriving due to the many perks that outsourcing provides. The main driver for market expansion is the myriad of outsourcing benefits that allow companies to cut overall software development costs, including some taxes. That advantage has made information technology outsourcing opportunities immensely attractive and has resulted in $66.5 billion generated by the industry sector in 2019.
Encouraging market statistics aren’t the only reason to consider harnessing outsourcing opportunities. Learning all the key pros and cons will enable you to better grasp how software development outsourcing can work for your business.
Outsourcing for your business: top 6 gains
- Significant reduction in development costs
- Access to robust expertise and best practices
- An opportunity to share risks and increase efficiency
- Access to innovative approaches and the newest tech
- 24/7 workflow
- Focus on business-specific tasks
Pros of outsourcing your software development
If you have chosen a reliable partner among numerous outsourcing companies, you can now delegate different tasks to tech-savvy experts with extensive technology expertise and proven development approaches to tailoring solutions. But what are the exact gains you can get from outsourcing?
Lower costs
Cost-saving opportunities are the most obvious benefit of outsourcing. You will find that development and operational costs vary across regions. If you opt for outsourcing services in the Asia-Pacific region or Eastern Europe, you can expect to save about 30% of your expenses.
But to exclude additional costs for time and resources spent, you need to outsource tasks to a provider with experience in your business niche. You will save on expenses and gain more time to focus on high-value work for your clients.
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