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When businesses are looking to create a digital presence or enhance existing platforms, a common question arises: how to outsource web development, and is it a worthwhile endeavor?
In recent years, companies are looking toward IT outsourcing services to achieve a variety of goals, beyond just a cost reduction. More and more of them are convinced that it can be a beneficial option for startups and enterprise businesses for several reasons.
Here we share a brief guide on how to outsource web development services and make a decision you won't regret later.
Why do companies outsource web development?
Today's IT market offers services that assist different businesses, from emerging startups to venerable enterprises, in implementing and managing a variety of digital products. According to Statista, the global revenue in IT consulting and development market is expected to continuously increase between 2023 and 2027 by in total 17 billion U.S. dollars (+26%)
Here are some other findings on the outsourcing landscape today:
Such high demand is driven by various factors, the common denominator of which is efficiency and flexibility. Web development outsourcing, among other IT services, is a great way to realize your projects or handle separate tasks when hiring in-house specialists is much more costly.
So, how can companies effectively outsource web development, and what makes this collaboration model preferable?
Let's begin with the definition of IT outsourcing.
The IT outsourcing model enables you to hire tech talent worldwide. You can "borrow" specialists to develop a web application from start to release. Thus, you can fully outsource your web development project to a dedicated team comprised of a CTO, developer, business analyst, project manager, QA engineer, and any other professional required for your project.
Or you can hire web developers to perform specific tasks or scale your team to boost productivity and speed a development process.
Here is how businesses can benefit from outsourcing of web development services at different stages.
Main benefits of web development outsourcing
Web development outsourcing is an excellent solution for non-tech-savvy companies with limited in-house IT capabilities. However, even tech giants turn to external IT providers to add business value and enhance their existing products or services.
Here, we will discuss the benefits and risks of outsourcing web development.
Cost efficiency is a primary driving factor behind outsourcing decisions. External staff typically costs less than hiring in-house employees. By outsourcing web development, companies can achieve greater efficiency while benefiting from reduced expenses related to training, recruitment, HR, operations, and infrastructure.
Fast speed to market
In a rapidly changing global marketplace, speed to market is a crucial factor for those who understand that launching a product into the marketplace quickly can provide a competitive advantage. It is particularly crucial in new product launches, business expansions, and targeting new verticals. To achieve this, you need your team that is responsible for timely delivery of your digital product and is prepared to maintain your web platform after the release.
However, your company may lack the necessary specialists or infrastructure to launch new products. Hiring and training new specialists, as well as setting up the required environments, can be very time-consuming. This is where outsourcing services come into play, helping you reach the market quickly and iterate at a faster pace.
Subject-matter IT experts
IT outsourcing allows you to tap into a worldwide talent pool. You can look beyond your local area and access experts with specific IT knowledge, tech stack and expertise in particular business industry. This can be especially beneficial for finding subject-matter experts who may not be readily available locally.
Many outsourcing IT companies have a roster of experts in various domains, making it easier to find the right specialist for your project.
No delays in recruitment process
The employee retention rate is a dynamic metric that varies greatly across industries and specific business cases.
The IT industry faces challenges due to rapidly evolving technologies. Demand is growing faster than the IT services market can supply, and technology changes more rapidly than specialists can adapt. This leads to high costs for implementing new tools and significant competition in the IT marketplace, resulting in a high staff turnover rate within the software development sector.
However, when you outsource a software development project, you delegate recruitment duties and risks to the dedicated tech partner. A web development outsourcing company provides you with experienced specialists with the appropriate skills and mindset to meet your expectations. Additionally, you have the flexibility to request staffing changes at any time.
For example, if an LA-based company outsources a web development project to a Ukrainian IT provider the time gap is of 10 hours. But scheduling across time different zones in the world of remote work and digital nomads is no longer a problem. IT outsourcing teams work together <medium>across multiple time zones<medium>, using suitable tools to stay aligned.
Imagine that your dedicated team is working on the app overnight, and you have demos over the day. You can delegate tasks and relax, knowing the work is in progress and will be done to date.
The same goes for urgent tasks that IT outsourcing team can pick up and avoid system breakdown and other risks. Thus, the outsourcing collaboration model enables you to operate round the clock even when your in-house resources are asleep.
Full-cycle product development
Outsourcing can be a great headache-free decision that will cover the full-cycle product development. In this model, the client provides the high-level vision for the product or its improvements, and the outsourcing partner does everything else. The IT market offers a wide range of web development companies who provide complete solutions for businesses, assisting them at all stages, from design thinking and conceptualization to pre-launch testing and maintenance.
IT outsourcing partners take the management burden off your shoulders, as well as, responsibility for the entire product development lifecycle.
Why you shouldn't be afraid of outsourcing your project
Looking to create a new website for your business? Want to build a top-notch app to enhance your service? But still are full of doubts and skepticism on how to build right project team and how to organize processes properly?
It's time to dispel doubts and debunk myths of web development outsourcing to help businesses take an advantage of this product development option. Here we go!
The most common myth is hiding behind the fear of a lack of clarity. However, since the COVID pandemic work-from-anywhere became a popular working model worldwide and remote communication is no longer an issue. With a comprehensive toolset, it fosters strong collaboration and teamwork.
Effective communication ensures that ideas, information, and messages are conveyed clearly and accurately. And more time, the success depends on the partner's experience and professional background, regardless of whether the team is located in your office or in another country.
To avoid the telephone game we recommend to:
use a great variety of instruments for communication (Jira, Trello, Confluence, Slack, etc)
set up daily and weekly meetings
create progress reports and metrics
properly maintain the documentation
keep a keen eye on task management and project planning
Many companies assume that locking IT vendors into a fixed price mitigates risk and unexpected charges. However, is the Fixed Price model always safer than variable cost agreements?
The truth is that the risk of your outsourced project depends on how well your strategy addresses your business goals and requirements, and what is the expertise and track record of your IT vendor. If you collaborate with a reputable software development provider known for delivering quality products on time, you will be safe regardless of the payment model.
Is a locked-down project scope beneficial for the client? Consider this: what if your software development partner presents a superior idea mid-project that adds work but also multiplies the benefits and saves costs in the future?
Sometimes, it is better to <medium>stay adaptive and adopt a flexible approach<medium>to ensure productive and efficient work.
Data security is the priority for any business, including outsourcing providers. Every trustworthy software development company takes care to ensure customer confidence as it is essential for maintaining their reputation and receiving referral recommendations. This includes:
well-thought-out internal security policies
signing a non-disclosure agreement (NDA)
adjusting security standards at the project level to individual client's policies
physical data security with standard preventive procedures
continuous security awareness training
Creating a coherent infrastructure, implementing effective processes, and using appropriate tools significantly reduces the risk of security gaps. Outsourcing vendors, just like other companies, pay great attention to these aspects to <medium>earn clients' trust and maintain competitiveness in the market.<medium>
It is crucial to be prepared with a clear idea of the requirements for your future product and what you expect from a web development company. Consider factors such as rates, tech stack, language proficiency, industry expertise, and more.
Here, we share some tips on how to outsource a web development team and avoid making mistakes.
Once you have your list of web development outsourcing companies ready, you can move to the crucial process of pre-filtering applicants and selecting the best one.
Pay attention to the <medium>level of communication and proactivity<medium> of the company. Good communication is about:
Clarity and mutual understanding
High self-organization level
Open-mindedness and passion for technology
A trustworthy web development outsourcing company is perfectly capable of working without constant guidance. By delegating your product development through appropriate contracts and guarantees, the tech partner takes responsibility for all outcomes in accordance with the agreed project development plan.
We at Freshcode are ready to help you to develop a web platform that aligns with your requirements and meets your customers' expectations.
Do you want to explore more web solutions for your business? Book a free consultation here.
Also, be sure to visit us again soon! We are already preparing a new blog post 🙂
Frequently asked questions
What is web development outsourcing?
Web development outsourcing refers to the practice of hiring a third-party service provider to handle specific tasks or the entire process of web development. Instead of relying on in-house resources, the organization delegates the web development responsibilities to an external team.
This outsourcing arrangement can involve various aspects of web development, including designing, programming, testing, maintenance, etc. The external service provider typically has specialized expertise and experience in web development, allowing them to efficiently handle the project.
Why should you outsource web development services?
Outsourcing web development includes different approaches for different industries regarding their needs and specifics.It allows companies to leverage the skills and resources of external experts while reducing the burden on their internal teams.
Web development outsourcing offers several advantages, such as:
access to a larger talent pool
speeded up development
ability to focus on core business activities
How much does it cost to outsource web development?
The cost of outsourcing web development can vary depending on several factors, including project complexity, the scope of work, the technology stack involved, the geographical location of the IT provider, and their level of expertise.
Every partnership is a unique process, and we prepare a clear and accurate estimation for each client.