With outsourcing, or externalization, it is meant the entrusting to external suppliers of determined business functions, services or entire productive processes. This practice is diffused in all the sectors of market, therefore also in that one of the computer science.
It exists various types of Software Outsourcing ... we try to understand the differences.
In the development of Nearshore software the company that needs the service chooses its business partner in a country close to its own, therefore in the same continent.
In the development mode called Offshore instead, the outsourcing of the service is entrusted to suppliers operating on a different continent from that of the applicant.
Finally, Onshore software development means entrusting the service to a company located and operating in the same country of origin of the company that promotes the outsourcing of the service.
In the course of the years the market of the outsourcing IT has grown exponentially so much that it is estimated that in 2018 the annual global revenues deriving from the outsourcing IT have been equal to approximately 62 billion dollars. (source)
Other data instead affirm that the global market of the services in outsourcing has passed from 45,6 billion dollars in 2000 to 85,6 billion dollars in 2018. (source)
This data reveals that the trend towards IT outsourcing will continue its gradual growth as companies increasingly seek quality control and service efficiency.
Why should a company outsource the development of its software sector or the management of its networks and infrastructures to an external supplier?
There are several benefits.
First of all, cost savings: economically speaking, it is better to outsource an entire project than to hire new developers and then place them in existing teams. In addition, there is no need to purchase equipment or other materials needed for software development.
Secondly, time savings: if you have people working 24 hours a day on the development of a software, the time needed to complete the work and therefore the delivery time will certainly be shorter and if they are shorter it means that you can be innovative with products that can be on the market before your competitors. In fact, an internal team may have to manage more than one project at a time and because of this the quality of the work may suffer. With an external software development project you will therefore have the possibility to achieve a focused strategy.
By working with an external partner who has proven experience, companies can build state-of-the-art solutions with the latest technology without having to master them alone. In addition to this, the development of new software often requires new approaches and perspectives and the members of the external team can bring fresh and innovative ideas that can even improve the project itself.
The most important advantage of IT outsourcing, however, is the focus on your core business: if experts manage the development of your products, you will be able to focus on the core value of your business, and in the long term this will benefit your company, which will grow and expand faster and more efficiently.
To this day, in a post-pandemic world in which smart working is synonymous with everyday life, facing a change of direction while keeping pace with technology is also crucial for small and medium-sized enterprises, and many have not been able to convert as quickly as the COVID emergency required. That's why outsourcing software development, as well as IT infrastructure management, to outsiders is an excellent solution to speed up the digitisation process. Professionals in the sector will be able to guide the company by optimising time and results, containing inconveniences and guaranteeing continuity of performance in terms of effectiveness and efficiency. Finally, outsourced developers can become strategic partners that really help companies' business growth and improve their reputation in the market.
We at NSI - Think Outside the Box have been on the market since 2002 and as a digital transformation company we help companies redesign their business processes and grow with customised IT solutions and digital products.
We can be the right partner to entrust with the development of your IT infrastructure and software!