Here’s Why Enterprises Need Software Development Outsourcing Strategy and Innovation

Since the transition towards Globalization 3.0, the outsourcing and shared services (OSS) industry has played a key role in the business sector. With a consistent increase in demand and technological advancements, the OSS industry expects to surpass US$1 Trillion in the next 5 years, according to Deloitte. And it is rapidly transforming the way businesses worldwide operate. 

IT Outsourcing (ITO) has even become one of the most talked-about practices in OSS for helping businesses grow and improve enterprise resilience.

Despite that, some enterprises are still hesitant when hiring software outsourcing services. For them, this is associated with loss of jobs and delegation of vital tasks. They’re worried that this could lead to a negative effect on company culture or even have a costly encounter with the wrong tech partner.

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So, should you outsource or not?

Most growing businesses are bound to face this question sooner or later. So, let’s discuss why enterprises need to work with outsourcing software development companies in 2021.

What Is Software Outsourcing?

Simply put, outsourcing is a contract agreement in which a company hires or subcontracts another specialized organization or individual. In the case of software outsourcing, the third-party service provider is usually called an IT partner.

The outsourcing company handles and assists the development of software projects. They carry out all the required business tasks or functions at scale. These tasks could involve day-to-day management and operation of IT assets and processes. It may include mobile app development, custom software, IT staff augmentation, applications maintenance, and more.‍

Why Should Enterprises Outsource Software Development?

Outsourcing has grown into a global multi-billion dollar industry over the past decades. In 2019, IT outsourcing represented the vast majority of the OSS market, with an estimated figure of 58.2%.

The 2020 State of Software Development stated that 22% of organizations say increasing development capacity is their top challenge presently. 

It seems more enterprises are now partaking in software outsourcing services. If you haven’t yet, it might be time you do the same. Here are some reasons why enterprises need to partner with an outsourcing software development company.

These are just some of the reasons why enterprises need software development outsourcing. Knowing the benefits that outsourcing provides will help you decide if this could work for your business.

When Should Enterprises Outsource Technology?

The right time to outsource will depend on the company. Here are some of the situations when an enterprise should outsource technology. 

How to Choose a Software Outsourcing Company?

Outsourcing could make or break your project. You need to choose a software outsourcing company that’s trustworthy and fits your business needs. To help you make the right decision, here are some factors to evaluate:

Want to learn more about IT Outsourcing as a business strategy? 

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You’ll learn the secrets of successful projects, how to grow and scale faster, the reasons why outsourcing projects fail, what to expect from a development partner, and how to choose one.

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