All types of firms make use of software; this might be either on the PC, laptop, a mobile application or a website. Large firms tend to have dedicated employees to help them with their software development requirements and hence often opt for in-house development. On the other hand, the smaller firms tend to outsource it to special IT companies offering such a service. Insource vs outsource software development has been a topic of debate since long.
The obvious benefit of outsourcing your software requirements is that you do not need to spend time hiring the best development team or investing in other resources for this purpose. There are also several benefits of opting for in-house development, one of them being a high level of privacy. This article explores the popularity of software development outsourcing in 2021.
What is Software Development Outsourcing?
Outsourcing involves trusting people outside your organization to create the software you require for your business. This can mean either hiring a freelancer or a professional IT company. This is a good way to save time and resources. You do not need to make the effort of having to manage an in-house team thus, it can also help you cut your costs. It also means you have access to highly skilled developers and a firm with plenty of resources.
Important Facts & Statistics
92.5 Billion USD was the size of the outsourced services as of July 2021.
Software Development is a big industry in Australia and it is second only to the USA.
The market cap of major IT companies in Australia like Atlassian is $18Billion, Computershare Ltd. is $10.7 Billion and REA group is $9.4Billion.
Benefits of In-house Software Development
Developing software in-house ensures a higher level of privacy since this way it is simpler to secure the data.
With the team of developers working under one roof with you, it is possible to have greater control over the project.
It helps simplify project communication allowing the team to coordinate better with you.
This way you get a dedicated team of software developers who are free from distractions since they have no other projects to work on.
You make decisions regarding the quality of the software with a higher level of transparency.
It helps reduce the risks involved since you can manage the project better.
You can dictate the timeframe of the project which is ideal for urgent in-house projects.
Why Is IT Outsourcing Increasing in Popularity?
Many SMEs benefit from outsourcing their software development projects. In fact, there is a rise in the number of software companies in Australia in recent years. There are many reasons why more firms are outsourcing their IT projects.
It is not uncommon to be confused about outsourcing it vs in-house development. It is important to first establish the core functions of your firm. Although all companies do make use of computer software, they might not be involved in the sale of software.
It might be a good idea for such firms to hire a professional development company for their software projects. This is one of the reasons why outsourcing is increasing in popularity. Some of the other reasons include ensuring their software implements the latest technology, promotes business growth and gives them an edge over their competitors.
For those still confused about IT outsourcing vs insourcing, here are some of the benefits of outsourcing your projects:
It is more cost-effective making it easy to manage your budget.
Doing so eliminates the need to arrange for long-term contracts with the software development team you hire.
Outsourcing firms consistently deliver high-quality projects, increasing the possibility of success.
Your data can be secured with the help of an NDA.
Vrinsoft is one of the most reliable application developers in Australia. We are an award-winning company that has been around since 2008. We extend our services to all types of businesses including start-ups all around the world. We have a highly skilled team of developers, hence you can trust us for your mobile application as well as website and software development Cost.
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