As digital continues to shape our lives, companies around the world continue to scale and optimise their software development processes. In practice, it can be time and labour intensive, and expensive – beyond what many can realistically deliver using in-house teams alone. It leaves many companies looking to explore different options, including outsourcing to external digital development teams.
Here, we look at the options available to you and why partnering with an established and trusted tech company could offer you the best of both worlds.
As digital has evolved over the last decade, it’s become more and more common for companies to outsource their software or app development to other specialist companies. A successful route to go down, key factors come into play, including cost and time savings, reduced workload, and access to a greater supply of niche expertise. Done well and development outsourcing really works.
While many tech companies have only limited resources to hire developers and grow their in-house teams organically, outsourcing offers real flexibility and opportunity for growth.
What are the different types of outsourcing?
If you’re a tech company based in the UK, onshoring simply means outsourcing work to a software development company with better-suited credentials elsewhere in the UK. This could be because your own in-house team might be too small to handle the volume of work, lack certain experience in specific areas, or just be too busy to work on the project effectively.
Nearshoring allows UK-based companies more flexibility in finding the right team by outsourcing development work to a company based in mainland Europe. With many of the same benefits as onshoring, nearshoring has the added advantages of access to more specialist expertise for increased efficiency, with good communications and minimal time differences making a cost-effective option.
Offshoring encapsulates the whole outsourcing process from a UK-based company to a company in another country further afield, usually India. As well as the onshoring reasons, offshoring to India is primarily used to take advantage of the skills of approximately 1.5m development engineers in a fast-growing economy, but at a hugely cost-effective price. Crucial for your growth and cash-flow.
What are the risks of outsourcing development?
Alongside the many advantages, including improved efficiency, cost-savings, growth opportunities, and access to leading tech and specialist knowledge, just like other outsourcing possibilities, there are risks and challenges to making software development outsourcing work effectively and efficiently.
Project and process management issues can be difficult to navigate due to different time zones, while social and cultural differences, including any language barriers, data migration, system infrastructure, and regulatory standards can all have an impact, especially in offshoring situations.
While none of these challenges are insurmountable, they do, however, take time to work through and overcome. But because of the effects they can have on a project, it’s vital to carry out full due diligence on your chosen offshore team beforehand to ensure a smooth operation.
But there is another option. One that allows you to partner with a tech company who has direct access to all those outsourcing benefits with none of the risk. But also one who can implement a clear strategy for any single project or ongoing resource, to help you unlock opportunities, stay agile, and grow your business.
What is Hybrid Outsourcing?
As the Elixel team has grown, we’ve become part of a wider creative development group that shares formal ownership across three partner organisations. Though this isn't just ‘another’ partnership. Between us, we have a formal arrangement to give our clients a unique, hybrid offering in effective planning and design with onshore, nearshore and offshore development teams.
With a long-established background in software development and support in the UK, Europe, and beyond, our group has the combined experience and capability to build development teams with the specialist skills and expertise to help your business.
Our team here at Elixel is, and will remain, the creative hub which can leverage the backing of the other established companies in our group to put together a software development team – scaling it up to meet the needs of your project – with us as your key point of contact.
Get a competitive advantage
In their 2018 Global Outsourcing Survey, industry insights giant, Deloitte, led with a bold statement: “Traditional outsourcing is dead. Long live disruptive outsourcing”.
According to their respondents, disruptive outsourcing, led by cloud and automation, are key to organisations transforming their business model to gain competitive advantage. So can disruptive outsourcing apply to your business for competitive advantage?
To find out more about outsourcing your digital capabilities through Elixel, get in touch with us today and let’s help you gain competitive advantage.