The world has shrunk. There are no geographical barriers per se. The distance has become less. And we owe it all to globalization.
In a world where people have all the information they need on the tip of their fingers, where companies are operating with production units stationed in another part of the world, where the world has become a global village- there's no dearth of affordable innovation.
In 2019, Statista estimated that the outsourcing market was at $92.5 billion, and after the pandemic years, we just know that the numbers have reached an all-time high by now.
This statistic demonstrates the growing trend among businesses to assign a portion of tasks to outside vendors. It makes it a regular practice for most sectors, particularly for product development firms, to outsource SaaS product development.
Instances of Famous Programs that were Outsourced
1. WhatsApp
The creators of WhatsApp engaged Igor Solomennikov in 2009 to handle iOS development. Later, the majority of platform core development was contracted out to successful Eastern European software firms.
WhatsApp became a new way of staying connected, and it swiftly rose to the top of the charts on the App Store, Google Play, and other platforms.
2. Skype
In 2003, Skype's back-end application development was handed over to skilled individuals in Estonia. They came up with a unique feature of real-time messaging. Other features include video chat and file sharing.
Then in 2005, eBay bought Skype for $2.5 billion, and finally, in 2011, Microsoft became the sole owner for $8.5 billion. Outsourcing works like a magic spell, and Skype's history proves it.
What is Outsourced Product Development?
A company may employ a third-party vendor for the creation of goods and services in a range of industries (including IT, business, communication, and HR), as well as for brainstorming sessions. This practice is known as outsourced product development (OPD).
The efficiency of OPD is dependent on carefully considered strategy development, coordination, management, and specialized resources. The successful execution of the outsourced product development services depends on constant and reliable communication among decision-makers, particularly executives, designers, and company owners.
It's when the connection between the team members and the OPD department is streamlined positively, that the production quality and customer satisfaction increase manifold.
Some suggestions to remember when considering this as an option for your business-
- Get done with the development work during the day.
- Test the programs by late evening.
- To reduce time-zone differences, outsourcing to companies near to your headquarters might help.
- If there's one thing that should never be compromised due to distance is the agency's ability to innovate.
- Your company's management can create balance if they ensure to keep the teams smaller and the results bigger.
Here's Why It's Beneficial For Your Business Projects:
1. Lower Costs
Long gone are the days when in-house production was considered being highly competitive. Today, it's just about cutting down on costs and focusing more on the other aspects like quality service, marketing, advertising, and price points. In order to stand out, you have to build credibility and advertise yourself as a leader in the industry.
Soon, companies came to a realization that smaller teams are way more efficient than large teams. It's just how you can increase accountability, flexibility, and autonomy. Let's face it, the setup costs incurred for an in-house production team might really break your bank.
This is the reason why people prefer outsourced product development teams because there is no need for any system or equipment or sizable storage facilities. All your business needs to do is produce a new product by offshoring it to a different agency.
There is yet another expense to take into account. We're referring to the workload that your staff would experience if they were required to work on both developing a new product and carrying out their regular duties. It's just easy on your team and your pocket!
2. Reduced Development Time
Some people take the words "Out of sight, out of mind" too seriously. For them, the concept of offshoring services is linked with the impediment to the creation of new services. But, you have to know that it's all untrue.
When you choose a company for outsourced product development, you have to know they will be solely focused on your assignment. They'll employ the brains of their most efficient teams and provide excellent outcomes. This is the reality of what you get when you choose a third party that specializes in product development.
Every time a new process is implemented, they become faster and more effective since they frequently create new goods. As a result, your business will cut down on time to market and enter the competition rapidly and profitably.
3. Software Innovation
If you were wondering whether you can avail of outsourced software product development services then the answer is a Yes! As many as 71% of the people feel positive about outsourcing their software work and getting back something truly unique and suitable for their businesses.
This is a huge advantage in the industry because your outsourced partner can also take care of technical support and upgrade the software based on upcoming updates. As a result, your business probably won't need to have a costly IT department.
Additionally, the agency you select for your task will also be able to integrate your former product with your new product so that there's no loss of data or any other facets. Software Innovation will always be at par with your expectations, and sometimes even beyond.
4. High-Quality Products
You have long been introduced to the age-old saying of how practice makes a man perfect. When you choose one of the best outsourced product development companies, you bank on their expertise which they've gained through years of working. These project management specialists flourish because they enjoy creating technological innovations for the market.
They have been in this industry for ages, and they know the market in and out. When a new version is required, the same gadgets can be made better by upgrading them to the latest innovative solution. Your OPD team will be able to make a difference due to their knowledge base and market inputs. The end result is a high-quality product that stands out in the competitive economy.
5. Access to Relevant Skills
Hiring an outside vendor for the product's execution gives you access to a group of competent tech experts who are aware of what they are completing and how to get the desired output. The level of talent management is taken into consideration by outsourcing organizations. Every employee is typically appropriately educated and accredited in the technologies they provide.
Outsourcing Development Project Should Be Your Next Move!
We advise you to indicate the significance of the task that is being outsourced. Before beginning your search for a reputable service provider, weigh the pros and cons. If the project is crucial, you'll require good managerial skills in addition to technical expertise.
Take into account these 5 justifications for outsourcing product development. Don't underestimate the potential of outsourcing the creation of your software, product, hardware, or gadget if you want to achieve great success with your business idea. Imagine what you could do in a short period of time given how connected our globe is right now.
