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Why do Companies Outsource IT Projects?

11-06-2021 9 min read

Why do Companies Outsource IT Projects?

What is Outsourcing?

The definition of outsourcing is simple. This term comes from the English language and means obtaining specialized services to external companies. 

Usually, it is a more effective and cheaper solution than directly employing qualified specialists in the enterprise. By outsourcing various services to external companies, the company can maximize the development within its specialization.

Outsourcing concerns many industries: IT, accounting, tax, marketing, shipping, recruitment, legal services, and even cleaning. But it is IT projects, and software development outsourcing in particular, that are among the most sought after on the market.

Outsourcing Software Development

The small global market of outsourcing services in the IT industry for several years continues to grow if desired; more and more companies want to exploit the possibilities of external teams. And those companies that are already doing this intend to continue this process. Outsourcing software development is already inserted in business today as one of the elements of the strategy of action of each company.  Software development is a crucial issue for any company - from one-person startups to global corporations. Therefore, it seems evident that software development outsourcing is becoming more and more commonplace.

Outsourcing Benefits

Outsourcing benefits

Outsourcing IT services is now a trendy way to recruit specialists to work on your projects. Each IT project is different; therefore, each may require other competencies. Outsourcing allows you to use the best specialists in specific fields and industries, which ensures efficiency and a high level of work. Many companies outsource software development because these partnerships are mutually attractive. And the experience of companies outsourcing to date is very positive: as many as 78% of companies assess the outsourcing process positively. Below are the most important benefits of outsourcing.

Cost Minimization

Every business must be efficient and profitable. So it is not strange that the issue of cost reduction is significant for each company. Mainly, the amount of costs is associated with the financial success of the company.  Outsourcing allows your company to work only with those specialists who are needed at a given moment on a specific project. Thanks to this, the enterprise can focus on the course of the process and its results without incurring high recruitment and employment costs, especially since the recruitment process itself is often time-consuming. 

In addition, there is no need to invest in tech facilities or training because it is up to the service provider to follow the latest technologies and trends. Thanks to this, you can also quickly introduce any changes and innovations, relying on the experience of a highly qualified specialist team. It is an unparalleled convenience and a solution that allows you to save money and focus on your business's right business.

Focus on Core Business

focus on core business

The core business is the primary activity of every enterprise that is directly related to the mission and identity of the organization. However, this does not preclude the organization from taking up actions in innovation, innovative activity - that is, the movement whose task, within an acceptance of a certain level of risk, is to anticipate the competition's moves and guarantee a sustainable competitive advantage. Therefore, comparing the core business model to outsourcing, the place for the latter are auxiliary functions supporting the company's operations - not constituting the core business, but without which the company as a whole could not function. Outsourcing is the next stage without which the implementation of the model, the company's main activity would be difficult or impossible to carry out.

Henry Ford said, "If there's something we can't do more efficiently, cheaper, and better than our competitors, there's no point in doing it, and we should hire someone to do the job better than us." It is the most robust justification for the outsourcing model.

Access to Hire Talent

Until recently, companies that wanted to hire highly qualified professionals were limited to workers living in close proximity. 

Risk Sharing

risk sharing

There are inherent risks involved in creating and introducing new products to the market. It can be challenging for startups and small and medium-sized companies that do not have the resources of large companies. Outsourcing software development seems to seem to increase these risks. But this is only an illusion. Cooperation with outsourcing companies significantly reduces all project risks. Outsourcing teams consist of high-class professionals who care about their reputation in the IT world and strive for the best possible outcome and cooperation with their clients.

 

Outsourcing - Is it worth it?

The above issues are just a few of the advantages of outsourcing, but they show well why companies use it. We live in an era dominated by software, and companies must produce the best products, which determines their development and success. External confidence in the team with a perfect set of skills to create a successful outcome with high value for users is the best possible option. And finding a high-end developer to be both your trusted partner and expert is easier than ever.

How to choose the best developers

the best programmers

There are millions of companies in the world that offer their services in software development outsourcing. Thanks to modern technology, you have access to each of them. You have unlimited access to a virtually endless pool of potential talent. On the one hand, this is good news, and on the other, it is a challenge for entrepreneurs looking for such support. It is worth paying attention to the fact that the company's experience should be consistent with the requirements of the project you create. Of course, the cost issue is also important; after all, the entire project must be cost-effective. Successful, talented team, excellent service provided services, and open communication and support are also factors you should consider. 

Software development outsourcing in Poland

Suppose you are interested in the most talented programmers in the world, the best value for money, as well as cultural similarity. In that case, you should consider Poland a country where you will find a solution to your IT problems. Sounds exotic? Nothing could be more wrong. For many years, Poland has been recognized as the IT region of Europe, and the Polish IT industry is constantly developing. This country has been appreciated by global giants of the technology industry, such as Microsoft or Google, who invest, for example, in data centers in Poland. The actions and plans of the technology giants suggest that Poland has great potential.

The most talented programmers in the world

progremmers skill chart

High-quality programming is an area where Polish programmers are second to none. Polish programmers are among the youngest in the world who start coding at 5-10 age. It means that many of them can boast extensive programming experience when they get their first job. As a result, Polish students regularly take first place in prestigious international programming competitions, for example, Microsoft's Imagine Cup, Google's Code Jam, and TopCoder Rank. Since 1989, Poland has been ranked second at the International Olympiad in Informatics, winning 109 medals - a number so far defeated only by China.  According to HackerRank, Polish programmers are in the top three of the world's best programmers, specializing in the various back-end, front-end, and object-oriented languages ​​such as Java, .Net Python, JavaScript, Objective C, C ++, and Ruby. Therefore, when choosing a Polish outsourcing center, you use extensive knowledge and experience in the field of all programming needs that your company may encounter. Poland is also at the forefront of outsourcing the development of new technologies.

 

Another issue is the excellent technical education offered by Polish universities. There are over a dozen technical universities in Poland, where approximately 75,000 people study computer science. It is worth noting that, according to CEOWORLD, in 2020, Poland took 3rd place in the ranking of potential investment assessment. The Ceoworld analyst survey covered 80 countries. The vast potential of the Polish market was emphasized.

No language barrier

In the case of offshoring outsourcing, often a key barrier is the lack of knowledge of the language to allow accessible communication. In the case of Poland, this problem does not exist.

According to the EF English Proficiency Index, Poles have the best language skills in Central and Eastern Europe. Poland ranks 11th in the world in terms of knowledge of the English language, and a good command of English is a real competitive advantage in attracting investors to Poland.

english proficiency

Many Polish programmers spend their entire careers working exclusively on projects for foreign clients, which often means working in an international environment.

Cultural similarity and high work ethic 

Poles are Europeans, and their work style is no different from colleagues from Western Europe or the United States. Due to the complicated history of his country, pour-over they are not only very hardworking but that creative and open to new challenges. They start their work by defining the problem that your product solves—understanding perfectly well that even the best-implemented project may turn out to be a failure if it does not meet the real needs of end-users. Therefore, they attach great importance to ensuring that the final product is a set of functions and a carefully designed solution with real potential.

At the same time, thanks to the excellent work organization, they keep the deadlines and budget assumptions. As a result, projects are implemented quickly, and their value increases step by step. For Polish software houses, strict cost control is natural, as is recommending solutions that prevent excessive expenses and save the client's time. 

Developers from Poland attach great importance to communication, both within the team and with clients. They understand the flexibility of the process and are always looking for the best solutions. We always endeavor to design characterized by high quality, which is not at all the country s is the standard and obvious.

No problems with the time zone 

timezones

The fact is, offshoring means working with a team of developers located on the other side of the globe. Even if you work from the USA, the time zone difference is not that significant. Poland's location in the center of Europe means that Polish programmers can reach their partners from the USA, the Middle East, Asia, and even Australia during working hours. Moreover, the time zone difference between Poland and the USA allows for greater work efficiency: two separate teams can work shifts 24 hours a day, seven days a week. A good solution may also be to find an outsourcing company with branches in Poland and, for example, in the USA. Then the "local" CTO (Chief Technology Officer) will make the possible inconvenience related to another time zone almost zero.

The best value for money

As a business allocating capital, you often have to choose between keeping costs down and productivity. Not only are these choices difficult, they often result in software that has little market potential. On the one hand, we have cut costs, but on the other hand, the product grade is not satisfactory, which is a disaster. Fortunately, in the case of Polish developers, you are not doomed to such a difficult choice. According to the latest data, Polish programmers earn about EUR 2.8 thousand. It is almost two times less than their Western European colleagues (for example, from Germany or France). However, this does not mean that Polish programmers are the cheapest in the globe. Asian companies offer much lower rates. The difference is that Polish developers are so good that their clients get a much better return on investment. Suppose you expect the timely implementation of the project, its high quality, and cooperation with a talented team of people with extensive experience. In that case, the Polish software house is the optimal solution.

 

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