Presented by redPanda Software

Why outsourcing software development makes so much sense

Outsourcing can remove the headaches associated with software development for businesses and in-house IT departments, but you need the right partner.

With the economy driving towards globalisation, the need for software development specialists is not in question.

The question is whether to rely on a full-time, in-house team or to outsource to expert software development companies.

“The business environment is a lot more complex and dynamic than 20 years ago, and time to market is important since even a 6-month lead can give you a competitive advantage,” says Leon Coetzer, redPanda Software Chief Operating Officer.

As a result, companies that go the in-house route need to consider what skills they have on hand, the capacity of their teams, and how quickly they can scale.

Yet while many companies may find that they don’t necessarily have the right infrastructure, skills and capacity, they may still feel nervous about outsourcing.

“From a business point of view, stakeholders may have concerns about the costs associated with outsourcing, time to market and failure rates, since they need to meet their targets of shortening timelines and reducing risk,” Coetzer explains.

“On the other hand, IT departments may have their own concerns about losing control over systems or being left without support regarding maintenance.”

However, partnering with the right outsourced software development companies can address the concerns – both from a business and from the IT department perspective.

“Outsourced companies specialise in development and have the necessary structures and processes in place, so they become predictable and reliable in their approach and delivery,” Coetzer says.

“Specialised companies also find it easy to attract and retain great developers by providing them with a positive environment and culture where they can learn and grow, while in-house developers may find it difficult to fit into the culture of other organisations.”

Coetzer adds that “It is also easier for an outsourced partner to scale according to demand and can reallocate its resources across various clients as the demand of each fluctuates.”

For this reason, the costs of outsourcing to a software development company are not as high as expected.

“When you take the total cost into account, including the costs of training your in-house developers and the costs of scaling which forces you to pay a premium to get people in to meet your demands, you get far more value when you outsource,” Coetzer explains.

The key to successfully outsourcing, however, is to build a long-term partnership with the software development company.

“A good partner will understand your operations as well as someone in-house would and can provide excellent support for you and service various aspects of your business,” Coetzer concludes.

“Outsourcing software isn’t a choice anymore, but you need to establish a balanced approach that looks at how much you are able to do in-house and how much you can outsource.”

For more information, and to apply for developer roles in Cape Town, visit the official redPanda Software website.

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Why outsourcing software development makes so much sense