Outsourcing is a widespread practice throughout the IT industry and software development is no different. When done correctly, it can be a great way to save your company money while still getting the high-quality product that you need. In this article, we’ll explore how much you can expect to save by outsourcing your software development and some of the factors that will affect those savings.
Before we dive in, it’s important to note that there is no one-size-fits-all answer to this question. The amount of money you’ll save by outsourcing your software development will depend on a number of factors, including the size and scope of your project, the location of your outsourcing partner, and the specific skills and experience they bring to the table.
Let’s take a look at cost you can expect to save by outsourcing your software development to IT software outsourcing company.
Some Factors That Determine How Much You Can Save
There are a few key factors that will determine how much money you can save by outsourcing your software development. These include:
The size and scope of your project: The bigger and more complex your project, the more you’re likely to save by outsourcing it. This is because larger projects tend to require more manpower and expertise, both of which will be more expensive if you try to handle them in-house.
The location of your outsourcing partner: One of the biggest advantages of outsourcing is that you can tap into a global pool of talent. This means you’re not limited to hiring developers in your local area, which can help you save a significant amount of money. For example, developers in the United States tend to be more expensive than those in other parts of the world, so outsourcing your software development to a country like India or the Philippines can help you save a significant amount of money.
The specific skills and experience of your outsourcing partner: Not all outsourcing partners are created equal. When you’re looking for an outsourcing partner, be sure to vet them carefully to ensure they have the specific skills and experience that your project requires. This will help you avoid any unexpected costs down the road.
How Much You Can Save on Average with Outsourcing Software Development
Now that we’ve looked at some of the factors that will affect how much you can save by outsourcing your software development, let’s take a look at some actual numbers.
According to a recent report by Forrester, the average cost savings from outsourcing software development is 21%. This means that, on average, you can expect to save about a fifth of the cost of developing your software in-house by outsourcing it.
Of course, as we mentioned earlier, your actual savings will depend on the specific factors listed above. For example, if you’re outsourcing to a country with cheaper labor costs, you’re likely to see higher savings than if you’re outsourcing to a more expensive country.
Another study, this one by KPMG, found that companies can save as much as 30-40% on their development costs by outsourcing to certain countries. This highlights the potential savings that are available when you outsource your software development, but it’s important to remember that your actual savings will vary depending on your specific project and outsourcing partner.
So, how much can you expect to save by outsourcing your software development? It depends on a number of factors, but you can typically expect to save 20-30% on the cost of developing your software in-house.
Final Takeaway
The bottom line is that there is no one-size-fits-all answer to determine how much you can save by outsourcing your software development. However, by understanding the key factors that will affect your savings, you can get a better idea of what to expect when you outsource your project.
You can typically expect to save 20-30% on the cost of developing your software in-house by outsourcing it. However, your actual savings will depend on the specific details of your project and outsourcing partner.
What is your experience with outsourcing software development? Have you found it to be a cost-effective way to develop your software? Let us know in the comments below.
