Key drivers to outsource

Why should one outsource ?

  1. Outsourcing your development needs frees you to do the things you love to do and for what you started your business in the first place.
  2. Reducing and controlling operating costs. Factors include:
    • a) No additional staff and training cost.
    • b) No software and hardware cost.
    • c) Independence of labor obligations.
    • d) Cost transparency.
  3. Improving company focus.
  4. Gaining access to world-class capabilities.
  5. Freeing internal resources for other purposes.
  6. Streamlining or increasing efficiency for time-consuming functions.
  7. Maximizing use of external resources.

Going as per the percentage values for outsourcing

The Deloitte 2016 Global Outsourcing Survey found that outsourcing was likely to grow across a range of corporate functions including legal, facilities management, tax, human resources, finances and procurement. By far the largest areas currently outsourcing is IT (72%).The same Deloitte Survey found that cost, enabling core business functions, and solving capacity issues are primary drivers to outsource. Leading practice organisations use outsourcing to drive transformational change and improve business results. The Survey also asked respondents to quantify the drivers for outsourcing functions. This information is presented below.

  1. Cost cutting tool - 59%
  2. Enables focus on core business - 57%
  3. Solves capacity issues - 47%
  4. Enhances service quality - 31%
  5. Critical to business needs - 28%
  6. Access to intellectual capital - 28%
  7. Manages business environment - 17%
  8. Drives broader transformational change - 17%

What does statistics have to say regarding outsourcing ?

  1. Many outsourcing services can reduce your overall development costs by 70% compared to an in-house team.
  2. On average, companies can cut their average cost per developer by almost two-thirds through outsourcing.
  3. In 2018, spending on IT services is expected to amount to around 1003 billion U.S. dollars worldwide.
  4. Global spending on software, which includes middleware, custom-built software by contractors and consultants, applications and operating systems, is estimated to reach 682 billion U.S. dollars in 2018.

Achievements some companies achieved through outsourcing of projects..

Many outsourcing services can reduce your overall develop costs by 70% compared to an in-house team. Some of known companies who have achieved success through outsourcing are:

  1. GitHub
  2. AppSumo
  4. Groove
  5. Slack
  6. UpWork
  7. SeatGeek
  8. Alibaba

Still have reservations about outsourcing? Come lets have a talk and iron them out!

Get in touch!