Outsourcing, meaning the use of an external resource, is the transfer of certain types or functions of industrial entrepreneurial activities by one company to another operating in the required area, cemented on an agreement. Unlike services and support, which are one-off, episodic, or incidental and limited to a beginning and end, outsourcing is usually the function of professional help for the continuous operation of individual systems and infrastructure based on a long-term contract.

What is IT Outsourcing?

IT outsourcing allows you to increase the efficiency of the enterprise as a whole and use freed-up organizational, financial, and human resources infrastructures to develop new directions. Outsourcing will enable customers to concentrate on strategic efforts that do not require increased attention. According to the Outsourcing Institute (USA), outsourcing is an emerging type of business optimization: "IT Outsourcing is the use of external service providers to deliver IT services, such as application development & maintenance, as well as infrastructure solutions for businesses not generally in the tech business, allowing the customer organization to focus on their main business or cut costs and maintain their position in the marketplace. This can also include software-as-a-service (SaaS), Cloud & Mobile solutions, cybersecurity, and other related IT managed services."

What does Outsourcing Software Development mean?

Outsourcing information processes is often understood as outsourcing IT business functions to organizations and software development firms. Many modern companies use outsourcing services, which speaks of its popularity and profitability for the end consumer. Outsourcing is a service organized by a specific company, where several services are provided in an integrated manner to fully cover the client's needs. In practice, the focus is usually on one of the specific services, for instance, software development.

The 10 Benefits of Outsourcing Software Development:

1. Cost Savings
2. Resource Maximization
3. Quick Time to Market
4. Using Latest Technologies
5. Sourcing Top Talents
6. Advanced Scalability
7. Better Product Quality
8. Advantages of Time Zone Differences
9. Providing all necessary IP rights
10. Concentration on Core Business

Let’s examine the advantages and disadvantages of outsourcing software development. As with any software development model, outsourcing is a sensitive process that requires some skills and experience in project management. On the other hand, outsourcing is simple and can be studied if you have some skills in IT. We will analyze all outsourcing processes and their characteristics in this article.

1. Cost Savings

Companies that perform every aspect of their business internally inevitably pass these costs onto their customers. By partnering with an IT outsourcing company, companies can save on some of these costs to gain a competitive advantage over their competitors in terms of pricing. Instead of hiring staff to service the IT department, it is more profitable to entrust this task to a specialized IT outsourcer. Shifting responsibilities to outsourcing companies, so they perform key IT functions, brings about the following key benefits:

• high-quality results: only qualified specialists work in such organizations;
• reduced office, hardware, software, and cloud infrastructure costs.

In addition, the customer pays exclusively for the work performed and the result. But the advantages of IT outsourcing are revealed if you turn to a responsible outsourcer. Svitla Systems provides one of the best value-for-money returns in the industry. The solution portfolio is cost-effective and offers access to a pool of talented professionals across globally strategic facilities in the USA, Ukraine, Mexico, Argentina, Poland, and Costa Rica. Svitla Systems enables you to reasonably save your budget when developing software, as it provides clients with a full cycle of development and maintenance of IT projects.

2. Resource Maximization

Even if you have your own team of talented developers, this does not mean that you should delegate them to work on each and every issue. First, it's important that you evaluate the time and effort involved in tasks to critically assess what's at stake. More often than not, it's not efficient or cost-effective to allocate your top talent to IT support. Developers in your company may be busy doing what directly contributes to achieving your business goals. Outsourcing works as a means to achieve resource optimization because it ensures that talented employees can focus on the most important tasks. Reliable and experienced outsourcing companies offer flexible options and dedicated teams that can get started right away. You don't have to waste time training new employees. Developers who become part of your project will be effective from day one, regardless of how big your internal team is. Work is still prone to disruption due to illness, vacation, or unforeseen circumstances, and outsourcing guarantees a smooth operation and completion of your IT project. Svitla Systems makes it possible to maximize the necessary resources, which is especially useful for customers who need unique developers in various fields: full-stack, web development, mobile application development, DevOps, test automation, data science, and so on.

3. Quick Time to Market

Svitla Systems has a huge pool of resources for the development of information systems. Customers can access necessary development resources very quickly, allowing them to provide quick time to market for products. Our developers, project managers, testers, DevOps, and more, directly begin project development with a demonstration of the system analysis of the problem and drawing up a project plan. At the same time, Svitla Systems works within the framework of the Scrum and Agile approaches and sets the necessary priorities to achieve the result that the customer wants to see. This significantly reduces the Time to Market parameter and meets the required framework for providing the project to real users. In this case, the customer may first require a proof-of-concept, an MVP project, or a production-ready solution.

4. Using Latest Technologies

It is important for the customer to use the most modern technology stack in modern IT projects. This is because it is necessary to find specialists with extensive experience in this particular direction. Every year, the technology stack changes dramatically and unfortunately, developers in many customers' companies cannot master all IT areas. Therefore, to use the latest technology stacks, it is necessary to apply for outsourcing. Svitla System pays proper attention to current new technology stacks and has senior developers in many areas. Our company will be able to provide projects and solutions for customers in the required volume based on the latest technical solutions and methodologies.

5. Sourcing Top Talents

Few small companies have all the necessary resources to implement all the systems and services they need. And typically, the necessary software licenses and subscriptions are very expensive. Plus, equipment maintenance is quite expensive because only large enterprises can afford it. Outsourcing IT activities gives small companies the same playing field as large ones. Oftentimes, customers have a need to solve a local specific problem that requires highly qualified performers. With such business needs for a short period of time, it makes no sense to seek, recruit and hire highly qualified talent. This process either costs a very large sum of money or is delayed for an unacceptable time. In this case, Svitla Systems allows you to quickly and efficiently get access to highly qualified talents upon request. At the same time, the IT tasks for clients will be solved as quickly as possible and at the required high level of performance.

6. Advanced Scalability

Companies that are growing rapidly need to be prepared to meet new requirements. At this stage of development, many companies need to scale their IT support. Finding resources for this task within the team is often expensive and impractical. These development teams are usually fixed in size and scope. Expanding an internal team to meet changing business needs can be costly and time-consuming. By partnering with an external vendor, you can avoid this and use a scalable solution that can be easily expanded to meet your needs. Svitla Systems has sufficient resources to scale almost any project for customers. In addition, we have a strong database of potential senior candidates, and we can flexibly increase a project's resources in a short time.

7. Better Product Quality

A very important criterion for the operation of modern software products is quality. Since many information systems now work with millions of users, even a minor malfunction of the software can lead to serious problems. Svitla Systems provides the required level of software outsourcing quality. We provide our customers with a full cycle of software development, including manual and automated testing. Our experienced architects and developers use Test Driven Development methodologies to ensure the required quality of software solutions. Svitla Systems also provides outsourcing services for testing complex software systems. Our senior developers write sophisticated and efficient automated tests for various programming languages and frameworks. Our DevOps team helps our customers' information systems work smoothly in cloud systems. In this way, the necessary criteria are achieved in ensuring quality standards for our customers.

8. Advantages of Time Zone Differences

One of the advantages provided by software outsourcing is the possibility of using developers from different time zones. Svitla Systems has offices located in various parts of the world. Therefore, we can provide virtually any overlap in time with our customers in Europe and the USA. We also have the opportunity to work with clients from Australia and New Zealand since our offices can also cover that time zone in the required time zones. We allow our customers to build the correct overlap system in time with our outsourcing teams. This applies to both Scrum Agile syncs and developers' working hours. With offices in the USA, Mexico, Costa Rica, Argentina, Poland, and Ukraine, we cover almost all the necessary time zones for our clients.

9. Providing all necessary IP rights

Other significant advantages of outsourcing software development include the possibility of mastering the rights to the developed software. Svitla Systems provides all the necessary data for fully transferring ownership of the developed code and information systems to our customers. This advantageously separates our company from other software developers. Svitla Systems has worked with successful startups and large corporations for a long time and always provides clients with the best intellectual property provisions. All our clients are delighted with this crucial aspect of our offerings. Please visit this page for more information about how Svitla Systems works with customers.

10. Concentration on Core Business

Companies can focus on their core goals by teaming up with a provider. It is easy to get distracted by dividing your energies between different activities that are relevant to the company's operations but outside the core business goals. Outsourcing is the answer to this problem and helps business leaders focus on their areas of expertise. Svitla System helps clients focus on the business needs for their projects and takes over all processes for developing and supporting IT products. We also work effectively with the team extension model and easily integrate with the onboarded team of customers. Above, we have listed the main advantages of outsourcing software development. Over many decades of work in the software outsourcing market, Svitla Systems has shown results on more than several hundred projects. We have worked with our customers for many years in a stable, reliable, growing environment. In particular, outsourcing in our company worked in complex IT industries such as R&D, big data, computer vision, machine learning, and AI.

Ready for more? Check our Guide to Outsourcing Software Development

Why choose Svitla for Outsourcing Software Development?

Svitla Systems has its own set of unique features and advantages in the field of software outsourcing and IT projects. We provide the full cycle of software development, deeply analyzing the client's problem and finding the best ways to solve it. At the same time, the development time and quality requirements are at a high level. All the listed ten advantages of software development in our company are confirmed by decades of experience in this area. High expertise is possessed not only by our top managers but also by senior developers who make up the main staff of our employees. We also allow young employees to develop dynamically, bringing new technologies to the company, so customers can effectively work on projects with minimal bottlenecks and over-management. The number of successfully completed projects at Svitla Systems already exceeds 1,000, and our experience in developing innovative IT and software systems scales well with new projects.