Why Outsourcing Software Development Makes Good Business Sense

James DeHoniesto
Director of Business Tech Optimization SSD Technology Patners

There has been a shortage of IT talent for several years, and it’s expected to get worse. In a recent survey by staffing firm TEKsystems, 81 percent of hiring managers said they can’t find qualified candidates with the right skills to fill open positions. Some of it has to do with IT job descriptions that list an unrealistic set of requirements that no one can match. That said, there’s no doubt that organizations seeking to hire IT professionals are competing for a limited pool of talent.

According to CIO magazine, unemployment rates in the IT industry remain at historic lows — in some cases, hovering around 1 percent. Software developers are among the IT professionals in highest demand. As organizations place more and more emphasis on applications to help them succeed, software development has become one of the hottest IT skills.

In other words, it’s a seller’s market. Software developers can afford to be picky when it comes to job opportunities. As a result, hiring a full-time employee or contractor has become a long, potentially expensive process that can delay software development projects and increase budgets.

There are additional challenges to consider when bringing software development in-house. First, many organizations lack the technical know-how needed to properly vet candidates and make the right hiring decision. Once on board, the developer will require supervision and direction. In addition, the organization will need to purchase hardware and licenses for the development tools the employee needs.

How long will the in-house developer stay on board? Given the strong demand for IT talent, there’s a high probability that the developer will soon move on to a new opportunity. At that point, the hiring process starts all over again, a seemingly endless cycle of rehiring and retraining that drains time and resources and hampers innovation.

Outsourcing software development minimizes these challenges and provides a number of other benefits. By outsourcing, you eliminate the need to find, retain and manage an employee with the skills to meet your project requirements. You pay for the services you need when you need them, without the overhead of a salary and benefits. You won’t have to provide the developers with hardware and software, reducing your capital and operational costs.

Best of all, you get an entire team of professionals working in a collaborative environment that accelerates the development process. Project objectives, costs and milestones will be spelled out in your contract with the development firm, adding a layer of accountability that helps keep things on time and within budget.

If software development is not your core business, it typically makes sense to outsource to a firm that can provide a turnkey solution. Let SSD Technology Partners evaluate your application requirements and determine if our team of developers can help you meet your business goals.

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