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Why Outsource software development?

 

Unknown to many, it is now possible to outsource developer jobs. As an entrepreneur, you can outsource the whole function of IT development, so that you can focus on your companies’ core competencies. Outsourcing is highly advisable especially if you are not adept with web, mobile and software development. Here’s why you should consider outsourcing.

 

Outsource or do it in-house?

Hiring an experienced developer can be expensive, particularly for residents of a First World country. Aside from the salary, you also spend on recruiting costs, onboarding, employee benefits, and continuous training. Furthermore, your developer needs his office space, table, chair, computer, and other equipment. If you have a big project, you need to hire many developers and a project manager to supervise the entire development project. However, the expense doesn’t stop there as development costs can skyrocket, eat up a big slice of your budget, and even lower your net profits.

 

Web or mobile development?

Plus, that’s only just the basic components of development. Depending on what needs to be developed — web, mobile, or software — you may need to hire other specialists, purchase a specific set of equipment and tools, and spend a more considerable sum of money. Aside from the developers, there’s also the need to hire a quality assurance expert, business consultant, and UX specialist — who are experienced, knowledgeable, and skilled. Do take note that when it comes to hiring people with a higher level of experience and skills, the cost such as salary and benefits goes up.

Once, you do decide to build an in-house team of developers, a considerable amount of your time will be spent in screening job applicants who have the expertise and skill set that you need. Hiring alone takes a huge chunk of your time, and even if you’ve got a department to take care of the process — you, as the company owner, always end up making the final decision. The challenges don’t stop there because once you start hiring experienced professionals, there’s another job of monitoring their work, giving feedback, testing and making sure that app, web, or software development strictly follows the set schedule. Also, there’s the job of ensuring that development is still within the budget. More often than not, development costs exceed the limit because of revisions and glitches. Going through hiring and monitoring a development team, to purchasing all the equipment needed can be taxing on your part as a business owner. Apparently, you spend a lot of time in this department alone that you neglect the core activities of your company.

 

Outsourcing software development

Managing development projects can eat up much of your time as you need to become as hands-on as possible. Chances are, you spend less time on activities that are vital to the growth of the company such as searching for new leads and closing more business deals. As the business owner, you need to focus on matters that are more important — and the most vital task of all is managing the entire company, not just one department.

Rather than opting to create an in-house development team, choose to outsource it to a proficient IT company. Outsourcing web, mobile, and software development have become quite the norm, all thanks to the advent of the Internet. Plus, by outsourcing, there’s more time to work on strengthening your business’ vision, realizing its goals, improving its services, and creating better products for your clients.

Web and mobile development software and tools

Outsourcing suppliers utilise the best software development tools on the market. Below are some of the core development tools, for the leaders in the field.

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Outsourced web and mobile software development jobs and roles

We outline some of the most commonly outsourced software development roles.  The Philippines now offers some of the best software developers and can be at a fraction of the cost to ‘Western’ equivalents.

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Mobile App Developer

Mobile app developers know various platforms for tablets and smartphones. Moreover, this is someone who is adept at using different operating systems, has an excellent understanding of multiple computer languages, and can cooperate with computer engineers and analysts to create and develop a mobile app. Among the responsibilities and duties of an app developer is to create, install, and maintain the source code.  Also, the app developer can design prototypes, help the app development team in planning, and providing the unit structure.
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Game Developer

A game developer designs and creates video games for consoles and computers, and is someone who conceptualizes and executes game creation. As someone adept in all aspects of game creation, such as conceptualization, story writing, coding, and programming, a game developer should have experience in visual arts, production, design, and audio. They must also be able to create storylines and biographies of characters, conduct design reviews, and design role-play mechanics, as well as develop prototypes — all while documenting the entire process.
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Software Developer

Software developers handle the design, testing, installation, and maintenance of software systems. They also write and code individual programs, and provides an entire resource for new software. This person ensures that the programs you use for your business are efficient and error-free. The outsourced software developer produces specifications in detail and writes program codes. Other tasks include testing software application before it goes live, preparing the user manual, and maintaining the system to ensure that it is up and running.
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iOS Developer

iOS developers handle the creation and maintenance of applications for Apple devices, and ensures quality, performance, and responsiveness of applications. In addition, this is someone who can develop iOS apps and integrate them with back-end services. Like other roles in development, an iOS developer works with other engineers on various infrastructure layers. Among the skills required of an iOS developer are Swift, Objective-C, and Cocoa Touch skills. The developer must have experience with Core Animation, Core Data, and other iOS frameworks.
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Android Developer

Android developers can design and develop applications for the Android platform. As a “full stack” developer. With an understanding of UI/UX trends, android developers can easily incorporate this in the application. They also perform unit testing to ensure robustness and usability, conducts testing for general reliability and edge cases, and works with outside data sources and APIs. They also provide improved performance and error fixing, and evaluates, discovers, and implements new technologies to maximize the app efficiency.
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Website Developer

Website developers design, code, and layout your website depending on your specifications. After creating your site, a website developer assists, maintains, and upkeeps it; and has experience in planning and delivery of applications across different platforms. A website developer must be an efficient coder to be able to create websites using standard practices. As someone who works with web programmers and designers, a website developer should be able to properly communicate with other stakeholders to be able to develop and deploy content.
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CRM Developer

A CRM developer deploys, customizes, and integrates CRM in the business. Moreover, this type of developer creates and maintains the platform map, customizes the system to ensure the business meets its needs, and can integrate existing services and systems into the CRM architecture. The CRM developer collaborates with business analysts, other application developers, IT professionals, and software architects. CRM developers are proficient and experienced in developing, customizing, deploying and integrating CRM with other business systems.
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Full Stack Developer

Full stack developers handle both front and back-end development of the website. So, a full understanding of the different programming languages and databases is necessary. They have experience in converting graphic designs to virtual element, and is someone who understands and implements security and data protection. The developer is knowledgeable in all web development stages and works with other developers and engineers. Capable of designing the web application architecture, ensuring responsiveness and maintains website quality.
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WordPress Developer

WordPress developers handle front-end and back-end development, and has experience and expertise in various programming languages like PHP, CSS, HTML, and JavaScript. Moreover, The developer should be knowledgeable of website aesthetics. Part of the duties and responsibilities of a WordPress Developer include the design and implementation of new functionality and features. Your chosen developer must be able to guide and establish the architecture of the website, and ensure availability and high performance of CMS technical aspects.
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Backend Developer

Backend developers write APIs and web services used by mobile app and front-end developers, focuses on the development of all server-side definition and logic, and maintains the central database. Backend developers integrate the server-side logic and the user-interface elements, creates reusable libraries and codes, and optimizes the application for scalability and speed. Also, this developer ensures data protection and security, as well as designs and implements data storage solutions and integrates front-end elements into the application.
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SaaS Developer

A good SaaS developer is someone who is adept at web technology. He develops cloud-hosted applications that people can use. The software can be an accounting application or a CRM application. It can also be a content management platform or a collaboration tool. Whatever the application is, the SaaS developer can develop it. If you want to outsource your SaaS development, you need to search for someone who can design, code and set up the software. This person must be able to debug procedures and perform routine testing as required.
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UI/UX Specialist

UI/UX specialists must have a college diploma in Computer Science, Design, or any related field. In addition, a UI/UX Specialist must have a portfolio of design projects, excellent time management skills, strong communication skills, knowledge of wireframe tools, and updated knowledge of design software. A UI/UX Designer gathers and evaluates user requirements, and collaborates with product engineers and managers. They illustrate design ideas through sitemaps, process flows, and storyboards prior to the development of the project.

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Browse the widest range of productised outsourcing services. Easy purchase, best prices, clear deliverables, quality guaranteed, verified suppliers.

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Widest range of outsourcing services

The Source Superstore offers the widest range of productised outsourcing services.  The Superstore offers incredible packages, supplied by some of the best companies in the industry and offer market-beating discounts.

Customer Service Packages

  • Helpdesk support
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  • Account management
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Digital Marketing & Content

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Virtual Assistant & Administration

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  • Outbound calling
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Web & Mobile SW Development

  • Mobile app design
  • Web design & build
  • Custom software
  • CRM, ERP, SaaS
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IT Infra., Network & Support

  • Support ticket management
  • Remote network services
  • Desktop & application support
  • System administration
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  • Enterprise outsourcing
  • Build-Operate-Transfer
  • Project management
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Simple pricing

The Source Superstore offers four pricing tiers for easy navigation and comparison. With the Superstore, you get a precise service, delivered within a distinct timeframe, for a clear price.

$199 $599 $1,299 $5,999
Great starter packs Deeper deliverables Done-for-you packages Advanced outsourcing insight
Save up to 30% Save up to 35% Serious savings Comprehensive deliverables
Huge range of services 1 month OA support 1 month OA support 3 months OA support
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Why outsource to the Philippines?

The Philippines is considered the ‘Swiss banking of outsourcing’.  The country has been outsourcing longer than any other nation, so it has incredible expertise in the area, plus it has incredible cultural alignment with the ‘West’, a very young and well educated population, and English is a native language.

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Cheap Labor Costs

The number one reason why you should outsource to the Philippines is to save on cost. Cost of labor in the country is normally half of that in developed nations. Additionally, you get to avoid payments for office space, work equipment, human resource costs, legal costs, and some taxes. Despite all the savings, the quality of work remains high. An explanation for this is that the cost of living in the Philippines is lower than in developed countries. Save more than 70 percent of your total labor costs by outsourcing to the Philippines.
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English Language Proficiency

Along with Filipino, English is one of the most-spoken languages in the Philippines. Filipino workers naturally have high English language proficiency, whether it be through written or verbal communications. Some have even developed natural-sounding American accents, while others have neutral accents, which make it almost impossible for customers to notice that they are talking to a foreigner. It is the primary competitive edge of the country over its neighboring nations and one of the reasons why you should outsource in the Philippines.
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Excellent Education System

The Philippines has an excellent education system, giving the country a literacy rate of 95 percent. According to the ASEAN Briefing, around 450,000 Filipinos graduate from college each year. Scholarship grants provide access to higher education for less privileged Filipinos, allowing the country to produce highly skilled and knowledgeable workers. Some universities have even included BPO work preparation in their curriculum. Postgraduate education programs allow older employees who want to change careers to gain basic BPO skills.
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New Generation Workers

The average age of Filipino workers is 23 years old. It means that most of them have grown up amidst the advent of the new technology. This is a great advantage for companies that rely mostly on modern technology. There are some workers who receive BPO training while they were still students, making them well-prepared to join the industry. This new generation of workers understands that the BPO industry is one of the best employment options right now. They accept every opportunity to do so, which resulted in a massive BPO talent pool.
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Cultural Flexibility

Unlike in their competitor nations, the culture of the Philippines adapts well to Western countries. Hundreds of years of colonization by the Spaniards and Americans have made the country embrace Western culture naturally. English is one of the primary languages in the Philippines, while the political setup is very much alike with that of the West. It resulted in a government that fully supports the business process outsourcing industry. Indeed, outsourcing in the Philippines will not be too much of a trouble for any Western company.
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Familiarity with Western Lifestyle

Filipinos are quite familiar with the Western culture and lifestyle. Not only are they fluent in speaking English, but Filipinos could also talk to anyone about the latest on politics, sports, movies, TV shows, and other pop-culture topics currently happening in the West. Filipinos are also avid user of western applications such as YouTube, Google and Facebook. This type of awareness to the current events in the West has become an advantage for outsourcers to the Philippines as there is an immediate rapport with a service provider.
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Customer Service Oriented

One of the innate traits of Filipinos is being hospitable. They bring this attitude even to work, which makes them one of the most courteous and welcoming service providers in the world. They are respectful not only to customers but also to their superiors and colleagues. Filipinos are also cheerful by nature. They easily find the positive in any negative circumstance and can handle pressure situations with much poise. Filipino workers also have an excellent work ethic that makes them the ideal employees in the outsourcing industry.
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Strong Government Support

The Philippine government has always been supportive of the BPO industry. One recent law that has been passed to reinforce the outsourcing industry is the Data Privacy Act of 2012, which improved the country’s security policies up to international standards. One of the main reasons why Western businesses have hesitated about outsourcing abroad is the involvement of sharing confidential data with third party service providers. The Data Privacy law managed to fix that uncertainty, making the Philippines a reliable outsourcing destination.
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Improving Philippine Economy

Before the introduction of outsourcing in the Philippines, most Filipinos work as OFWs. At that time, the Philippine economy was highly reliant on OFW remittances. Many Filipinos still work abroad today, but the trend has slowed down because of the option the BPO industry had presented. It resulted in a huge improvement in the Philippine economy as outsourcing provides millions of jobs in the country. With more Filipinos opting to stay, the local economy has flourished, and Philippine small and medium-sized businesses reaped the benefits.
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Reduction of Potential Legal Issues

A lot of corporations and their executives in developed nations have to take care of unnecessary lawsuits or complaints from their existing in-house employees. Some of these charges were even silly in nature. By outsourcing to the Philippines, these companies will be able to reduce these potential legal issues, as this would be totally on the shoulders of the service provider. Through outsourcing, you will no longer have to worry about in-house politics between employees as the BPO firm will already take care of their own workers.
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Established Infrastructure

Because outsourcing in the Philippines came a little late, the country was able to learn from what did not work with the outsourcing models of the other nations that tried it first. This resulted in a more established and organized BPO infrastructure in the Philippines. The industry leaders had prepared topnotch BPO centers, facilities, utilities, and transportation setups for outsourcing even before the practice boomed. The Philippines has the capacity to provide better infrastructure options as compared to their global competitors.
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Access to Latest Technology

The country’s BPO industry has made huge technological advances in the last few years. Philippine telecommunication and internet service firms, along with healthcare and airline services, have upgraded their infrastructures to accommodate the growing industry in the country. Outside support from global companies has also been coming in, providing access to the latest technology. As a result, BPO firms in the country have become Omni channel service providers that can offer email, social media, live vide and chat with their clients.

Using a BPO company vs. agency vs. Freelancer vs. Upwork

 

There are several different ways to get outsourced work done, and hiring a BPO company is just one of them. Another way to do it is to employ freelancers through an agency or directly hire an individual freelancer via his personal online site. These routes can be hard because you have to do a lot of research to find the best outsourcing websites and freelancers available.

However, there are also websites that make the search easier. Websites, such as Upwork, cater these individual and agency freelancers. These websites act as a marketplace that sign up individual and group freelancers all over the world. Companies who need to outsource portions of their operations can visit them and look for third-party service providers that could accomplish their requirements. Some of the most common outsourced jobs for individual freelancers are content writing, creative writing, product description and reviews, virtual assistance, and encoding.

If you want to work with an individual freelancer, then you can choose to do that. Working with an individual lets you have direct contact with the person when it comes to project development, project timeline, and payments. Workflow is easy with straightforward communications.

You can also choose to hire someone from an agency. Going this route means that you are given a contact person from the agency, and they will provide you with the staff that you need. Payments and complaints, if any, are coursed through the agency’s point person assigned to you.

The BPO company route may be slightly expensive than the other options, but you make up for those expenses with guaranteed returns. In BPO firms, you can be sure that you are working with highly-skilled professionals in their fields of expertise. Meanwhile, you are not certain about the skill level of your service provider when you hire a freelancer directly or via an agency.

Each outsourcing route has its own pros and cons, and so choosing the best option for your business depends entirely on the risk you are willing to take. The table below shows a comparison of these different outsourcing routes and some of their features.

  BPO Company Agency Freelancer Upwork
Verified Outsourcing Partner
Pricing Structure fixed varies varies varies
Redundancy yes varies none none
Quality Control yes varies none varies
Backup and Security yes varies none minimal
Trained and Skilled Professionals guaranteed varies uncertain uncertain
Equipment Reliability high moderate low low
Reasonable ROI guaranteed varies uncertain uncertain

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Comprehensive outsourcing vs. seat leasing vs. staff leasing

 

Seat leasing and staff leasing are two other forms of outsourcing. However, they are quite different from the comprehensive outsourcing offered by BPO companies.

Seat leasing means renting a workspace or “seat” for a fixed sum each month where your employee can work on his tasks. The best seat leasing providers can offer you warm seat leasing or cold seat leasing options. Warm seat means that the space lender will also provide you with the staff that will fulfill your requirements. In cold seat, you have to find your own employee and rent the space only. Seat leasing would be ideal for startup companies that do not have that much capital to hire regular employees. It is a cost-effective way of getting some of your operational tasks done while you focus on running or promoting your business. The temporary nature of seat leasing is also an advantage since you get to further grow the business before investing in actual office space and equipment.

On the other hand, staff leasing means that the outsourcing company will provide you a set number of employees for an agreed number of days. Basically, it is almost the same as BPO outsourcing, but the length of outsourcing time or contract is quite short.

Staff leasing allows you to gain the benefits of having skilled employees anytime you need them without going through the hassle of recruitment, payroll, benefits, and other human resource concerns. The best staff leasing companies already have a talent pool where they can pluck out the specific skilled worker that you need. You only need to approach the leasing company, inform them of your requirements, and they provide you with the right staff to accomplish your goals.

Comprehensive outsourcing, also called complete outsourcing, is much more all-encompassing in nature as compared to the previous two. The BPO company is hired to manage all of the processes and activities for a certain operational task you hired them for. All aspects of that specific task will be managed on your behalf, virtually eliminating your need to allot time and resources to it.

There is only a thin line differentiating comprehensive outsourcing from staff leasing. In simple terms, staff leasing companies provide you with manpower primarily while BPO firms help with operational processes and other tasks as well.

The table below shows the difference between comprehensive outsourcing, seat leasing, and staff leasing.

  Comprehensive Outsourcing Staff Leasing Seat Leasing
Manpower Guarantee yes yes n/a
Skilled and Experienced Workers Provision yes yes n/a
Recruitment and Training yes varies n/a
Payroll and Benefits Duties none varies n/a
Hiring or Contract Duration varies varies transient
Operational Support yes none none

Business roles to outsource

Outsourcing can be integrated into almost any business, in any business sector.  Virtually any business function that can be done from in front of a computer monitor, can be outsourced.  There are some more commonly outsourced roles though, and it might be wise to start with these roles first.  We outline some of those here:

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