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.
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.
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.
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.
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.
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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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.
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.
|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|
|Shop $199||Shop $599||Shop $1,299||Shop $5,999|
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.
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.
|Verified Outsourcing Partner||✔||❌||❌||❌|
|Backup and Security||yes||varies||none||minimal|
|Trained and Skilled Professionals||guaranteed||varies||uncertain||uncertain|
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|
|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|
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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