Software Product Development Outsourcing Reduces Costs Drastically

Posted by Congruent on May 18th, 2015

The most significant advantages of software product development outsourcing tend to provide cost-cutting benefits for organizations. With companies striving to advance business goals and maintain their place in the competitive market, outsourcing different services has truly become a viable means not only to reduce costs, but also maintain productivity and accomplish projects within specific time and budget constraints.

Cutting project costs is one of the major benefits of outsourcing software product development and any other service, for that matter. Workforce in many countries that offer IT outsourcing is often sufficiently lower than in the United States or in Western Europe, making well-known IT outsourcing countries like India a more attractive choice when it comes to software  and IT development requirements. The following are some of the most notable cost-benefits, outsourcing software product development offers to businesses:

  • Lower operating costs – Outsourced software development services are less costly, simply because organizations wouldn't have to invest on in-house infrastructure as well as hired labor. Operating costs are much less when you don't have to hire additional personnel to include in your payroll and maintain additional equipment to sustain development throughout its course.
  • Zero training costs – With outsourced help, your company also avoids the responsibility of training new employees or helping them gain specialization, which can be very expensive. In most cases, at least two to three weeks are wasted in giving these kinds of trainings—time that can be put to better use when you choose to outsource development. This way, you save money as well as time, which can only mean increased productivity and profitability for your organization.
  • Cheaper labor – As earlier mentioned, professional labor from off-shore companies are a lot cheaper than trying to maintain in-house personnel in your company's payroll. Outsourced companies offer cheaper labor without necessarily compromising work quality. In fact, they can provide you access to specialized skills at far cheaper labor costs than you will have to pay for an in-house personnel that you will still have to train to get the same level of service from. Additionally the fee structure is far less in developing countries, which helps you gain access to cheaper labor facilities.
  • Less production time – Finally, outsourcing software product development means shorter production time and faster delivery of your required product, which results in high quality work at a significantly shorter amount of time. Faster delivery also means faster deployment and greater profitability.

About The Author:

Headquartered in Seattle, WA, Congruent, and Microsoft Gold certified partner has been providing software development services to its global clients since 1994. The operations are supported by our large offshore software development centre in Chennai, India. Congruent customers include a wide range of companies, from a Start-up solution provider, ISV's to enterprise clients like 3M, Premera Blue Cross, and Council on Foreign Relations, Glasstech, Maldives Airport and many more.

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Joined: January 31st, 2014
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