Top Reasons to Outsource Product Development

Posted by RSK Business Solutions on July 12th, 2018

Most companies stand in a dilemma when it comes to outsourcing. Product development is a long and exhaustive process, but is outsourcing the right way? Here are some of the most compelling reasons to outsource product development:

1) Managing timeline

Every project comes with a deadline. Most of the times, it is developer's job to set the timeframe to complete the project. However, internal development often leads to missed timelines, as the limited resources are often stretched thin. Lack of dedicated personnel also leads to many missed tasks, which further delay the completion.

The decision of outsourcing solves this issue considerably as the outsourcing firms are much more experienced in setting a realistic time lime and adhering to it. Lack of resources is not an issue, and their expertise with product developments ensures that no intermediate steps are missed during development.

2) Project Costs

Like deadlines, projects costs are another aspect that people fail to account for accurately. Correct cost estimations require fixed allocation of resources but flexibility in the face of emergencies. Like mentioned before, most companies already run short on resources and dedicating team for long-term projects is counter-productive for them. At the same time, inflating the budget is not something the client would appreciate and is often a bad move for business.

Again, it is best to outsource product development in such scenario. Outsourcing firms follow a well-defined process where the costs for each step are accounted for. With their long expertise, chances of exceeding the specific budget are low. In fact, outsourcing often helps in reducing the cost compared to in-house product development.

3) Accessing varied and competent skills

Developing an innovative product require high expertise in the field. Most companies do not possess such talents and hiring new talents full-time for the purpose often goes beyond their budget. Not to mention, once the project gets completed, people hired specifically for that purpose become a liability for the company. Outsourcing solves this problem by providing a team of highly-trained professionals for the project in question. It saves the companies from a lot of hassles like recruitment, allotment etc.

Another scenario to be considered here is the multidisciplinary skills required. Most companies need to deal with products in a variety of fields, which makes it even harder and more infeasible to hire specific talents. Since outsourcing provides a pool of professionals with various skillset, it makes more sense to outsource.

4) Accessing latest technology

Technology is crucial in product development, most experts agree. However, most companies are reluctant in acquiring the latest tools due to the sheer cost and efforts involved. Especially in cases where the said technology would not be used beyond a particular project, it makes no sense to expend resources in acquiring it. However, the difference between obsolete and latest technology can often have a significant impact upon the success of the product.

This is why it makes a lot of sense of outsource product development, as the outsourcing companies usually have the latest technology in their arsenal. It is akin to renting the best tools for the task in hand instead of buying them.

Conclusion

The reasons mentioned here are not the only ones, but they are certainly the most important ones. In the long run, outsourcing product development is definitely is more prudent decision.