Last updated: September 19, 2022 by Visibly One
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There really isn’t any need to pay a software developer $100,000 a year when you can get the same job done for as little as $6 an hour. The quality of work will be exactly the same, it will be done in the same timeframe; and considering you’ll pay up to 70% less, you’d be doing your shareholders a disservice if you didn’t consider outsourcing.
It’s no wonder Jeff Barrett of Inc magazine wrote “It’s time to get comfortable with the idea of outsourcing more tasks. With the skills gap continuing to receive attention and U.S. unemployment rates at some of the lowest levels since the turn of the millennium, businesses that want to tap into talent will need to learn to outsource”.
Outsourcing software development is a game-changer. It offers a ton of benefits like cost reduction and enhanced product quality, both of which are must-haves for companies looking to grow beyond their current market position. Compared to hiring full-time developers, outsourcing to the right developer can get you the best deal for your company, saving you valuable time and money. At the end of the day, the only reason you should outsource should be because you can make more money by outsourcing than by not outsourcing.
But how does the math stack up? And how do you identify the best outsourcing company or freelancer?
Making Sure You Find The ‘One’
According to Wasp Barcode Technologies, the five biggest challenges facing small businesses center around employee management and profit. Any outsourcing you do should help you increase profit, grow revenue, or increase cash flow while bypassing new employee hassles.
Source: https://neilpatel.com/blog/outsource-work/
Software development outsourcing is an inexpensive way to build a mobile app or web application. Third-party services like outsourcing and freelancing now dominate the “gig economy”, helping enterprises achieve their goals through cost-effective means. Currently, there is a massive pool of freelancers up and ready to take on any job, and most of the outsourcing companies have enabled talented people to do their best work from anywhere in the world. This remote work trend has, in turn, given rise to a growing army of freelancers. According to Upwork, over 57 million Americans freelanced in 2018, making freelancing and outsourcing one of the fastest growing trends globally. According to Forbes Magazine, “The Freelance Revolution Is Just Getting Started”.
But you have to choose the right partner that lives up to your company’s expectations. You have to make sure they help you continue building awesome products and services.
So that means the developer you hire needs to be an extension of your brand. You need someone stable and reliable that will not only provide you excellent services, but also someone who can share the same values as you. Trust is an essential factor in every relationship, and if it goes both ways, there’ll be no other way to go but forward. While budget is certainly an essential variable, it also has to match the developer skills and experience you need. That’s why it’s important to set your standards early on what exactly you are looking for.
How To Identify The Number 1 Software Development Team for Your Startup
Your Results Reflect Your Priorities
Everyone wants high-quality work – but at what cost? Considering today’s economic climate, minimizing costs and maximizing profits are a priority. Since the boom of outsourcing, many companies have jumped on the promise of a lower cost, but they often forget the value of a professional staff member that can deliver long-lasting and sustainable results.
Before you get started, do your research. Understand exactly what you should pay for the project you want done, and know what a fair price range is. It’s also a good idea to make a list of what features are most important to you. Are you better off hiring an independent freelancer or delegating your project to an outsourcing company? Is clean code important, or do you only care if the final software project works?
Rate and experience may go hand-in-hand, but it’s not all black and white. Hiring an independent freelancer and using an outsourcing company may cost the same, but the risks and processes draw the line.
Independent freelancers are a flexible one-man enterprise at liberty to complete different jobs for a diverse clientele of individuals and firms, while outsourcing companies offer a dedicated team of professionals equipped with the required expertise for a specific set of tasks.
As it stands, business owners with companies in the US, UK, and Australia can save at least 70% of labor costs should they choose to outsource these tasks to BPO companies based in the Philippines. Some jobs, such as copywriter, graphic designer, technical support representative, and virtual assistant are more than 85% cheaper in the Philippines compared to other countries.
For international rates in software development, middle level developers with 2-3 years of experience cost $25-30 per hour; senior developers with 3-5 years cost $30-40; leads with 5+ years cost $40-60; and depending on conditions above, they can vary from -20% to +50%. In a general sense, you shouldn’t pay more than $20 if your developer has less than 3 years of experience.
To make sure you avoid getting burnt when searching for the perfect freelancer to work on your next project, we put together a “comparison blueprint” attached at the bottom of this article, to make the job of hiring a skilled and qualified software developer and other jobs you can outsource, more efficient, effective and far more productive.
For international rates in software development, middle level developers with 2-3 years of experience cost $25-30 per hour; senior developers with 3-5 years cost $30-40; leads with 5+ years cost $40-60; and depending on conditions above, they can vary from -20% to +50%. In a general sense, you shouldn’t pay more than $20 if your developer has less than 3 years of experience.
Does It Tick All The Boxes?
You need a partner to help you nurture your project. At the end of the day, we all want the same thing in business, less risks and more benefits. Since you’ll be working with someone for a longer period of time, it’s important that they are a good fit for your projects. And that’s why McKinsey Global Management Consulting estimates by 2030 there will be around 500 million freelancers working through different platforms. Because outsourcing has far less risk and so many more benefits than hiring an in-house team, Covid-19 didn’t create the freelance revolution, but it’s been quite an accelerant. It’s been one of the reasons why freelancing and outsourcing is now at the forefront of most companies’ to do list.
But before you get started, you need to understand some of the rules of the game. You need to know how to find the best there is to offer but pay exactly what you should for the skill set required to fill the position.
“To make sure you avoid getting burnt when searching for the perfect freelancer to work on your next project, we put together a “comparison blueprint” attached at the bottom of this article, to make the job of hiring a skilled and qualified software developer and other jobs you can outsource, more efficient, effective and far more productive.”
As the global freelancing and outsourcing phenomena continues to reshape the way businesses work today, we expect more pressure on standards and measures, and more commonality of language. Clients will want greater clarity and lower risk.
If you use the right techniques and do your research, you can ensure that your outsourced work has the same impact on the projects you finish yourself.
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Outsourcing – Viva la revolution!
