In the late afternoon of the digital age, outsourcing software development is not so slowly becoming a cost-effective and efficient way to power progress, increase innovation, and skyrocket your existing teams' success.
However, as a business owner or CTO, you need to understand the pros and cons of outsourcing software development to reap the incredible benefits that working with remote professionals can offer.
This article shares some of the most significant benefits and greatest challenges of putting together and working with an extended software development team. We'll empower you with the insight and knowledge you need to not only recognize high-quality remote talent but also harness it in a way that helps your organization grow, scale, and succeed – in even the most uncertain of times.
The Danger of Digital Downfall
Before we get into outsourcing software development pros and cons, it's essential to understand why companies are outsourcing in the first place. Why are they opting to work with talent from the other side of the world instead of working with skilled workers in their areas?
With social distancing at an all-time high, customers and corporations alike have turned to the internet. E-commerce, retail, and digital consulting have soared in the past 18 months thanks to easier accessibility and lower barriers to entry. Unfortunately, while the rise of digital transactions has granted countless businesses the economic boost they so desperately needed, not all companies or sectors have prospered in the same way. Going digital is expensive. Many companies couldn't afford the infrastructure required to conduct business online, let alone use it to their advantage.
The biggest problem is a talent shortage. Companies might have the funds they need but still find it challenging to find talent due to the massive gap between the need for software engineers and the available volume of engineers on the market. The COVID pandemic exponentially increased this gap because business went digital, and demand for software engineers grew even further.
The Rise of Remote
Remote work is no longer just a temporary solution – it's becoming a long-term reality for millions of skilled workers worldwide. While many employees see this as an excellent opportunity to work abroad or spend more time with their families, companies leverage the ability to work and strategize with world-class industry experts.
According to a recent survey conducted by Flexjobs, as many as 65% of remote workers stated that they would prefer to continue working remotely even after the pandemic has ended. Many even said they'd consider finding new employment if their offices forced them to go back to work.
Companies and organizations worldwide need to consider remote working as a permanent and cost-effective solution, meaning they'll also need to find more effective ways of finding remote workers who have the skills and experience necessary to get the job done.
Integrating remote teams and global experts is easier and more cost-effective than ever. Not only does the absence of office space cut overheads to a bare minimum, but it also means that companies have more resources to employ extra team members and experts to cope with higher volumes of work or development.
A Shrinking Pool of Talent
While remote working allows companies to hire employees worldwide, there still seems to be an ever-present shortage of skilled, professional, and available talent in many developed or Western countries. While the traditional solution would have been to scout and relocate talented and driven software developers from Eastern countries, many of the potential team members are balking at the idea of relocating during a global pandemic. Moreover, with the market being as volatile as it currently is, the gap between supply and demand for talent seems to be getting bigger daily.
The Good, The Bad, and The Solutions
Now that we've laid a solid foundation for why outsourcing is an excellent option for businesses worldwide, we need to look at what it would mean to implement it within your workplace. Which advantages can you expect? Which obstacles would you face, and what can you and your business do to overcome them as quickly and efficiently as possible?
When it comes to outsourcing software development, pros and cons come in spades. For every incredible benefit, there always seems to be a severe disadvantage. Here are some of the biggest pros and cons of outsourcing software development and what you can do to make it work for you.
The Good
You Can Tap into An Infinite Pool of Talent
Even though most developers would instead work for Facebook or Google – or a heavily seeded Silicon Valley startup – you can still be confident that hundreds of software developers are excited and willing to work with your brand with the right motivation. You can quickly build an extended software development team with members spread across the world. Central and Eastern Europe, in particular, are known for producing some of the most talented and driven software developers and engineers in the world.
Equilobe, in particular, exclusively works with employees who have earned their technical degrees with flying colors. Most if not all of our software engineers already have incredible experience and professional achievements, which prove they're able to deliver great work every single day.
You Can Cut Costs with Confidence
If we follow the example of working with Central or Eastern European software developers, we can see how cutting costs is a massive advantage of outsourcing. For instance, whereas the typical, fair salary for senior software engineers in the US is around 96k, that same engineer would be charging 46k in Romania. The software engineering income differences mean that companies can hire top-notch talent at a fraction of the cost without resorting to cheap, inexperienced labor.
Working remotely for a Western company is also an advantage for the software engineers themselves. They will get paid the same if not more than they would have earned while working for a company from their home country.
With Equilobe's incredible price-performance ratio, you can be sure that you're getting exceptional performance while paying lower costs for your talent.
You Can Scale at Lightning Speeds
Working with an in-house team can only bring you so far in scaling your business or organization. However, Eastern European outsourcing companies like Equilobe provide companies worldwide with the chance to work with dozens of talented software engineers who can instantly become a part of an extended software development team.
With more people working simultaneously, you can fast-track your progress and results in no time, making scaling your business a more accessible and more manageable feat.
The Bad
The outsourcing software development pros and cons are pretty balanced. However, as incredibly cost-effective as it is to work with a global team, some negatives could not only jeopardize the success of your project but also put your business itself at risk – unless you know how to combat them effectively.
Control Of Your Development Team
If you choose to build your extended software development team with the help of a third-party company, you should be asking yourself how many steps you are away from the developers working for you. This could complicate communication between team members and management, potentially leading to expensive misunderstandings.
By outsourcing, you might also end up with a high employee turnover rate, which places your business and its ability to succeed at risk.
Solution: Check Turnover Rates; Also make sure you are controlling the team directly
Equilobe has its teams of engineers instead of acting as an intermediary between the client and an outsourcing company. We also don't deliver one-time gigs. Instead, our clients are literally in control of a team that functions and communicates just like their own.
As a CEE country, Romania has countless professionals – from marketing executives to engineers who are accustomed to working for multinational companies and are fluent in English and other Western languages like German, French, or even Nordic languages. That's how we ensure excellent communication. Your product managers or product owners can participate in all the agile ceremonies of the team. The only difference between your internal team and an extended Equilobe team is just the location!
Equilobe is proud to note that we currently have a yearly retention rate of 90%. That puts us in the highest percentile of outsourcing organizations in Romania. It also means we have a proven track record of employing software developers and engineers that have the skills needed to retain their roles.
The Quality Of Your Codebase
Depending on which recruiting or outsourcing organization you work with, you might end up with inexperienced or subpar software engineers who are simply trying to make a quick buck from global clients without delivering high-quality work. With the sheer number of software development outsourcing companies available online, it might be challenging to find one that not only knows how to communicate but also implements the required quality checks to make sure the employees they use for their outsourcing clients can (and do) deliver work that's up to industry standard.
Solution: Ask for Codebase and Documentation Demos
A maintainable codebase is of high importance. There are two things clients should watch for here, namely clean code principles and proper documentation of the codebase written by the extended team. Of course, these two are distinct attributes, but both are equally important.
How good is the documentation that the outsourcing company is doing for their other clients? Do different codebases the company has worked at respect clean code principles?
Clean code principles and documentation can be checked through demos. Demos make it easy to spot good code versus bad code, and it also helps test if the team has a good history of writing and maintaining proper documentation.
The Motivation of Your Extended Team
Having an in-house team of software engineers and developers might seem like a better idea when you imagine your potential employees lounging on the couch while lackadaisically writing low-quality code. You, therefore, need to work with an extended software development team that stays motivated and engaged throughout every step of the development process, no matter the place from where they might be working.
Solution: Repeat the Retention Rate Checks
If programmers like an employer, they tend to stick around. If they are happy with their current employer, benefits, and environment, they tend to be motivated to do their best.
Equilobe cultivates a non-corporate working environment. Employees stay at Equilobe because they describe the working environment as "being among friends", feeling like they're home. They wouldn't leave such a welcoming space.
The non-corporate environment, the great colleagues, and feeling like being among friends keep employees even when they receive better offers from other employers. This culture translates to highly motivated engineers who deliver fast and high-quality most of the time, outperforming even in-house teams.
Everything You Need to Know About Outsourcing Your Software Development
While understanding the pros and cons of outsourcing software development is a great place to start the process of finding and using a global team, it's by no means the only step in the process. Now that you know about the outsourcing software development pros and cons, you will need to implement your new insight into choosing the right outsourcing organization for your needs.
Equilobe is an experienced and dedicated software development outsourcing company that
specializes in facilitating long-term, rewarding relationships between motivated developers and the companies who need them.
If you're interested in not only learning more about the pros and cons of outsourcing software development but also want to put your newfound knowledge to work while curating your extended software development team, reach out to Equilobe today. We're excited to help you scale your business with quality code, hard-working engineers, and the unlimited advantages of working with a global team that works as hard as your own.
