Staff shortage
This is one of the most common reasons for outsourcing. According to PWC, more than 57% of companies have difficulty finding qualified personnel to perform certain jobs and projects.
By choosing to outsource software development in DigitalSuits https://digitalsuits.co/, the Customer struck a balance between the operational structure and business goals. He approached the age-old dilemma of "insourcing or custom turnkey software development" with logic and careful analysis of the advantages and disadvantages.
Lack of resources
The staff can be staffed, but the volume of tasks requires more workers, and this requires strengthening the team. Then it is worth looking for partners who will take over the process of creating the service.
Efficiency
Numerous studies (such as the Oakland Tech study) confirm that only 3 out of 8 full-time employees are productive on an 8-hour day. The external developer is motivated to demonstrate the result every hour, since it is regulated by the SLA and the pre-agreed budget of the Customer.
Manageability and transparent budget
The customer, choosing outsourcing, manages his budget. As a rule, works are carried out at a fixed cost. An exception if there is a need for further improvements or technical support, but this is negotiated separately.
Cost reduction
In business, there will always be costs associated with making a profit. To make money, you need to spend money, and business leaders are always looking for the most cost-effective ways to do business. An important aspect of this is finding the right help to optimize your return on investment at the lowest possible cost. In Deloitte's 2016 Global Outsourcing Survey, 59% of participants cited cost reduction as the top reason for outsourcing. Outsourcing minimizes development costs by 10-25%, but not all companies understand how much money is actually saved in practice.