Benefits of outsourcing in tough economic times

Did you ever wonder how offshore/outsourcing can help you through the current economic downturn? Did you ever consider the major benefits offshoring can bring to your company?

If you run a web or software development company, you probably might come across it. With the current economic situation, it might be a good idea to consider the growth & profit it can bring to your company.

Flexibility

The past years, it was hard to find appropriate people to run your IT projects. Right now, it is probably harder to find enough projects to fill your IT department. With the labor laws in Western Europe it’s not easy to simply hire and fire people. Outsourcing your IT needs to a partner, saves you the headache that comes with hiring and firing people. You simply hire the exact amount of hours you need and you don’t run the risk of long term labor contracts.

Cost savings

For cost saving, it is important to compare the correct options. Often web & software companies tell me ‘it is cheaper to hire a programmer in my own office’. Taken into consideration the high tax levels, holidays, sick leaves, overhead, training, productivity, etc, it is usually still cheaper to hire an offshore developer. But the correct comparison is: offshoring or outsourcing to a local partner. And if you compare those options, the cost savings are substantial.

Focus & a lean organization

The biggest added value of you as a web or software companies is the ‘intelligence’. You create solutions for problems. You develop applications that help a customer solve his problems. In order to deliver this solution, you need to develop it. If you focus your attention completely on this intelligence instead of managing a team of software programmers, your added value towards your customers increases. Outsourcing the development process to a partner, keeps your organization lean at the same time.

Capacity & specialization

Even now the labor markets have become less tense it is still a challenge to find enough people and especially the right people. Cooperating with an offshore or outsource partner, gives you access to a vast pool of developers. This will ensure that you can always attract the capacity you need and makes it easier to find the ‘perfect match’ with the skills you need.

Now one of these factors alone might not be enough reason for you to change your current situation. But consider the fact that you can achieve ALL the benefits simultaneously. It is not only about cost savings, but about a strategic decision that brings your company long term growth and profitability. It creates a stable basis on which to build your company.

Source: BigNews.biz
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