Outsource Development Center vs. In-House

Across Europe and Asia, remote development centers are springing up. Many IT companies see this strategy as a way to get their company off to a good start. Even tech giants like Google, Amazon, and Apple use the R&D framework to develop software and perform other technical tasks.

We’ve compiled a list of the most compelling reasons for businesses of all sizes to consider establishing an outsource development center rather than maintaining their own in-house development staff.

What Is an Outsource Development Center, and How Does It Work?

The outsource development center is a distant office in a foreign state that employs seasoned professionals with the necessary technical expertise to work on specific software development projects. This concept enables businesses to take advantage of international talent to generate superior services while decreasing costs and burden in-house.

Software engineers, QA testers, UI/UX designers, and a business systems analyst who handles requirements elicitation are all typical members of an ODC team. A delivery manager is also in charge of team leadership, client relations, and overseeing the development process from start to finish.

The Advantages of the Outsource Development Model

The ability to find the best people for their project and offset the lack of in-house experience is a big draw for many companies when it comes to shifting software development operations outsource. They may easily find the right tech personnel with specific capabilities critical to their product’s success using an outsource development strategy.

A remote office provides more freedom than managing an internal IT department. This facilitates team deployment, scalability, and cost reduction. It also leads to additional market expansion, risk minimization, and knowledge exchange opportunities.

Now let us look closely at the benefits of using an offsite development center:

Best Players Availability

IT staffing and recruiting are becoming more difficult every year as demand grows around the world.

Finding high-quality tech specialists in countries like the United States, the United Kingdom or anywhere in EU is already difficult. Outsource development centers can be a wonderful choice because they provide access to a wider range of software development experts from around the world.

By relocating your operations to a foreign country, you will be able to contact with the greatest developers in your industry. As a result, a remote office not only eliminates physical obstacles but also avoids the need to compete for outstanding people with large technology companies.

Simple Setup

Building an internal development team from the base up comes at a high cost in terms of both time and money. You need reserved adequate funds and working hours for the recruiting, onboarding, and ongoing training of your technical employees.

These issues can be avoided by using an outsource development framework. You only need to specify what you want to do, and the supplier will take care of the rest. They will assign you to a dedicated team of pre-vetted software developers who are the greatest fit for your project. As a result, such a cooperation provides high-quality results, easy management, and superior financial efficiency.

A Shorter Time to Hire

Typically, it takes 10 to 12 weeks to find the perfect talent on the local market. Moreover, because software developers are hired one at a time, the recruitment step might take anywhere between 5–7 months.

Establishing an outsource development center gives you access to a talent pool that you otherwise wouldn’t have had. You may look for experienced developers from anywhere in the world, which speeds up the hiring process.

Furthermore, if you work with an experienced software development partner, you can have a completely functional product delivery team in place in as little as 8 weeks, and in the case of a company-specific technology stack partner — up to 4 weeks. Vendors don’t have to waste time on interviews, tech screening, or code exams because they have a curated talent pool of pre-screened people. They simply choose the personnel who are best suited to your project’s needs. That’s why putting together the ideal team for you takes weeks, not months.

Cost-Effectiveness

The outsource business model allows you to combine strong technological potential with reasonable rates and minimal operating costs. This method can save you anywhere from 40% to 60% on development services compared to what you’d pay in the United States, Israel, or Western Europe.

You may find the same level of qualified professionals overseas at a far lower cost than recruiting locally if you use an outsource production center. The basic wage package is typically 1.25 to 1.4 times the employee’s compensation, according to the US Small Business Administration. Taxes, health insurance, retirement savings programs, vacation, and medical leave reimbursement are among the additional charges.

24 Hours a Day, 7 Days a Week

In most cases, remote staffing entails a large time zone difference. While it may appear to be a disadvantage to some, it can actually help with speedier product delivery. Continuous work and a steady supply of services are ensured by having some overlap between local and distant work hours.

Because of the abundant supply, you will always have someone working on the project. This helps in the quick identification and management of any difficulties that arise during the development process.

If you only have a local team, large service updates may necessitate late-night shifts or extra hours from your employees. You can introduce updates without disrupting your typical workflow by collaborating with outsourced software specialists operating some hours ahead or behind your time zone.

Teams That Are Adaptable

The great majority of technology companies do not demand the same resources on a consistent basis. In fact, the flexibility to change the tech stack, business model, or team capacity on the fly demonstrates how swiftly they can react to the project’s continuously changing requirements. Outsource development centers, in particular, shine brightly in this regard.

In terms of team makeup, the remote office approach is quite adaptable. For example, because the jobs at the start of the development lifecycle are largely concerned with the construction of user-facing parts, you’ll only need front-end developers on board. More back-end professionals will be added to the team when the nature of the work shifts to developing server-side application logic.

If you rely only on your in-house development staff, you won’t be able to achieve this degree of flexibility. Outsource development, on the other hand, allows you to better allocate resources. Furthermore, you will always have the exact staff you require at any given time.

Mygento can help you set up a remote office

If you’re thinking of establishing an outsource development center, Mygento is the answer. Team augmentation, dedicated teams, pod teams, and remote development offices are all part of our service strategy.

Partnering with Mygento is considerably easier and less expensive in the long run than employing locally. Simply tell us what you need, and our specialists will put together a team of pre-screened developers who are the greatest fit for your project.