5 Compelling Reasons Why You Should Outsource Product Development
Updated October 6, 2023
A successful product is born out of a unique idea but the success largely depends on how fast and well it is executed. There are many businesses that lost the race to successful product launch because:
- They compromised on quality because of budget
- They couldn’t find the required technology to build the desired features
- They got too engrossed with coding and programming and had no time left to innovate
- They were slow and a competitor paced ahead of them with a quicker launch
These are reasons enough to lead any business to failed initiatives in product development. However, smart businesses outsource product development and eliminate all the obstacles that hinder product success.
By outsourcing product development, businesses can leverage the time in hand to innovate and strengthen their core offerings. They can get the best product without worrying about the budget. But that’s not all. There are other reasons why successful brands have been outsourcing product development and have no plans to revert. Let’s find out some reasons why you should also turn towards outsourcing.
Outsourcing Save Product Development Cost
The biggest reason why most companies shift to outsourcing instead of building in-house product teams is to lower their costs. Setting out a new department means expanding infrastructure, setting up hardware & software architecture, offering paid benefits & perks on top of the salary, providing competitive compensation to local talent, and much more. This could put a hole in any company’s budget pocket.
Outsourcing helps solve all these cost issues. The hourly rate of offshore developers is much lower compared to developers in the US, Europe, and other Western countries. Moreover, you save on the infrastructure cost and the cost of IT set-up as offshore product development companies have full IT infrastructure.
Outsourcing Lets You Focus On Core Business
Considering the quick pace at which the product market is moving, businesses have a pressing need to stay innovative and grow. However, focusing on product development can defer them from the path. They need to focus on the core business, find out ways to keep their business booming and research the industry to expand. With outsourced product development, companies have the time in hand to concentrate on planning business strategies that add value to the organization.
Be it analyzing the customers, researching product features/roadmap, writing new business requirements, serving clients, or any other core competency, outsourcing frees up the in-house team to focus on that. It allows businesses to do what they do best and outsource the product development to an external company that is an expertise-holder in it.
Outsourcing Reduces Your Product’s Time To Launch
With the ever-increasing competition, businesses need to launch their product fast to avoid seeing someone else succeed with a similar idea. However, in-house development takes up a lot of time. Even the initial team set-up, hiring, and training can take up at least a month or two. But with outsourcing product development, you can find a company by reviewing their testimonials, portfolio, and analyzing the quote and experience. And within two months, they would be ready with an MVP of the product that you can test with your early adopters.
Outsourcing ensures that your product is being developed round the clock. While your in-house team works on other stuff around the product, the offshore product team continues to build it. Moreover, the offshore product development companies have experience building the same within a limited time and can help you get your product out quickly.
Outsourcing Means You Never Have To Compromise On Technology
With the advancements in technology, there are new frameworks and their latest versions being launched every other day. Finding the required technology could be challenging due to geographical limitations. Even if one is able to find the tech talent, it might go over budget to hire them in-house. Most businesses compromise on technology
Outsourcing resolves this issue. By outsourcing, businesses can filter out the product development companies based on the technology expertise they need. They never have to compromise on technology. They can find a company that offers the latest technology innovations and advancements.
Outsourcing Offer You Flexibility To Scale Up Or Down
Building a product in-house means you need to set up an in-house team of junior, senior, and mid-level developers, quality assurance engineers, business analysts, project managers, UI/UX designers, and many more. And these in-house hirings will be permanent ones that you cannot hire and fire based on the requirement in the development. Even if you do not have the work to keep them busy, you will have to compensate them and keep them in-house.
With outsourcing, you have the complete flexibility to scale your product development team as the need erupts. You can ask the product development company to add more experts in any niche if you want to scale up or remove them if there is no requirement for the time being. When in the early stage, you can start with a team of four and scale as your project scales.
On An Ending Note
Outsourcing has empowered many brands in the past. Whatsapp, Slack, AppSumo, Basecamp, and many other brands have successfully outsourced some or the other part of their product. It provides you the freedom to set up your team in an offshore location while having access to the global talent pool. With outsourcing, you need not compromise on technology, experience, quality, or anything when it comes to your product. All you need is to find the best product development outsourcing company to get started. It should have the required experience, project portfolio, expertise, technology stack, and developers to build a power-packed product.
About The Author: Tanya Kumari leads the Digital Marketing & Content for Classic Informatics, a global web and custom software development company. She is an avid reader, music lover and a technology enthusiast who likes to be up to date with all the latest advancements happening in the techno world. When she is not working on her latest article on tech dynamics, you can find her by the coffee machine, briefing co-workers on the perks of living a healthy lifestyle and how to achieve it.