5 Reasons Why Companies Choose To Outsource Software Development


5 Reasons Why Companies Choose To Outsource Software Development

Will you find one a use-case?

Written by:

YanContent Marketing Lead


Published on:

Read time:

8 min read



Is globalization really a thing today?

A recent crisis here, in Europe, shows that companies are looking for ways of smart cost optimization. IT outsourcing has proven to be an important tool in this strategy, so anyone who’s on that path should consider it.

Are you the one? Great.

Accounting for the aforementioned, we need to concentrate on having the necessary flexibility and tools to remain timely and efficient in meeting all customer’s needs.

This article will walk you through the exact reasons why companies choose to outsource software development today.

On the spot

The 5 main reasons why companies choose to outsource software development are:

1) Smart cost optimization
2) Connecting to a global talent pool
3) Enhancing workload management through decreasing micromanagement
4) Focusing on core competencies
5) The assurances procured

If you want to learn more about each as well as to read the success stories of our Clients who outsourced to us for exactly these reasons — read on!

What Do Companies Outsource?

Outsourcing is a driving force of progress that allows companies to get a desired result on chosen terms. We will be talking specifically about IT outsourcing but there's also a lot of other applicable areas:

  • Customer development;
  • software development;
  • software engineering;
  • customer success;
  • customer support;
  • marketing;

5 Solid Reasons Why Companies Choose to Outsource Software Development

An infographic showing 5 reasons why companies choose to outsource software development

1. Smart cost optimization

An illustration to the first reason why companies choose to outsource — smart cost optimization

This is a strategy.

There’s a lot of challenges in the world. A present crisis is the brightest example.

And we work with those who, understanding this, use these times to get better than others and offer superior services.

This strategy is not only the optimization of expenses, it’s also the understanding of how to do it.

And we have a plan on how to help our Clients become better in this respect. For example, we offer a program of cutting costs on big data and configuring a data warehouse.

It’s no secret that Eastern Europe is one of the top choices for IT outsourcing because of a similar service model to that in the West where quality doesn’t suffer. And there’s a demand for this, especially in a crisis.

Capitalizing on opportunities

Such companies as Bayer and SKY understand these opportunities. Read their stories of how they utilized this time, getting immense benefits.

2. Connecting to a global talent pool

An illustration to the second reason why companies choose to outsource — connecting to a global talent pool

If a company can’t fill the desired positions, work slows down since a team can’t achieve the expected outcomes. IT outsourcing prevents businesses from dealing with such issues as now they are open to a drastically greater tech talent community, literally from all over the world.

SENLA can help you avoid the risk of not closing the desired positions locally or spending way too much time on it. Our 650+ meticulously nurtured experts in 13 industries grant that. You will be able to close skill gaps effortlessly, risk-free and lightning-fast.

Another common reason why companies choose to outsource their IT is because they need professional assistance in some specific areas (e.g. rolling out big data analytics that account for fintech peculiarities). These areas require specialized skills and knowledge that may not be widely represented on a company’s local market.

Again, SENLA can save the day for you here. Rich expert tech talent is what makes our living, so we eagerly perfect and diversify it to encompass as many Clients’ requests as possible. So, when you decide to go with outsourcing, there are much higher chances for you to find what you’re looking for.

Going global

That’s how We4G, an Israeli Telecom company, increased its visibility and competitiveness in the crowded Telecom sector. They reached out to SENLA for the experts that could create a custom banking option and did not lose. 
We developed a secure platform for We4G’s customers to transact, which offered the company a competitive edge and thus a new stream of revenue.

3. Enhancing workload management through decreasing micromanagement

An illustration to the third reason why companies choose to outsource — enhancing management through decreasing micromanagement

There’s a special way of work organization at our company — the SENLA Unit.

It is a project pod that includes a senior developer, several middle developers and one or several junior developers.

A senior expert sets up and oversees internal processes in the team, manages daily routine, communicates with a Client, determines a future solution’s architecture and performs quality control.

Middle-level developers are fully self-sufficient experts who can accomplish any development tasks on their own.

We also add one or more junior developers to the pod so that they could learn, practice and grow in a safe and predictable environment. Seeing how their impact counts also helps them keep high motivation levels.

Throughout our 10+ years of operation, we figured this to be the most efficient way of organizing project teams.

4. Focusing on core competencies

An illustration to the fourth reason why companies choose to outsource — focusing on the core competenties

A company’s core competencies are what define it and distinguish it in the market. The quality in which staff performs these tasks is essential to a business’ success.

Training and onboarding new employees for in-house software development can be time-consuming and a company may not be willing to shift effort and focus out of the strategic tasks that much. This is the reason why many of them prefer to outsource these activities.

This frees their staff’s precious time to focus on what’s the most important, ensuring they meet the business’s goals and expectations and increase firm-wide productivity.

Focusing on what matters

That’s how Bosch, a global manufacturer of home appliances, outsourced software engineering to us to implement an automatic vendor assessment system. The decision brought them a working solution way faster and more reasonably priced so that they could start successfully prioritizing their core tasks of producing top-notch products as soon as possible.

5.  The assurances procured

An illustration to the fifth reason why companies choose to outsource — the assurances procured

Organizations have to bear many risks associated with software development: properly utilizing budget, fitting into the timeframes, delivering on promised functionality, applying the right tech talent — this is just a short list of them.

This is why, understanding this, we’ve come up with a unique offer on the market. SENLA has been insuring all its project work since inception, thus emphasizing our quality, our reputation.

Why Senla?

Proven track record

We’ve been in the game for 10+ years now and have completed over 350 projects. During this time, we’ve built a strong knowledge of how work needs to be done. The words of our happy Clients are the best proof of that.

Large talent pool

We have 650+ experts in 13 industries to help you implement even your most sophisticated ideas.

Long-term focus

We aim to become your rock-solid business partner fortifying you with exceptional technology expertise and perfect execution. And we approach this in all seriousness. We won’t try to drag you into cooperation at all costs just to make money from you (for example by lying that we have whom you need and meanwhile just hunting them).
We are open on our downs: if we don’t have this talent, we voice this. And we say that we are ready to invest in our partnership to prepare whom you need. By being transparent and open we hope to give you peace of mind on your technology partner who backs you.

Frequently Asked Questions

What kind of services do you provide? Is it outstaffing, outsourcing or custom software development?

All of them! Understanding the market needs, we’re offering all 3 engagement models to accommodate for all needs you might have, from just reinforcing your team to fully developing a solution for you from scratch.

What happens after I fill in the form?

1) Our BD team contacts you shortly for a quick intro call to understand the project needs better.
2) Upon your request, an NDA is signed.
3) After careful evaluation of your requirements, SENLA offers a preliminary solution (estimates, CVs, etc.).
4) Our team can start delivering within just 5-10 business days upon approval. With us, you won’t waste any second!

What if the requirements change during the process? How flexible are you to changes?

We can bend over backwards to satisfy your needs 🙂. That’s serious: a Client’s satisfaction is the top priority for us. We support all actual software development models, so whatever your requirements are, on whatever conditions — be sure we can accommodate.
Our engagement models are also highly flexible for scaling. For example, our offshore development center can give out up to 100 experts per year! All we need to change conditions in a 1-month prior notice and that’s it.

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