Four Reasons to Outsource Your Software Development Needs

The harsh reality of software development is that countless projects are doomed to fail. The 2020 Standish Group’s Annual CHAOS report found a 66% failure rate among 50,000 global development projects.¹ These failures don’t just cost time and reputations — the Consortium for Information & Software calculated the total cost of uncompleted projects to be $260 billion.²

In light of the massive risks associated with spearheading software development projects, a growing number of companies are making the move to external development. In fact, nearly 60% of IT companies turned to outsourced teams in 2021.³ As this trend accelerates, the outsourced development market is projected to exceed $133 billion by 2025.³

Key Forces Driving Outsourcing Trends

1. Lower Costs
   It’s no secret that software development projects have a lofty price tag. While relying on your own team may appear to streamline the process, in-house operating expenses add up fast. What many companies fail to recognize is the myriad of hidden costs —- recruiting, employee salaries, benefits, time off, necessary infrastructure and resources — that work behind the scenes to chip away at your bottom line. One cost comparison found that an insourced scrum team costs $750 more per team, per hour.⁴
2. Greater Demand
   The skyrocketing need for digital infrastructure in the last 3 years showcased the clear advantages of robust software solutions. Those who invested in development projects prior to 2020 excelled in the midst of global chaos and marketplace disruptions. Unsurprisingly, the demand for digital transformation is now greater than ever. The U.S. Bureau of Labor Statistics expects the demand for software developers to grow 22% by 2030.5 In order to become market competitive, companies must have the bandwidth to turn around development projects on a dime. Many do not have the internal resources to achieve this, and, as a result, an estimated 64% of IT executives are utilizing external expertise for their digital transformation initiatives.
3. Ability to Scale
   Software development isn’t a one-size-fits all venture. While many companies may have the staffing, infrastructure, and expertise necessary to successfully complete smaller projects, many fall short of their benchmarks for larger projects. Additionally, unexpected variables put internal development teams at risk of exceeding critical timelines and budgets. Rather than taking on new employees or amplifying current employee burnout, companies can leverage outsourced labor to offload time-intensive tasks and complete projects on time without spreading internal resources too thin.
4. Expanded Skill Set
   Outsourcing provides the unique opportunity to find highly-specialized experts with a wider range of skills and fresh perspectives on optimizing each project. This not only augments internal capabilities but also gives access to top talent at just a fraction of the cost.

Amplify the Outcomes You Can Achieve With an Expert Development Team

As software development continues to lead the pack in outsourcing essential projects, companies must carefully consider who they choose to trust with their development needs. At Thazen, “We Can Start Monday” is not just a slogan — it’s a promise. Our expansive team has the variety of relevant, cutting-edge expertise required to take your development projects to the next level. We employ a highly collaborative and flexible engagement model with a singular goal of expertly developing your projects as quickly as possible.

Learn more about the solutions we offer and how we can help your company excel.

Sources

1. Dominguez, J. (2021, October 10). The Curious Case of the CHAOS Report 2009. ProjectSmart. https://www.projectsmart.co.uk/it-project-management/the-curious-case-of-the-chaos-report-2009.php 
2. Consortium for Information & Software Quality. (2020). The Cost of Poor Software Quality in the US: A 2020 Report. https://www.it-cisq.org/the-cost-of-poor-software-quality-in-the-us-a-2020-report/ 
3. 2022 Global Software Outsourcing Trends and Rates Guide. (2022). Accelerance. https://www.accelerance.com/hubfs/2022%20Global%20Software%20Outsourcing%20Trends%20and%20Rates%20Guide.pdf?utm_campaign=2021%20Software%20Outsourcing%20Rates%20and%20Trends%20Campaign&utm_medium=email&_hsmi=175367915&_hsenc=p2ANqtz-8nr4GcXhTyvtQ45F2RBhOq-w2gcVg4WtUCibnEMuTn4AIv98yTLmreK3eHr-KRo5t24P6JLwOxDOn5Zm0OcnBkmQ3kxTyVIwpAD6SB_ECvnKcWXlY&utm_content=175367915&utm_source=hs_automation 
4. Outsourcing vs. In-House Development: Real Cost Comparison. (2018, December 12). Starshot Software. https://www.starshotsoftware.com/post/outsourcing-vs-in-house-development-real-cost-comparison 

Occupational Outlook Handbook: Software Developers, Quality Assurance Analysts, and Testers. (2022, September 9). US Bureau of Labor Statistics. https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm