Why Outsource Development?
Whether you’re an established company looking to add to your technology arsenal with an app or new and improved website, or you’re a budding entrepreneur with a great idea for an app or product that requires an online presence, outsourcing the development may be the right approach for you.
New innovations and a constantly evolving landscape make the ability to be quick and agile with technology and digital products a must. When features are working and products are selling you can gather than data and build on those strengths.
Alternatively, when traction is slow and results are not panning out as expected, it is even more important to recognize the signs and make changes quickly. In fact, those types of pivots are normal in businesses with products that end up being very successful. In this environment, outsourcing development has its benefits and drawbacks. Read on to learn how hiring developers overseas may or may not work for your project and company.
Advantages of Outsourcing
Cost
The most obvious reason to outsource development of your app, website, or other online work is the reduced cost. Developers in the United States and Canada can range from $50 an hour on the low end to over $200 per hour on the high! Take a country the like India for example, which is a popular destination for outsourcing, and you can secure developers for as low as $7 per development hour. I’ll write that again… $7 PER HOUR!
Now you might be thinking, “Okay fine, but don’t I get what I pay for?” Not necessarily… There are a few factors that lead to the huge difference in cost. The two most significant would be the number of developers in India, driving the cost down, and the cost of living in India, which is significantly cheaper than in the US, especially in “tech-hubs” like San Francisco.
Flexibility
Another reason, you might prefer outsourcing developers is that they are set up to meet your needs on-demand. If you need a team for a limited-time or specific project only, you can match the developers to that project by their abilities and qualifications without any commitment beyond what is required.
Then, when you have another project with a different set of requirements, you can quickly request a new matching team. Typically, your developers will be considered a service, if you work through a company like XBit Technology, or considered contractors if you hire them yourself (on a non-exclusive or limited-time basis).
Disadvantages of Outsourcing
Hours
9 AM in New York City is 6:30 pm in India. In other words, when the US is waking up, India is headed home for the day. This can create some difficulties when it comes to outsourcing, but luckily, most of the time Indian developers are very accommodating and tend to work later I the day to overlap with the typical workday in the US.
Another solution to the time disparity is to work with managers in the US who are facilitating the project with the developers in another time zone so that someone is available to answer questions, get feedback, and take direction in real-time. If you need a developer at the computer, ready to make changes within an hour of receiving instructions, the different time zones may be a barrier. Otherwise, it can actually feel refreshing and even a bit exhilarating to wake up and see progress that was done while you were sleeping.
Communication/Accountability
Another potential drawback of outsourcing developers, and another great reason to hire a US company to facilitate, is communicating with your developers and holding them accountable. In addition to the time difference, sometimes language barriers are a hindrance. Not sharing a first language can lead to miscommunications that slow and misdirect work.
Then holding the developers accountable for their efforts can be complicated by the great distance. It is important to hire developers with a good reputation or someone to answer and take accountability for them to ensure the quality and consistency of the work.
Conclusion
Outsourcing developers, if managed properly, has opened the doors to innovation for companies in the US and Canada. For a fraction of the cost, products and websites can be built and launched. These products can remain agile and evolve without breaking the bank.
The key to successful outsourcing is management. Through effective recruiting and communication, the obstacles presented by outsourcing developers, scheduling and accountability, are virtually non-existent or completely dwarfed by the benefits of flexibility and cost.
