The software application development outsourcing market has outstretched from $45 billion to $85 billion in just the last five years. These numbers significantly show that both startups and enterprise-level businesses are embracing the idea of outsourcing software development services through IT outsourcing companies with open arms.
IT outsourcing involves farming out or sub-contracting certain IT functions to independent companies, third-party organizations or individual developers. There is no need for an in-house team unless you want it -that is the beauty of outsourcing IT solution requirements to a software development company. Let’s dig deeper into it and find out the many positive aspects of outsourcing software development services.
Types of Outsourcing Software Development Services
The type of software development outsourcing is categorized by where the development is executed and is often location-based and relationship-based. Broadly, there are three types of outsourcing agencies mentioned along with their advantages:
Onshore outsourcing
When you obtain software development services from a service provider outside your company but within the same country, it is known as onshore outsourcing. If you choose onshore outsourcing, you are open to advantages as such:
- Easier to communicate
- No cultural difference
- Same time zones
- Easily accessible
Offshore outsourcing
When software development operations are performed in another country altogether is known as offshore outsourcing. Offshore outsourcing software development companies are usually from a different time zone and in most cases are opted for because the costs are comparatively very lower. Here are the benefits of choosing offshore outsourcing for your project:
- Global pool of talent
- Highly expert team
- Lower costs
- Wider range of services
Continue reading: How to identify an ideal software development company
VietnamDespite being a moderately new concept that was started more than one decade ago, the software outsourcing industry in Vietnam has grown quite significantly.
Also, the government has implemented attractive policies to attract IT entrepreneurs along with substantial investments in the STEM fields to create robust and qualified technical engineers.The technology industries in Vietnam and subsequent outsourcing services have experienced remarkable growth over the last few years.
Also, the government encourages continued investment in software parks, dedicated tech zones and provides tax incentives for the establishment of IT firms.
Today, Vietnam is gradually developing its young workforce to obtain the necessary technical skills and easily compete with other Asian countries.
In comparison, India has an 80% retention rate, with many Indian skilled engineers willing to relocate outside the country to pursue IT careers abroad.Economic and Political StabilityVietnam is considered as the black horse within the software outsourcing industry, as it is one of the famous, most consistent and fastest growing BPO markets.
Hence, if they don’t have sufficient dedication and stronger work ethics, then they could end up losing out to their Indian counterparts.Lack of Soft Skills and Practice in EducationDespite all the extensive efforts to improve the Vietnam education system, the country still lags in overall soft skills and practice.
ou are aware that the IT sector is continually evolving.
Because it will often be difficult for you to meet all the requirements of the field and all the needs that you will have to face, calling on external IT skills would be a wise choice.
Indeed, using a software development company means choosing a trusted partner to help you achieve the success of your projects.
In general, software and IT, development companies are responsible for meeting your requirements.
We present below a summary of the progress of your future development project.
A computer development box worthy of the name makes it a point of honor to define your exact needs.
