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Companies of all sizes have found programming outsourcing an ideal alternative to hiring in-house developers. Programming outsourcing is one of the major areas of IT outsourcing. According to Statista, 92% of companies have actively outsourced their IT needs in 2019. In the same year, North American companies spent $21.6 billion on outsourced IT contracts.
If you’re running a startup, you will want to consider outsourcing programming tasks. As a co-founder, you may not have the time to write codes or learn how to do so. In this article, I’ll guide you through the ins and outs of programming outsourcing and how to outsource programming-related tasks to the right vendor.
What Is Programming Outsourcing
Programming outsourcing is the process of delegating or subcontracting programming activities to external vendors specializing in software or app development. Thanks to global digitalization, businesses have the option to seek out expert programmers around the world and leverage their expertise to boost existing software development capacity.
Recent developments, such as the ongoing Covid-19 pandemic, have encouraged startups and corporations alike to seek out outsourced programmers. In recent years, companies have turned to Eastern Europe, particularly countries like Ukraine, Romania, and Poland for their IT outsourcing needs.
You’ll find that programming outsourcing is a commonly-accepted practice that adds massive value to a startup. With the right partner, you’re able to reach the market quickly with your app without worrying about writing a single line of code. It can also be a cost-saving measure for cash-tight startups.
Popular Companies That Leverage Programming Outsourcing
These renowned brands were/are outsourcing coding and other IT-related services to 3rd-party vendors:
- Google - Despite being the world’s largest search engine, Google still outsources development works to remote talent pools for cost-reduction.
- Whatsapp - During the early years, Whatsapp engaged remote developers to build most of its apps so that the startup could focus on core business activities.
- Alibaba - China’s e-commerce giant’s rapid growth is fuelled by skills offered by outsourced developers from a different country.
Tech Task That You Can Outsource
Despite the term ‘programming outsourcing’, there are different tasks involved in building an app that you can outsource. The list includes, but not limited to:
- User research;
- Feasibility study;
- UI/UX design;
- Backend development;
- Agile DevOps services;
- Software QA & Testing;
- Post-deployment support.
Key Benefits Of Programming Outsourcing
When you see large corporations like Google and Whatsapp turn to programming outsourcing, you wonder how you’ll benefit by doing the same. After spending years helping our clients with outsourcing programming services, I can assure you that you have everything to gain as a startup.
It’s a cost-effective approach
The appeal of paying less for equal, if not more development service, is what drives Whatsapp to outsource its app development to external vendors. When you’re building a startup in developed countries like the US or UK, building an app can cost a fortune when you’re hiring in-house programmers.
Hiring a software programmer in the US is likely to cost you between $100 - $200 per hour, depending on the experience and skill sets. UK developers aren’t much cheaper either, with the average yearly salary costing your startup £57,500. This does not include perks and benefits that come with the employment contracts.
When you outsource coding and other related tasks to remote developers, you stand to benefit from the cheaper rates. This is true when you hire outsourced developers from countries like Ukraine, where the hourly rate is as low as $50 per hour for the same, or better service quality.
It gives you room to maneuver
As a startup, you want to maintain a lean and mean operation if you’re to move ahead of competitors. When your startup is saddled by a team of in-house developers, you’ll need to deal with the financial obligation that comes with it. Monthly salaries need to be paid and you must take charge of the app development process itself.
Outsourcing frees you from constraints that a startup doesn’t need. Instead of paying developers fixed remunerations during periods of inactivity, you’ll only pay for the service rendered when you outsource app development to remote developers. This is true if you’re using the time and material model. The outsourcing developer will only bill you for the time involved and other costs incurred in the job.
You can scale the outsourced team as you deem fit. If you require an additional UI/UX designer to revise the app, you can make the hiring later down the road. The same applies if you need to let go of some of the developers because the app is completed.
It provides you with diverse talent options
When you’re hiring from the local talent market, you’re competing with other established companies. If you’re up against the likes of Google, Amazon, and other Silicon Valley startups, you’ll be hard-pressed for hiring the right candidates.
When demand exceeds the available talent in the market, it’s only natural that the asking salary increases. But that isn’t the only problem with local recruitment. Talent shortage is also an issue in countries like the US and UK. Even if you can financially afford a local programmer, you may not find one that has the skill sets you need.
IT outsourcing opens up recruitment possibilities beyond the state boundary. Eastern European countries like Ukraine are known for their technical prowess in multiple IT disciplines. If you can’t find a programmer familiar with what you’re building, you’re likely to find one in Ukraine.
7 Steps To Outsource Programing
All signs point to great advantages when you outsource programming tasks to offshore developers. The question is, how do you find one that’s up to the mark. Here’s a step-by-step guide to do so.
Step 1 - Specify your business needs
You need to establish what services you need at the particular stage of your startup. If you’re testing the market, you’ll need help in ensuring that your idea is feasible and the way to do that is to get a prototype done. For startups that have existing products, support and refinement are necessary to ensure the product remains competitive and relevant.
Depending on your business needs, the type of expertise and collaboration model may differ. Listing the requirements also helps you to forecast the budget required to outsource the tasks.
Step 2 - Determine the employment model
Once you have a clear picture of which type of outsource services needed, you must decide which type of collaboration model you’re comfortable with. If you have a clear specification of what needs to be done, going by fixed price basis for a specific duration is the best model.
However, if there isn’t a concrete idea of what you’re trying to build, you’ll want to keep options open and go with the time & material model. It gives you the flexibility to make changes as you deem fit as the business grows.
Meanwhile, hiring a dedicated team of developers ensures that you have exclusive commitment from the developers. Do note that this model is pricier and is more suitable for startups with huge financial backings.
Step 3 - Choose a country to outsource
Your choice of outsourcing destination will have a significant impact on deliverables, productivity, and ease of communication. Don’t base your decision on price alone as working with developers who can’t speak your language can be counterproductive.
For western businesses, Ukraine is a top favorite for programming outsourcing. Not only does Ukraine offer a large pool of top tech talents, but it also shares a familiar working culture.
Step 4 - Check B2B platforms (Clutch) or tech blogs
Now, you need to do your homework and identify potential remote developers to work with. You can do so by visiting tech blogs published by remote development firms or explore various IT outsourcing companies from review websites like Clutch.
Step 5 - Verify the expertise
Be diligent in handpicking developers. You don’t want to take what development firms claim on the surface. Instead, dive through past projects, client feedback, skills, expertise, and services provided by the respective agencies. Ensure that the agencies have relevant experience in managing the required IT services and have a solid track record.
Step 6 - Conduct calls
Considering that programming outsourcing is likely to be a long-term engagement, you’ll want to hire with care. Make calls and hold interviews with the shortlisted candidates. It’ll give you an idea of the professionalism of the agencies and a chance to get to know the team you’ll be working with on a deeper level.
Ask questions to find out how the outsourcing agency will execute tasks you’re delegating. This will provide insights into the strategy, procedures and best practices applied.
Step 7 - Hire company
Once you’re satisfied with a particular candidate, you’re ready to officiate the hire. Work out the terms of collaboration on a contract and ensure both parties are agreeable to it. Ensure that items like duration, working models, project requirements, and payment terms are clearly specified. Then, make the hire.
Why Outsource to Uptech
Uptech has a long-standing reputation of empowering startups with programming outsourcing solutions. Our company is powered by a team of highly skilled multi-discipline IT experts. As far as programming tech is concerned, we’re well-versed in popular languages and frameworks, including Kotlin, React, and Node.js.
Throughout the years, we are the preferred IT outsourcing solution for startups. We’ve guided startups in various industries in building their apps through proven strategies, processes, and skilled programming workforce.
One of our favorite works is an app built for Yaza, a virtual tour real-estate app for a US-based startup. In this project, we embark on a journey of ideation to product realization in close collaboration with the client. We turn to our proven methodology of iterative development and produce an app that brings new innovation to real estate marketing.
Programming outsourcing is a growing trend with no signs of stopping. It’s proven to be greatly beneficial, especially for startups. Outsourcing app development tasks to the right vendor can result in efficiency, cost-saving, and quality deliverables.
Work with Uptech to get a functional and well-received app to the market faster.