Outsourcing Web Development: A Complete Guide

A growing remote workforce & the need for cost-efficient software development will continue to drive the IT outsourcing market throughout 2020 and 2021.

Global IT outsourcing is estimated to be worth $92.5 billion in 2020. The year-over-year growth rate for the market between 2021 & 2024 is estimated at about 3 to 5%. As of 2020, the market has grown from $88.9 billion in 2015 to $98 billion in 2024.

Considering the predicted growth rate, outsourcing has become a popular method of building MVPs for every business. It offers everything from website design and development to ongoing maintenance and support.

Outsourcing web development has many benefits – saves businesses’ time & money, frees up internal resources for other tasks, & much more. However, how to begin initially can be difficult when so many options are available. Here’s a complete guide to outsourcing web development to help you make the best decision for your business.

Types of Outsourcing Web Development Projects

1.Nearshore Outsourcing

In nearshore outsourcing, specific tasks – such as software development and business processes – are delegated to companies in neighboring countries with the same time zone. A similar language, cultural proximity, and convenient location are all advantages.

The core benefit of nearshore outsourcing is that a client and outsourcing vendor have similar cultures & language skills. It speeds up the development process & saves heavily on costs. Still, it doesn’t allow you to choose the vendor with the highest quality expertise.

2.Onshore Outsourcing

Outsourcing web development operations to another country located in the client’s country or region is called onshore outsourcing. It will also influence the speed of outsourcing design or development.

Onshore outsourcing avoids cultural and linguistic barriers and saves you money on training. Onshore outsourcing is more expensive in the US than offshore or nearshore.

3.Offshore Outsourcing

Offshore, also known as international outsourcing, means that a client hires an outsource web development team located in a foreign country. It is highly probable that the offshore vendors speak different languages and have different cultures. But most of the offshore Vendors speak English.

Software development can be outsourced to an offshore company for web platform building. It allows clients to access the largest pool of talented specialists without spending too much money. It also boosts all ongoing processes, such as design, testing, and quality control.

What are the reasons companies outsource web development?

Outsourcing has three main motives, although the reasons may vary depending on the company’s specialty. Based on Deloitte’s research:

  • 59% of companies outsource software development jobs to reduce costs.
  • 57% of companies can focus on their core competencies due to outsourcing.
  • 47% of companies outsource their web development and web design task to address capacity issues.

A significant reason why companies prefer outsourcing tasks such as software development is the ability to access intellectual capital.

The Benefits of Outsourced Web Development

  • Access to Experienced Web Developers

    If you’re looking to build your team, consider outsourcing IT services. To maintain a competitive edge, hire outsourcing web development companies that strive to assemble a team of experienced specialists who provide outstanding results.

    You must thoroughly review the company’s portfolio, feedback, letters of recommendation, and case studies before hiring them. Outsourcing gives you access to experienced developers, designers, project managers, UX/UI designers, or analysts worldwide.

  • Meeting Business Requirements

    With Web development outsourcing services, you can effectively focus on your business. As an entrepreneur, you know that sometimes there aren’t enough daily hours. Outsourcing dedicatedly work on the tasks/projects that you want them to work on, such as—marketing, sales, testing, web design, UI/UX, or other vital processes your business needs.

    This way, the in-house team focuses on other essential core activities, which could be beneficial when they are unable to devote adequate time & attention to other business requirements or development projects.

  • Efficient Flexibility & Scaling

    Outsourcing a web development company allows for scaling a project more quickly. An outsourcing company is experienced in scalability and is flexible in adding more or reducing specialists to the developers’ team if needed.

    In this way, you can quickly scale up or down the scope and size of the project as per the requirement. It is a significant advantage compared to working with an in-house team.

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