IT Outsourcing in Figures

Why on-demand development teams are a good option for your business

The standards of doing business have been turned upside down, and an ultimate risk five years ago nowadays is becoming ordinary. Today, a business manager shouldn’t necessarily work only with the onsite staff, as the possibilities the globalized world offers are infinite. A digital team from the other side of the world that works remotely now may bring even more value to your business than local teams. The question is whether the global outsourcing trends will work out for your business? Finding the right answer is impossible without doing little research. So good we’ve done it in this post, thus, you shouldn’t do anything except for following our investigation.

What is outsourcing?

Outsourcing is still a contradictory practice of involving the third party into the completion of a set of tasks for a business. As practice shows, a wide range of jobs can be outsourced from separate front- or back-end tasks to technical support.

How common this practice is?

The total revenue the outsourcing sector brings to the world varies from year to year. Despite a certain instability, you may track the progressive scaling of the industry:

According to Statista, the IT sector is the first to benefit from outsourced services. In 2017, 65 percent of all companies had hired the contractor(s) to outsource their projects, and these statistics continued to grow.

As you can tell, the key driver of overall IT spending is IT services, which considerable popularity primarily resulted from companies’ desire to cut costs through involving the third party in business analytics, consulting, web and mobile development services. To be precise, 46% of the enterprises put IT outsourcing on top of the most efficient cost-optimization strategies.

What are the prevailing IT functions to be outsourced?

Software application development and maintenance are ranked number first at the list of the most outsourced information technologies services. Why outsource the above-mentioned services? Frequently, a company requires only one app for its work with the option of further maintenance, in this case, outsourcing web development services and support will be the best solution. A business runner should not establish a whole department with all the related costs to create and maintain the product.

Why should I outsource my IT department?

The first factor to consider when making a decision is, of course, specific circumstances your business is in, your objectives and resources, as without due knowledge of your situation it’s almost impossible to answer whether outsourcing your IT department is a good idea or not. If you can’t assess the current situation yourself, IT consultants from Jellyfish.tech will deal with it to build a complete picture and recommend an effective solution based on our experience.

After discovering a wonderful possibility to optimize a project’s budget by involving the third party into IT tasks completion, it’s necessary to sort out the types of outsourcing existing on the market.

Onshoring is actually outsourcing to the same country you’re located in. Although this practice doesn’t provide cutting the costs, it helps avoid the risks connected to the language barrier, mentalities difference, and taxing policies. Investing in the economy of an own country is another benefit onshoring provides.

Nearshoring includes cooperation with the teams from nearly located countries (often neighboring) that opens the possibility of face-to-face meetings (at least a few times during the project’s lifecycle) that, in its turn, builds the foundations of a better understanding between the parties. Another argument in favor of nearshoring is the possibility to encourage your team by visiting them in a neighbor country or vice versa an invitation to visit your company. However, the statement that nearshoring contributes to cost reduction is under question, as in many cases it depends on your country and country of a contractor.

Offshoring. If your main objective is cutting the costs, offshoring or cooperation with vendors from distant countries is a win-win solution. On the one side, the rates are relatively low comparing to the rates in your own country due to economic reasons, on the other side, the competence of certain web developers in certain countries maintains the highest quality standards of the world.

Your outsourcing destination will depend on the objectives, your company’s pursuing. If your main goal is cutting costs (as it is for the majority of businesses that practice outsourcing), offshoring is the best option that allows you to optimize your budget without compromising on the quality of web development and communication.

The countries of Eastern Europe are famous for strong developers and talented designers, for our ability to think and share ideas and concepts to improve the overall customer’s strategy, for our flexibility and reliability. And Ukraine is one of the best IT outsourcing destinations for the moment with dozens of powerful teams mostly offering a world of possibilities to a client:

Considering outsourcing as an option, one of the main concerns lies in building an efficient communication between the remote team members. Unfortunately, today, even the local teams are forced to go remote for security purposes because of the COVID-19 rise.

In this situation, companies who specialize in providing the remote services have a certain “privilege”: they shouldn’t spend time & budget resources on setting up the processes from scratch as they’ve already done it. They’ve already gone through the trial and error method to find what works for them & their customers best, polishing their approach for years.

This experience results in a comprehensive methodology for remote workers communication with maximum efficiency.

Owing to the company’s activity, Jellyfish.tech knows for sure how to organize remote work in a better way. Our “must do” to streamline the processes are the following:

As a manager, you should give your team an opportunity to organize their work themselves, creating a healthy environment where an employee will work not because of being pushed but because of intrinsic motivation.

Exactly this type of cooperation with a transparent reporting system we offer to our customers. When we start a project, we share our experience with you, customizing certain processes as appropriate. We choose the best way to collaborate, taking into account the specific project features.

After narrowing down the search for a potential technical partner, we still have a plethora of Ukrainian tech companies, more and less professional, ready to come to the rescue when it comes to software outsourcing. How to take the final decision?

1. Check out the following information about your potential technical partner:

Frequently, it’s enough to take one look at the above-mentioned sources to realize if it’s worth working with this company.

2. Listen to how the company describes its culture and the benefits of cooperation.

Understanding key strengths and competence it offers to clients is, of course, compulsory for any company, however, you will be surprised to learn how many companies have a vague idea about their characteristics that a client may benefit from.

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