A CTO is a necessity. And not only for software development companies. However, they also need guidance from the business point of view.
What outsourcing companies do? What to look for when researching technology partners
Do you wonder what outsourcing companies do? Are they just an outsourcing service provider or something more? These are some important questions to ask when planning to develop a new software product.
Before we start to dig into the subject, we have to see what outsourcing in IT means. It is the use of external service providers for IT-related business processes, infrastructure solutions for businesses or application service. With this in mind, if a company needs an application or even a website, it may subcontract the services provided by this type of companies to get it done.
The differences between the types of outsourcing
But, in fact, what outsourcing companies do that makes them different?
Domestic outsourcing – this implies working with a local (from the same country) service provider for the IT-related work needed
Nearshore outsourcing – to enhance travel and communication, companies choose to work with IT outsourcing companies located in countries that share a border with their own
Offshore outsourcing – this means working with companies located in politically, economically stable countries, preferably with lower costs and tax savings.
Typically, companies choose to outsource services like application, software and web development, application or technical support, telecommunication, hardware or software infrastructure, data management, data storage and a few more.
But why companies choose to outsource these services? Of course, the reasons are countless but the most important can be related to enhancing the company’s focus, controlling the operational costs, increasing the efficiency for time-consuming tasks or sharing the risk with the partnered company. This leads us to the next question.
Why should you outsource?
The first reason that comes to mind is cost reduction. Hence, by using outsourcing services, a company can save money with equipment, it doesn’t have to buy it. Labor is another important aspect. Therefore, companies tend to choose to work with companies located in countries where the workforce is less expensive but still professional with expert-level knowledge and skills.
If the company doesn’t have the necessary employees to develop the needed software or application in house, is best to choose an outsourcing company. Consequently, the company has access to expert knowledge and experience, and it doesn’t have to pay for training. Fortunately, the software companies can provide equipment and services at lower costs than an investment would require.
As shown above, outsourcing is the best solution for one time short to medium size projects. Instead of hiring new employees for a temporary project, a company should use the services provided by software companies.
AROBS - top-notch outsourcing services provider
AROBS Transilvania Software is a software development company, born in 1998 in Cluj-Napoca. Since then, it managed to provide offshore and nearshore outsourcing services to worldwide customers. Our experts can deliver any type of software in domains such as Automotive, Life Sciences, Travel&Hospitality, IoT and Enterprise Solutions.
AROBS is listed as one of the best IT companies in Romania on Clutch.
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