In today’s world, businesses have nearly limitless opportunities when it comes to procuring needed resources. The technology and manufacturing expansion has created a wealth of knowledge and forward progress in a range of industries, giving companies a plethora of vendor options. Original equipment manufacturers (OEMs) have typically attempted to bring services and technologies in-house as opposed to working with outsourced vendors. However, today’s business climate makes it much more beneficial for OEMs to look toward outsourcing and augmenting resources for a variety of reasons.When companies bring new resources and technologies in house, they come with a completely new set of required skills. Not only do these resources require new staff or training, they can bring about an increase in cost through needed overhead, i.e. floor space, operating needs, and employee benefits. These costs are reoccurring month over month and year over year, even if a project is not presently running. The in-house staff and utilities must still be paid despite a lull in production or sales. Limitations such as these are reason enough for many companies to consider outsourcing for various services to lower operation costs and make development more effective and efficient. When weighing your options regarding software engineering, remember that outsourcing can offer the following: 

1. Reduced costs. Controlling costs is the key to success in today’s business world. With the fluctuation of demand dictating your labor pool, outsourcing can provide stabilization in overhead costs. Instead of constantly reviewing how many staff members you need in a certain department, you can outsource that labor to a trusted partner. Turning outsourcing on and off takes much less time than managing variable labor in-house. A contract-based engineering firm is a great option to reduce overhead costs throughout the product development life cycle – assuming you can find one that is a good fit for you and understands your business.

 

2. The latest and greatest. Companies that provide a certain product or service will live and breathe that resource. This means that they are the experts in this area and know when new technologies or developments within the industry are coming down the pike. Outsourcing to that partner means that you then have that same insight and access. Contractors are driven to remain at the forefront of emerging technologies and this knowledge can help you to stay ahead of your competitors when working with a subject matter expert. Software development is no exception as it is a constantly evolving environment of technology.

 

3. Processes. Consider the initiative required to develop and refine in-house processes to operate newly established departments. Establishing proven processes takes time, mistakes, and many setbacks before implementing the most efficient one. Opting to utilize outside resources can eliminate the need to develop processes for newly created departments. Your preferred partner should have defined Standard Operating Procedures (SOPs) to alleviate the need for internal standards and processes for such department. Look for a company with standards in place and preferably a certification that shows they follow them.

 

4. Focus. Outsourcing to a company that specializes in one service will ensure this resource will be completed by an expert in this field. Partnering with a vendor that focuses solely on software engineering ensures that your product’s software will be carefully developed with best practices and quality in mind. Your software development partner is a subject matter expert in this field and will fulfill their role with a level of expertise that surpasses a newly formed in-house team.

 

5. Access. Often times, the decision between preferred outsourcing partners will come down to the location – onshore or offshore? Consider language barriers, time difference, and the inability to visit your resource partner in person when needed, as well as hourly rate differences. Seek out partners that are reliable, familiar with your local market and available when needed, for example, an organization in which you are guaranteed to speak with a live person and obtain the answers you need, when you need them. When the entire team is located under the same roof, project communication is enhanced and your intellectual property is better protected.

 

With many more unnamed benefits outsourcing is a fantastic way to remove the stress associated with managing a newly formed internal team; however, selecting the wrong resource partner can be taxing as well. Consider partners that are flexible and quick to make changes when needed all while focusing on quality and speed of development. Ultimately, the best organization to outsource with will be your partner and consultant in this process. Developing a lasting relationship is critical as your partner will be familiar with returning and future projects.

 

Can your project risk failure? Contact Precision Systems, Inc. (PSI) for all of your software engineering needs. We work on a contract basis to ensure your product’s system will not fail. Our dedicated, tenured staff of software engineers, software architects, and project managers will ensure your project remains on time, on target, and on budget. Ask about our experience today! info@psi-software.com | 215-672-1860