37% of small businesses outsource at least one business process to help them through different transformations and challenging processes. It’s a common practice that many might not realize they need in the first place. That's why, when running a business, it's crucial to recognize when you need to outsource. This is especially true regarding your software development team, as the IT sector is among the most dynamic. It's not an easy decision to make, but identifying when your business could benefit from an outsourced development team can save you time, money, and a lot of stress. Keep reading to learn more about how you can analyze whether or not this is the right move for your company!

What Is An Outsourced Development Team?

An outsourced development team is a group of independent IT professionals or developers from a third-party organization hired to handle specific projects or tasks related to software development. This team can be located in the same country as the hiring company (onshore outsourcing), in neighboring or nearby countries (nearshore outsourcing), or distant countries (offshore outsourcing). Outsourcing certain operations allows your business to access significant cost savings while receiving the same high-quality results. 

Global Business Process Outsourcing

According to Grand View Research, IT makes up most of the global business process outsourcing market, showing how important it is to outsource operations for companies wanting to scale to the next level. This external team provided by a trusted firm can make a huge difference in your processes and contribute to a better flow of your entire IT department. 

15 Signs You Need An Outsourced Development Team

1. Your In-House Team is At Capacity

One of the most apparent signs you need to consider outsourcing is when your in-house team is consistently overworked and at total capacity. If your developers are swamped with projects and need help with their workload, consider getting help from an outsourced team. By outsourcing some tasks, you can alleviate the pressure on your team and prevent burnout.

2. Your Current Team Lack Specific Expertise

Every project requires a set of specialized skills and a particular type of expertise. An outsourced team can be handy if your in-house team needs to gain the necessary skills for a specific project. They can fill this knowledge gap and provide the expertise required to complete the project alongside your existing employees.

3. You’re Struggling to Meet Deadlines

Missing deadlines can be heavily detrimental to your business. If this becomes a recurring issue, it might be time to outsource some of the work of your software development projects. An experienced outsourced team can help manage your projects and ensure they're completed within the agreed timelines by providing the necessary workforce to speed up operations.

4. You're Spending Too Much Time Training and Recruiting

Hiring and training new staff members can be time-consuming and expensive. If you spend more time on recruitment than core business tasks, it might be time to bring in an outsourced team. They're already skilled and ready to hit the ground running.

5. Your Budget is Stretched To The Max

If your development costs are putting a strain on your budget, outsourcing can provide a cost-effective solution. Outsourced teams often work at a fraction of the cost of hiring additional in-house staff, freeing up resources for other essential business activities.

6. You’re Not Keeping Up with Latest Technologies

Staying up-to-date with the latest technology trends is vital for any business. If you need to catch up, hiring an outsourced development team can bring fresh technological insights and skills to your projects. The larger talent pool and lower hiring costs will help you employ new experts with innovative perspectives.

7. Your Project Scope is Constantly Changing

If your project scope keeps changing, it can take time to keep up. An outsourced team is well-equipped to handle such changes for you and adapt quickly to find solutions for them, ensuring the project stays on track despite shifting requirements.

8. Your IT Team’s Productivity is Decreasing

A decline in productivity can be a clear sign that you need to outsource due to an exhausted internal team. By delegating specific tasks to an external team, you allow your in-house team to focus on what they do best, ultimately boosting productivity. Remember that transparent communication is vital for this process, as you need to have honest conversations with your in-house development staff about how the outsourced team integration will happen and the reasons behind it. 

9. Your Focus is Diverted from Core Business

Let’s be honest: multitasking does not exist. Outsourcing can provide a solution if your core business activities suffer because too much focus is placed on software development. It enables you to maintain focus on what matters most - growing your business at a steady pace.

10. Your Business is Rapidly Scaling

Business growth is exciting but can also introduce new challenges. If your business is scaling faster than expected and producing more work than your development team can handle an outsourced team can help by providing the scalability you need. You can hire resources for as long as you require, benefiting from temporary help while allowing you to downsize later down the road if needed.

11. You Have a High Employee Turnover Rate

A high turnover rate can be disruptive and costly for any business, sometimes simply due to market conditions and economic instability. Outsourcing some of your projects provides a more stable option with a constant flow of nearshore developers and eliminates the need for continuous recruitment and training of full-time employees.

12. You Need to Develop a Proof of Concept Quickly

A proof-of-concept can make or break business opportunities for SaaS and tech-adjacent companies, so getting it right the first time is vital to secure long-term partnerships and customer satisfaction. When you need to develop a proof of concept quickly, an outsourced team can speed up the process while allowing your in-house team to remain focused on their core responsibilities. They have the skills and experience to turn ideas into functional prototypes swiftly.

13. You're Unable to Manage Projects Efficiently

Software outsourcing can provide much-needed relief if you struggle with project management. When building an outsourced development team, you can hire technical project managers or system architects to ensure projects are completed on time and carried out to the finish line with the necessary quality standards. 

14. You Need 24/7 Support

Providing round-the-clock support can be challenging for many businesses with a team within a single time zone. Outsourced teams, often in different time zones, can provide continuous support, ensuring customers always have someone to turn to. All you have to do is hire both nearshore and offshore resources, with 24/7 support guaranteed at an affordable price.

15. You Want to Test New Markets

Testing new markets can be risky and requires considerable resources. By outsourcing your software development projects, you can mitigate these risks. An outsourced team can provide valuable insights into the market you're trying to enter, increasing your chances of success. Moreover, you don’t have to hire full-time developers from the get-go, allowing you to scale back the size of your team for that project if the results aren’t what you expected. 

Benefits Of Having An Outsourced Development Team Through Team Augmentation

1. Staff Flexibility.

Gone are the days when your company’s only option was to hire a full-time salaried IT professional or crawl freelancing platforms in search of affordable developers. Hiring an outsourced development team through IT staff augmentation can help you achieve the staff flexibility your business needs. Because these developers would be hired as contractors, you do not need to spend money on the traditional benefits or commit to having them as full-timers, having to pay them a hefty severance package if you decide you no longer need their services. Outsourcing allows maximum flexibility, allowing you to grow or downsize your team as needed - no strings attached while building genuine partnerships

2. Lower Development Costs.

It’s no secret that North American IT professionals charge significantly more for their services than their Latin American, Eastern European, or Middle Eastern counterparts. Outsourcing your software projects outside the US and Canada will guarantee convenient cost savings. For example, using Latin America as your staffing hub can save you about 30% to 50% on development costs. 

3. Access To A Larger Talent Pool.

There’s been a lot of chatter about the IT skills gaps and tech talent shortage happening in the US. The talent pool is smaller and usually restricted to the area near your headquarters. On the other hand, thousands of English-proficient LATAM developers are out there hoping to work for a foreign company. According to Statista, there are roughly over 1 million software developers in Latin America - this is a larger talent pool specializing in various new and classic technologies waiting for you to find it. 

Build An Expert Outsourced Development Team With Techie Talent

Recognizing the signs that show you need an outsourced development team is crucial for any business owner or entrepreneur. Whether your team is overworked, your department needs help to meet deadlines, or you're looking to test new markets, software outsourcing could be the solution you need. Consider these signs and take action if they resonate with your current situation - the right outsourced development team could be a game-changer for your business’s growth and success!

Our goal at Techie Talent is to be your true nearshore partner for all people-first IT projects. We aim to close the talent gap between Latin America's tech talent and the world's tech demands, making hiring easy and rewarding for all parties involved. For this reason, we provide specialized and reasonably priced nearshore software development services to assist North American companies in hiring professionals in Latin America more effectively. In addition to handling the entire hiring process, our expert recruiters assist you with integrating your new hires into your existing team. Contact us today to arrange a free discovery call if you're ready to build an outsourced development team!