Outsourcing Programming Work? You Need to Read this First

As an agency owner myself, I regularly outsource our programming work. Not because it is the only way to handle complex and unmanageable tasks but because it is better, too. There are development works that are either time-consuming or don't have a return on investment in efforts, and that makes outsourcing programming work beneficial.

If you are a company short on manpower or time to handle tasks that require urgent coding work out of your team's talent pool, outsourcing programming work is always a great help.

For example, if you are a PHP development company with starting experience in React, you might have to either hire someone with extensive React knowledge to do a "tough task" for you, or you could just outsource the work to someone with experience.

Doing the latter will not only save you time but also a large of money & unnecessary commitment.

Outsourcing programming work also helps if you are a company trying to scale quickly by handling technical debt or trying to complete specific projects with out hiring full-time employees, in this case developers.

You will surprised to know that outsourcing programming can lead to significant cost savings—often between 30% and 70%—depending on the project scope, location, and specific needs.

Also, it is not a hit-or-miss or out-of-the-box thing. Major brands have used outsourcing of development work in the past decade.

Slack outsourced early development to MetaLab, launching faster and growing into a top tool. WhatsApp saved on expenses by using Russian developers, leading to massive user growth before its $19 billion acquisition by Facebook.

Alibaba outsourced to U.S. firms, rapidly expanding its platform. Skype relied on Estonian developers, reducing costs and building a global user base before Microsoft’s acquisition. Basecamp outsourced initial work, focusing on brand growth while keeping budgets lean.

We are a small team at Gatilab and we too have saved around 40%-45% on projects by outsourcing our certain works to dedicated agencies.

But is outsourcing programming all good and no bads? Well, we will see that soon. Let's first understand why outsoucing programming work is good and then why it is not, followed by what you should do if you are a programming & development focused brand.

Benefits of Outsourcing Programming Work

Here are the key benefits and reasons why outsourcing programming work works:

Cost Savings

Hiring full-time developers can be costly, especially when factoring in salaries, benefits, and overhead costs. Outsourcing lets you pay only for the work you need, often at lower rates, particularly if working with talent from countries with lower labor costs.

As I told earlier, outsourcing programming work can save you 30%-70% on a work, if managed correctly.

If a U.S.-based company outsources to Eastern Europe or Asia, the savings can range from 50% to 70% just on labor costs. For example, a project estimated at $100,000 in the U.S. might cost around $30,000 to $50,000 with an outsourced team in Eastern Europe or India.

Access to Expertise

Outsourcing opens the door to a vast pool of specialized skills that may not be available in-house. Whether you need expertise in AI, mobile development, or niche web technologies, outsourcing lets you access seasoned professionals in these fields. The programming outsourcing agencies are plenty and as Svitla Blog mentions at https://svitla.com/blog/programming-outsourcing/ when executed correctly with the right partner, can result in positive outcomes.

Scalability and Flexibility

Scaling a tech team can be challenging. With outsourcing, you can ramp up or down based on your project’s needs without the commitment to long-term employment contracts. It’s ideal for handling fluctuating workloads and short-term projects.

Faster Project Turnaround

By outsourcing, you can accelerate development timelines. While your in-house team focuses on core business objectives, outsourced teams can handle specific tasks or entire projects simultaneously, reducing time to market.

Focus on Core Competencies

Outsourcing programming work allows you and your team to focus on what you do best. For instance, if your business’s core competency is marketing, outsourcing development frees up time to strengthen and expand marketing efforts.

Global Talent Pool

Outsourcing provides an opportunity to work with diverse teams worldwide, which can lead to fresh ideas, innovative solutions, and the adoption of new techniques. This exposure can also be beneficial for your in-house team if they’re collaborating with the outsourced developers.

Potential Downsides of Outsourcing

It's not all great with outsourcing programming work. It also creates some lagunas including:

Quality Control

If not managed well, outsourcing can lead to quality issues. Ensuring the team meets high standards and adheres to project specifications requires clear communication and, often, a project manager to oversee deliverables.

Communication Barriers

Working with international teams can sometimes lead to language or time zone barriers. This can delay responses and impact workflow if not addressed proactively.

Dependency Risks

Relying too heavily on outsourced teams can make your business vulnerable if they’re unavailable, increase operational dependency, or create complications if the outsourcing partner faces issues or closes down.

Security Concerns

Outsourcing can expose your business to data security risks. It’s essential to have solid non-disclosure agreements (NDAs) and cybersecurity protocols to protect sensitive information, especially if dealing with proprietary code.

Hidden Costs

Although outsourcing saves costs in many cases, it can sometimes lead to unexpected expenses. Project revisions, additional rounds of quality assurance, and unanticipated scope changes can add up.

What to do while Outsourcing Programming Work?

Looking at the pros and cons of outsourcing programming works, it clearly feels that a balanced approach is necessary going forward. Here's what I suggest:

• Set Clear Expectations: Outline project goals, timelines, and deliverables. Define milestones and regular check-ins to keep everyone aligned.
• Choose Reliable Partners: Vet your outsourcing partners by checking portfolios, client testimonials, and expertise. Platforms like Upwork, Toptal, and others can offer insights through reviews.
• Invest in Communication Tools: Tools like Slack, Jira, Notion and Zoom help bridge the gap and maintain a seamless workflow. Ensure you have a project manager (internal or outsourced) who can mediate between your team and the outsourced developers.
• Emphasize Documentation: Ask for well-documented code and processes to ensure continuity and maintainability.

Note that outsourcing can be highly productive when done right. It offers flexibility, cost savings, and access to talent that may otherwise be out of reach. Just be mindful of potential pitfalls and invest time in proper setup and management to make the partnership successful.