How software development outsourcing helps expand the growth of companies

May 09, 2023

Tags: IT Staff Augmentation

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Technology has played a fundamental role in the growth of companies in recent decades. As technology continues to rapidly evolve, businesses have found new ways to harness its power to drive operational efficiency, productivity, and business expansion. Software development outsourcing has been a great strategy in this regard.


Through IT outsourcing companies, companies have been able to inject expertise and experience into their projects, being able to adopt innovative technologies such as artificial intelligence, machine learning, the Internet of Things (IoT) and cloud computing, which have allowed companies to optimize their internal processes, automate routine tasks and improve data-based decision-making.


It is a reality that more and more companies are investing in technology in the coming years: according to the most recent EY CEO Outlook Pulse survey, at least 74% of private companies plan to increase their digital and technological capabilities, indicating that in the immediate future there will be more innovation by businesses, but also greater competitiveness.



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How software development outsourcing stimulates the growth of companies

Along with this investment, also comes the growth of the companies. In this highly digital reality, those who do not invest in technology remain in the past. Precisely part of the present are the outsourcing software development strategies, which give flexibility and greater power to companies that decide to apply this model in their flows.


Outsourcing software development can play a fundamental role in the growth of companies. Here are some ways software development outsourcing can help fuel business growth:


  • Access to specialized talent

By outsourcing software development, companies can access highly specialized talent in different technologies and programming languages. This allows them to work with experts in the field who have specific experience and up-to-date knowledge. Access to this specialized talent can accelerate the development of high-quality products and services, which in turn fuels company growth.


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  • Costs reduction

Software development outsourcing can help reduce operating costs. Instead of hiring and maintaining an internal development team, companies can outsource software projects to an external provider.


This allows them to avoid the costs associated with staff recruitment, training and benefits, as well as infrastructure and equipment expenses. By reducing these costs, companies can direct more resources to other areas of growth and expansion.


“Cloud-based technologies help businesses grow with technology by providing state-of-the-art tools without the high cost typically associated with large enterprise software programs. Web-based technologies allow multiple users to collaborate on a single document or provide unlimited data storage”, they also noted in a Business 2 Community article.


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  • Increased focus on core business

Outsourcing software development allows companies to focus on their core business and value-added activities. By leaving software development in the hands of outside experts, companies can free up internal resources and focus on strategic activities such as new product research and development, market expansion, and customer service. This can boost the growth and competitiveness of the company.


“You can't neglect the core of your organization and still expect to grow and scale sustainably. In the same way, strengthening the core of your business does not happen overnight", they describe in a Forbes article, emphasizing the importance of company leaders working on the core aspects of the business, while delegating minor aspects to external suppliers.

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  • Flexibility and agility

Software development outsourcing gives companies greater flexibility and agility. They can quickly scale their development capabilities based on the needs of the project, either by increasing or decreasing the external team. This makes it possible to adapt to changes in the market and respond quickly to business demands. The ability to rapidly scale software development helps speed time to market for products and services, which can have a significant impact on business growth.


Outsourcing software development can help companies grow by providing access to specialized talent, reducing costs, allowing a focus on the core business, and offering flexibility and agility in the development of products and services. However, it is important to carefully select external providers and establish effective communication and collaboration to ensure outsourcing success and maximize its benefits.

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Do you need an IT outsourcing team to develop your next software? At Rootstack, we have +12 years of experience supporting companies in their technological transformation. Contact us!


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