Blog Posts

3 Reasons Tech Companies Use Outsourced Teams

Let’s examine the top reasons that so many companies are now trusting the software development model.
Kaitlynn Brooks

Before we begin let us first address the elephant in the room, or in this case, shall we say ‘python.’ Many of you reading this have likely had firsthand or heard secondhand horror stories about working with software development shops. Whether it be unfinished projects, poor communication, ignored timelines, timezone difficulties, or just general stress when it comes to outsourcing important projects, we’ve heard it all - and trust us when we say, we empathize. 

But the world is changing, and the tech world is no exception to this, especially with Covid-19 being a factor. One thing that has stayed the same amongst all of the change is that being first to market has always been tantamount to success no matter your industry. COVID-19 has thrown a digital wrench into the ways we are all used to hiring the teams we need to reach this goal. Major talent shortages feeding into the laws of supply and demand are allowing developers to basically name their salaries, meaning many organizations can’t afford to get important projects to market. So let’s examine the top reasons that so many companies are now trusting the software development model.

1. Wait, how much are you expecting to be paid? 

Tech companies have struggled to find senior talent for years. This issue was further accelerated by the COVID-19 pandemic that led the world headfirst into a digital economy where STEM skills (Science, Technology, Engineering, and Math) became key. The snail pace of the traditional 4 year university and college programs often meant that struggling companies looked to immigration sponsorship in order to obtain the required skill sets for important roles - but we are all aware of what happened to borders over the past 18 months. This shortage has fueled the fires of supply and demand, allowing senior developers to set their salary expectations to new heights - and top companies to headhunt talent by offering unmatched salary packages with a wide range of benefits (it takes money to make money some would say). 

Let’s close this section with a question, why do huge companies like Google and Microsoft outsource many of their projects? 

2. 51 days is often 44 too many.

The traditional model of hiring is slow - really slow. So slow in fact that it can be the difference between getting an important project to market in a timely manner and falling behind your competitors - and for most, falling behind the competition is not part of best practices. The average time to hire for an engineering role in North America is 51 days

Let’s frame this timeline in another way, one that is a little more relevant to many of us - would you be willing to wait 51 days for your Amazon orders? Now let’s say this person that took 51 days to find ends up being a lemon, or in this case let's say they become a real pain in the ‘backend.’ The company has to let the person go - a realization that can take 11 weeks to arrive at. Not only can this type of event create low morale among staff, and increased stress on supervisors, but it will also reduce productivity - and set you back to the beginning of the 51-day process. All while a competitor has outsourced their project to a verified and tested software development company and left your team back in the weeds of LinkedIn and Indeed hiring ads.  

3. What do you mean they already went to market?  

So you’ve re-hired after losing months on the first hire - but this one's a keeper so it’s time to start onboarding. Onboarding, when done right, is a commitment to months, not weeks - especially when it comes to software engineers. No matter how talented a new engineer might be, it’s important to anchor expectations as to when they will become fully competent in their role - especially when a new hire must learn how to ‘play well’ within their new team.

On average this can take up to six months - and that’s assuming the onboarding was done right, and that sufficient time and resources were dedicated to the process. Is your company dedicating time, staff, and resources to this process, because one-third of employers are not. So you might ask yourself, what’s the big deal if we’re not? Put plainly, the big deal is actually a huge deal, that can lead to wasted time, resources, and energy. Poor onboarding leads to lowered staff morale and employee engagement, a lack of trust within the organization, and missed revenue targets - meaning a much higher rate of staff turnover. In short, it means that if you’re not willing to spend the six months properly training your new engineers then you’ll be back to the very beginning of the 51-day hiring cycle - all while that same competitor that decided to outsource their important project to a vetted, highly experienced team of developers, has gone to market with a competing product to yours

But how do you select such a team? We’re glad you asked. 

  3 - 2 - 1 we have liftoff! 

Software development companies have gotten a bad rap in the tech industry and we’ll be the first to admit we’ve heard all the horror stories. But don’t all good horror stories come with a lesson - don’t split up, never say you’ll be right back, and don’t be a slower runner than your slowest friend. 

When we set out three years ago to build the world's most comprehensive and vetted list of software development teams, we did so by first listening to our clients and learning from all of the things they said had gone wrong. 

Today we can match you with a team from a list of over 4100 vetted software development companies that have:

  • passed rigorous technical testing 
  • has been thoroughly referenced against all of the work they’ve previously completed 
  • has been interviewed to ensure we understand important organizational requirements such as culture fit
  • has worked together as a team over many projects and is ready to go as a unit.

Put all of this together and you will dramatically reduce the time spent on onboarding and training - which in turn accelerates growth, innovation, and speed to market for your company. Allowing your team to smile as they watch the dumbfounded looks on the faces of your competitors in the rearview mirror. 

As famed business consultant Peter Drucker said, “Do what you do best and outsource the rest!” If it’s a high-growth strategy for Google, Slack, Microsoft, Alibaba, and GitHub - then surely it’s a strategy worth considering.