With the rapid development of technology and companies looking for alternatives to reduce costs and increase productivity, outsourcing software development has definitely become one of the main strategic options that companies are looking to implement.

Looking at all of these outsourcing trends, there are several commonalities that corporations based their decisions to outsource their software development projects on.

These top five reasons are listed below.

Cost reduction

One of the main reasons why companies are opting for outsourcing is due to cost reduction. These costs can be in terms of labor reduction, training and certification costs, office space rental fees, utilities, and other business expenses.

Salaries for IT professionals, for example, are definitely lower in most outsourcing destinations compared to their Western counterparts.

Productivity increase

Outsourcing has made it possible to eliminate the limit on specific hours of operation. Your business can afford to have 24/7 continuous operation. Their offshore counterparts can take over while their onshore counterparts sleep and vice versa.

Increasing productivity with slightly increasing operating costs is definitely an attractive factor for many organizations. Please note that the 24/7 software development operation is very difficult to set up and does not work as efficiently.

Diverse and abundant resource pool

Instead of limiting your company to a talent pool within your geographic location, you can now search for quality talent around the world.

Your company has a better chance of finding an offshore provider that employs a team of talented people in the IT industry, and then finding them yourself one by one. With this setup, you are assured that you have the right, top-notch people working on your software development project.

Quality of resources

Not only does your organization have access to diverse and abundant human resources, but you also have access to quality and highly skilled talent. Most of the top outsourcing destinations have a high rate of graduate students with a degree in computer and software engineering.

This is because these countries like India, Eastern European countries, and China value education to a much higher degree compared to their Western counterparts. Consequently, these countries have a large number of human resources with a high-quality IT skill set.

Integrated processes

Building the right software development processes can be costly and time consuming, especially when it comes to necessary requirements that are not yet available in your organization.

Therefore, it is often easier to build these processes with an outsourced software development team that already has those processes in place.