Expanding Your Pool of Talent with Software Development Outsourcing

With global revenues skyrocketing to $351 billion in 2021, the software development outsourcing industry has consistently reached new heights year after year. While the COVID-19 pandemic, and the need to cut down on costs and personnel partially explains the increase in outsourcing, that’s only part of the story.

For businesses of all sizes, finding the right in-house software developer is getting more and more difficult. Despite the approximately 4.4 million software developers in the US, competition has never been fiercer as companies vie for top talent and aren’t afraid to pay for it. For SMBs and enterprises interested in finding the right match for their software development needs, turning to overseas service providers has become a viable, and often preferable, option.

To get a better understanding of the global software outsourcing industry, here we’ll be going over:

• The leading benefits of working with outsourcing providers
• Tips from three of the leading outsourcing platforms, Clutch, Accelerance, and Upwork, for finding the right freelance software developer

Breaking down the benefits offered by outsourcing providers

There are several advantages to outsourcing your software needs vs. hiring in-house developers.

The ability to utilize a global talent pool

One of the most significant benefits of outsourcing software development is the ability to branch out beyond your local market, giving you access to millions of developers worldwide. This helps organizations in several ways:

• Working with freelancers on one-off projects means you can explore significantly more options until you find developers who can help meet your company goals.
• International developers can provide their own insights into a project and identify areas to improve on a product or service.
• Scaling a project with freelancers is significantly easier than recruiting, hiring, and training new in-house developers.

Reducing business costs

When comparing the costs associated with hiring an in-house developer vs. outsourcing, there is no question that working with a freelancer is the cheaper option. In fact, 59% of companies who outsource their software development needs do so to reduce or control their costs. Some financial considerations when considering whether to outsource include:

• Salary – The average annual salary for a US-based software developer is currently $72,000, not including benefits. In comparison, the average rate for outsourced software developers is $81-100, meaning your business could potentially save tens of thousands of dollars a year by outsourcing your software development projects.
• Recruitment costs – When it comes to finding and hiring an in-house developer, there are many auxiliary costs that need to be considered, including consulting services, advertising costs, not to mention the time spent locating the right candidate. All told, recruiting a software developer in the US can run you upwards of $32,000, costs that you don’t need to pay when working with an outsourcing provider.

Tips for finding the right freelance software developer from Clutch, Accelerance, and Upwork

After making the decision to outsource your software development needs, it’s important to know what to look for in potential developers. A few things you’ll want to consider include:

Location shouldn’t matter

Recently, we’ve seen a significant increase in software developers based in Latin America, Asia, and Eastern Europe. Don’t be nervous about working with a developer who doesn’t speak your native language – more often than not, you’ll be able to find someone highly skilled at a fraction of the price you’d pay for a domestic developer.

• Eleonora Israele, Head of Strategic Partnerships, Clutch

Freelancers based outside of the US typically have experience with the latest technology, frameworks, and other niche skills, which can greatly assist you in developing your software projects. In addition to the cost savings offered by working with a developer abroad, you’ll be able to take advantage of their individual areas of expertise that domestic talent might not have.

• Brett Levert, Senior Enterprise Success Manager, Upwork

Find the right business culture match

When interviewing freelance developers, it’s important to find someone who understands your company’s culture, the projects you need completed, and your preferred technologies. While cost reduction should be one of your goals, finding the right match for your business is just as important, if not more.

• Rich Wanden, Chief Customer Success Officer, Accelerance

Finding a developer that really understands your company’s goals and is a good work-culture fit should be top priorities for any business looking to outsource their software development.

• Eleonora Israele, Head of Strategic Partnerships, Clutch

Look to reviews and past project examples

When looking for a software developer on Upwork, make sure to look at past projects, example work, certifications, and testimonials from past clients. Also, pay attention to any niche skills that might come in handy in managing your specific projects.

• Brett Levert, Senior Enterprise Success Manager, Upwork

In addition to looking to the past projects done by a freelancer, try and find a software developer who can be a good advisor and guide you in the steps needed to complete your project. Often times, software developers can provide added insights into how you can make your projects that much more successful.

• Rich Wanden, Chief Customer Success Officer, Accelerance

Paying your outsourced software developers with Payoneer

As the leading cross-border payment provider, Payoneer gives you the tools to pay your software developers quickly, on time, and in their local currency.

We give you the ability to choose the payment method that best suits your business’s needs, including credit card, ACH bank debit, and local bank transfer. Furthermore, your freelancer can request a payment, which you’ll then be able to transfer with just a few clicks of your mouse without even having to fund your Payoneer account. Payments are either debited from your bank account or charged to your credit card.

To learn more about the many services offered by Payoneer to help you pay your freelancers, click below:

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