Outsourcing has become a universal tool to facilitate business processes so many tech companies around the globe start looking for outsourcing solutions – both nearshore and offshore. If to think in the long-term perspective, outsourcing could be a nice start to implement the scaling strategy of a company.
In this article, we’ll try to give useful tips to help IT companies leverage outsourcing to scale their business.
The outsourcing model is about contracting with a service provider to delegate some business functions. As a rule, it’s done either in the near- or offshore to save costs.
Many IT companies look for new outsourcing opportunities in developing East European countries like Ukraine, Romania or Poland. For example, in Ukraine payroll tax for software developers is a mere 5% in the case where you utilize them as private entrepreneurs. In comparison with other Western countries, it is lucrative enough.
If you already outsource software development, this piece of reading is going to debunk myths about outsourcing and even help you to benefit from it.
Tip #1. You have a flexible team
The world is moving at a cosmic rate and this creates new challenges for tech companies. Nowadays, it is vital to innovate quickly in order to lead the market. For this reason, outsourcing is a good chance to empower IT businesses with flexible teams. In fact, outsourcing development teams constitute a competitive workforce and are highly adaptable in terms of their scope of work, e.g. if your company’s needs increase the outsourcing provider can just engage more people to work on the project. The ongoing work is successfully sustained and you’re able to focus on other business matters.
Tip #2. Enjoy indirect management
Working with outsourcing providers, IT companies entrust them with one of the most important tasks – team management. Eventually, you extract yourself from supervision and primary control. As a customer, you just shift the responsibility to the outsourcing company which pulls the strings.
There’s no need for close communication with the team – enjoy your time to focus on business. This is, however, a controversial point for consideration since not all managers want to compromise their control; therefore, another option would be to open your own software development center abroad.
Tip #3. Outsource operational processes
Although some business processes are easy and safe to delegate, having your own development office offshore allows you to focus on software development rather than only office maintenance or bookkeeping.
In Ukraine, there’s a great opportunity to support your IT business. The unique model by Alcor offers you full operational management support and includes accounting, legal compliance, recruitment, payroll and finance management, as well as other minor services https://alcor-bpo.com/#services like business travel support and employer branding. This is the all-in-one place where you can secure all operations of your R&D office – while keeping the IT product, company branding, and HR management fully under your own control.
Tip #4. Evolve into your own development office
The utmost reason to use outsourcing is the possibility to save money – yet if used as a starting point, outsourcing can also open new prospects for business development. Many IT companies outsource their software development to test the water in a foreign country.
Once tech corporations feel assured of good quality and manageable risks, they often decide to quit outsourcing and set up their own software R&D office. This helps to retain core business in the company and keep your IT product safe. In this case, it’s crucial to reach out to a local service provider who will help you launch the R&D office and support your operational management. For instance, Alcor is competent in how to structure your tech business in Ukraine regarding taxation, employment, legal and financial matters. If you wish to upgrade, just drop them a line to receive a consultation.
It goes without saying that being first in the market is a critical factor for the successful growth of any business. Outsourcing is a good start to establish your brand in a new country. If used reasonably, it can enable your company to scale up tremendously and advance to the next level – your own software R&D office.