8 Ways Outsourcing Can Upgrade Your In-House Development Competencies 

As companies attempt to innovate, need market needs, and achieve operational excellence, the role of outsourcing partners has grown in importance. Leveraging external knowledge may be a smart choice that provides several benefits beyond just cost reduction.

According to the National Outsourcing Association (NOA), it may increase productivity by 15-20%, allowing organizations to focus on core tasks. Furthermore, by tapping into a diverse talent pool, outsourcing allows worldwide market development.

Deloitte's Global Outsourcing Survey states that outsourcing providers bring creative ideas and solutions, promoting overall corporate growth, while flexibility and scalability are emphasized in a Statista report, with 78% of businesses valuing these aspects in their outsourcing decisions.

This blog post looks at different benefits, but its main focus is on how collaborating with software outsourcing partner may help companies improve their in-house technical capabilities, be innovative, and expedite development processes to achieve long-term success in a rapidly changing business environment.

Knowledge transfer

Knowledge transfer and skill development through outsourcing includes the exchange of expertise between the in-house team and the external service provider. This means going beyond just completing tasks. Here are some ways to achieve knowledge transfer and skill development:

Structured orientation and onboarding

The procedure is kicked off by the outsourcing partner with a complete onboarding program. This includes being acquainted with the partner's work techniques, tools, and communication channels. Similarly, the in-house team can communicate information about the organization's values, culture, and project needs.

Best practices documentation

Both teams work together to document and share best practices. Coding standards, project management approaches, quality assurance protocols, and any additional procedures that contribute to effective project delivery may be included. This material is an important resource for further knowledge transfer.

Workshops and training sessions held in collaboration

Collaborative workshops and training are essential for skill development. These workshops could showcase new technologies, industry trends, and particular development tools. An outsourcing partner that has worked on a range of projects can provide practical ideas and real-world examples that can improve the in-house team's expertise.

Cross-team collaboration

One of the most important advantages of collaboration is the pooling of skills and resources. When in-house and outsourced teams collaborate, they bring a diverse set of talents, experiences, and viewpoints to the table. As team members are exposed to new ideas and techniques, this can lead to increased inventiveness and creativity. Furthermore, the shared resources of both teams can assist in overcoming difficulties that would have been impossible to overcome on their own.

Agile Development Methodology

Many software outsourcing companies are familiar with agile and other similar development approaches. Collaborating with a partner who is using agile methodology may expose your organization to agile techniques, enabling a more adaptable and responsive development strategy. This can result in faster iterations, improved collaboration and overall efficiency.

Cooperation with an external partner who could introduce your company to new development methodologies can be a step towards innovation and greater competitiveness, and we have a good example of that.

A couple of years ago, we encountered a client that wanted to create an application from scratch. Despite the client's initial alignment with the Rational Unified Process (RUP), we took this opportunity to propose and implement Agile methodology in this project.

We structured our team with a Scrum Master and six engineers specializing in frontend, backend, and module validation since we had the freedom to do so. Using our past Agile project expertise, we adapted our strategy to bridge the gap between RUP and Agile mindsets, focusing on flexibility and productivity. We used best practices to add SCRUM framework aspects such as daily stand-up meetings, sprints, demos and partial retrospectives.

Our agile adaptation incorporated Kanban board ideas for task management, resulting in a dynamic and collaborative workflow. The client's engagement was maintained by presenting and verifying sprint plans based on selected backlog items, hence increasing the success of our Agile approach implementation.

More Focus on Core Competencies

Outsourcing allows your in-house team to focus on core competencies and strategic initiatives while the outsourcing partner takes care of specific tasks or projects. This can result in increased productivity and efficiency within your development organization.

Outsourcing software development allows businesses to focus on their core strengths by freeing up resources and allowing them to focus on business-aligned strategic goals.

Companies can adjust their goals and boost their productivity by not having to worry about the complexities of coding and development. Furthermore, this allows in-house development to focus its efforts on more vital activities.

Global Perspective

Outsourcing partners often have a global perspective and exposure to different markets. This can be valuable when developing products or solutions with a global audience in mind. It brings diversity of thought and different approaches to problem-solving.

A global team frequently includes people with various backgrounds in education, experiences and skill sets. This diversity contributes to a wide range of problem-solving techniques throughout the development process. Diverse viewpoints can lead to unique ideas and boost overall creativity within the project team.

Increased Scalability

A software outsourcing partner, especially in the long-term partnerships, offers companies the scalability and flexibility required to navigate the business landscape. As companies grow, enter new markets, or encounter changing demands, their software requirements may fluctuate. With the right outsourcing partner, companies can rely on their outsourcing partner's ability to adapt and scale resources accordingly. 

Additionally, outsourcing provides flexibility in scaling up or down based on project requirements. This adaptability allows in-house teams to handle fluctuating workloads efficiently, ensuring optimal resource utilization.

24/7 Development Cycle

Working with outsourcing partners in other time zones stretches the development cycle beyond regular business hours. With teams dedicated to the project around the clock, 24/7 development strategy assures constant progress. Consequently, the development process is hastened, meeting tight timelines and aligning with market expectations.

A 24/7 development cycle speeds up the overall development timeline. Tasks that would otherwise take days to complete in one time zone can be completed much faster as responsibilities are shifted between in-house and external teams.

Additionally, this way of the development cycle enables optimal use of resources. While one team rests, the other actively works and contributes to the development of the project, ensuring deadlines are met and active working hours are maximized.

Cooperation With Highly Skilled Team

Software development outsourcing can become a strategic asset for in-house development teams by seamlessly integrating external experts. This approach grants in-house developers direct access to a global pool of highly skilled resources, enriching their technical capabilities. Collaboration with external specialists facilitates the exchange of knowledge, bringing diverse perspectives and innovative insights to the in-house team.

The beauty of outsourcing lies in its ability to simplify access to top-tier talent without the challenges of recruitment and training. This symbiotic relationship means that in-house developers can tap into the expertise of skilled professionals without the burden of managing salaries and benefits related to maintaining a fully in-house team. Consequently, the collaboration with external experts acts as a force multiplier, empowering the in-house development team to achieve greater efficiency and effectiveness in their projects.

For businesses constrained by limited resources or budgetary considerations, outsourcing becomes a strategic avenue to leverage the skills of external experts. Rather than focusing on the cost savings aspect, the true value lies in how these external specialists complement and enhance the capabilities of the in-house development team, fostering a collaborative environment that drives innovation.

Process Optimization

A skilled outsourcing partner can provide an extensive amount of information regarding effective development procedures. They may help you identify bottlenecks, optimize workflows and adopt best practices by working closely with your in-house development team. This can result in enhanced overall process optimization within your development organization.

Outsourcing partners help businesses optimize processes by conducting extensive analysis of existing workflows, benchmarking against industry standards and using agile methodologies.

Continuous monitoring, iterative improvement cycles, and resource allocation flexibility allow adaptation to changing demands. Your outsourcing partner can actively incorporate feedback from clients, contribute to risk management techniques, and develop scalable infrastructure and security measures. Through cross-training, knowledge management and effective documentation methods, your outsourcing partner may foster a culture of continuous improvement and excellence in development processes with your in-house software development team.

Conclusion

In conclusion, partnering with an outsourcing partner, whether nearshore or offshore, offers numerous advantages for companies aiming to improve technical competencies and progress in a dynamic business environment.

Through effective knowledge transfer, including structured onboarding, documentation of best practices, collaborative workshops and cross-team collaboration, in-house teams can gain new skills and insights.

Acceptance and implementation of new ways of working such as agile methodology, through cooperation with experienced partners, encourages adaptability, efficiency, and innovation.

Outsourcing enables a sharper focus on core competencies, freeing up in-house teams to concentrate on strategic initiatives. The global perspective of an outsourcing partner, with exposure to different markets, enriches problem-solving approaches and encourages creativity. What's more, outsourcing provides scalability and flexibility, which is key to navigating business development. A 24/7 development cycle ensures continuous progress, accelerates timelines and optimizes resource utilization. By strategically leveraging outsourcing partnerships, organizations can elevate their technical capabilities and position themselves for long-term success.

More than just a team of experts