A few weeks ago, we found some research on the top five reasons that Western European companies use outsourced software development, so we\u2019re working our way through a look at each topic, from cost efficiency<\/a> to flexibility<\/a> to quality of service<\/a> and embrace of new technologies<\/a>. Those were the first four factors. Pretty logical, right? The fifth factor -- this article -- is also pretty logical. It is \u201cindustry knowledge and expertise.\u201d<\/p>\n\n\n\n On the survey we worked from, \u201ccost efficiency\u201d (the No. 1 reason that Western European companies outsource software development) was cited by 85% of respondents -- almost 9 in 10. This topic, \u201cindustry knowledge and expertise,\u201d was only cited by 48.9% of respondents -- 1 in 2. Some of that was about how the survey was formatted, yes.<\/p>\n\n\n\n But is cost that much more important to people than expertise? That\u2019s interesting to consider. One possible factor is that expertise was ranked lower by some respondents because they assumed every software development outsourcing option would have a degree of expertise, so they ranked this one lower. Hmm. That\u2019s one possibility. Another is that this survey was conducted as COVID-19 was first coming into Europe, so if respondents saw a potential economic downturn in later 2020 (which is happening now), maybe they prioritized \u201ccost\u201d in their responses. Still, the gap is interesting to observe.<\/p>\n\n\n\n Any project needs to absolutely start with expertise. A software development partner needs expertise<\/a>. Without expertise, it will be hard for you to achieve your goals, find cost efficiency, flexibly move between projects, etc.<\/p>\n\n\n\n Because most complicated projects end up being more collaborative in nature, though, it\u2019s not just \u201cexpertise\u201d you are looking for. It\u2019s more like a combination of expertise and teamwork and planning. In bullet point form, it looks like this:<\/p>\n\n\n So sometimes we think of \u201cindustry knowledge\u201d and \u201cexpertise\u201d along narrow lines. We almost hear the words and think of professors or academics who know a lot about a topic, say the cloud. That\u2019s a form of expertise, yes. But if you are talking about getting business projects done, you need a different definition of knowledge and expertise. In a business context, you need people that know what they are doing (conventional expertise) but also people who can work together (collaborative expertise) and work with lots of different teams (diversity) and also be a consultant, not just an order-taker.<\/p>\n\n\n\n When you have all those things together, then the idea of \u201cexpertise\u201d is likely going to be selected on a survey by more people than just 48.9%. Full-scale expertise including team building, backlog management, sprint management, revenue project proposals, consultation, etc? That\u2019s definitely more important than just cost.<\/p>\n\n\n\n Remember: cost is different from value.<\/strong><\/p>\n\n\n\n If you have a team that has domain expertise but can also work together and build projects out into robust profit possibilities, that is valuable. At that point, you are no longer worried that much about \u201ccost efficiency,\u201d because the outsourced software development team has paid for itself and more.<\/p>\n\n\n\n What does all that mean for you? How can you find this team, this outsourced partner, that has expertise? You need to pick the right software development outsourcing partner. You need flexibility, expertise in technologies, ability to grow into new technologies, cost efficiency, high quality of delivery, and more. You don\u2019t only need it, but you deserve it -- this is your business we\u2019re talking about!<\/strong><\/p>\n\n\n\n One place to start is this checklist of ways to evaluate software development outsourcing partners. If you have any questions,\u00a0reach out<\/a>!<\/strong><\/p>\n\n\nHere is what is interesting, though<\/h2>\n\n\n\n
It\u2019s interesting because expertise is obviously still crucial<\/h2>\n\n\n\n