Outsourcing Case Studies: 11 Successful Stories from Tech Giants

It is the most popular development language, and even Microsoft uses it as the primary language for their products. In such cases, the company creates the overarching platform, which is then used by third parties to deliver products to the end users – a model that can’t but encourage outsourcing. DevOps is a new way of collaboration that makes processes change for the better. The idea of this paper is to understand why you need DevOps and to learn how you can get started.

• Here are six highly-successful companies that have used outsourcing for their software development to grow their business.
• To the user, a web app isn’t much different from the classic website – you open it in a browser and can access it from various devices.
• In addition to developers, there are business analysts, UX/UI designers, product managers, and others.
• Without a goal that is in line with your business plan, you might risk the software development outsourcing going in the wrong direction.
• Nothing is more demoralizing to your internal people than seeing work being outsourced.

Outsourcing IT services also offers the excellent option of an on-demand team at a reduced cost. Some popular cooperation models include staff augmentation, project-based outsourcing, dedicated team, and ODC . CTOs who are considering hiring specialists from their own country—you may want to check the costs. Typically, they are more expensive than offshore or even nearshore outsourcing. My company has helped hundreds of companies scale engineering teams and build software products from scratch. India is the cheapest software development outsourcing destination, while in Argentina the rates are much higher.

Reason 4. Adaptation time is short

This is when you have too much on your plate to handle the development of this product or software. In many cases, the CXOs or the software owners are able to share every detail about their software in-depth. Improper communication is one of the many well-planned strategies in place that is imperative to ensure you are not left with any confusion during the process.

Over 6 years of work we’ve helped over 150 companies to build successful mobile and web apps. At the same time, Slack stands out as an example of the most successful outsource cases. In fact, in a bid to save raised funds, the company outsourced design and app development services from the very beginning. Relying on outsourced workforce, Slack managed to get 15,000 users during 2 weeks after launch and to become a startup unicorn in 2014.

Top 20 Best Software Outsourcing Companies in 2023

Outsourcing development is not the one and only solution to build a software product, but definitely beneficial in multiple cases. If you want to save time and funds, get access to a worldwide talent pool, and get a rate-expertise balance, then we recommend trying this model for your business. As you can see, it’s much easier and faster to implement the Agile methodology and avoid micromanagement with an outsourcing software development partner.

But many still have their inhibitions and questions about outsourcing. CLASSIC INFORMATICS CULTURE We believe in simplifying lives and making everything better- both for our clients and our team members. By having a significant number of human resources on hand, we ensure that you get quickly matched with the most fitting professionals. While your competitors are still busy selecting the best team members, your group is already halfway to project launch.

With headquarters in New York, the United States, IBM is a popular information technology outsourcing company. It operates in over 170 countries in the world in Asia, North America, the Middle East, etc. They offer high quality BPO service processes and IT outsourcing across several industries. Live ChatMonitoring is a BPO company with headquarters in Australia that offers 24/7 live chat support to companies of all kinds, from software development to consumer products. Depending on your project needs, you can select a fixed price, time & material, or a dedicated team. Also, you can hire either several developers or a whole technical team that will take care of your project from scratch till launch and further support.

Successful Outsourcing Case Studies From Tech Giants

But even before that, you need to be sure if outsourcing is the right solution for you or not. Outsourcing when your company is neither ready nor in need of an external source can be harmful. The same goes if you refrain from outsourcing despite all signs telling you to outsource. Apart from conflicting company cultures, there might also be a change in the methodologies. There are different methodologies like scrum, waterfall, agile, etc., and if your way of working is in stark contrast with how your outsourcing company works, there might be many challenges.

It’s a bit ironic that a word colloquially used to describe laziness is also the name of one of the major workplace productivity apps. But if you’re like 43% of Fortune 100 businesses and 10 million active users, you probably used Slack today. Once you decide to outsource, you also need to create a design document to share with your internal team and outsource partner.

Yes, there are many instances when you can work better without outsourcing to achieve success. Here are some of the things that will tell you that you should not be outsourcing software development. Or choosing an offshore software development company is also important. However, now they need to scale up the product and get product development with new features and functionalities which they are unable to develop with the existing resources. They need expert assistance from technology partners or need to hire a technical co-founder to scale the product.

Fixed price work tends to end by delivering a product which may meet some interpretation of the spec but doesn’t meet the actual underlying need the software was built for. Build in https://globalcloudteam.com/ small autonomous chunks, and deliver working software quickly. If you don’t see something running and solving a small problem in the first few weeks something is probably wrong.

#5 Reduced Time to Market

The outsourcing developer will only bill you for the time involved and other costs incurred in the job. To learn more about how our software teams deliver and how to successfully outsource IT development, visit our website. The popular project management software, originally an offshoot of web consulting agency 37Signals, was growing slowly after its launch in 2004. To move the app along, the founders, Jason Fried, Carlos Segura, and Ernest Kim, outsourced the development and refining of the app to freelance developers. As it began to gain steam, they moved over to work on BaseCamp full-time and now employ 50 people in 32 countries.

For example, Goldman Sachs, J.P. Morgan, and Bank of America are the other financial giants that outsource tech talents. In short, what we have provided you in this insightful piece are the best examples, programming outsourcing but hundreds of others are available for listing. Citigroup began outsourcing its IT operations in 1992, and today, it runs multiple offshore facilities in the Philippines, Poland, and India.

Second, you get an automatic backup feature and logging of primary metrics which is crucial to perform disaster recovery. The logs will help your startup identify critical issues and their root causes to avoid such experiences in the future. To confirm the level of Skype success, we should mention that the platform was acquired by eBay for $2.5 billion in 2005 and ultimately by Microsoft for $8.5 billion in 2011. People usually use the software product outsourcing term to emphasize that they will get a complete software product as a result of it.

Major Outsourcing Regions

Based out of the United States and Philippines, SupportNinja is a cutting edge outsourcing company that lends support to startups and businesses around the world. It offers customer service, content moderation, and back-office support to companies. An IT agency can provide valuable consultation services about your product idea, business plan, and the way you want to move forward. It becomes possible when an outsourcing company has solid experience in building, launching, and supporting similar software products. An experienced software development company will form a technical team of professionals according to their skill set and your project requirements.

I think, the traditional reasons for offshore software development outsourcing are also changing with time. Companies now look to outsource a software to find talent and technical skills that they don’t get internally. The biggest benefit of outsourcing development, gaining access to a global pool of talent, also creates one of the major pitfalls — issues in communication. You’ll need to overcome different time zones, languages, and cultural conventions. Establishing regular channels of communication with the outsourced team becomes of crucial importance for ensuring project success. Onshore outsourcing is obtaining services from a third-party software development company from within the same country where your company is located.

The first six months are about reviewing the outsourcing relationship and mapping the success of the same. If the outsourcing company has worked well, you will see it in the progress of the product. Depending on the complexity of your product, even a complex product would have a working prototype or an MVP ready by the end of six months.

Products

Companies are also involved in Microsoft and related technologies and open source projects. It is new to but actively incorporating machine learning, AI, GIS, blockchain technologies. Jack Ma initially outsourced his software development work to the US.

The platform took off to the top rankings on Google Play, App Store, across platforms, eventually almost to bury the SMS technology as an afterthought. I understand that the data I am submitting will be used to provide me with the above-described products and/or services and communications in connection therewith. Many organizations around the world are transferring their IT and software development operations to third parties.

Now, the organization is eyeing the new technologies or latest frameworks. However, the current resources or developers aren’t adept at doing the same. Outsourcing diminishes all boundaries and gives you access to a global talent pool. You can not just find the best digital tech talent in your neighboring country but even across the globe. You can choose the company that deems best for your new tech product and get started.

Best Countries to Outsource Software Development To

Google – Despite being the world’s largest search engine, Google still outsources development works to remote talent pools for cost-reduction. On the other hand, it also carries risks like substandard services if you made a mistake with the developer, a security threat, or simply language and time zones of difference. It will demand those who want to work in an enterprise related to Game Development, VR, and applications.

What’s more, a product development outsourcing company may provide flexible and demand-specific engagement models for your startup. One of the most popular video chat and voice call platforms with over 300 million monthly users, Skype has mostly begun as an outsourced product development initiative. In 2003, the application’s founders offshored back-end development to experienced professionals from Estonia and totally succeeded. In this post we share top cases when product outsourcing is a good idea, discuss how your startup can benefit from outsourcing, and explain outsourced product development meaning.

You need to be able to layout a well-strategized plan to initiate and successfully complete the development. Chief Technical Officers aren’t the only ones facing challenges in terms of technology. Even product managers, handling products for SMBs, SMEs, and startups, face several dilemmas related to the development work. They have a lot on their plate which needs to be handled while ensuring seamless development work. Choosing the right custom software outsourcing company in 2023 is not a cakewalk. It requires strenuous efforts in research, reading testimonials, and more to reach the right company.