How To Pay Less for Software Development Outsourcing?

Recent studies show that more than 70% of companies worldwide save their development budget using outsourcing.

Here are the top 5 non-obvious solutions to make IT outsourcing cheaper:

1. Hire more outsourced employees.

Does it sound weird? It is actually about cost restructuring. Most outsourcing clients have conservative ideas about what jobs can be outsourced and what can’t. Software development is often outsourced. Management, marketing, and product design are more likely performed by in-house specialists, which can be much more expensive.

1. Diversify your IT outsourcing vendors.

If you work with one contractor, they will define the game’s rules. If there are several contractors, each will try to displace the competitor and offer better conditions and quality. It means you’ll get a more comprehensive selection of candidates and can cut costs by diversifying.

1. Ask for a discount.

Software development companies are happy to give discounts to customers if a contract is signed for an extended period. You will be surprised how much profitable the second year of cooperation can be.

1. More funds for management.

A qualified manager will build processes so that the development is not delayed, saving up to 400% of the project’s final costs. It is more profitable for you to hire a high-rated manager than to close development tasks with a team of developers who can’t stick to their own assessment.

1. Take advantage of the recommendation.

Recommendations are taken into account when it comes to choosing a contractor. The person referred the outsourcing company to you may ask for a special discount. Development firms appreciate referrals and usually favor such ideas.

And of course building a long-term relationship with your outsourcing software development partner can lead to cost savings in the long run. By establishing a effective software development partnership, you can negotiate better pricing and ensure that future projects are completed efficiently.