Wanna know the secret behind every successful eCommerce business?
An efficient outsourcing strategy!
With 78% of businesses hiring third-party agencies to perform almost all basic services, there is no doubt that outsourcing is the golden goose for big as well as small and medium business owners! To outsource your services profitably, you need to have a clear plan! Some of the things to keep in mind are:
- What is your reason for outsourcing?
- What portion of your budget are you willing to spend on outsourcing?
- Exactly which services do you want to outsource?
- Which company or agency will you choose to do the job for you?
I know, I know…this might sound like a lot! But don’t be overwhelmed, everything will make sense after you are done reading the blog! While there are a plethora of services that businesses outsource, one of the most sought-after services to outsource is web development! That’s why we’ll take you through the nitty-gritty of outsourcing your web development needs! From the fundamental basics to the step-by-step guide to planning your next outsourcing project – we will try to answer all your doubts and queries!
Let’s Go!
What does outsourcing web development means?
Nowadays outsourcing web development is on trend, while making your website or an application, has become an important asset.
Outsourcing means hiring a third-party company to do the website development. And also it is the only possible solution while building a website or web development, and gives access to experienced developers.
Especially, if you are a solo founder and a small business owner looking for a way to grow your business digitally then outsourcing might come in handy.
I know as a newbie you must have doubts, but I want to make one thing clear to you, “It’s often easier to build a website by outsourcing web development”.
Why is Outsourcing needed?
Outsourcing is often the first thing mentioned when someone suggests you should outsource this function or service. Some businesses send their function to an outside company.
While others seek outsider help for everything from customer services to marketing to PR to strategic planning to consulting. There is no shortage of services and functions to outsource.
It’s quite common to see businesses contract a third-party organization for Customer services and get instant access to a highly professional team for doing the representation to your customers. The representatives do their work with high accuracy and professionalism with the help of new technology.
The third-party provider also solves and seeks out the problems which are asked by your customers, without giving you any burden.
In the meantime, your customers get good care and you get the proper time to do your real work. In both ways,
you win.
Still confused? Let me give you an easy example,
Amazon, a multinational American Tech Company, (presently the world’s largest online retailer) outsourced call centre services to South Africa and the Philippines. Moreover, Amazon also entrusts a Ukrainian startup specialising in Home Security for its R & D.
Outsourcing web development may pay off in many ways, including cutting costs, reducing the time-to-market, or making it easier to access top IT specialists.
Let’s go into the details of why most companies opt for Outsourcing web development and why you should too!
Why do companies use Outsourcing web development?
Cost Cutting Tool – 59%
Enables Focus on Core Business – 57%
Solves Capacity Issues – 47%
Enhances service quality – 31%
Critical to business needs – 28%
Access to intellectual capital – 28%
Manage Business Environments – 17%
Drives Broader tranformational change – 17%
There might be so many reasons why a company needs outsourcing, but it becomes evident from the above graph, which are the most popular ones! Now let’s discuss some of the main points.
- Reduction in Costs
By outsourcing, you get to hire a third-party company with a group of specialists including on a contract basis, for developing, attracting traffic, etc, for your website as well as your application, but without hiring any employee or a group in your company for full time to do the work. Having a dedicated web development team entails a lot of expenses from the salaries of the employees to health insurance, payroll taxes, training etc. So by applying this process you save a lot of money.
- Increase efficiency & Focus
We all know how the saying goes, ‘With great power comes great responsibility. This is also true when it comes to a business owner. From staffing and product management to marketing, human resources, and customer service, there’s a lot on your plate. On top of this, if you were to also develop your website or manage/develop all your client’s websites as well, you would need 26 hours in a day!
Juggling back and forth, between your diverse duties as an owner, is not only strenuous but also very inefficient. So in these situations, you need to hire another third-party company that will provide you with the work with high efficiency and on time so you can focus on your work. Thus, for a time-taking job like web development, it’s recommended for you to outsource!
- Frees up Resources
While having a small group in a small or rather a startup company you might not have a great number of resources and it must be hard for you to utilise your resources to do this type of work because it might hurt your company’s time.
So it’s always better to have someone else complete your errands for you.
- Increases Flexibility
As business landscapes change quickly, you also need to be fast to catch up with others at the same rate as the others. Otherwise, you and your company will stay behind, and it will harm your company’s reputation. Having outsourced the work is better.
- You gain Capabilities
The best perk of outsourcing is that you have the best capabilities without having the burden of hiring specialists as full-timers. It saves your time as well as your money.
- Work with the Best of the Best
Web development is a very crucial part of building a successful online business. Your website is the very first thing a customer views, and thus it has to be nothing short of breathtaking and attractive! Fortunately, most web development agencies are equipped with a strong team of talented and experienced web developers, whose great expertise can take your e-commerce website to the next level!
You get direct access to highly skilled professionals and immediately step up into action from the very first day. So when you outsource your web development needs to a trusted agency, you get the highest quality output in the shortest time frame!
- Company Restructure
As your company grows day by day, your employees also get promotions. With the promotion process, there will be vacancies available in your company as well.
But what if you don’t have that much time to refill the posts by employing freshers, because you need professionals as soon as possible? The question also occurs if you get new employees then you have to provide training and it will be time-consuming as well as the cost of the training will hamper your business.
The best option to do is to outsource as you get new talents and professionals who will do your work in no time.
- How much does it Cost?
Let’s face it, the current inflationary trends in the economy have not been favourable for anyone, especially business owners!
To run a profitable business in troubled times like this, it becomes necessary to reduce your cost of production, in whatever way you can.
One of the ways to do this is by outsourcing your web development! Why? Because you can cut your costs by not 5, or 10 but by 20-75%!
Moreover, not only do you get a ready-to-use website delivered for you or your clients at your doorstep, but you also don’t have to worry about the costs of hiring your team of web developers!
Prices for outsourcing in Different Countries
An average hourly rate for outsourcing web development services in Eastern Europe is $30-$70. The web developer rates slightly change relative to the country.
Ukraine — $25-$75,
Poland — $35-$85, and
Romania — $30-$75.
An average hourly cost of outsourcing web development in Latin America is $40-$100, namely in
Brazil — $50-$120,
Argentina — $40-$100, and
Mexico — $40-$110.
The average cost of outsourcing software development in Asia is $30-$60 per hour.
China charges about $35-$60.
Outsourcing app development in India costs $20-$70 per hour.
Malaysia rates $35-$60 per hour.
Being the most expensive destination, North America’s hourly rates are about $140-$200. The US and Canada charge $150-$215 and $135-$190 accordingly.
Below you can see a comparative table that demonstrates the cost of outsourcing software development in different regions/countries and the time difference to New York City.
Excellent Processes
- Starter – $1450 ( for 20 days )
- Standard – $1950 ( for 30 days )
- Premium- $2600 ( for 50 days )
- Basic: $1100 ( for 20 days )
- Premium: $1900 ( for 40 days )
If you want to know in more details about the cost of building a website with SR Labs, go to our website or feel free to contact us!
How to outsource Web Development ?
Start with a project that is relatively small and simple in scope, to give you a better idea of the company’s capability.
Move slowly and commit gradually.
Now to the most important point …
How to successfully Outsource Web Development?
These are the thorough process of how to outsource web development step-by-step-
1. Define your core business goals and requirements
2. Outline the timeframe and budget for your project
3. Establish your requirements for an outsourcing company
4.Choose a trustworthy website development outsourcing partner
5. Sign a contract and an NDA( non-disclosure agreement) agreement
6. Agree upon the ways to control the web development process remotely.
We guide our clients in selecting the technologies for themselves or for their clients and also assist in avoiding mistakes when choosing a ecommerce platform or tech-stack when building a website.
Tips for Outsourcing Web Development Projects successfully
I know you must also be confused as to what to do and what not to do. Because this topic has always been taboo to all.
You might also have lots of whats, ifs and buts floating around your mind. But I can assure you after reading the following instructions all your doubts will subside on their own.
So without further ado let’s get started by following these simple steps –
Have a Contract
People say, “Prevention is better than cure”, and to do so, rather than be sure that nothing occurs after the whole hard work, make sure that you got the outsourcing company signed in a formal contract.
By doing you will be able to fix the price that you have to pay. And also it makes you assured about if anything happens in between the process or in a midway you will always have full access to the work now and forever.
Know what You want, Find the Right Company
The worst problem is not knowing what you want or whom to hire. Because there are like millions of companies having professionalism in different backgrounds, like Mobile app development, website development, designing, etc.
So to make sure that you have hired the right person or the right group, you have to search the background of the company as well as the freelancer and look for who they have worked for and for how long, they have created. Look for their previous works and search through them. If it satisfies you then you should agree to work with them.
Communication is the key
Do you know what is the hardest part of everything?
It’s communication. While working with another dedicated group it might get hard to contact and keep track of the projects because of the time zones, work schedule, availability, etc, that comes on your way.
But you can still win the situation with a little effort and with the right tools on your side, communication can be improved tremendously.
Make sure to use specific communication tools like GitHub, InVision, Moqups, etc.
Remember one thing
Communication is the key asset to make your work successfully done without any problem.
Don’t be afraid to speak your Mind
The customer’s input makes the work more significant. You should always give feedback on the work which the freelancer or the outsourcing company is doing.
By doing so you will have the most accurate work which you were looking for.
Ask questions.
Make a list of questions, and don’t settle with just the proposal. Search the background of the company and the works they have done previously.
Have a Project Manager
It might be hard for you to manage both sides together. As you have to manage your work as well as you have to keep an eye watch over the outsourcing projects.
So after doing all the hard work when the time comes you acknowledge that you are lacking behind in your professional work.
So here’s the solution for you, hire a Manager, who will always observe the outsourcing projects. The manager will always inform you about the progress and will update you regularly.
With the help of the manager, you also will be able to easily communicate with the third party company or whether you are working with a freelancer.
Start with Small tasks
Without giving the big or the whole project, you should start with small tasks. First, you should see if the company is reliable or not to work with.
And with a small number of tasks you can see if they can match your expectation or not.
Now you know why people contact us when they search for the best offshore outsourcing agency.
Conclusion
Outsourcing web development shouldn’t be that difficult if you are making sure you are following the rules discussed in this blog!
The secret lies in communicating effectively and good management; if you are doing those things in the right way then nothing can stop you from growing and having a prosperous future.
So what are you waiting for? Do some research, make some calls and get your first Outsourcing project started! We are always here to guide you.
- Related content: Curious about outsourcing web development? Our blog post on **Everything related to Web Development for Small & Mid-size businesses & OffShore Outsourcing for Agencies** explores the benefits, tips, costs, and strategies involved.