Why CEOs Prefer Software Outsourcing
Today’s CEOs must prioritize technology and digital transformation to support growth and scale. Custom software development is a critical part of this scenario, and to ensure a cost-effective process that delivers reliable ROI, decision-makers like CEOs and CTOs look to outsourcing.
We all know that the buck stops in the C-suite. Stakeholders rely on CEOs to make smart, sustainable decisions that will build the bottom line. Companies that lead with technology reliably achieve two to three times the revenue of their non-tech-focused competitors, signaling the need for a focused
Some of the strategies they use to accomplish this include:
- Leveraging data to drive revenue with technologies like artificial intelligence (AI), machine learning (ML), blockchain, IoT, connected enterprise systems, and automation.
- Developing new products, services, and strategies dedicated to improving the customer experience.
- Completing digital transformation and prioritizing cloud workloads to enable distributed teams.
Why Outsourcing is the Best Option to Help CEOs Achieve Their Goals
To achieve value and accelerate time-to-market, software outsourcing provides the right mix of speed and cost. Outsourcing software development enables access to niche technical talent and helps organizations scale teams up and down quickly based on project needs.
Additional advantages include high-quality output, access to next-generation technology and technical know-how, cost reduction, and a diverse point of view that drives innovation and improvements.
Outsourcing Methodologies to Consider
Since no two companies or projects are alike, it’s vital to choose the right outsourcing approach based on your unique requirements.
Generally, there are three methodologies to consider:
LDXLab: Staff Augmentation vs. Consulting Services
- Outsource to onshore developers. Onshoring refers to the practice of hiring team members in your own country. You might choose this method if the team in question has a highly specialized skill or if you have logistical concerns that only a local provider can address.
- Offshore outsourcing. Offshoring is where you outsource to developers or teams in global locations. Offshoring can represent significant cost efficiencies as you can access talent in places with a much lower labor cost. Common offshore countries include India, Ukraine, and the Philippines. However, you need to ensure the tasks are well-defined and simple enough that they can be communicated easily and that your risk is low.
- Nearshore outsourcing. Nearshoring refers to hiring developers from countries outside of but close to the United States. Most nearshore countries, like Costa Rica or anywhere in Latin America, have similar time zones, no language or cultural barriers, and access to incredible talent at a fraction of the cost of onshoring.
Outsourcing is Smart Business
The world’s most successful companies know the advantages of nearshore outsourcing. From Fortune 500 companies to ecommerce giants like Amazon, these organizations have achieved stratospheric growth, cost optimization, and world-class innovation, due in no small way to their outsourcing strategies. Could your organization be next?
Outsource your software build to LDX Lab to increase velocity and achieve better business outcomes. Our highly skilled Agile team is located in Costa Rica. We work in your time zone, speak your language, share similar cultures, and work alongside your team to help you achieve your business goals.
Get in touch today. We’d love to learn about your software project and be a part of your success.