Time-to-market is one of the most crucial factors in developing and launching a software product, which can either make or break its success. Therefore, irrespective of whether you are a budding startup, an established business, or just someone experimenting with an idea, you ought to look for a reliable digital product development agency.

Now, as you are aware of how important optimal development is for your software product, you might question why you can’t hire an in-house team for the same job. Well, several factors go into explaining this! Hiring an in-house team might be expensive, management intensive, and limited expertise. 

On the other hand, hiring an outsourcing firm for product development would give you access to high-end skills on a global scale. You won’t have to engage your team in managing the new product, as the other business operations will be halted. Handing over the job of development to a third-party service provider would enable you to run your business more efficiently. 

This is not it! We understand you need something more than this to trust and rely on a third-party agency to get your software product developed. So, this article is here to give you a close look at a few of the benefits associated with this outsourcing approach. 

What is Product Development Outsourcing?

Before getting an insight into the benefits of outsourcing your product development needs, you must know what it is. If you are new to the business world, here’s a brief understanding of the concept. 

Product or software development outsourcing is a very appealing business strategy. Here, a third-party product development agency is hired to design, develop, test, and launch new software services or solutions for your business. 

This service provider isn’t abided by the rule of being present in the same location as the business. They can work from almost any part of the world without hampering the quality of service delivery. 

Outsourcing of product development allows your business to drive focus on the core operations while the new software idea is in the hands of the dedicated industry experts. These outsourcing professionals have the sole job of designing, developing, and launching new products for their clients, which makes them different from your in-house development team.

Some of the things that you can outsource to third-party agencies in association with new software product development are:

  • MVP development
  • Execution of strategy and management
  • Coding of the software product
  • Designing the UX
  • Product engineering
  • QA and testing
  • Software management
  • Modernization of the legacy applications

What are the Benefits of Outsourcing Product Development to Third-Party Agencies?

As per Statista, the product development outsourcing market was recorded to have generated around $109.10 billion in revenue in 2021. And as per the prediction, the growth has been sustained immensely in the years after! This explains that development outsourcing is immensely popular for all good reasons. 

Here are some of the benefits for you to understand the efficacy of outsourcing product development to a third-party agency:

1. Highly Cost-Effective

The first and most important benefit of product development outsourcing is cost-effectiveness. Upon handing out the job of developing new software to the outsourcing agency, you just have to pay for the essential services you need. In this way, you can save a lot of money on utilities, rent, and employees’ salaries. 

The digital product development agency you hire for your project can be from different locations with varying rates. Depending on the company and country you choose, your cost of availing the outsourcing services might be reduced. 

2. Access to Skilled Developers and Testers

With outsourcing, you will be accessible to a skilled labor force. In most cases, product development agencies have professionals with the highest rate of expertise and experience nationwide. It is true that different outsourcing firms might have different approaches to product development, but all offer some standard services that make the overall task easier. 

Some of the essential roles that the skilled professionals at an outsourcing firm will play concerning product development are:

  • Project Manager
  • Software Developers
  • Business Analyst
  • QA Engineer
  • UI/UX Designer

You must let the outsourcing agency know about your requirement for multiple roles. Depending on that, they will assemble an expert team to meet your project expectations. 

3. Quick Turnaround

The turnaround time for the new software product will be faster as dedicated experts handle the development tasks. Developing software might take up to 9 months, depending on the type, technology, and requirement. But, outsourcing the role to a third-party agency might help you develop custom software in half the time it would take for the in-house team. 

Quick turnaround time is very crucial for new businesses. It is because the more you wait, the deeper your competitors will go into winning your customers. Thus, it will become very difficult for you to compete with your product and increase the overall revenue. 

You don’t have to spend ample time hiring a complete in-house team, validating their skills, training them, and providing them employee benefits. 

4. Systematic Approach to Achieve Product-Success

The outsourced experts work with a product-success mindset on priority. It is because they understand the multiple iterations that a successful product goes through. The actual feature or concept might not be the one that clicks well with the users. Therefore, it becomes important for the business to launch an MVP first to test out what works well for the users and what doesn’t. 

The product development agency you hire will have dedicated MVP experts to help you. They will take note of the users’ behavior and usage patterns to make further decisions on what would help your software improve. Upon your consent, the development approach will be improved to make your product fit for the market. 

Parting Words:

So, this is a clear understanding of how hiring a digital product development agency for your new software benefits business growth. It is the approach that helps you save a big chunk of your money while acquiring the best software product for your brand to thrive in the market. 

But, while you outsource your new product development needs, asking questions to determine their experience in the field becomes important. Take time and find the best agency to work on your new idea for efficient results.