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When can and should software development be outsourced?

A red haired woman programming on a computer and laptop

The labor shortage of the IT sector has been a problem for years, and an increasing number of companies are struggling to find and engage skilled experts. Due to the tight recruitment situation, in addition to hiring experts, outsourcing software development has become an option.

Typically, software development can be outsourced either in whole or in part, while still retaining the ownership of the product. The partner can take care of everything related to technical development or take over only certain aspects of software development. Outsourcing opens up a lot of new opportunities, as you have a professional, scalable team at your disposal.

Three reasons to outsource software development

1. When recruitment does not produce the desired results

The labor market situation in the IT sector is painful. In Finland alone, it is estimated that there is a lack of about 20 percent of trained professionals in the sector, which makes the competition for the best experts tough. If your team needs IT experts, there is no guarantee that they are available – especially if you want the best and most suitable professionals from the company’s point of view.

IT professionals often value the opportunities that a large organization brings: learning from peers, sparring together, and comprehensive employee benefits. That’s why recruitment becomes a challenge for those companies that do not profile themselves directly as IT companies, but for which the software product is part of a service. They may not appear as interesting employers in the eyes of experts in the sector. This is when it’s a good idea to turn to a software development partner, leaving the workload and cost of recruiting to the partner.

2. Scalability and profitable growth

A software development partnership brings significant scalability to your business. The need for experts can be met agilely according to the situation – when the development pace is hard, more experts are added to the team and during the maintenance phase, the resources can be lightened. Product development is often cyclical, and with the help of a partner, you ensure that customer needs can be met even during strong demand. The partner’s resources make scaling easy to implement, and the team always has the necessary expertise.

3. You get a lot more than hours worked

Above all else, the goal of a software development partnership is to bring results, not hours. The full range of the partner’s competencies are flexibly available to you. If you need a broad or specific view of development (e.g. regarding information security, cloud transition, or Business Intelligence solutions), you will find an expert with the right expertise from the partner team. The partner also takes care of the work ability, well-being at work, competence development and career path planning of its experts. You get motivated and trained professionals to your team.

The partnership can bring development ideas and solutions for other areas of business, as well. For example, Pinja provides e.g. data security, BI and cloud service experts, and service designers – not to mention our expert project and service managers to help you find the places where technology can generate efficiency and cost savings.

Have you become interested?

Read more about Pinja’s software development partnership here: Transparent software development partnership from vision to implementation

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Jaakko Kaski

Jaakko Kaski

The author works as the HR manager in Pinja’s digital business activities, HR business partner for a few business areas and as the supervisor for his supervisor team.

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