How I Saved $50,000 on Outsourcing
Written by Content Team | Published on December 24, 2021
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Are you thinking about outsourcing, but are concerned how effective or cost efficient it will be?? That’s understandable. Many managers and business owners struggle to decide whether outsourcing is the right choice for their company or not.
Fortunately, there are other companies that have already made their decision to outsource, and they can share their experiences with you.
This article takes a look at one company that saved over $50,000 by outsourcing part of their activities and talks about how you can get started on the same path towards greater savings and improved efficiency.
It’s no secret that in order to grow and reduce costs, companies need to be able to automate as many processes as possible. This is just as true for development processes as it is for other business processes.
For Ovia Health, their accounting department was getting stuck with manual tasks. They enlisted the help of an accounting automation solution called Bookkeeper, and the service costs them a fraction of what it would cost to employ full-time accounting personnel.
According to Ovia Health, the investment for new accounting software would have been about $50,000 for just the first year, plus the cost of hiring another bookkeeper to manage it.
You could realise the same kinds of savings by outsourcing development.
How you can use IT and developer outsourcing to reduce your business costs
The first step is to create an overview and analyze the costs of your current in-house IT and development teams. If you don’t have a cost overview present, create one by researching how much it costs to keep an in-house team. There are useful websites available that can calculate this precisely according to your needs, geographic location, and current employment market. You may be surprised at how much even a single developer costs to employ.
You would probably be looking at around $70,000 for one full-time salaried employee, and that doesn’t include all the perks and benefits offered to an employee, as well as employment taxes.
Certainly, there are cases where an in-house development team makes sense, but if your company primarily works on limited-time projects, then hiring a contractor for the project can be a smarter, and more cost-effective move. Even if you pay your outsourced development team as much as you would’ve paid for a full-time team’s salary, you still don’t have to pay for all of the additional costs of benefits, vacation time, and sick time.
Of course, those savings are only realized if you’re able to utilize your outsourced developers efficiently. Remember that there will be onboarding and learning curves for outsourced workers. That’s where having the right tools comes into play. This is where your own choice and what is best suited to your company comes into consideration. You need to consider all factors and make a decision based on what is best suited for your company.
Bottom line, if you decide to save costs by hiring outsourced workers, we highly suggest utilizing a source code escrow, like Codekeeper, any time that you start a development project.
What Codekeeper does
Outsourcing your software development puts your company at risk of accidental loss of data, stolen data, backup recovery problems, and employee or contractor sabotage. Securing your code with Codekeeper allows you to take advantage of the cost savings of using outsourced developers, without the worries that go along with it.
By utilising tools that improve your developer outsourcing procedures, you could be the next person to say, “Here’s how I saved $50,000 on outsourcing.”
Codekeeper can help you make your outsourcing efforts safer and more efficient. Click here to get started with our source code escrow services.