How I Saved $50,000 on Outsourcing

Written by Danny de Wit | Published on May 13, 2020 | 0 Comments

Are you thinking about outsourcing, but concerned about whether it will be effective or cost-efficient? That’s understandable. Many managers and business owners grapple with whether outsourcing is the right choice for their company.

Fortunately, other companies have made their decisions about whether 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 some of their work, as well as how you can get started on the same path to savings and efficiency.

 

Ovia Health saved $50,000 by outsourcing bookkeeping services

 

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 true of development processes as much as it is of 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 the company, 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 can 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 look at the costs of your current in-house IT and development teams. If you don’t have them, do a little research about how much it costs to keep an in-house team. You may be surprised at how much even a single developer costs to employ.

You’re looking at around $70,000 in some cases for one full 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-saving 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 realised if you’re able to utilise your outsourced developers efficiently. Remember that there will be onboarding and learning curves for outsourced workers. And that’s where having the right tools come into play.

We highly suggest utilising 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 one who says, “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.

   
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