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Outsourcing Website Development in 2024

Feeling stuck in your business journey? Making the right call can either work to your advantage or work against you. In today’s interconnected world, having an online presence is a must, no matter your location or industry.
So, how do you handle your business’s online presence effectively and efficiently? Many industries turn to external agencies for web development help. Why? Because outsourcing often offers a better opportunity for your company compared to keeping it all in-house.
In 2024, more and more companies are hopping on the outsourcing train for their web development needs. It’s projected that the IT outsourcing industry will touch about $702 billion by 2028. This shift isn’t just a temporary phenomenon; it’s a strategic move for businesses looking to grow faster and work smarter.
5 Reasons to Outsource Web Development Services
  1. Strategic Resource Management: Businesses can enhance productivity by entrusting technical tasks to specialized external professionals, thereby minimizing time and energy spent on projects and emphasizing core activities.
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  3. Skilled Workforce: When you outsource, there’s a team of skilled workers who are ready to give their best for your website. They can create fresh and creative design ideas for your website.
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  5. Easy to Expand: Employing outsourcing activities in the organization can allow for the streamlined handling of additional workload that arises as your enterprise experiences growth. Hiring and training new personnel need not be a concern; the tasked provider will attend to such matters.
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  7. Helping Your Business to Focus: Businesses can now use outsourcing to concentrate on strategic projects and the overall growth, which provides them with crucial time and energy.
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  9. Quick Launch: Giving the work to a dedicated team helps in quick development because they can work without any interruptions and make sure that the final product is given on time, reducing its time-to-market.
Outsourcing vs. Outstaffing vs. In-House Team
For businesses that want to make the most of their resource allocation and project management strategies, it’s crucial to understand the difference between outsourcing, out staffing and in-house development.
Ousourcing

Outsourcing has witnessed a significant surge in adoption in outsourcing its services due to its potential to streamline operations and reduction in costs. According to Statista, the global outsourcing market is valued at $512 billion in 2024 and is projected to exceed $ 777 billion in revenue by 2028. This growth is fueled by various factors, including globalization, technological advancements, and the increasing complexity of business operations.

In outsourcing, companies delegate specific tasks or projects to external vendors or agencies, leveraging their expertise and resources. This approach offers several benefits, such as access to specialized skills, cost savings, and scalability. A study by Deloitte in 2022 found that 57% of businesses surveyed cited cost reduction as a key motivation for outsourcing, while 76% highlighted the ability to focus on core business functions by IT services.
Outstaffing

Outstaffing, which is also called staff augmentation, professionals or teams are recruited from remote locations to join organizations or projects. In this way, the business gets more expertise and resources without needing to increase its in-house team size and costs. According to a report by Grand View Research, the global staff augmentation services market size is expected to reach $147.2 billion by 2028. This growth is driven by the rising demand for skilled professionals across various industries, coupled with the benefits of flexibility and scalability offered by outstaffing arrangements.
In-House Development

The term “in-house development” means creating and controlling a group of developers inside the company, who are responsible for your project within the organization. In-house development has the benefits like having more control and keeping aligned with your organization’s goals, but it needs huge investment in hiring people, teaching them and giving them the needed infrastructure. According to the Global Software Development Rates in 2020 by Existek, the total cost of engagement of in-housing employees is much higher than outsourcing. However, maintaining an in-house team can build a foundation to get much better results in the long run.
Now that we have explained the terms what outsourcing, outstaffing, and in-house development; which one will you choose?
How to Outsource Web Development: A Step-by-Step Guide
  1. Define Your Requirements: Clearly outline your project objectives, scope, budget, and timeline.
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  3. Research and Shortlist: Look into possible outsourcing companies, taking note of their skills, previous work, feedback from clients and reputation.
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  5. Initiate Communication: Reach out to selected agencies or freelancers, discuss your project requirements in detail and evaluate their understanding and responsiveness.
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  7. Negotiate Terms: Finalize contractual agreements, including pricing, milestones, deliverables, and communication protocols.
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  9. Kick-off and Collaboration: Initiate the project, maintain open communication channels, provide feedback, and monitor progress regularly.
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  11. Quality Assurance and Delivery: Perform complete testing and examination to guarantee the end result is as per your requirements and satisfaction.
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  13. Post-Project Support: Establish post-launch support and maintenance arrangements to address any issues or updates that arise.
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When selecting an outsourcing partner, consider factors such as:
  • Technical Expertise and Experience: You need an outsourcing development agency that knows its stuff inside and out. You want to see evidence of their technical skills and how long they’ve been in the game.

  • Portfolio and Case Studies: See their past work. A strong portfolio and case studies allow you to gauge what they can solve and whether they can execute projects within the scope.

  • Client References and Testimonials: Never take their word for it. Contact past clients and inquire about their interaction. Also, testimonials can provide the insight you need concerning their strengths and weaknesses.
  • Communication and Collaboration Capabilities: Another way to establish is to take a look at your potential partner’s communication and collaboration capabilities. A key to any successful partnership is clear communication. Not only should your potential partner be easy to reach, but they should also be responsive to your needs. The use of collaboration tools and processes should be the next indicators you are looking at.

  • Pricing Structure and Flexibility: Considering the pricing structure and flexibility leads us to our last step in the compatibility section. Although considering a budget is always important, it is not about finding the cheapest option. The partner should have pricing structure within your budget and should be flexible in terms of payment plans and scalability.

  • Cultural Compatibility and Time Zone Alignment: Working with outsourcing partners means working with a team that might be located in a different part of the world, their work culture should align with yours and so should their time zone.
How Much Does It Cost to Outsource Web Development?

The complexities of the project such as the outsourcing company’s location, and the necessary level of experience are just a few of the variables that might affect the cost of outsourcing web development.

In contrast, data from McKinsey suggests that organizations can save a substantial sum by outsourcing web development. For instance, an hourly rate for software engineers in America could be around $60 but in countries such as the Philippines or India with the same level of expertise could cost as little as $6 per hour. This huge difference in labor expenses is one of the main drivers for outsourcing.

Reengineering procedures and optimizing for capital productivity can also help businesses save a lot of money; these savings can account for as much as 65–70% of the initial costs

Additionally, by utilizing less expensive labor, organizations can increase income by outsourcing web development. For instance, airlines can follow up on past-due accounts receivable that were previously overlooked, and digital technology manufacturers can expand their market share by introducing new services.

All things considered, outsourcing web development is a desirable choice for companies trying to make the most of their resources and maintain their position as industry leaders due to the possibility of cost savings and revenue growth.

References:

[1] McKinsey Global Institute, “McKinsey,” [Online]. Available: . [Accessed 29 03 2024].

How to Outsource Website Development to Cenengo

At Cenengo,  we offer innovative web development solutions that are customized to meet your company’s requirements. We guarantee seamless collaboration, quick delivery, and unmatched quality thanks to our committed team of skilled developers and our proven track record of producing amazing results.

FAQs

Outsourcing refers to the practice assigning particular duties, responsibilities, or procedures outside companies or contractors.

There are many reasons why companies outsource jobs and services but often include saving on costs, reducing resources, making space for growth and development in the organization.

It is usually the most suitable option to outsource a custom software development company when you have to reduce your time-to-market or are short on specialized talent for your project.

Consider their technical skills, project portfolio of their past work, communication and commitment level, cost and cultural aspects when interviewing an outsourcing company.

Consider outsourcing web development when you are looking for cost-effective solutions or have limited human resources with the needed specialized skillset.

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