Blog Article BACK Five Case Stories That Prove IT Outsourcing Value For Business Vlad Potapenko Senior Contributor CEO and Co-Founder of 8allocate. October 25, 2019 IT Outsourcing (ITO) became a hot trend more than a decade ago, which allowed companies on tight and shoestring budgets to stay afloat and jump fast on the cutting-edge tech bandwagon to undergo successful digital transformation and/or improve software delivery to end-users. Recent studies such as the 2018 Global Outsourcing Survey by Deloitte confirm that traditional outsourcing, where buyers used outsourcing partners primarily as low-cost talent providers and aimed mostly to cut costs through improved back-office operations, is passing into oblivion and being replaced by disruptive, or value-based outsourcing. Disruptive outsourcing is referred to as a set of emerging solutions that incorporate cloud, artificial intelligence, data analytics, and automation to empower companies to work smarter, scale faster, expand to new markets and gain a strong competitive advantage. Read our article about Outsourcing 4.0 and how it differs from traditional cost arbitrage driven sourcing practices. To prove the value of IT outsourcing for business, we’ve reviewed five select cases from different industries and outsourcing destinations. Here you go. Five Successful Software Development Outsourcing Cases Below, you will find a few stories about startups and established brands that gained popularity and achieved success after delegating their development tasks to outsourcing partners. DHL Express DHL Express is a German logistics company that provides international mail, courier, and parcel services in more than 200 countries. Some company divisions had issues with decentralized data storage because the information was saved in different physical locations. The amount of information stored internally was huge, and there were some difficulties in the retrieval of data, so the company needed to create a central hub for entire data storage and management. The company opted for a Polish software development outsourcing company itCraft to assist with this challenging task. A dedicated team of experts created a web app with an embedded database for streamlining management workflows for employees. The solution was built using Java and MySQL as primary languages. The Polish subcontractor provided DHL with the following deliverables: A dedicated web app based on the client’s spec; Connected various databases in one central hub providing information about subcontractors, training, certificates, fleet, etc.; Reduced the need to enter unnecessary data, according to user-specific credfentials; Imoplemented a reporting tool with pre-designed templates; Integrated the entire system with Active Directory As a result of this outsourcing venture, DHL could increase work efficiency for more than 140 employees. Register Now and Payment Logic Register Now is an online registration service for event organizers, clubs, associations and universities to easily manage data from registration forms. The company grew successfully with over 1,000 clients and more than 500,000 registrations per year. Are you looking for a reliable outsourcing provider with a good track record and deep internal expertise? Feel free to send us your inquiry and let’s discuss how we can help with your short- and long-term software dev needs! While working on Register Now, the founding team developed a payment system, which they called Payment Logic. This SaaS startup enables Australian businesses to pay suppliers or service providers using their own credit cards online. As both companies quickly progressed, the team ran into a funding challenge common in most startups. There was a need for both tech teams to ramp up, but with high salary requirements to attract good talents, Register Now and Payment Logic’s options were limited. As such, they chose to outsource their solution development to a Philippines-based provider Arcanys that assigned five software developers and one business analyst to work on application creation. First of all, the outsourced team analyzed the client’s business needs. Then, the team brainstormed the application idea to start the development stage. Full-time .NET developers tackled the task and worked on building a risk-free trial payment platform. This collaboration went seamlessly, and all client’s suggestions were taken into account, and improvements implemented accordingly. The outsourcing partner successfully performed all the duties and created an efficient app with great functionality. Thanks to outsourcing, Register Now and Payment Logic reduced time to hire dev talent by half compared to hiring locally in Australia, and saved more than 100,000 AUD (more than $68,000 USD) annually on each hire! SkyCoin Created as a response to Bitcoin and Etherium shortcomings, SkyCoin is a 3rd generation blockchain platform that’s free from centralization and manipulation through its revolutionary Obelisk consensus algorithm. Skycoin functions as a currency with virtually-free transactions, soon-to-be-implemented absolute privacy, and Visa-like speeds with inherent asset-backed value not based on speculation. The company needed to execute several development tasks, but couldn’t find qualified Go developers, system architects, team leaders, and PMs locally fast and at affordable costs. Therefore, the company turned to 8allocate with a custom software dev request. We set up a client-tailored team in our R&D Center in Kyiv to work as an organic extension of the client’s in-house team while leveraging our access to Golang developers and PM talent. As a result, SkyCoin enjoyed over 80% hiring success rate and eliminated the back-end of rejecting candidates by having us do all the job for them. The company keeps using its extended team in Ukraine to maintain and upgrade the solution as well as build and test new features. Cost-saving is another benefit cited. Imready.eu Imready.eu is an eCommerce startup that was launched in 2018 by I’M Inter Motors. The company focuses on selling motorcycle parts, accessories, and other gear. Being the largest chain store in its industry, Imready.eu decided to create a platform that will allow buying the items online. The company turned to professional outsourcing software development services and chose a Czech outsourcing company Strix to work on this project. As Imready.eu went through a rebranding, the outsourcing partner faced an additional challenge to build an efficient sales platform that could represent the company. The app functionality was extended to boost sales, and it also became a place to sell items, as well as to attract new customers and build a motorcycle community. The deadlines set were pretty tight as developers got only three months for the development process because of the prospect of the motorcycle season. Nevertheless, Strix successfully performed all tasks, provided the results in time, met the requirements, and created a top-notch application. Living Organic Living organic is a unique company that has a few retail stores in Saudi Arabia and distributes organic food throughout the Persian Gulf region. The application development of this organic food project was tackled by an Indian software development outsourcing company Pixel Crayons due to local talent shortage. The outsourcing partner created a native mobile application for both Android and iOS users to allow them easily search and browse healthy food with the app. Before starting the software development process, the dedicated team has actively brainstormed ideas to come up with the most appropriate and effective app functionality. The development process was accompanied with regular reviews to ensure the smooth workflow, as well as the best quality and top-notch results within deadlines. All tasks were delivered in time, and developers have successfully met all client’s expectations. Thanks to the team of accomplished software engineers, an amazing application was created to help the company facilitate their clients’ lives, attract new customers, and boost sales. Final Thoughts As you can see, the potential of IT outsourcing is enormous, and it is worth considering this option to take your business to the next level. This type of collaboration is a perfect solution for startups and SMBs, as it’s not just extremely cost-effective. By outsourcing software development, you will get the product of the highest quality. Also, you will avoid the time-consuming processes of hiring and training an in-house team. The outsourcing company can start working on your project right away, translating your idea into real top-level software. Do you need help building a dedicated/extended Team or getting ad-hoc resources for your software development project fast and cost-effectively? Submit your request!