The Business Case for Outsourcing Software Maintenance
Maximizing productivity and efficiency is an important part of any business. But it’s especially vital in software development and maintenance because running internal software maintenance support can be costly.
While some companies prefer to hire and train their employees for their application maintenance needs, many more companies have done the math and found that hiring a nearshore software development company to assist with their needs is a far more efficient long-term solution.
The latest research from Deloitte found that 40% of software maintenance and modernization work was contracted through outside companies this year — a 20% increase from 2022.
Here are three reasons companies are shifting to outsourcing their application support needs.
Outsourcing Software Maintenance Can Reduce Costs
IT spending is rising, and software maintenance makes up a large portion of it. In 2023, Gartner estimates 43% of all IT spending will be on application development and support.
Companies choose to outsource their app maintenance needs because the time and money involved in hiring employees for these positions is costly. Marko Knezovic, COO of Kibernum, an application development and IT consulting company, says businesses should consider internal hiring expenses when considering whether to outsource work.
“They have to consider several expenses, including all the costs associated with employing resources, such as salary, benefits, taxes, and other indirect costs such as office space, equipment, and training,” Marko said.
The shift towards hiring an IT nearshore software development company is part of a larger trend among technology companies to reduce expenses. As Gartner noted recently: “Outsourcing can enable enterprises to reduce costs, accelerate time to market, and take advantage of external expertise, assets, and/or intellectual property.”
Outsourcing Gives Companies Quick Access to Expert Skills
It’s more than costs that companies should consider when thinking about hiring an app maintenance solution. Hiring a nearshore software development company gives you quick access to highly-skilled knowledge workers.
This means that your company can keep apps and services up and running through on-demand system integration support from workers that are specifically trained in their areas of expertise.
Marko says that using a software maintenance company gives businesses access to specialized skills, which can help them stay on top of the latest trends, best practices, and emerging technologies.
“It also provides access to the best talent with a technology focus, allowing companies to leverage their expertise and stay ahead in an ever-evolving technology landscape,” Marko said.
Outsourcing Offers More Flexibility
Some companies try to do all projects themselves and end up overworking employees or falling behind on regularly updating their apps and services. One of the key benefits of using an application development and maintenance company is that you can find the right mix of internal and external resources to get the job done.
“Outsourcing app maintenance can provide businesses with access to more resources faster because the company receives a ready-to-deploy team,” Marko said.
This means your business can let your internal team do what they do best while outsourcing other projects that may take up too much employee time. Having the flexibility to start new projects — while keeping existing ones up-to-date through outsourcing — allows your business to achieve long-term goals with less strain on resources.
“Outsourcing provides deep industry insights and a collaborative network of professionals giving the team the possibility of finding creative and innovative solutions,” Marko said.
That’s the goal of any good outsourcing software maintenance company: Being a collaborative technology partner working to find the best solution for your company.
Ready to find out more about outsourcing your software development and maintenance needs? Kibernum has more than 30 years of experience working with the world’s largest companies — and we’re ready to get started on your next project.
