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Did you know one of the reasons the popular Skype video chat, text-based messaging and web-based telephone service exists is because of outsourcing? Skype founders Janus Friis and Niklas Zennstrom credit Estonian software developers and programmers Ahti Heinla, Priit Kasesalu, and Jaan Tallinn for much of the success of the company they sold to eBay for $2.6 billion.
Those same developers from the Baltic region of Northern Europe were also outsourced by music sharing application Kazaa. The Opera web browser, MindSpark mobile app development company, Mailburn iPhone email client solution developer and BaseCamp, a leading web-based project management solution, all relied heavily on freelance developers and programmers to get where they are today.
Outsourcing also makes a lot of sense for small business owners.
No matter the size of your budget, you can find top level programmers to handle any and every software creation need your business has. Business owners large and small can save money and reduce stress by using talented freelancers who can meet or beat time constraints, communicate effectively, and develop high-quality applications, software suites, and on-site tools.
Before we get ahead of ourselves, let's discuss exactly what outsourcing means. Here's the definition according to online business dictionary Investopedia:
“Outsourcing – A practice used by different companies to reduce costs by transferring work to outside suppliers rather than completing it internally.”
Entrepreneur magazine has this to say about outsourcing:
“Outsourcing – The practice of having certain job functions done outside the company instead of having an in-house department or an employee handle them; functions can be outsourced to either a company or an individual.”
This means you can reach out to local freelancers, coworkers, personal contacts, and others you know personally, or individuals halfway around the world that you will never meet. Jobs large and small are routinely handed off to professionals located outside of a company infrastructure for many reasons. We will explore those reasons and every other aspect of outsourcing as an effective business practice, to help you decide whether hiring freelancers is something that can work for you and your company.
n this small business owner's and entrepreneur's guide to building your business through outsourcing, you will see why some of the most talented programmers, coders, and developers in the world are willing to work for what you consider to be a very low level of pay. We'll discuss the top reasons why outsourcing makes sense for so many multi-person companies and sole proprietor operations.
You will get an inside glimpse at the pros and cons of this business tool, so you can decide if outsourcing is right for your unique situation. We will show you exactly how to find talented software developers and programmers that turn out incredible work at value-driven costs which may be hard to believe, as well as which countries in the world are home to the cream of the crop as far as software developers and programmers are concerned.
Outsourcing can mean onshore, offshore or nearshore contracts. In this guide, you will discover exactly what is meant by each of those terms. After reading through this outsourcing software development handbook, you will be able to select the right freelancer every time. You will also know how to properly manage an offshore development team.
With the growth of mobile, and the ability of the Internet to provide global access to even the smallest business owner, more and more entrepreneurs and businessmen and women are outsourcing mobile application development and software creation. Before you hop on board the growing wave of individuals and businesses that benefit from outsourcing, let's take a look at how you are able to get top-shelf talent for bargain-bin prices. Why Are Developers and Programmers Willing to Work So Cheaply?
If you're considering outsourcing as a way to fill some of your software development needs, cost will eventually enter the equation. You don't necessarily want just the cheapest possible developer. On the other hand, you probably don't get excited about spending 2 or 3 times your budget just to ensure that you get quality work.
You are looking for the very best price/quality ratio, as you should with any aspect of your business.
If this is your first foray into outsourcing some aspect of your business, the first thing you will probably notice is the cost. Websites that track real-time outsourcing costs by country report that you can routinely save 60% or more on software development projects when you shop around. You may think this is doing a disservice to the vendor that you hire.
The opposite is almost always the case.
You are not employing a sweatshop mentality to get your software created. The Indian or Chinese or Polish or Estonian programmer you hire earns a good salary in comparison to others in their country of residence. They know that by offering their services to people in the United Kingdom, the US and other nations where the cost of living is very high, they can ensure a steady stream of clients.
Far from creating some type of slave-wage relationship where you barely pay enough for a freelancer to survive, you are helping that person thrive instead of just scraping by. When you help someone earn a living as a solo entrepreneur in Bulgaria, the Philippines or Indonesia, you are contributing to a healthier global economic picture.
At the same time, you are saving money over what it would usually cost to have the same job performed in your home country.
India and China are home to some of the most affordable freelancers in the world. The cost of living there is dramatically lower than in the United States, the United Kingdom, Canada, Western Europe and other places around the globe. It simply doesn't require as much money on a comparative basis to enjoy a decent lifestyle in China and India.
A top level coder or programmer living in the United States could cost 150% to 200% more than a comparable Chinese or Indian software developer. While it is tough to beat India and China as a low-cost/high-value destination for software development freelancers, Eastern Europe, South America, and several other locations provide nearly equivalent value and the same highquality work. In chapter 4 we break down exactly which countries currently (as of 2017) offer the best opportunities for saving money on software development, while still delivering top-level service. !