These days there are a huge number of companies offering software development outsourcing services under a variety of terms & conditions. As a savvy startup founder, you need to be aware of this and understand that a side effect of having more choice is the difficulty in ultimately deciding which vendor(s) to partner with. So it is important to establish meaningful selection criteria in order to make an informed and self-directed decision about software development companies you trust to partner with.
Partnering with large multinational software development outsourcing companies in the UK or anywhere else in Western Europe isn’t always the best idea not only because they are comparatively expensive but because they lack a customized approach to their projects. And nominally best software companies are not always the best for you. There is an alternative which is to partner with smaller software development houses which can often be far more efficient than large organizations.
The following are the 8 most important reasons why smaller development firms can, in many cases be more effective technology partners than large multinationals.
1. Rapid work execution
Unlike bloated, bureaucratic large corporates with multiple layers of management, smaller firms often offer more flexibility and are noticeably more proactive and collaborative with their clients. Besides, they can make decisions and deliver business outcomes for their clients significantly quicker. This is possible due to the fact that smaller teams create far fewer defects than their much larger counterparts.
2. A tailored approach
Being more product-oriented, small software development houses are not the sort of organizations that produce huge volumes of code. They are often able to step outside of the project and propose a better overall customized solution rather than just being concerned with the number of billable hours they’d be able to charge to keep their shareholders happy. Furthermore, smaller software development companies will often seek to minimize the number of development hours in early releases to test the collaborative relationship with the client and to improve the clients’ overall likelihood of success!
3. Significantly lower price for high-quality resources
It’s not a secret that top software development companies charge their clients not only for an actual job done but also for their brand. When small outsourcing partners will charge less but work harder.
Based on our calculations, hiring near-shore outsourced resources reliably save employers 20-30% on an annualized basis, as compared with employing Western European, American & Australian professionals of comparable skills and experience. This can really add up if you’re planning a substantial team expansion.
We are in the process of launching a calculator to clearly demonstrate the savings across a range of different technical professionals, taking into account all of the hidden costs of hiring new software engineers in Western Europe. Notwithstanding, it makes intuitive sense that in the vast majority of cases substantial savings can be made.
Hiring near-shore outsourced resources reliably save employers 20-30% on an annualised basis, as compared with employing Western European, American & Australian professionals.Click to tweet
4. More flexibility with human resource allocation
Boutique software development firms can take a more dynamic and flexible approach to resourcing projects. If required they can transition developers from other projects to yours. Sourcing talent this way is much more challenging in large companies because they often have more rigid hierarchies. Another key advantage of outsourcing, in general, is that employers can source high-quality talent for 6 months or less with good conscience and without any risk of contravening any unfair dismissal regulations.
5. Direct involvement of top management
When choosing a small software development company, you are often able to collaborate with the top management directly, not just delivery managers who often lack business experience. In this way, you will get useful insight and valuable tips on your project from people with executive experience in administrating businesses, and the good news are that you won’t pay extra for it.
6. Deeper Specialisation
It often makes sense to hire software development firms on the basis of them having done similar projects to your project. A lot of learning time can be saved and mistakes avoided if the firm has in-depth experience in relevant areas. Smaller software development firms can often offer deeper expertise because their experience in a given area isn’t spread across tens of thousands of people, rather it is concentrated within their core technical and executive team.
7. Mindset and culture of a startup, not a large enterprise
Success is often dependent on partners being on the same wavelength. Smaller software development houses are better placed to empathize with your startup needs because they essentially operate from a similar business perspective, while large enterprises are often quite disconnected from the realities of a startup. When the company you chose shares your vision and values, it’s a sign that you will be aligned on the aspirations for the collaboration also.
8. Greater sense of responsibility
It is important to note that your project will often represent a significant account for smaller software development companies. As such, smaller firms will pay more attention to your project and treat you with more respect. In contrast, large corporations aren’t likely to consider your project as either a key or strategic account and your project may be marginalized.
It is clear that partnering with small software development companies can have a lot of advantages over partnering with large corporates on small projects. One of the main advantages, overall cost savings, can be achieved without increasing risk or compromising on the quality of the output.