michaela-damm.jpg
blocshop
October 15, 2021
0 min read

Outsource web development in 2021 and beyond: benefits & tips

Outsource web development in 2021 and beyond: benefits & tips.png

More and more firms today turn to external agencies for web development. Outsourcing continues to grow in popularity. Many companies find that outsourcing reduces costs and risks. They also find that development time shrinks when they outsource. Instead of increasing headcount they decrease their time to market.


Companies outsource web applications to create an MVP (minimum viable product) as soon as possible.

In the past, most outsourcing happened in large corporations. Companies would hire outside firms to consult on complex systems. Nowadays, even boutique firms find benefits in outsourcing.

Companies that outsource range in size from giant conglomerates to mom-and-pop startups. Web application development works really well for outsourcing. Many smaller companies choose to outsource web applications because they lack in-house expertise. They let the experts create their application while they concern themselves with their core business.

Related post: Offshoring vs. Outsourcing: Which is better for software development?

Let’s take a closer look at web development outsourcing.

What is web development outsourcing?

Simply put, web development outsourcing means that you hire an external team to create or complete your web application. Many web applications begin life very small and grow in complexity. As you add features and fixes, the application you knew front-to-back may start to seem like a massive labyrinth. When this happens, it’s a great moment to consider outsourcing.

Read also: Web app development tools for 2021

Why should you outsource web development?

Outsourcing makes sense for many reasons. Many medium and smaller companies outsource to speed up production cycles while keeping costs down. They find that by hiring an outsourced team they reduce their overhead. Some companies save as much as 60-70% of what it would cost them to do the job in-house. Read more about the difference between outsourcing and in-house development.

6 Benefits to outsourcing web development

1. Cost
As mentioned before, most companies choose to outsource because of cost. If you choose to outsource offshore the savings become significant. Workers outside the US don’t have the same high salaries. And you also save money on taxes and overhead. You don’t have to pay for maintenance and upkeep of office space for your outsourced team. You don’t have employment taxes to pay or health insurance premiums.

Find more on how the software project cost is being estimated and contact us to get your custom price calculation.

2. Flexibility and scalability
Outsourcing companies have staff ready to take on increased scope. In-house you would have to recruit, onboard and train new team members. An outside agency has already done this groundwork. They can scale up and down as needed.

3. Reduced risk
Hiring an outside agency reduces risk. The outsourcing company takes responsibility for delivering the web application. The contract they sign ensures that they will deliver on time and to specifications.

4. Larger talent pool
Outsourcing means that you have access to a wider range of specialists who know their jobs very well. The company you choose to outsource to has already screened and trained their specialists. They have already seen how well they work. Finding key specialists, or even knowing exactly what kind of specialist you need can be daunting. By outsourcing, you remove this stress.

5. Faster delivery of MVP (minimum viable product)
Companies that specialize in web applications have the staff to get projects finished, fast. Outsourcing to a company that follows Agile principles means the leanest and fastest development possible. They know their requirements and work with efficiency to meet the goal.

6. Allows you to focus on core business
When you outsource your web application development, you free your team to focus on the core business. You can focus on projects that require immediate attention while the outsourcing company does their work. You can set up expectations and timelines and your agency handles the rest.

You might be also interested in: Web development vs app development: Choose the best for your business

Tips when outsourcing web development

How should you undertake an outsourcing web development project? Let’s take a look, step-by-step.

1. Define Goals
Think through and describe what you want your web application to do. Know the needs of your customer and write out your complete vision. Try to define as much as possible. Vague or opaque definitions will slow your project and increase costs.

2. Set out specific requirements
Define, with precision, the business goals of the project. What technologies will you need? Make sure to disclose as much detail as possible so your outsourcing company can plan their Agile Epics and Sprints according to your needs.

3. Vendor selection
Most companies take care and time with the vendor selection process. You should pay attention to the costs, of course, but also to the experience level of the company. Choose a vendor who specializes in what you need. Make sure you disclose as much as necessary to get realistic quotes. Make sure you understand the outsourcing company’s way of work. If your team likes to work Agile, hiring a Waterfall outsourcing team makes little sense.

Learn how Agile differs from Waterfall.

4. Communicate!
Communication must stay at the focus. If you hire an outsourcing team offshore, make sure you have some working hours that overlap. Make sure you give feedback and suggestions quickly so you do not block the workflow. Outsourcing companies work fast, be ready to keep up! Most outsourcing companies will work under an NDA (non-disclosure agreement). You need not keep secrets or hide information from them. The more open you communicate, the better.

Check out the ideas for web applications and find the most suitable for your business. Already have a project idea in your mind? Share it with us and get a price calculation.

Outsourcing web development with Blocshop

Outsourcing web application development with Blocshop works! Our team understands business. We deliver results fast. Our experts and specialists work using Agile methods. We offer support and solutions to fit your requirements. If you’d like to learn more about how outsourcing with Blocshop works, please do get in touch!


Learn more from our insights

roro665_Best_Practices_for_Integrating_AI_in_Fintech_Projects_76570294-b2df-4e1d-a775-bdc646351d08_1 (1).png
October 16, 2024

Best practices for integrating AI in fintech projects

Discover 8 key steps for AI implementation in fintech and open banking with a focus on compliance, data quality, bias, and ethics.

roro665_Extract_Transform_Load_process_for_data_that_is_power_8734b36d-5737-4fdb-904e-ea6bca40c51b_3.png
October 09, 2024

Real-life examples of generative AI products and applications

See real-life examples of generative AI products and applications developed by Blocshop that impact industries from retail to fintech.

roro665_data_transformation_from_one_format_to_another_with_g_91332f66-93b0-48d8-9d5e-a8609529cbb7_3.png
September 25, 2024

Generative AI-powered ETL: A Fresh Approach to Data Integration and Analytics

ETL meets generative AI. See how AI-powered ETL redefines data integration and brings more flexible data processing and analytics across industries.

roro665_uk_pensions_dashboard_reform_magazine_cover_collage_-_1888e056-80f6-4aac-958c-bf02b128a7d3_1.png
September 03, 2024

UK Pensions Dashboard Compliance: Deadlines, Transition Steps, and the Use of AI-driven Data Mapping

How AI-driven data mapping can support UK Pensions Dashboard compliance. Understand key deadlines and steps for efficient data conversion and transition to the UK Pensions Dashboard.

roro665_a_cover_image_depicting_data_conversions_and_compliance_c8ddf35a-cc0f-447a-abb7-0f4b1f14bb64 (1).png
August 23, 2024

Using AI for data conversion and compliance in the banking sector

Discover how AI transforms data conversion and compliance in the banking industry, optimizing processes while managing risks.

ai_applications_in_banking_and_banking_technology_blocshop.png
August 14, 2024

AI Applications in Banking: Real-World Examples

Explore how major banks are using AI to enhance customer service, detect fraud, and optimize operations, with insights into technical implementations.

20221116_153941.jpg
July 31, 2024

From Concept to MVP in Just 12 Weeks with Blocshop

Blocshop delivers your MVP in 12 weeks, solving real pain points with agile sprints, daily scrum meetings, and fortnightly reviews. Here's the process explained.

chatgpt4_ai_integration_blocshop-transformed.png
July 19, 2024

ChatGPT-4: An Overview, Capabilities, and Limitations

The technical aspects, usage scenarios, and limitations of ChatGPT-4, including a comparison with ChatGPT-4o.

roro665_depict_a_data_sample_thta_completely_changes_its_form_725a4f20-ea40-4dd1-a68d-5c4327c9bf24_1.png
June 20, 2024

Generative AI used for data conversions and reformatting

How to use generative AI for data conversion, addressing integrity, hallucinations, privacy, and compliance issues with effective validation and monitoring strategies.

DALL·E 2024-05-30 09.37.01 - An illustration suitable for an article about ISO 20022. The scene should feature a modern, sleek representation of the ISO 20022 logo in the center. .webp
May 28, 2024

ISO 20022 Explained: A Comprehensive Guide for Financial Institution Managers

What is ISO 20022? How does it affect companies and institutions in the fintech and banking industry and how to prepare for its adoption? All explained in this article.

DALL·E 2024-05-22 20.55.08 - A detailed and high-quality DSLR photo of a person using a laptop to shop online, showing personalized product recommendations on the screen. The back.webp
May 16, 2024

Key AI Trends in E-commerce and Overview of AI integrations for E-commerce Platforms in 2024

Transform your e-commerce platform with AI tools for personalization, analytics, chatbots, search, and fraud detection. Boost sales and improve customer experiences.

eIDAS mark.png
May 09, 2024

Digital Identity and Payment Services in the EU in 2024: Key Updates

eIDAS 2.0 and PSD3 are set to enhance how digital identities and payment services are managed across the European Union in 2024. Here’s an overview of how each framework contributes to the digital landscape of the EU, what to expect, and how to prepare.

eIDAS 2 in fintech and open banking EU market.png
May 06, 2024

What is eIDAS 2.0 and EU Digital Identity Wallet and how will it change the EU digital market

Learn how eIDAS 2.0 and the EU Digital Identity Wallet will transform digital transactions and identity management across the European Union.

best large language models for ERP systems.png
March 31, 2024

Language Models Best Suited for Integration into ERPs

Four prominent large language models stand out for their compatibility and effectiveness in ERP system processes and automation. See what they are.

PSD3 in open banking Blocshop.png
April 23, 2024

PSD2 vs. PSD3: The Evolution of Payment Services Regulation

What is PSD3 in open banking? See how PSD3 compares to PSD2 and what should banks and fintech businesses do to ensure regulatory compliance in the EU market.

roro665_hands_working_with_a_laptop_in_a_modern_office_there_is_20dca307-c993-4539-99d7-fd5ca264248c.png
April 14, 2024

Enhancing ERP Systems with AI Chatbots

Explore how AI chatbots can transform ERP systems, enhancing efficiency, decision-making, and user interaction.

eIDAS in fintech and open banking EU market.png
April 29, 2024

eIDAS: The regulation helping secure Europe's digital future

See how eIDAS enhances EU digital transactions with secure identity verification, supporting e-commerce and public services across Europe.

hybrid ERPs.png
March 21, 2024

Hybrid ERP: An Innovative Approach to Enterprise Resource Planning

Hybrid ERP is a blend of cloud and on-premise solutions. With expertise in both, Blocshop is uniquely positioned to help you with hybrid ERP development and implementation.

0-4 cover.png
October 03, 2023

IT Staffing: Individual Hiring vs. Specialized Developer Teams

Should you hire individual developers or go for a specialized, custom-built developer team?

chatgpt-35-limitations.jpg
July 17, 2023

ChatGPT-3.5: An Overview and Limitations

In this article, we'll take a closer look at the capabilities and limitations of ChatGPT-3.5, providing you with a comprehensive overview of what it can do and what its boundaries are. So, let's delve into the inner workings of this large language model.