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Global reach, competitive edge: American businesses’ IT outsourcing strategies explained

Software outsourcing has long since been associated with cost savings and overhead reduction. While this is true, the dynamic is now shifting towards one that is more strategic in nature. In other words, the role that software outsourcing companies now play in the digital transformation strategies of US businesses is more of a partner that has an executive-level opinion, rather than just an operational one.

As AI dominates business automation and intelligent analytics, customers are spoilt for choice due to highly saturated markets, and compliance obligations increase year on year, software development now needs to undertake more responsibilities than well, just simply building, maintaining and securing software.

Which is why in this article, we dive deep into how custom software development companies are an integral part of the digital transformation strategies of numerous US businesses, both tech and non-tech. As a US business leader or manager, if any of these variables resonate with you, learn how you can also speak to your software development outsourcing partner on next steps, and what you can do to improve your digital transformation strategy.

For US businesses looking for a software development partner that combines world-class expertise with the cost efficiency of offshoring, EFutures is here to help!

From staff augmentation to hiring dedicated teams, we cater to core software development, cloud management, AI and even cybersecurity, to give your business the transformational leverage it deserves to stay ahead of the competition.

Contact us today, for a free and no-obligation business assessment.

Access the best talent, without any geographical constraints

With software outsourcing now being more than just a means of saving money, software development companies have since expanded towards offering services that are more strategic and executive level. As a result, specialists, especially those that have expertise in a specific domain or industry, are now sourced by software development companies, for placements within their clients’ teams.

In many cases, such experts are always available on standby, with varying levels of commitment. Need a UI/UX strategist to receive feedback on some wireframes? Feel free to hire them for this one task alone. Or, sign a contract for a longer period, if the situation calls for it. With such flexibility, businesses in the US can source highly skilled talent without downtime, while staying cognizant of their timeframes and budgets.

The benefits of hiring experts doesn’t just stay confined to flexibility; it also extends over to hiring the best, regardless of where they are located. With most software outsourcing companies based outside of the US, their talent is also international. If companies were to hire locally, they would be restricted to talent that is available within the region (and the country, at most). If hiring from overseas, this would require immigration formalities and migration assistance. All of this becomes a non-issue, when it comes to hiring technology experts via a software outsourcing company.

But what if these internationally sourced experts are needed in person, for collaboration? Nearshoring is always an option for such situations – and the best IT outsourcing companies are able to facilitate this. For example, EFutures, while being a top software and AI development outsourcing company in Sri Lanka, caters to its US clientele via its regional office in New York. So if you are in need of in-person collaboration, make sure you are partnered with a software outsourcing company that can arrange for this, whether it’s for the near or distant future.

Keep operations continuing - round the clock

Another reason why many US businesses prefer to outsource their software and AI development objectives besides cost savings, is to keep operations continuing on a round the clock basis. At this point, the difference of time zones is actually used to one’s favor; when the US is asleep, productivity continues as the day progresses halfway across the world, where offshored teams are based.

In turn, such time zone differences become an advantage, instead of the chronic disadvantage they were perceived to be for software offshoring, decades ago. Enabling round the clock business continuity such as this creates turnarounds that are as short as 24 hours long; as business owners/leaders/managers in the US raise an issue, offshore teams wake up to it and resolve it within their work day. The result? A resolved issue once US teams wake up the next day.

Of course, there are always exceptions: some issues may be more complex, requiring longer discussions which can lead to teams meeting virtually earlier or later during their regular workday. Such incidents are part and parcel, and while they may cause delays in resolution, they can still resolve comparatively faster than otherwise conventional teams working within a single time zone only.

A pathway to expand into markets outside of the US

Software outsourcing, when done strategically, becomes an operation that takes care of more than just software and application development. It can serve as a lever of sorts to also expand into overseas markets, especially when you are completely new to international business.

Here are some ways that your software outsourcing partner can collaborate with you from the standpoint of strategic business expansion:

• Having a software research and development center where your software outsourcing partner is based. For conducting surveys and other research to understand local customer preferences, along with the development of beta versions for testing.
• Hiring experts that go beyond software design, development and testing. Many leading software outsourcing companies today can also help businesses in the US source and hire experts for SEO, marketing and even PR. These roles are dependent on products and services built by software engineering teams, so they’re bound to be tied at the hip as it relates to development and subsequent marketing.
• Assisting with local laws and compliance obligations – especially when it comes to obtaining, storing and processing customer and financial data. Again, your software outsourcing partner, typically via staff augmentation, may be able to connect you with local compliance and audit experts for this purpose. However, if they aren’t able to do so, they can still help with valuable local recommendations of other organisations that can undertake such responsibilities.

In a nutshell, a truly competent, versatile, and trustworthy software outsourcing company will be able to tackle fluctuations in responsibilities, changes in customer preferences, budget tweaks, and even policy updates when your US based business ventures into new territory.

So even if your software outsourcing partner cannot facilitate R&D centers and other business experts, they should still be capable enough to assimilate with new teams, to make deliveries possible.

Conclusion and key takeaways

Software and application development outsourcing for US businesses isn’t just about saving money on overheads, equipment and physical space. It’s now more of a strategic move that can actually fetch you better quality resources, compared to having a locally based in-house team alone. This is especially the case for US businesses that already have a foreign presence, or are looking to expand internationally all together.

Through their internationally based software outsourcing partners, businesses in the US have access to world-class experts, without distance ever being a hindrance. What’s more, they can also help source and place experts that go hand-in-hand with taking your product to market, such as SEO, digital marketing, lead generation, and even compliance specialists.

Maintaining 24-hour business continuity is another strategic advantage; have teams outside the US continue with execution and issue resolution while your teams at home are asleep, to encourage faster turnarounds. As with any partnership, though, thorough vetting needs to be carried out for prospective software outsourcing companies to ensure you are choosing an agency that is attuned to the needs and nuances of your business.

Before choosing a software outsourcing partner in the United States that can commit to the above strategic approaches for your business, it is important to understand the following:

• Their presence both in and outside of the United States: Have they served US clients in the past, and continue to serve them today? Do they have nearshoring arrangements available, in case you need to collaborate in person?
• Do their specialists have a positive track record of assimilating well across work arrangements that involve multiple time zones, as well as collaborating with teams across the world, and not just the United States?
• Is their offshore team able to follow your calendar? This means that they forgo holidays in their country, to maintain business continuity. Following regional and federal US calendars isn’t something all software offshoring companies do, so it is important to have this clarified beforehand.

Answering these questions (and any others that surface in relation to these) shall be ultimate takeaways for your teams to determine whether you have the right partner at your disposal. For completely new partnerships, it is also recommended to start with smaller, bite-sized projects that feature a shorter contractual commitment.

Once results are positive and as expected, extend contracts for larger projects, so you mitigate losses and maximize your chances of success.