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Outsourcing costs: Efficiency through savings

Outsourcing can achieve substantial cost savings in overall IT costs. These
costs can be within the main cost items for IT companies. Or, in other
companies where the IT-department just supports the core business, not in
in the primary cost structure. However, these costs are always substantial
and difficult to manage. Although the desire is great to reduce IT costs, it is
often difficult to cut it in a targeted and effective way. Where is it possible
and where it’s not (anymore)?

Having software developed externally can result in substantial cost savings

Especially if you go into a long-term cooperation and apply partnership approach. Then your team and the provider’s one get to know each other well, they start to speak each other’s ‘language’ and even jointly develop this. In that case the outsourcing costs, and also the total costs will be a lot less. And outsourcing becomes a continuous tool for cost reduction.

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What should I think about software outsourcing cost reduction?

In outsourcing, the work is largely done outside the Netherlands. That saves a lot. In the outsourcing pricing model of E-ngineers the hourly rates vary from about € 20 for a junior developer to € 46 for a senior project manager. The difference with the hiring of Western European specialists is quickly more than 50%. At the beginning of a partnership, the costs are relatively higher (more consultation, frequent visits). But after 4 to 6 months, the 50% savings are daily food.

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E-ngineers delivers the desired quality in addition to lower costs

As indicated above, the savings in costs for software development can be considerable. But only saving and then mediocre quality of software? Well no, I hear you think, that does not deliver anything on the balance. In addition to lower costs, the quality must be at least what you are used to and if possible even more. Then not only the price of your software development goes down, but also the quality up!

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Outsourcing costs: efficiency through savings

In the end, you save more than 50% of your local costs by outsourcing software development at a company like E-ngineers. With software of such a quality that you can ask your customers for the same price as if you had developed them with the local (expensive) hired employees.

But do not count yourself too rich. To really make money with software development outsourcing you should not limit yourself to an occasional project. In the initial phase you will have to spend more time yourself (and we too). Time that is mainly used to fine-tune cooperation and contact between you and our people. But with the effectiveness you achieve with this, a cost reduction of 50% is very real.

How to do software development outsourcing successfully?

Outsourcing regularly opens the doors to innovative solutions and often delivers operational savings. Software development outsourcing is increasingly the starting point of a long-term relationship with an IT partner that paves the way to continuous business innovation.

Want to learn more ?

How do you keep up with the growing demand for software?
What is important when outsourcing software development?
Where are your benefits if you use IT outsourcing?