Why leading tech companies are opting for IT outsourcing companies in the USA?

Over the last couple of years, we have been seeing a spike in economic uncertainty and turmoil. Similar trends have been observed with major tech companies like Meta, Twitter, and Amazon announcing layoffs. On 26th January 2024, mint published that the US-based cloud software company, Salesforce will be laying off around 700 employees. As per the Challenger Report, tech industry layoffs skyrocketed by 649% last year which has not been seen since the bursting of the dot-com bubble over 20 years ago.

These are concerning numbers not just for the tech companies but for employees too. Some reasons behind this trend are high inflation, pandemic over hiring, Silicon Valley bank collapse, etc. Due to all these reasons, the tech industry's growth slowed down as stated by the CEOs but to pick up the pace, many of the tech companies in the US have moved toward outsourcing their IT projects.

IT outsourcing is an effective strategy for tech companies to reduce costs and remain operational in difficult economic times. In this article, we will further discuss the advantages of outsourcing and how you can choose top IT outsourcing companies in the USA for your needs.

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What is IT outsourcing and why you should give it a chance? 

IT outsourcing is the handing over of software development to a third party with experienced professionals under a signed contract. Outsourcing has become a go-to for every other tech company now, not just the startups but big giants such as Google and Microsoft too. This is because tech companies were able to get software developed by the top IT project outsourcing companies at an affordable rate in half the time. This means more money is invested in other aspects of the business.

It has been estimated that the IT outsourcing industry will reach $525 billion by 2030 and the most demanded service has been cloud computing as every tech company wants to become cloud first. These numbers indicate that tech companies are much more comfortable with outsourcing and place their trust in them due to a sense of security. 

We understand that no matter how promising these stats are, a comprehensive discussion is required to understand your business and its needs, this is why we offer a free 30-minute consultation call with our experts. 

Why outsourcing your software needs trump in-house teams during tough times?

During these times of economic uncertainty, outsourcing software development and IT needs can provide vital cost savings and flexibility for tech companies. By leveraging IT outsourcing companies, tech companies can stay focused on core strengths. Though there is an option to recruit an in-house team, the time and budget required to hire, train and retain employees might not be favourable for you.

Let’s look at some of the reasons why outsourcing might be the right choice for you.

1. Outsourcing to offshore or nearshore IT vendors can significantly reduce salary costs compared to full-time in-house developers in high-cost tech. When opting for an in-house team, the hiring process takes a lot of time due to interviewing the candidates and training them which can be extremely hefty.
2. IT outsourcing also opens access to niche technical skills or expertise that may be hard and more expensive to find. While in-house teams may lack experience in newer languages or frameworks, outsourced talent can easily fill up the gaps.
3. In-house teams offer less flexibility to scale up and down whereas outsourced IT resources give companies the needed agility to expand or contract their teams to match workload and budgets. 
4. By outsourcing your software development needs, you can dedicate your focus to core products and competencies without exhausting internal resources on supplementary software needs.
   

Connect with our experts to evaluate outsourcing benefits for your business.

If you too want to leverage tech outsourcing look out for these top 5 IT outsourcing companies in the USA.

Top 5 IT outsourcing companies in the USA

When looking for a reputable IT outsourcing partner in the United States, some leading options are included below.

1. Innowise Group is known for its expertise in custom software development and dedicated development teams.
   
2. Attract Group offers strong capabilities in web and mobile app development.
   
3. GroRapid Labs has extensive experience building SaaS platforms and products.
   
4. Saigon Technology provides scalable dedicated developer teams with expertise in the latest tech stacks.
   
5. BairedDev delivers quality software engineering talent covering a wide range of programming languages and frameworks.

These top IT outsourcing companies in the USA have proven track records and skills to meet the software development and IT needs of tech firms and enterprises.

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Key benefits of outsourcing for tech companies

Outsourcing can provide immense strategic value to tech companies looking to build quality software within budget, especially during difficult economic times. By partnering with a reputable outsourcing provider, you can access some of the most crucial benefits which will help you drive efficiency, and remain focused on core strengths.

1. Access to talent and skills

Outsourcing gives you access to experienced managers, engineers, and specialists with niche skills. This is why 3 out of 5 tech companies outsource app development. This saves you time instead of competing for expensive and rare talent. You can quickly grow your team with the expertise you need for your projects.

2. Cost savings

Outsourcing saves significant costs compared to hiring full-time in-house staff. You avoid expenses of training and turnover. Salaries for US tech staff are 50-60% more than qualified overseas talent. Outsourcing makes costs flexible so you can adjust spending.

3. Flexibility and ability to scale

Outsourcing offers unmatched flexibility to scale up or down your team to match needs. The in-house staff offers less fluidity because scaling means hiring specialised talent or training the existing staff. This agility is valuable during changing markets.

4. Lower risk

Outsourcing reduces risks like losing knowledge if staff leave. Reliable partners minimise dependence on any one employee's skills. This lowers turnover risk. Outsourcing lets you stay focused on your most important activities and strengths. 

What are the types of functions commonly outsourced by tech companies

Tech companies often outsource certain business functions to full stack agencies to focus their resources on other areas. Some of the most commonly outsourced functions include the following.

• According to a study, 83% of IT leaders choose to outsource their cybersecurity needs along with tasks like quality testing, maintenance, updating old software, and security. This allows them to focus their own engineers on developing new and innovative products. They can also leverage lower-cost programming talent globally.
• Customer support and sales are major areas that get outsourced. Using offshore call centers cost-effectively handles routine questions, enabling 24/7 support worldwide.
• For marketing, content like documentation, training materials, blogs, and social media often gets outsourced to dedicated teams who specialise in these skills.
• Back office functions like human resources, legal, accounting, and procurement also get outsourced so tech companies can concentrate on technology goals

How to select the right IT outsourcing company?

Choosing the right IT outsourcing provider in the US is crucial for ensuring project success and a positive return on investment.

1. One of the most important factors is evaluating technical skills and domain expertise. Start with reviewing their years of experience providing relevant IT services, depth of talent pool, IT certifications, and success record delivering complex projects similar to yours.
2. Cultural fit and clear communication assess English proficiency levels if working cross-border and the ability to be transparent and responsive partners long-term.
3. Leading options include US-based outsourcing specialists like Innowise Group and GroRapid Labs which offer deep expertise across IT application development, cloud migrations, cybersecurity, and other areas.

The goal is to find a match that has the right mix of high-tech talents and similar values for smooth collaboration.

In uncertain times, technology companies need to stay nimble and devote energy to core innovations that matter most. Outsourcing helps achieve this by providing access to specialised skills on-demand, reducing costs efficiently by paying only for work delivered and enabling developer teams to scale fluidly based on changing workload needs. This agility frees up precious resources to continually develop and market the product instead of carrying the overhead of permanent staff. Partnering with the right provider helps in strategic value vital to prospering despite the turmoil. To explore if outsourcing is right for you and discuss options customised for your context, leverage our team's decades of experience. We are offering a free 30-minute call to assess potential benefits specific to your organisation and projects.