The ROI of Outsourcing Software Development

When it’s time to develop new technology applications, or enhance existing ones, companies generally have resourcing options that look like: 1) do it in house by hiring, recruiting or using existing in-house teams, or 2) outsource to a third-party.

In purely economic terms (keeping in mind that time is money), outsourcing software development makes a compelling case.

Of course, you don’t make decisions on economic terms alone. Quality is key, ease of engagement is critical, and outcomes rule. Our clients aren’t seeing quality problems – in fact, they are so pleased with the outcomes they are seeing in our teams, they are adding new EW resources almost weekly. Topic for another day.

But for the economic straw man, we’ve done a quick back-of-the-napkin ROI exercise for you, breaking down a “DIY” hire (in-house hiring initiative) compared to a Recruiter hire, and comparing both to an Efficiencyware engagement.

We look at cost savings and time savings. Simply put – if you lose money on hire, your business can probably make more (if not, that’s another problem!). However, none of us can make more time, and lost time means lost opportunity.

Here’s how the big picture breaks down:

Efficiencyware is:

• 35% more cost-effective than a DIY hire

• 44% more cost-effective than a Recruiter hire

• 75 DAYS FASTER to productive time vs. either DIY or Recruiter

We’d love for you to download our ROI Calculator and poke holes in our assumptions.