How To Reduce Your Next Digital Development Cost by 70%?
Small companies often find it hard to compete effectively for a variety of reasons stemming from being unable to hire new workers, retain existing ones, lack of ideas, slow delivery of products and services, not able to increase wages competitively and above all, being unable to compete effectively with others.
While no one claimed that running your own company was going to be easy, the fact remains that now these small enterprises may be able to level the playing field and go toe to toe with the big guys through outsourcing their development.
Deloitte reveals that 31% of IT services have gone for outsourcing, and it will hold the same trend for coming few years.
While earlier on, the small companies would find it hard to even get a favorable mention in the local dailies, now thanks to social media, both small and medium sized companies have a way of getting the word out and attracting the right crowd, enabling them to grow further. Of course, it all depends on how effective their social media marketing strategy turns out to be!
But social media or not, these companies may want to review the points listed below and learn how to reduce development costs by a whopping 70% and start competing effectively with others for a larger share of the market.
One of the key challenges for these small enterprises is the creativity factor, that is, in getting the right ideas and getting the right team in place to take it to the next step in the lifecycle, and finally in getting to implement it. But here are a few reasons for why these companies should consider outsourcing as a valid business option and utilize the same to meet their current targets of reducing costs. That is why 26% outsources choose it to reduce their cost, according to KPMG.
- Crowd Sourcing
Crowdsourcing is fast turning out to be the great leveler, since it enables companies of all sizes to tap into the global working force and get the projects completed, ahead of schedule and even iron out tweaks and other issues, in short time. You may want to pay attention to a few facts listed below, as to why crowdsourcing works like a charm.
- • Nearly a whopping 80% of the world’s population is just discovering the internet for the first time; as a result, companies now have access to a very large talent pool that has more to offer in terms of labor and skill.
- • Companies find it efficient to streamline operation by outsourcing part or their entire project overseas, enabling them to concentrate on their core business.
- • You can outsource any task that can be handled remotely, from web design to setting up a coding team to test your product in real time.
- • But the icing on the cake for these companies is that they can outsource projects at one-tenth of what it would normally cost them, making it possible for these companies to put the extra money to good use.
It proves really cost effective, and according to Computer Economics, 92% organizations that outsource their disaster recovery have recorded lower costs.
- Tools for Communication and Outsourcing
There are varied platforms that these companies can use for outsourcing part of their project, and some of these are listed below:
- • Services platforms – These provide you with access to teams that are ready and equipped to take your project to the next step of the development lifecycle. You would still be required to assess each team, and see if they would be a good fit.
- • Competition platforms – These enable you to fish for ideas and even set up a competition, challenging various teams to complete the task. While a competition should enable you to assess various candidates and see if their profile and abilities are a good fit, it nevertheless requires that you remain engaged with them, till the project is done as per specs.
- • Ideas – There are more than few websites which provide ideas to entrepreneurs from all over the world and even others that provide solutions to any business related issues, from how to drum up more customers to how to market more effectively.
- • Crowdfunding – If you feel that your budget is constraining your outfit from expanding any further, perhaps it is the time that you applied to a few crowdfunding ventures, and approached them with an attractive and realistic business plan. Do note, crowd funding will get you the funds you need, but most expect a share of the company in turn. Remember, there’s no such thing as a “free lunch!”
While outsourcing works, it does pose several challenges from having to share proprietary information with strangers on the other side of the world to being able to communicate your vision, your idea and what you want effectively. The one way to combat this is by utilizing several online tools to retain ownership of your product or idea, to remaining in communication with the other team.
Basecamp is one such site, while it does have both free and premium memberships, it allows you to share and communicate proprietary information across to someone else across a secure platform. More importantly, the platform makes it possible for you to communicate and develop the product on it while retaining full ownership without running the risk of having your ideas or products being stolen.
It allows you to review the progress in real time as opposed to just getting an email notification a few hours later. And as for communication, the platform provides various tools, including a peer review as well as the ability to micromanage all tasks including the most important one, communication. It allows you to communicate with everyone else who is working on your project instantly.
There are other similar sites to basecamp; additionally, you can use tools such as Skype, Messenger, and Whatsapp to communicate with the other team instantly.
These are some of the ways by which you can bring down your development cost by a large margin, enabling you to move on to working on your core business and attracting more customers. The key here is to delegate tasks that take up too much of your time, get someone else to do it at lowered costs with no overheads to worry about and get it done in record time. And satisfaction comes guaranteed, with 89% clients expressing satisfaction with their outsourcing contracts (Whiteland Research).