#development, #outsourcing, #product
26 May 2021
Julianna Sykutera

Outsourced Product Development: IT corporation vs boutique Software House

IT project outsourcing is becoming increasingly common for startups, large companies in need of software development services, or even for companies with in-house IT developers. Whether for budgetary reasons, lack of specific expertise, or simply not enough time for the internal team to handle – outsourced product development is the go-to option for many businesses. 

When deciding where to outsource, companies are faced with a decision: large IT corporation or small boutique software house? Is bigger always better? Or can smaller companies offer a more personalized approach to your problem? In this article, we will discuss what benefits both options offer, and what things you should pay attention to when making your final choice. 

Outsourcing to an IT corporation

Large software consultancies are usually well established brands with an extensive client base. They are generally thought of as the “safe” alternative, as their reputation speaks for itself. 

Pros

  • Better infrastructure. Large corporations generally have the capital that affords the latest and best technology available. 
  • Access to resources. They can easily upscale resources whenever needed.
  • Security. These companies have strict guidelines surrounding project security and data protection. 
  • Well documented procedures. Large developers have rigorous rules and procedures for product development, and the same are meticulously documented at every stage.
  • Wide range of know-how. IT consultancies are usually not focused only on one area; rather they have experts in various fields to offer a greater level of expertise to clients. 
  • Reliable. Can be counted on to deliver a successful project within the set deadline.

Cons

  • Time-consuming. Following protocols regarding protection and documentation can be slow and tedious for both sides; slow to start the project.
  • Expensive. Reputed companies will charge not just for their services, but for their brand as well. 
  • Lack of flexibility. Large companies can have a difficult time adapting to changes in the project and generally lack a customized approach. 
  • Inadequate communication. The client’s only point of contact is the team leader, giving the client limited opportunities for deeper involvement and management of the progress.

Outsourcing to a boutique software house

Boutique software houses are small IT development companies with up to 100 employees which are usually specialized in a specific business or technology. One of the main benefits which has drawn businesses to small software houses is the price point. They are much cheaper than larger well-known companies, making them very attractive to companies with lower budgets or those looking to start with an MVP. But it’s not just the competitive cost that makes customers form long-lasting relationships with boutique software houses! What are the other advantages?

Customized Solutions 

Small software companies usually use an agile approach to product development. This allows for greater flexibility which lets the client make changes and adjustments throughout the entire development process! This means that the developers don’t use a cookie-cutter code and come up with the same product in a different packaging. Rather, the development team listens to the requirements and wishes of the client, and aims to bring that vision to life. No need to make compromises!

Communication practices

Effective communication is crucial for the success of the project. Primarily between team members, all of whom have different tasks, but need to collaborate and communicate their progress at every step. This close cooperation between developers fosters good and intimate relationships which are much more difficult to find in larger corporations. Due to the small number of employees, it’s very likely that all developers have worked with each other extensively, thus further improving interpersonal team communication practices. Boutique software houses also put great emphasis on communication with the customer – not just with the project manager, but with all the developers and team members!

Efficiency

Smaller companies don’t have so much red tape to circumvent to get things done. The project development can be ready to start in days, not weeks or months. The flexible work dynamic coupled with the high level of client – development team communication not only saves time but also makes the whole process more efficient. Decisions are made faster and can be implemented more rapidly. Finally, it is in the company’s best interest to finish the project as soon as possible, so the team can move on to the next one!

Customer dedication

Boutique software houses usually don’t have a lengthy client list, making every customer equally important. It is in their best interest to provide the best service possible! Through a more relationship-driven rather than contractual cooperation, the client ends up satisfied not only with the final result, but also the entire project execution. Therefore, it is more likely that the project completion will produce a successful product along with a long-term relationship between the client and company.

Outsourced product development – Conclusion

Many companies have already recognized the benefits of working with boutique software houses, shown by the growing trend to outsource software development to Poland and other global IT hotspots. Naturally, all the aspects detailed above need to be considered before making the final decision of where to outsource. But ask yourself this? Will a corporation really be passionate about your project? Yes, you’ll get a product that works. But, smaller companies have less client turnover, and therefore value their clients much more. You will be paying less money without sacrificing quality. Finally, they prioritize the customer and aim to share your vision and values, and that is reflected in the final product.

Take a look at how we deliver projects in Redvike!

Interested? - let us know ☕
[email protected] Get Estimation