Why outsourcing software development is a good idea

Small local agency

Business owners sometimes worry that smaller digital product partners won’t have the expertise or knowledge to support them as their business grows. However, if you do your research and choose a reputable partner with a proven track record of success, the benefits should outweigh the risks.

One significant advantage is the shared business culture which facilitates a deep understanding of expectations and goals. The ability for your team to physically come into the office, or vice versa creates a sense of unity and makes collaboration much more effective and enjoyable. This approach ensures that you are not just another client but are treated with the seriousness your project deserves. The agency becomes an extension of your team, invested in your business and your success.

Unlike larger digital agencies, the objective of a local team is not centered on maximising revenue. These agencies often bring more to the table than just software development; they contribute to strategic planning and are committed to growing your business. The trust factor is key here, as you can rely on a local agency to prioritise your needs and provide a high level of specific expertise.

Furthermore, communication is a lot more cohesive with a local agency, which enhances the overall project experience. We can all remember how a certain pandemic disrupted our ways of working and how grateful we were to be able to meet in person again. The ability to engage in face-to-face interactions helps build strong, fruitful relationships and ensures your vision is clearly understood and executed.

Despite these advantages, working with a smaller agency is not without its challenges. Limited scalability can be a concern, as they may not have the resources to accommodate rapid expansion. Additionally, the proximity that facilitates collaboration could also mean higher costs compared to offshore options.

If you want to find out how Miyagami overcomes these challenges, contact our team today. Or better still, let’s meet for a coffee!

You can also read about how we deliver lean digital transformation strategies for SMEs.

Large digital agency

Large agencies may seem like the perfect solution to all your digital challenges, offering a wide range of in-house expertise and a tempting pricing structure. This breadth of services can be enticing, especially if your project is complex and requires diverse skill sets.

Larger agencies usually invest in the latest design tools and technologies, which can lead to more innovative and efficient design processes, resulting in a high-quality end product. They may also have a global presence or the ability to collaborate with teams worldwide which is great for projects that require international perspectives, access to a global talent pool, or coordination across different time zones.

However, before you sign on the bottom line, you need to check that the agency won’t be outsourcing any of the project tasks. This creates a complex web of dependencies and muddies the waters of accountability.

Furthermore, you might find your modest size makes you a low priority and the absence of a dedicated contact person can lead to confusion and frustration, as different people handle various aspects of the project.

As we mentioned, accountability can be a concern in larger agencies, particularly when tasks are outsourced. This lack of oversight can result in misinterpretation of requirements, leading to extended development timelines and increased costs in the long run.

Making sure your digital product answers your users' needs and grows your business isn’t easy. Find out more about the impact of design on your product-market fit .

Offshore (remote) agency

With offshore or remote agencies you aren’t only not in it together, you may not even be in the same continent. Opting for a larger international agency might seem like a cost-effective solution initially, but it often comes with a significant set of challenges: particularly when you are working remotely. What started as tempting cost savings may be overshadowed by longer development cycles, leading to frustration and wasted time and money. Building the Minimum Viable Product (MVP) twice due to misinterpretations can be a significant setback.

Additionally, not being able to have face-to-face meetings and the absence of physical visits can stop the agency from getting a genuine understanding of the company and its people. Language barriers and cultural disparities can also lead to miscommunications and impact the overall project outcome.

Transparency becomes a concern when working with remote agencies as the lack of connection makes it challenging to gauge progress. Additionally, offshore agencies may struggle to align with the client’s cultural nuances and long-term strategies.

Find out more about how to streamline the process from idea to MVP.

As you can see, choosing the right outsourcing model for digital product development requires careful consideration of the specific needs and priorities of your business. While each option has its merits, it is essential to weigh the pros and cons to make an informed decision that aligns with your goals and vision. Whether it's the intimacy of a local agency, the comprehensive offerings of a large agency, or the cost-effectiveness of an offshore partner, the key is finding the perfect balance for your unique requirements. If you would like to find out how our small but perfectly formed team can help your business get a competitive edge, contact us today.