How to cut costs when offshoring or outsourcing your web development
August 6, 2019
Outsourcing and offshoring your SMB web dev
Business owners have to constantly look for new ways to cut costs in order to stay competitive. In this way, businesses can invest the money and time they save in what counts.
When outsourcing your web development in order to cut costs, you must first prioritize what’s most important to your small business. As they say, nothing is free. If you don’t want to pay to ensure the best, you’ll pay in other ways.
Outsourcing and offshoring are praised as viable routes for SMBs. Here, we’ll build on the basis that you’ve tried offshoring and outsourcing options and aren’t satisfied with the cost savings that were promised to you during your research.
Of course, it’s not my job to tell you whether or not you should outsource your web development. That decision relies on your team, your strategies, and your goals. Yes, it’s possible to cut costs when outsourcing parts of your small business, particularly by investing in experts to avoid time loss, trial-and-error, and costs involved in hiring full-time staff.
But what, in terms of outsourcing web development, would you be paying for? Security, efficiency, user experience, and overall, time.
But the savings don’t stop there. Still, there are many outsourcing companies to choose from so it’s important to do in-depth research and to communicate among your team.
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Do you want to outsource your web development in order to save time and costs for your small business, and are willing to sacrifice the quality of work? Most likely, no. But yet, these assumptions plague outsourcing, and these sacrifices are made routinely.
So, how can your small business maintain quality, savings, and timeliness when outsourcing and offshoring? Well, these benefits depend on what you hope to achieve.
Some outsourcing benefits
Ability to scale
When businesses are limited within their own faculties, they end up standing in the way of their own growth. Other businesses may overcompensate for a lack of web development knowledge by investing in the wrong solutions. There are many web dev solutions, but it’s not one size fits all.
For those businesses with a need for affordable and expert web development that they won’t have to manage, outsourcing to an agency can help fill in the knowledge gaps, and remove the pressure of blindly managing a team.
More important than the fit is the ability for that company to adjust to your business’ growth. Aside from website design, web development isn’t really a one-time job. Web developers need to connect with your marketing strategy and make changes based on analytics and traffic in order to effectively balance user experience and efficiency.
Tax benefits when outsourcing and offshoring
There’s been a lot of flack against tax benefits for offshore outsourcing, particularly in the form of a bill that was introduced in March involving the No Tax Breaks for Outsourcing Act.
Although it’s said that the bill has a very low chance of being enacted, it’s still a huge concern among business owners. If the bill did pass, competition would adjust, and companies would be forced to find local solutions. These solutions have obvious benefits.
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How can you save money?
You save on rental fees in terms of business space. You’re paying for the talent. The service. The rest, including hiring, training (mostly), and employee benefits, are up to your outsourced partner.
Web development doesn’t always require a team (depending on size, goals, and interests). If you sort out these factors, you may realize you don’t need to hire an agency and can opt for a contractor(s).
Tips to optimize your spending when outsourcing web dev
Invest in affordable communication platforms
Web development definitely requires you to connect with your offshoring team or your out-of-house hires. In order to cut costs, you’ll need to invest in communication platforms that don’t drain the bank.
Slack, Asana, Google Hangouts, and Zoom are all great options to keep your team linked in and working toward the same goal.
Explore better options for wire transfers
Businesses that outsource get hurt by international payments.
When paying your outsourcing partners, you need an affordable payments solution that beats the bank (in a good way). Bank wires can destroy business relationships, and paper cheques are not efficient. Not anymore.
These days, there are many international and domestic payment options for B2B interactions that are designed to save businesses money. Veem is one, built with the goal of simplifying the complicated payments process.
Veem helps 100,000 businesses in over 90 countries send and receive wire transfers.
Additionally, pay your taxes online. Using online payments for the IRS allows you to keep track of your owings or “balance”. This way, you never fall behind.
How to pick the right outsourcing/offshoring company
No business owner wants to try out a bunch of dead-end partnerships. The purpose of outsourcing is not to keep jumping to different options, but to find an appropriate fit and settle.
What to avoid when looking for an outsourcing partner
Small businesses need to consider their vulnerability, but also their strengths when considering outsourcing options.
Some tasks aren’t supposed to be done in-house. If your small business doesn’t need a full-time team of web developers, then it might be best to hire someone external. Whether outsourcing to a domestic agency or remote employee, or offshore outsourcing (out of country), there’s a right fit for your small business.
Of course, there’s a chance that what you’re willing to outsource might be done quicker, better, and for less if done in-house. It’s important to research before committing. If you’re running low on time and energy (understandably), think about it this way: if you don’t invest in finding the best options now, you’ll suffer down the road, and then you’ll have to start all over again. A little short term pain is worth the long term gain.
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