IT Outsourcing

5 Benefits of IT Outsourcing You Need to Know

 

The benefits of IT Outsourcing are undoubtedly one of the most juicy reasons in any outsourcing decision. But what are the deciding factors that can drive one business owner into implementing IT Outsourcing? Let’s find out more about the Top 5 IT Outsourcing benefits that you need to know here.

5 Juicy Benefits of IT Outsourcing

1. Lower cost for your project

Unquestionably, the first advantage of IT outsourcing is cost reduction. As despite the amount of money and time that you need to spend on one project/application varies, it will definitely cost you quite a lot to put a fully functioning and bug-free application online.

Under the circumstance of the global economic market, many executives now prioritize their budgets, meaning that they would want to look for the most cost-effective solutions. Henceforth, if you put an in-house team, which can cost millions of dollars to build and maintain, and an outsourced team, which is 30-50% less costly on the table, the executives are leaning towards IT Outsourcing.

Look at this example, and you’ll understand what we’re trying to illustrate here. According to an UK talent reportit costs you $55,000/year to hire an average Java developer in the United Kingdom, and the number even reaches $90,000/year for an experienced one.

 

cost reduction benefit of it outsourcing

Benefits of IT outsourcing – Cost reduction

 

In contrast, the equivalent job in the Vietnam IT market would only cost you approximately $10,000. Looking at these numbers, you can see the huge gap between the talents from two different places. However, if you look closer into how the Java developers in Vietnam code and communicate, you will see no difference, at least in terms of professional knowledge.

So, what we’re trying to say here is that you will be able to hire a fully capable Java developer in Vietnam at a much lower price. The saved amount of money can be used in other investments within your projects.

Besides the lower salary, your business can save a fortune on the recruitment agency fee and management costs. No employer branding is needed, no costly marketing campaigns and no uncalled-for managing expenses.

Read more: How to estimate IT Outsourcing Cost

2. Higher chance to hire in-demand tech talents

What are the deciding factors for a high-profile software developer when they choose between companies?

According to a survey from TopCV Vietnam, 57,9% of the participants stated that they are concerned with how interesting it is to work in a company, while 48,7% emphasize the importance of the company’s tech stack. Both of these features can be found in big enterprises or IT-majored companies. But how about the small-to-mid-size companies that have no experience in digitalization and technologies? How are they gonna find the most suitable IT talents for their tech projects if they have no reputation?

These questions can be answered with IT Outsourcing advantages. With IT Outsourcing, you don’t have to worry about IT recruitment, as it is all taken care of by the vendors. These vendors have their tactics to attract, recruit, manage and retain tech talents. With them doing this for your business, you can save a lot of time while still having great access to their IT talent pool.

3. Quick time-to-market

Customers’ unquenchable desire for the most up-to-date features, corporate growth targets, shorter life cycles, and senior management pressure all contribute to speed-to-market. Many consumers demand a continuous set of upgraded features on an annual cadence due to the amazing velocity of innovation in mobile handset devices.

 

Benefits of IT Outsourcing - Quick time to market

Benefits of IT Outsourcing – Quick time to market

 

When companies fail to reach their time to market targets, they lose money as well. A product that is six months late to market makes 33 percent less profit over five years, according to classic research by McKinsey & Co; if it is released on time but is 50 percent over budget, profits are only decreased by roughly 4%.

In the B2C software business, technology companies frequently employ and prosper with the concept of a Minimum Viable Product (MVP). Although this method entails some risk in terms of client satisfaction, it also allows the team to move rapidly and shorten the time to market by releasing a version with only the most essential functionality.

But how to you obtain quick time-to-market if you are still tangled with hiring and training talents? The answer is IT Outsourcing, as this approach helps you hire very quickly, and these hires barely need any training in the industry and technologies.

4. Flexibility & agility

Businesses grow and shrink at different times. It is widely recognized that these companies must be able to respond to these developments by adopting a flexible and scalable approach to their extended operations as well as their main business. As a result, it’s critical that your IT outsourcing partner can match and react to these changes in order to meet demand.

 

IT Outsourcing benefits - Flexibility

Benefits of IT Outsourcing – Flexibility

 

Businesses can adjust to shifting priorities and requirements because to this flexibility. Here are some reasons why IT outsourcing is critical to your business:

    • The outsourcing team can adapt to your company’s goals.
    • The outsourcing team can change in internal operations and advancements.
    • You can make adjustments and recommendations to shift focus, especially in agile methodology.
    • You can flexibly scale up and down your outsourcing personnel but it’s not that easy to an internal IT team.

5. More focus on your core business

Many activities in the workplace can serve as a distraction from the primary goal of the company. When a result, as the burden grows, the essential activities of the business deteriorate, which is bad for the company and hinders its growth.

Businesses can benefit from IT outsourcing by delegating some tasks to third parties, eliminating opportunity costs of implementing non-core businesses, and allowing them to focus on their core competencies. Third parties play an important role here by obtaining the tasks and manage everything. When a company’s burden is excessive, outsourcing can be tremendously beneficial.

 

IT Outsourcing advantage - Focus on core business

Benefits of IT Outsourcing – Focus on core business

 

It’s been proven time and time again that focusing your time and attention on what you’re good at makes a lot more sense. If you run an education establishment, you should put your clients and teaching as your priority. But in order to elevate your service, you decide to develop an app that helps to learn. Instead of hiring a full-time and long-term team to work on the app, you should always outsource and update on the regular basis.

You will have more time to focus on the key things like inspiring employees and making profit by collaborating with an organization to take the lead and deliver your projects and products.

Reap the IT Outsourcing benefits with Lotus QA now

Lotus QA has the expertise and experience with IT services in many domains such as retail, food and beverage, healthcare, etc., making us one trustworthy and professional service provider for businesses wanting to implement IT outsourcing. When working with us, you will get access to many benefits of IT outsourcing, including:

  • High Security: LQA not only follows stringent procedures of ISO 27000:01 for optimal security and international standardized process but also flexibly adapts to clients’ requirements
  • Quality Human Resource: we ensure staff competency through strict rounds of interviews, on-job orientations, continuous learning & development for the most suitable QA staff.
  • Flexibility: We provide different working models to allow clients to choose or change the plan at any time.

Contact us for more support:

How to Ensure Quality in Software Development Outsourcing

The matter of how to ensure quality in software development outsourcing is one of the most important features that project managers need to address. As you work with an external party in software development outsourcing, you lose complete control over your project. In this case, several measures need to be taken into consideration to ensure the quality of the said project.

From a service provider’s perspective, Lotus Group has its own way of ensuring quality, which you might find useful in your project.

1. Have control over our human resources

Software development outsourcing, or IT outsourcing in general, is an emerging service as the world is shifting towards digital transformation. In this new field, the most famous service providers are those from the less-developed countries which have lower labor costs. 

However, soon their sources of IT workers become limited, as it is getting harder and harder to hire competent tech staff. To deal with this universal problem, Lotus Group plans to change our stance in the hiring markets. Instead of recruitment only, we want to be more proactive in providing IT talents to our clients. To do this, we have founded Lotus Academy – a training institution specializing in backend and frontend technologies for freshers/newbies in the IT industry. 

With the foundation of Lotus Academy, Lotus now can take advantage of the resourceful talent pool, hence providing the most competent and reasonably-priced tech staff. 

Technology training is in high demand, and the number of students in Lotus Academy will only rise in the future. And with the high number of students rolling in, Lotus can train them and let them take part in our projects. With careful observation and guidance from our experienced trainers, your project will be well-tended with care.

Besides the source from Lotus Academy, Lotus Group also has our connection with many other universities and colleges in Vietnam. These training institutions have a thorough training course with actual projects for the students to practice, which can be of great benefit for you.

2. Implement manual and automation test early

Technically speaking, the quality of one product/project relies on how you implement the testing process. If you follow the method of waterfall or even V-model, you leave the testing till the last minute, making the time-to-market longer than ever.

Instead of developing and testing at different times, you should combine regular testing and structured QA strategy in your software development life cycle to make sure that everything will be tested and fixed quickly.

In your testing process, manual testing and automation testing should be combined to catch the bugs that thinner testing strategies may have missed.

According to a study by Capers Jones, 85% of the bugs are made during the design and build stages of an SDLC, and some are even there before the first line of code is written.

By implementing manual and automation test early, you can work on how to fix these bugs before they can make their way to your releases, which will in turn ensure software quality and save you a lot of time.

3. Have clear communication methods and channels 

The first and most important question that every manager has about remote work communication best practices is about management. Management used to entail task allocation, monitoring, and administration, among other things. Managers can easily track cues to indicate communication issues and get involved in fixing them with a co-located team. A remote team, on the other hand, works off the screen, posing difficulties for managers.

Managers used to have physical and emotional contact with their employees, but now have little to no direct interaction with them. Managers are required to implement some of the tools and approaches to achieve remote work communication best practices from a place of easy-to-manage work platforms such as Skype or Excel spreadsheets.

For seamless communication, you have to set out clear communication methods and channels. How should reports be handled, how often should you call in for a meeting? These are the kinds of questions that you need to answer when you want to tackle the communication aspects of a software outsourcing project.

4. Use agile methodology (incremental and iterative)

Agile methodology has always been praised as one of the most effective software development methods there are in the field. Indeed, in agile project management, everything moves at a high speed, and testing is an integrated part of the project execution phase. 

This means that instead of processing the quality of different features separately, agile works with the overall quality of the final product. 

In Agile methodology, you will always be involved in the development process and can easily make changes if you wish to. To put in other words, Agile allows a greater level of flexibility which many businesses now want for their projects.

In addition, agile is an iterative process, and the team will inevitably have to learn to grow and improve their work overtime. And this can be of great advantage for you to ensure the highest quality on your project.

All of the above is what Lotus Group is applying to ensure a high-quality project for our clients. Besides all these, we also have other methods for different kinds of service. If you want to hear more about this, contact us:

News

Lotus Academy: A New Start for Lotus to Ensure High-quality Talents

Lotus Academy – As the talent pool for the IT industry is getting smaller and smaller, many businesses find it hard to find and attract talents to their companies, hence they have to seek help from the third party from other countries. However, this solution soon encounters issues as the human resources from those countries also reached a limit. The nagging question that service providers need to answer now is how to ensure a sustainable and stable source of talents for their clients.

At Lotus Group, we have this call figured out, all thanks to an initiative of Lotus Academy – a training facility for information technology specifically. At Lotus Academy, the students get the chance to learn and practice with many experts in the field, who will guide them, counsel them and lead them the right way.

 

The foundation of Lotus Academy

Lotus Quality Assurance and Lotus Technology Services have been the emerging destinations for any business that needs assistance in the IT industry. Besides providing top-notch IT services for a reasonable price, Lotus Group also stands out among other competitors in Vietnam as a place for top-tier IT talents. 

Our talents are built with great variety in terms of seniority and tech stack, giving our clients many choices of who to hire for their projects. The quality of our staff is also controlled through a system of skill development and continuous learning.

To take a further step in assuring the high-quality staff and the number of IT talents available for our clients, our BOD has decided to open Lotus Academy in 2021. This will be a destination to come for many freshers and tech graduates to experience on-job training and domain specifications. This project not only aids them, freshers, with basic knowledge and the necessary foundation for their future job but also gives them the opportunities to learn from the experience.

 

What makes Lotus Academy stand out

Lotus Academy’s model is not new in Vietnam, as many services providers now have their own training facilities. However, Lotus Academy still shows great potential as it has:

  • Well-designed syllabus and thorough courses that can provide students with comprehensive knowledge of the industry and technologies.
  • Experienced trainers and guides
  • On-job training with actual projects from many clients all around the world
  • Fundamental knowledge in Backend .NET/Java, and Frontend ReactJS/VueJS

Thanks to a resourceful source of IT talents from Lotus TS, we will be able to provide the best IT workers for our clients. If you want to discuss more about this, contact us via:

News

Happy New Year from Lotus

The new year is an excellent time to reorganize and work toward your life goals. It’s that time of year when we’re reminded that, even if we didn’t achieve enough in the previous year, there’s still a lot more to do in life, and new opportunities will undoubtedly present themselves in the next 365 days.

What Lotus aims at in 2022

2022 will be a very important milestone in deciding whether we could thrive to become one of the best IT outsourcing companies in Vietnam. In this year, strategic steps will be taken to achieve this goal:

  • The birth of Lotus Academy to strengthen our talent pool and human resources
  • The opening of many other services in the IT industry
  • The desire to scale our company to 1000 staff by the end of the year.

While the fight against the COVID-19 pandemic is not yet won, with a vaccine in sight, there is at least a faint light at the end of the tunnel—along with the hope that another train isn’t heading our way.

2021 will be the year of transition. Barring any unexpected catastrophes, individuals, businesses, and society can start to look forward to shaping their futures rather than just grinding through the present. The next normal is going to be different. It will not mean going back to the conditions that prevailed in 2019. Indeed, just as the terms “prewar” and “postwar” are commonly used to describe the 20th century, generations to come will likely discuss the pre-COVID-19 and post-COVID-19 eras.

During this hard time, Lotus stumbled upon many difficulties as we were struck with the second outburst of Covid-19 in Hanoi, resulting in most of our employees having to work from home. Despite all that, our staff has worked nonstop to ensure the highest quality possible in each and every of our delivery.

In this year of the Tiger, Lotus holds up great plans and great opportunities to thrive, making us the trusted partners of business in all over the world.

Lotusの2021年を振り返りましょう: 乗り越えた面倒と業績

Lotus QAは、2021年のあらゆる課題や困難を見事に撃退した数少ない企業の1つです。実際、2021年はLotusの多くの変化と成果を目の当たりにし、パンデミックの中での適応力と柔軟性を証明することができました。それでは、2021年にLotusがどのように発展したかを見ていきましょう。

1. 私たちが乗り越えたもの

COVID-19のパンデミックとの戦いはまだ勝利したとは言えませんが、ワクチンの目処が立ったことで、少なくともトンネルの終わりにかすかな光が見えています。

この間、LotusはハノイでCOVID-19の2度目の暴発に見舞われ、ほとんどの社員が自宅待機を余儀なくされるなど、さまざまな困難にぶつかった。そんな中でも、私たちスタッフは、ひとつひとつの納品物を最高の品質でお届けするために、絶え間なく努力を続けてきました。

 

2. 私たちが達成したこと

2021年、新たなビジョンと戦略的プラン、そしてスタッフの献身的な努力により、Lotusは不死鳥のように立ち上がり、成功を収めたと主張します。

売上は160万ドルに達し、2020年の2倍になりました。また、日本、アメリカ、中国、韓国など世界各国の42社のクライアントと172のプロジェクトを行いました。これは、2020年の実績と比較すると大きな数字です。

私たちの抱える問題やアチーブメント達成の詳細はこちら。

 

 

Lotus QAについて

Lotus QAは、小売、食品および飲料、ヘルスケアなどの多くのドメインでITサービスに関する専門知識と経験を持っており、オフショア開発を実施したい企業にとって信頼できるプロフェッショナルなサービスプロバイダーです。

  • 厳格なセキュリティ:Lotus QAは、ISO 27000:01の厳格な手順に従って、最適なセキュリティと国際標準化されたプロセスを実現するだけでなく、お客様の要件に柔軟に適応します。
  • 質の高い人材:Lotus QAのスタッフは入社の時からの厳格な面接、そして仕事上のオリエンテーション、継続的な学習と自己開発を通じた能力の高い人材です。
  • 柔軟性:お客様がいつでも計画を選択または変更できるように、さまざまな作業モデルを提供しています。

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