Great news – you have an idea for a game-changing finance app. Or maybe, like many businesses, you’re expanding your digital banking service offerings. Either way, market demands are driving you toward one or more fintech software development projects.
But your in-house IT team is already up to their eyebrows running your day-to-day business.
It doesn’t make sense to hire more FTEs for a relatively short-term project, especially when there’s a shortage of skilled workers in software development. Not to mention that the hiring process is long and expensive, and there’s no guarantee that your new employee is going to be a cultural fit.
Adding a project of this size to an already busy in-house IT team’s to-do list will probably mean you have to sacrifice a priority deliverable or two. If you pile a complex fintech project on an already overburdened team, you risk creating a perfect storm of missed deliverables, unhappy employees, and unsatisfied internal/external clients.
What you want is to have a dedicated team of fintech-focused developers available to help you quickly, thoroughly, and efficiently bring your vision to life so you can grow your offerings and compete (and win) in the marketplace.
Outsourcing fintech software development is a smart choice for a number of reasons, but particularly when you need to preserve your employees’ ability to focus on work they enjoy without creating a backlog of work.
What should you look for in an outsourced software development provider?
Most people start with cost, probably because managing costs/keeping costs down is part of the motivation for outsourcing in the first place. According to the Deloitte Global Outsourcing Survey 2020, nearly two-thirds (70%) of respondents claimed cost reduction as a primary reason for outsourcing. There are, however, other important criteria to consider.
Look for a developer whose work is focused solely on the financial services industry. Even if a developer’s work gets outstanding reviews, if they haven’t worked in fintech, take time to get a personal recommendation before kicking off your project.
In both the fintech and financial services industries, experience matters. Look at the developer’s project portfolio and ask for contact information for past clients. Speak to them directly and ask about capabilities and quality – but also ask about the developer’s work ethic, their value-add to the project, and their ability to collaborate with in-house team members.
What’s the difference between onsite and onshore?
In a nutshell, onsite developer support is like working with a temp agency. You contract with a developer to supply support on location. Since most onshore and offshore outsourcing is done remotely, the biggest benefit is the “butts in seats” factor. You will have human beings on-site for face-to-face collaboration. There’s the potential for greater oversight when you have an onsite resource. And, although you provide equipment and wages, you don’t have to provide benefits like insurance or withhold taxes. Plus, if you need to scale down for a week or two, you’re not losing money on employees who aren’t there - you only pay when employees are needed.
Onshore developer support is also known as Lower Cost Domestic (LCD) outsourcing, rural shore, or Core10’s model, Hereshore™. It’s when the client company and the outsourcing provider are located in the same country. Hereshore/rural shore source talent from second or third-tier city centers or rural/underserved communities, where the cost of living is considerably lower and talent/skill is high. Local talent is more readily available for real-time discussions since they work within similar (if not the same) time zones and working hours. Hereshoring also increases the likelihood of easier communication and fewer misunderstandings due to language barriers. Comparatively speaking, the costs of the Hereshore model are lower than onsite or offshore outsourcing, which is always a goal.
It's no surprise that we’re huge proponents of Hereshore. We’ve found it to be a mutually beneficial business model that allows us not only to grow our clients’ businesses but the communities we both live in and serve.
Find the resource that's right for you
Ultimately, we want to help you find the best resource for your business, so you can compete and thrive. That’s why we developed a free eBook that covers pros and cons of each outsourcing model, key capabilities to look for in a developer partner, and much more. Download it here.
Whether you’re curious about outsourcing fintech software development or you have a concern about digital banking, Core10 is your go-to resource. What’s your question? We can help.