Fintech Software Development: How to Outsource
As the financial technology industry is growing like wildflowers, it’s forcing fintech companies to adapt and innovate quickly. Banking and financial institutions use digital solutions to succeed in this competitive market and rely on fintech businesses to execute creative software fast to keep them in the game.
Fintech businesses are embracing rapid growth, but many realize they must develop software as fast as lightning to meet the demands. Many fintech companies find they don’t have the staff or capital to build all the technology in-house from scratch. Outsourcing software development is the solution!
Let’s go over the benefits of outsourcing development for your fintech business so you can determine if it’s the right solution for you.
Benefits of Outsourcing Software Development
If you are a start-up or an established fintech business, you have probably come to a point where you need to decide to keep your software development in-house or outsource it. Many fintech business leaders are deciding to outsource software development as part of their rapid growth strategy.
Here are the benefits of fintech development outsourcing:
1. Innovation Speed
As the old saying goes, time is money, which is especially true for a fintech business trying to keep up with the demand for innovative development. When a fintech company outsources software development, it can deliver more digital solutions quickly.
When you outsource, you gain access to a third-party team of programmers with various skill levels so you can get more projects completed simultaneously with less effort on your end.
The success and competitive advantage of your fintech business depend on your ability to develop intelligent, innovative, and creative products fast and efficiently. Outsourcing allows you to source experienced developers quickly without the delays of recruiting.
2. Access to Higher Skill Levels
For many fintech businesses, especially startups, the high salaries that come with having the advanced skill levels needed to develop innovative technology aren’t always on the budget. Some fintech businesses settle for lower skill levels that can’t deliver what’s required in order to stand out.
When you outsource development for your fintech business, you gain access to various skill levels at a fraction of the cost. You utilize higher-level expertise only when you need it by outsourcing development – nothing more, nothing less.
3. Cost Savings
Cost savings is one of the top benefits that draws many fintech business leaders to outsourcing development. It’s not just high salaries for the developers that make it costly.
There are the additional overhead costs with office space, supplies and the high technology expenses when you keep development in-house.
When you outsource development, you lower your overhead and payroll expenses to improve your bottom line or invest in your business for company growth. Fintech businesses require specific expertise for different projects.
Outsourcing allows you to handpick the developers needed and only pay for what you need, which is a huge cost saving.
4. Save Time
Hiring top tech talent nowadays is no walk in the park. There’s definitely a need for additional experienced developers to meet current tech demands, especially in the rapidly growing fintech market.
If you choose to insource development for your fintech business, you should expect it will take some time for your human resources to recruit and onboard developers. Not to mention the delay that comes with developer turnover.
Due to the shortage, some companies have needed to settle for less experienced developers.
Fintech development outsourcing saves human resources time, and you hire an existing team of experienced developers to get started on your projects right away. Then as your fintech business grows, you have the team in place to scale with you without taking any of your time away to recruit.
5. Increased Productivity
When you outsource development for your fintech business, you have a development team that remains focused on developing creative software and technical solutions. If you choose to keep your development in-house, you may only be able to afford to staff one developer, which slows production. Then you have an in-house team working on other essential functions to maximize productivity.
Having specialized teams outsourced is an excellent strategy for fintech businesses to focus on other core functions, including improving your bottom line and company growth. Fintech business leaders pass the torch to third-party developers to create innovative software while they remain focused on what they do best – running their business.
6. Improved Flexibility
Fintech development outsourcing allows a lot of flexibility. You can choose to insource some of your development needs and outsource others that require a specific skill level. While some fintech business leaders may think outsourcing gives up control, that’s not necessarily the case.
The flexibility outsourcing provides the control of who does what in the hands of the fintech business leader. You may not have complete control over the minute details of each project, so you will need to put your trust in the developers you choose.
7. A Bad Seed
The truth is, not every employee you hire will be a good fit for your business. One bad seed can be toxic to your company culture and bring down the morale of the entire organization.
Imagine if your human resources team spent a lot of time and money headhunting and recruiting a developer-only to find they’re not a good fit for your company culture.
You can’t afford to let one toxic employee affect the attitudes of others, but can you afford to let the developer go, put the project on hold, and start the recruitment process all over again?
Fintech development outsourcing means the developers are third-party and work remotely, so they don’t directly intermingle with your internal staff. While it’s helpful, essentially, it’s not critical they fit with your company culture.
The beauty of fintech development outsourcing is you have a team on your side when you need it. There will be times you have less work than others. That’s not a problem when you outsource.
When you outsource development for your fintech business, you have the advantage of scaling your business with ease. As more projects come in the pipeline, you simply pass it to your outsourcing partner with a team of developers to get the job done successfully and quickly. Your business can scale up or down at any time without completely disrupting your processes.
9. Improved Quality
Disruptive fintech startups know they must deliver first-class quality work to dominate the industry which is the reason many outsource development. Outsourcing development to experienced professionals who understand the value of providing quality work means you will provide creative and innovative products to satisfy your clients’ needs.
Choosing a fintech development outsourcing provider with the knowledge and proven expertise means you receive improved quality and faster speed to market. Your clients will trust your ability to deliver top-notch products and will return for help with future projects.
10. Access to Technology
Fintech development outsourcing does not need to purchase costly technologies to get the job done. With an industry fueled by providing creative and innovative solutions, you must be equipped with the best equipment to deliver. Your outsourcing provider will acquire the modern technology needed to offer quality products and a seamless process.
Your fintech business saves a ton when outsourcing development by avoiding the high cost of purchasing and maintaining equipment needed for their developers to create innovative products.
You just enjoy the benefits of having an outsourcing partner with the top-notch technology required.
Best Practices for Outsourcing Development for Your Fintech Business
The truth is, many outsourcing partnerships have gone sour over time. Many times things fall apart due to poor communication. When outsourcing development for your fintech business, it’s critical to maintain excellent communication with the company.
When you initially discuss your needs with the outsourcing provider, it’s important to make your expectations clear to give the developers the best chance to deliver.
Give a thorough description of the features you want and how you want them to function and look. Keep in mind, the developers are experts, so it’s best to listen and take into consideration their inputs and ideas and make adjustments as you see fit.
With the strict compliance in the financial and banking institution, it’s critical you choose a provider who is knowledgeable in this department. You have a lot on the line and can’t afford to take any high risks.
You’ll also want to discuss completion dates for each fintech project to ensure it works for you before they get started. Having a clear understanding of an estimate of the cost to complete a job is essential, so there are no surprises in the end.
Some outsourcing development companies charge by the hour, and others charge a flat fee for each project.
When you choose a provider to outsource development for your fintech business, you’ll carefully review contracts first. Then you will have to understand how and when you will communicate and receive updates on the project.
Frustrations arise when communication is an issue. Ask which communication means they use and what project management tools they work with.
Working with the right fintech development outsourcing provider means whatever you can think up or dream up, they can make up. Forward-thinking developers provide you opportunities to disrupt the market by creating innovative products and solutions that will get everybody talking.
Outsourcing development for your fintech business is an excellent strategy to cut costs and scale your business. When you outsource, you gain access to top developers with extensive knowledge and expertise in creating innovative products to help you dominate the fintech market.
Fintech development outsourcing allows you to increase productivity by having an all-hands-on-deck approach to ensure you’re delivering maximum volume while maintaining high-quality standards. While there are many benefits to outsourcing, it’s essential to know not all providers are created equal. Ensure the provider you choose is right for your company and project.
Are you ready to jump on the bandwagon and reap the sweet regards of outsourcing development for your fintech business? If so, contact Awesome CX today!
Global FinTech Market Report 2021: Market was Valued at $7301.78 Billion in 2020 – Forecast to 2026 | Yahoo Finance
How Much Does an Employee Cost You? | SBA.Gov
The Tech Talent War Has No End In Sight. Here’s What You Need To Know | Forbes