Fintech Software Development Outsourcing: When It Works Best and How to Get Started
In 2018, investments in fintech reached $111.8 billion – more than double the 2017 figure. Major banks and other financial institutions are quickly recognizing the potential of new financial technology such as blockchain, investment robo-advisors, and mobile banking, among many other innovations of the past decade. Great ideas exist and new ones continue to sprout up every day, and this presents a serious problem for North American and West European fintech companies: a chronic lack of qualified developers.
Germany alone already has more than 82,000 vacancies waiting for IT specialists (up from 55,000 in 2017). This is just one example of why many fintech companies today increasingly rely on outsourced teams. Due to a combination of highly-skilled developers and affordable wages, Eastern Europe is the largest fintech outsourcing market today.
An outsourced development team can provide an affordable line of access to some of the most talented and specialized developers in the world. More so, the flexibility offered by a remote team can, in many ways, make it the ideal choice. In this article, we’ll cover the many situations where hiring an outside team can provide the best possible outcome for fintech companies interested in bringing new software and solutions to market.
When you want more time to focus on the core of your business and marketing
As competition is fierce in the fintech world, a great app cannot thrive solely on its merits. By outsourcing development to a reliable and experienced software team, you free up crucial time to get your business and promotion strategies in order. Focusing your internal team on the core of your business – creation of a sound model, enticing marketing campaigns, sales and customer acquisition can set the stage for your product’s success in the long-run.
And, don’t forget that getting the product developed is just part of the equation.
When you want to cut down the time to market of new features, updates, and additional products
Moving fast in the technology sector is pivotal to staying competitive. When a product launches, it is never truly in a finished state – the addition of new, relevant features as well as security updates are expected. You may even decide to launch spin-off products to build a portfolio of solutions for your customers.
Ongoing demands such as these are where an agile outsourced team can truly shine. Building a strong relationship over time with skilled fintech developers outside of your company can assure that ongoing development of your product is fast and considerably lower cost than it would be as an in-house job.
When you are worried a local team could spill your secrets but still need top-notch Intellectual Property protection
When working with a local team of developers, the risk of someone taking the idea and either creating it themselves or divulging it to a competitor on your local market is much higher. Outsourcing your software development abroad allows you to minimize that risk. But, you need to make sure that you work with a reputable development studio that specializes in working with companies just like yours. Those who have a reputation of working with companies like yours, often have it for a reason – they understand the importance of intellectual property rights – and actually respect them.
In fact, strong regulations are one of the main things that you should pay attention to when outsourcing your fintech project. Preferably, you should look at software developers located in countries with a strong IP protection, transparent judicial system, and where the business environment is mature enough that companies respect their partners – regardless of their location. An excellent example of all three are Easter European EU members such as Czech Republic or Poland.
When you don’t want or don’t have the capabilities to manage a team of developers
Your great ideas need a quick turnaround. Unless you are familiar with the many different languages, frameworks, and facets that your developers work with on a daily basis, it can feel overwhelming managing an internal team. Outsourcing companies are well equipped to handle large, complex projects with skilled developers and experienced project managers.
Some remote teams may specialize in the development of fintech software so that you can have the peace of mind that the job is being done right. And, usually, as the managers know the most common obstacles that they can come across, each stage of the project can get done much faster and with fewer issues arising along the way.
When you want to find a reliable team for long-term cooperation
Finding a reliable remote team is more than looking for someone who’ll deliver the code. Top performing software outsourcing teams and companies, on top of delivering great work, put a lot of effort into communication. Why? Because reliability and communication are key to a stellar product as well as a synergetic working relationship. How to find out if the company that you’re interested in sees you as more than just another client? See how much they value communication with you.
You can start by scheduling a call. Confirm that they have the expertise you are seeking with a good history of successful projects. Discuss that your goals, vision, and values of your company align with their approach – and that they’re interested in helping you succeed.
It’s worth noting that top-of-the-range software development companies don’t stop their efforts on that one phone call. Their whole onboarding system is designed to help their new partners feel understood, and to build a strong foundation for a long-term cooperation based on mutual trust.
When you want a flexible team to help you overcome uncertainty
Sometimes a project’s scope may grow from what was once intended. Most software development teams that specialize in working with remote clients have the flexibility to add additional resources and developers if you have an urgent need for your project. Similarly, if a project’s scope needs to downsize, it is a non-issue removing developers and resources from the project when they are no longer required. By hiring an outsourced team, you create flexibility for any changes in scope or budget.
This flexibility offered extends further than budget. Uncertainty can affect your team’s performance on multiple levels, leaving it a lot less productive than necessary. Outsourcing development to remote team members can provide a safety padding for your development process. Professional and experienced developers will remain unaffected by your company’s issues. They respect the deadline and will deliver regardless of circumstance.
When you need talented developers to maintain a high standard of quality
Due to the shortage of highly-skilled software developers in Western Europe and North America, creating an in-house development team can present a real challenge. The cost of developers in these locations is often double than that of Eastern Europe. Today, finding a team of qualified developers locally is both a difficult and expensive task.
When looking to hire an outsourced team, you are presented with many affordable options at or above the same quality you’d find locally. You are able to choose your team based on credentials, certificates, and portfolio. With options at hand, you can be certain you are hiring top talent with the technical knowledge, background, and experience necessary to develop your fintech product. A lower price-per-developer can certainly produce top quality when your remote team is chosen with care. But, price is not the only reason why affordable EE locations such as Poland should be on your radar.
When you want to take advantage of an experienced team with a large portfolio of fintech projects
If you are developing a fintech solution that is new to the market, it is far from ideal to hire an unexperienced team and start from scratch. Taking advantage of an outsourced development team with long-term experience in fintech is the better option.
If a team has previously worked on dozens of fintech solutions with a track record of success and award-winning products, they have the know-how and capabilities to deliver the same for your company. An experienced remote team will be competent in all required technologies, have deep knowledge of the development process, and are prepared to tackle a project of any scope while delivering on schedule. A specialized team will already possess the right frameworks, APIs, and fintech-specific libraries for efficient development. You can count on quality as well as speed.
4 Things to Consider Before Hiring an Outsourced Development Team
Before considering any remote team, check their credentials and browse through their portfolio. Carefully check their track record of past projects, noting not only their successes, but their consistency. Schedule a call and confirm tech compatibility between developers, what they are familiar with and what your project will require.
Though a team may boast excellent reviews, the learning curve and project length could suffer without specific industry experience. This is especially important for fintech – as some of the aspects of financial applications may not be well-understood by typical software development teams. Working with a company with vast experience in the fintech industry will prevent hiccups.
Quality and Security
Find out what quality control and quality assurance the outsourcing company provides throughout an active project. Determine what security measures are in place to prevent the hacking or leaking of important data, as well as backup systems and procedures in case of emergencies.
As mentioned earlier, when you choose a country to outsource your software development to, you can’t just focus on the difference between the salaries of developers. Much more important – especially for fintech – are intellectual property rights, modern judicial system and a mature business environment.
Without those, you may never know if the team won’t sell your idea somewhere else or use it themselves. By working with a team that respects the law, you can be sure that your project is in good hands – as their reputation relies on them keeping all the secrets to themselves.
The cost of your project is likely one of the main reasons you began your search for an outsourced development team. Cost alone should not dictate your decision of which company to choose, and going with the lowest price is rarely the best option. Factor in reviews, portfolio, industry experience, and past successes working with fintech projects.
The Bottom Line on Fintech Development Outsourcing
A competitive market that revolves around rapidly evolving technologies and concepts such as blockchain, AI, and machine learning make it a challenge to hire and maintain an in-house software team.
Opting for an outsourced development team can produce the high-quality results you desire for your fintech project. More than simply providing access to top talent, a remote team offers significant flexibility and cost-saving benefits. With a strong background in fintech projects, an outsourced team is more than suitable for long term development.