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What To Consider When Outsourcing In The Fintech Industry

  • finance
  • Software Development
  • Software Outsourcing

28 April 2023

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The realm of technology is always evolving and growing. Trying to keep up with all of these advancements typically takes a lot of time and effort. Dedicated software development requires a strong IT infrastructure for your company. Therefore, including outsourced services may be beneficial for any company that creates financial software.

Your IT team may often run into problems when trying to meet complex software development requirements and support the growth of your business. Especially in the financial sector which is constantly changing and facing new challenges every year. If you are not an IT company, you may have to invest a lot of time and money in something that is probably not to your liking. However, putting your trust in a specialized software development team to create your financial software can be challenging. It makes sense to have reservations about the company’s standards and work ethic at first. To maintain transparency and reputation, it is crucial to do some research on the company’s track record beforehand.

What Have Experts Said About Software Outsourcing?

It is significant to note that 26% of more than 800 executives from the US and Europe who participated in a survey by the Society for Resource Management (SHRM) were asked about the main reasons that led them to outsource the development of their fintech software, 26% said it was due to cost reduction.

As the fintech sector experiences fast expansion and more and more financial institutions embrace a “mobile-first” strategy, there is an increasing need for reputable fintech app developers. You may get the best personnel for your project at reasonable pricing by outsourcing app development. Additionally, engaging an outside contractor helps your management and HR department avoid a wide range of issues.

The most important qualities to look for in possible contractors are the utilization of the most recent technology, relevant experience in fintech development, and similar values and work cultures.

These are 5 things to think about when outsourcing in the fintech sector.

Experienced People on Board

With the aid of outsourcing, it is possible to entice an external organization with personnel who meet the necessary qualifications for tasks that are outside the scope of your company’s core competencies. Recruitment is becoming increasingly difficult due to rising demand. Software outsourcing virtually eliminates this issue while giving you access to the best talent.

Working with someone who doesn’t comprehend financial transactions, financial regulations, or user needs is not a good idea if you want to outsource app development. Look at a company’s past performance to see if there are any features, fintech innovations, or fintech technologies you could incorporate into your fintech products.

Asking yourself the following questions will help you evaluate a potential outsourcing partner’s technical capabilities:

  • What is the firm’s financial technology expertise?
  • Who solved which financial technology problems and how well were the products implemented?
  • How does the company help fintech customers? What’s the plan for executing each step, from startup to post-launch expansion?
  • How will the company follow the rules and protect employees?
  • How does the company plan to address its biggest challenges?
  • What is your customer communication strategy?

Experience With Projects Within Your Sector

If you want to succeed with fintech outsourcing, you need a partner with the necessary experience in your sector of business as well as the functional area of your intended project. This would suggest that they are knowledgeable about the operational and security standards as well as the relevant compliance, security, risk, and governance initiatives for your sector. In addition, they can act as your go-to consultant for enhancing profitability, business performance, and infrastructure management. A good partner will support you financially, share in your success, and help you accomplish your goals. Examine usage examples, white papers, and customer lists to see if they possess the knowledge and value you need for your specific initiatives.

Communication

When considering a software outsourcing partner, evaluate their ability to communicate often, clearly, and transparently. A partner who communicates poorly or isn’t one hundred percent honest at all times can derail a relationship that has all the right methods and tools in place for success.

Another benefit is the optimization of production time.

In general, there is more time for internal management. Given that you can put your trust in the contracted partners, you will have less time to devote to resolving IT, product, and technical problems associated with the projects. The results will come more quickly because the external team will be entirely focused. Consequently, this generates agility and speed for the entire company.

Nearshore Software Development

Compared to offshore and onshore outsourcing, nearshore outsourcing is a lot less complicated and a lot more beneficial. In addition to having cultural similarities with the person or team you will be working with, geographic proximity means fewer travel costs, minimal time zone difference, and better communication. Workers will likely speak the same language you do, making it far easier to discuss projects and concerns with your outsourced team.

Cost Reduction

Another benefit of outsourcing fintech software development that is worth noting is the savings in money and resources. By hiring an externally specialized team, the company eliminates the need to buy equipment, pay for software licenses, and create and maintain an internal infrastructure.

Generally, these services involve simple payments and forms of communication that ease expenses for customers. As a result, it is possible to use these solutions while maintaining cost control, i.e., with the assurance that the organization’s financial management is in balance.

How Can Teravision Technologies Help Your Fintech Company?

With multiple financial projects under our belt from different sectors of the finance industry, we have the expertise to meet these challenges and help your business achieve its goals. From insurance to investment companies, we can give you an agile software development experience perfectly customized for your specific needs. This could include user interface and user experience development, software quality assurance, web development, business analysis, and product ownership, among others. Let’s work and face these challenges together!

  • Finance
  • FinTech
  • software development
  • Software Outsourcing
  • nearshore software development

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