Discount days in outsourcing

April 27, 2020
Paavo Pauklin

The crisis causes panic. Panic causes immediate cost cuts. Outsourcing is the easiest and fastest thing to cut.

Since so many outsourcing projects have been put on hold or continued in reduced scope, we see a “once-in-a-lifetime” situation when experienced developers are sitting on the bench.

Because of that, prices in outsourcing have plummeted and quality developers from Eastern Europe are being offered with Asian prices.

While some outsourcing partners are offering still quite regular prices, we already see that many partners have people sitting on the bench and this generates an opportunity to get a seasoned developer with a junior price.

Price drops of 10%, 15% and sometimes even 25% in outsourcing prices are not rare anymore

This is a golden opportunity for startups or product companies who need to boost their development. Not only is it a cheap price but it also offers the flexibility needed. If the crises gets worse and cost cuts eventually have to be made, then pausing or reducing outsourcing is exactly what every smart company would need.

It is recommended to keep at least 30-50% of your development in outsourcing contracts to ensure the flexibility we all need in today’s circumstances.

We have created a special page where all our development partners from Poland and Ukraine are listing their available developers.

Meet the authors

Paavo Pauklin
Executive Board Member
+372 6 555 022
Joseph Carson
Ethical Hacker, Cybersecurity Advisor
+372 6 555 022

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