IT Outsourcing: Benefits for Gaming Companies
Outsourcing is an agreement between two companies. In the agreement, one company undertakes the responsibility of developing a product. That is, they develop a product on behalf of another company. The agreement details the terms of service. It also outlines the cost the company will pay the producer for the product.
IT outsourcing allows companies to develop high-quality games. This is even though many gaming companies may not have a lot of resources. This enables a company to take advantage of implementing great gaming ideas. Developing games is not as easy as it sounds. Many companies have thus turned to outsource due to the many benefits.
Here is a look at the benefits of IT outsourcing for gaming companies.
1. Financial Benefits
The main financial benefit of IT outsourcing for gaming companies is that it saves a lot of costs. This includes labor costs and operating costs. IT outsourcing also helps the company save a lot of capital needed to develop one game.
Gaming companies hire IT experts who have to get paid a high wage for game development. IT outsourcing helps the company save much labor costs. IT outsourcing also gives the company a guarantee. That is the producing company will develop the game at whatever cost. That is despite the nature of the agreement, the company will get a good product.
Without IT outsourcing, gaming companies would have to pay their game developers. This is even in the case when they fail to develop a game. The cost of training new staff and getting them on-board is usually very expensive. With IT outsourcing, gaming companies get to save on these costs.
Outsourcing also allows the company to have many developers working on the same task at a lower cost. Hence, internal employees of the gaming company can focus on developing other games. Thus, the company can have many games out in the market at around the same time. This increases their profit margins.
2. Beating the Competition
Outsourcing helps level the technological playing field between small and large companies. Outsourcing helps a company produce high-quality games with fewer resources. This makes it easy to compete with other players in the market.
IT outsourcing also allows the company to save a lot of money that would have been used in developing games. The money is then put to alternative uses such as marketing and product development.
IT outsourcing could also help the company become more creative. External partners may provide the company with different opinions. The company also becomes more innovative. This is because it learns better ways in regards to how it competes with other players in the market.
3. Market Expansion
Outsourcing also helps gaming companies have access to new markets. By working with different companies in different markets. Gaming companies gain a lot of exposure. This makes it easy for the company to enter new markets. IT outsourcing also helps multinational companies to set up branches in other countries.
Outsourcing also allows the company to learn more about the new market. This helps in developing products that will suit the needs of the new market. IT outsourcing also helps the market expansion process. This is because the gaming company gains more recognition by outsourcing. This increases the chances of the company succeeding in a new market.
A company could easily enter a new market if they have worked with companies from that country.
4. Access to Innovative Technology
IT outsourcing helps give gaming companies access to innovative technology. The technology could be new and very expensive. Gaming companies gain a lot of financial benefits. That is, they save the money needed to buy or use innovative technology.
Outsourcing also allows gaming companies to gain access to patented technology. That is, the company can gain access to technology that is privately owned. The technology could also be in a different part of the world. Hence, outsourcing helps bridge the geographical distance between gaming companies and innovative technology.
Outsourcing also helps gaming companies to gain a lot of financial benefits. This is because they do not have to invest in the research and development department.
5. Access to Experienced Developers
IT outsourcing gives gaming companies access to experienced developers. Outsourced partners hire a lot of experienced developers on a full-time basis. This helps game companies to gain access to a great pool of talented developers.
Gaming companies hire developers on a contractual basis depending on the project. The cost of hiring new developers once there is a new project is quite high. Outsourcing helps gaming companies have experts located anywhere in the world. This helps the gaming company save time and money.
Outsourcing also helps gaming companies bridge language and cultural barriers. This is because some of the best developers live in different parts of the world.
The gaming company may not be able to communicate with them and this is where outsourcing comes in. This is a big advantage. The expertise needed for developing games may not be available near the company.
6. Mitigating Risks
The use of IT outsourcing helps a gaming company avoid the uncertainty of working alone. For instance, developing a game means that the company faces a risk of failing. This risk is worse in that employees can decide to leave the project without completing it. Outsourcing helps gaming companies mitigate various risks.
The producing company is bound to the terms of the agreement. This means they undertake the risk of production. Outsourcing also gives the gaming company more financial benefits. That is the gaming company does not have to pay more insurance costs.
7. Saving Time
Outsourcing helps gaming companies save a lot of time. With outsourcing, gaming companies can focus on more projects at the same time. This helps them achieve more success at shorter periods.
The development of games by outsourced partners is also easy. This is because they are more experienced. Gaming companies also save time they could have used to market the product. They also save time on hiring more workers to develop the game. By outsourcing, gaming companies ensure that they get high-quality games in a good time.
Future of Gaming Companies
The future of the IT sector is quite bright. This is owing to the benefits of outsourcing. More and more companies are realizing that there is more value in partnering with already established producers. Arguably, outsourcing is the best way for gaming companies to grow.