In investment management, a robust and effective software is essential for success.
But the cost of building and maintaining in-house development teams can be a major hurdle, diverting resources from innovation and growth.
It’s estimated that internal recruiting alone can cost up to 12% of a software developer’s annual salary.
Outsourcing your investment software development to a specialized partner offers a cost-effective solution that empowers you to control expenses, accelerate timelines, and stay ahead of the curve.
The Rising Costs of In-House Development
Below is a breakdown of some of the major cost drivers of building an internal investment software development team:
Talent Acquisition and Retention: The demand for skilled fintech developers is high, especially in major tech hubs. This translates to expensive salaries, recruitment costs, and the potential for turnover.
A study from the Center for American Progress found that turnover can cost between 10% and 30% of an employee’s salary.
Overhead Expenses: Beyond salaries, factor in costs like office space, benefits packages, equipment, HR, and the time spent managing a development team.
To little surprise, cities like San Francisco and New York top the list for highest office space costs in the US.
Inefficiency and Learning Curve: Building internal software expertise takes time. Delays, rework due to inexperience, and managing the learning curve for regulatory intricacies increase overall costs.
Opportunity Cost: Resources spent on development are resources diverted from sales, marketing, and refining your core product offering.
Outsourcing Software Development for Cost Control
Outsourcing your development provides significant cost advantages:
Global Talent Pool: Access a wider range of skilled developers in more cost-effective locations, without the constraints of your local hiring market.
Reduced Overhead: Partnering with a firm like Empaxis eliminates the need to invest in internal infrastructure, HR, and the fixed costs associated with full-time employees.
Pay-As-You-Go Flexibility: Scale your development team up or down based on project needs, avoiding the long-term commitment of permanent hires and optimizing costs.
Industry-Specific Expertise: Specialized development partners often have established processes and code libraries tailored to investment software needs, reducing development cycles and minimizing costly rework.
Maximizing Cost Savings: Key Factors
To get the most out of your outsourcing partnership, consider the following factors:
Clear Scope and Requirements: A well-defined project plan with clear goals minimizes the potential for change requests and budget overruns.
The Right Partner: Thoroughly vet outsourcing providers. Invest time upfront to find one with proven experience in investment management software.
As we pointed out in one of our earlier posts, 27% of software projects fail because lack of necessary resources and capabilities.
Communication is Key: Transparent communication channels and regular check-ins prevent misalignments that can drive up costs.
Onshore, Offshore, or Hybrid: Choose the outsourcing model that balances communication needs against your target budget.
Cost-Effective Development Solutions
See how a software provider benefited from Empaxis’s hybrid delivery model.
Empaxis: The Investment Management Technology Specialist
Outsourcing your investment software development is a strategic decision that drives efficiency and innovation.
The right partner will help you reduce costs, accelerate your time to market, and empower you to focus on what matters most – building exceptional software for your clients.
And at Empaxis, we understand the unique cost pressures faced by investment software companies.
Our team brings deep expertise in portfolio management, analytics, and reporting, combined with efficient development processes. This helps you achieve significant cost savings while delivering high-quality, industry-tailored solutions.
Contact Empaxis to learn more about cost-effect investment software development.
