Why should SMEs outsource IoT Hardware Development?

by | Nov 19, 2020

IoT is stacking up in every industry and business across the world. It's no wonder that the demand for skilled IoT professionals accelerates year by year. A recent study by Red hat indicates that 21% of organizations have already used IoT projects for their business, 28% of them are planning to implement them and it is expected to expand by 70% in the next five years.

 

A Brief on Outsourcing IoT Hardware Development

 
Having said that, businesses are chasing skilled IoT professionals for their in-house IoT engineering or deployment. But the resources seem to be scarce even at high tech ecosystems such as silicon valley and those which are found tend to be very expensive. Building a complete IoT solution would need expertise around 7 layers of the IoT stack. Now, companies might have some of this expertise in-house such as software engineering but building a team of experts covering the entire IoT stack is going to be a very expensive and time-consuming affair. So, the better option is to opt for outsourcing the particular IoT project operations or part of those operations where there is a shortage of in-house expertise to some expert product development partners who have the right capabilities for your kind of IoT project.

  IoT technical skills do not stop with the developer and testing team it does requires hardware design experts, microprocessor programmers, wireless network experts, database management experts, data analytics professionals, data security experts and a lot more specialists in core IoT development.

  So the companies would outsource certain tasks or as a whole to the expert team outside the organization.

 

Why must companies outsource IoT Hardware Development?

 
Risk mitigation, Timeliness and cost management are the major underlying factors to outsource IoT hardware production tasks.

  Finding risk factors and carefully scrutinizing them can be done with only a team of IoT experts. Hiring one or two skilled specialists would not help much in finding the practical risks in the hardware modules. Likewise, the timeline of delivery or release of the project to the market also plays a vital role after weeding out all the quality checks. And the total cost for this entire process would be comparatively low while outsourcing the IoT project.

 

The Benefits of Outsourcing IoT research and Hardware development

 
According to the latest Gartner report, the total count of IoT endpoints would rise to 5.8 Billion by next year which is 22% up from the year 2019.
 
The demand for IoT production is rising at a rapid pace and it does deliberately throw out practical challenges like flexibility and adaptability among the development team. Also importing a variety of IoT components and maintaining the logistics for the operations acts as a time consuming and huesome element for many organizations. Hence these organizations started looking out for opportunities to outsource their IoT productions that may help them combat the pragmatic challenges in IoT development.
 
Also, the main revenue generator for 54% of business based IoT projects is cost savings. And IoT has the capability to create $4T to $11T in economic value by the year 2025. Hence companies firmly believe that outsourcing IoT projects may result in saving lots of their project costs and ultimately increases the efficacy of their businesses.
 
It also gives you room to focus on your core business areas when you outsource rather than getting overly occupied in development. For example, if you are in the retail business, does it really make sense to have in-house product development and increase your fixed costs?

What are the components to Outsource during IoT Application Development?


  • Engineering Department
  • UX & UI Design
  • Research and Development
  • Data and Network Security
  • Cloud Support
 
IoT is the concept of connected devices. The devices could be household appliances, automobiles, communication equipment, electronic devices and a lot more innovative types of machinery. So it involves the combination and integration of almost every technology out there. Every production company should have a specialized IoT team in-house or they could outsource their IoT hardware development to an external specialized team. Above mentioned areas are the components of IoT where outsourcing can be made.

 

Now let’s look into Why Prominent Companies Outsource IoT hardware development?

 
According to Bloomberg reports, the world’s one of the prominent companies, Google has got more number of an outsourced workforce than their 89,000+ in-house teams. The contract-based workforce is helping the tech giant to achieve more business profits year over year.

 

Internet of Things (IoT) As A Service

 
IoT as a service is a support system that helps companies and businesses to overcome their practical IoT challenges. The common business-related issues of IoT include application maintenance, security management, development, consulting, data analytics, and much more technical support facilities. These specialized product development companies render outsourcing services to those needy companies across the market.

 

The problems faced by companies who do not outsource the IoT hardware development

 
IoT is not sudden magic or a stroke of luck. It is the hard work and persistence of more than 50 years of efforts in technological development and enhancements. This evolutionary upgrade is something that every industry or organization is longing to gain in the market. With the motive to implement and develop IoT solutions in their business, most companies fail in deploying proper security patches on their hardware modules. To weed out such security nightmares is highly recommended to outsource the IoT hardware development to the external expert team.
 
Relevant Statistics on the delays caused in the development process, expenses incurred, and the cost of time & effort resulted when outsourcing was not made.

  It is supposed that by 2020, 93% of commercial companies, 80% of industrial manufacturing companies would adopt IoT technology, 90% of cars and automobiles are connected to the cloud IoT technology and 3.5 billion mobile IoT connections would be installed and incorporated.

  With these statistics, we can clearly get the point that the implementation of IoT is the focal concern of every industry across the globe. The need and demand for IoT solutions are high up the ladder. It is a smart and best move to outsource IoT development to the expert and skilled workforce through Ioterra to stay competitive in the market.

 

4 strong reasons why companies should outsource their IoT hardware development


 
  1. IoT outsourcing would increase the efficiency of the business process by reducing your costs and time to market.
  2. You can focus on your core business instead of IoT development which increases your chances of generating more revenue.
  3. It does help to get consistent 24/7 Technical Support from the outsourced partner.
  4. Ease of Monitoring the Business goals and execution, and flexibility in accessing the Resources which helps in managing your fixed costs.
 

2 Tools That Simplify Product Development

Try Ioterra’s Get Services Bids Tool

Need to bring on expert services partners? Find, communicate with, and get competitive bids from Service Providers

Try Ioterra’s IoT Project Cost Estimator Tool

Get the high level cost and timeline estimates for custom engineering an IoT hardware product