Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      DStv's biggest shake-up in 15 years lands on 17 September

      DStv’s biggest shake-up in 15 years lands on 17 September

      7 September 2026
      The man now carrying South Africa's auto industry fight - Mncane Mthunzi

      The man now carrying South Africa’s auto industry fight

      7 September 2026
      UN warns AI could disrupt democracy itself - Mohamed Azakir

      UN warns AI could disrupt democracy itself

      7 September 2026
      R1.5-billion to switch off the sun

      R1.5-billion to switch off the sun

      7 September 2026
      Ageing Safe cable prompts new R1.7-billion Indian Ocean link

      Ageing Safe cable prompts new R1.7-billion Indian Ocean link

      7 September 2026
    • World
      'This is not circular': Jensen Huang defends $3.5-billion MediaTek deal

      ‘This is not circular’: Jensen Huang defends $3.5-billion MediaTek deal

      2 September 2026
      AI-generated music banned from Australian charts

      AI-generated music banned from Australian charts

      26 August 2026
      Traders brace for a R4.5-trillion swing in Nvidia's value

      Traders brace for a R4.5-trillion swing in Nvidia’s value

      25 August 2026
      Russia building its own Starlink - and faster than expected - Vadym Skibitskyi

      Russia building its own Starlink – and faster than expected

      11 August 2026
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
    • In-depth
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      Winstone Jordaan on building a national EV charging network

      Winstone Jordaan on building a national EV charging network

      2 September 2026
      Watts & Wheels S1E8: 'Tesla lands in Africa, just not here'

      Watts & Wheels S1E8: ‘Tesla lands in Africa, just not here’

      24 August 2026
      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      TCS | Herotel CEO Van Zyl Botha on beating Starlink to South Africa

      14 August 2026
      Meet the CIO | Discovery's Derek Wilcocks on AI, guardrails and growth

      Meet the CIO | Derek Wilcocks on how AI personalised Vitality

      13 August 2026
      TCS | Money just became native to the internet - Steven Boykey Sidley

      TCS | Money just became native to the internet – Steven Boykey Sidley

      12 August 2026
    • Opinion
      The fragile joint in the Capitec machine - Pambos Soteriades

      The R197-billion market the banks can’t reach

      25 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      Management consulting as we know it is over

      21 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      South African tech's compounding debt problem - Jannie van Zyl

      South African tech’s compounding debt problem

      29 July 2026
      The fragile joint in the Capitec machine - Pambos Soteriades

      Best network, worst vibes: the puzzle of SA telecoms

      20 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Enterprise software » Why the smartest companies have stopped chasing cheap outsourcing deals

    Why the smartest companies have stopped chasing cheap outsourcing deals

    Promoted | Cheap outsourcing hides costly risks - BBD's right-shore model delivers real long-term value.
    By BBD11 March 2026
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Why the smartest companies have stopped chasing cheap outsourcing deals - BBD

    Outsourcing contracts often come with two invoices. The first is the one you sign: a low hourly rate that looks too good to ignore. The second arrives later: the cost of rework, lost time, reputational damage and sleepless nights for executives. Many organisations have learnt the hard way that the second invoice is far more expensive than the first.

    What’s the real cost of “cheap”? For years, outsourcing has been framed as a quick win — a way to cut delivery costs by moving work offshore. On paper it looked like a bargain. But in practice those short-term savings often conceal fragility: project delays, poor quality, compliance failures and constant talent churn. With disruption the new normal, cracks like these quickly become fault lines. Short-term savings don’t build long-term value. Resilient teams do.

    The trap of cheap outsourcing

    In a world of tightening budgets and accelerating digital demand, low-cost outsourcing became tempting. But these advantages can hide structural fragility. Teams scattered across distant time zones struggle to stay aligned. Cultural mismatches slow collaboration. High turnover erodes institutional knowledge. And in regulated industries, misaligned data protection frameworks expose businesses to serious risk.

    The result? A supposed path to efficiency becomes a cycle of firefighting, lost productivity and creeping costs.

    The shift – from cost-saving to value-building

    The conversation is evolving. It’s no longer “Where can I find cheap developers?” but rather, “How do I build delivery models that reduce our risk, scale confidently, and adapt to constant change?”

    Global IT service outsourcing continues to surge, with market value projected to exceed US$1-trillion by 2033 and annual growth rates accelerating. But raw scale isn’t the story. What matters now is how you outsource — and who you trust to deliver.

    Why the smartest companies have stopped chasing cheap outsourcing deals - BBD

    Leaders today are optimising for more than hourly rates. They’re building towards:

    • Operational resilience that endures shocks;
    • Business agility to pivot swiftly;
    • Lower total cost of ownership across the project lifecycle — not just in the contract bid;
    • Peace of mind from regulatory and security alignment; and
    • Strategic advantage through delivery teams that drive innovation.

    Good outcomes depend on teams that are engineered for resilience, not just savings; teams that understand your domain, move at your pace, and stand up under pressure. In other words, teams built for value, not volatility.

    The right-shore advantage

    Custom software company BBD brings a unique right-shore model to delivering innovation. Right-shoring meets the modern business leader’s needs with blended, engineered teams across strategically chosen hubs.

    • In South Africa, teams offer cultural alignment, time-zone overlap with Europe and regulatory assurance thanks to Popia’s GDPR-equivalent framework.
    • Portugal and the Netherlands deliver EU-based delivery with multilingual and compliance strengths.
    • The UK provides an onshore or nearshore anchor for governance and client proximity.
    • India brings scale and deep engineering talent for accelerating complex build phases

    These hubs combine flexibility, compliance and scale, tailored to each client’s operational context — especially in regions like South Africa where compliance, talent and time zones align.

    Quality over costs delivers better economics

    Viewed narrowly, quality seems expensive. But the true costs lie in poor quality — bug fixes, churn, delays and lost opportunities. Resilient teams reverse that logic. When engineering practices are strong, errors surface early, reducing rework. When teams are stable and engaged, momentum builds and knowledge stays. Predictable delivery lets leadership invest in outcomes, not crises.

    Statistics underscore this shift: global IT outsourcing is projected to grow at 8-9 % annually, doubling from $672-billion in 2024 to over $1-trillion by 2033. In this environment, cheap models falter under market expectations for speed and quality.

    Why the smartest companies have stopped chasing cheap outsourcing deals - BBD

    Proof in action

    Across industries, this approach from BBD has seen right-shored teams consistently deliver where cheap models fall short:

    • A global bank used blended South African and European teams to modernise legacy systems rapidly, remaining fully compliant.
    • A major insurer weathered volatility by distributing platform delivery across hubs, maintaining uptime and customer trust.
    • A telecoms provider engineered resilience into its integration projects, ensuring continuity even amid local disruptions.

    Different sectors, different challenges, but the outcome was the same: resilient, reliable delivery aligned around value.

    The payoff: built to scale, engineered to last

    Outsourcing should never be a gamble. Leaders aren’t chasing the lowest invoice; they’re chasing confidence — that delivery will scale, endure and propel the business forward. Right-shored teams deliver exactly that: offshore software development that’s agile, resilient and compliant by design.

    Because the story at the start was the truth: every outsourcing decision comes with two invoices. The first is the upfront cost. The second is the hidden bill for delays, rework and instability. With right-shoring, you pay the first invoice and avoid the second altogether.

    When the next disruption hits, be it economic, regulatory or technological, only resilient teams will stand. Cheap outsourcing can’t buy that. Resilient teams can.

    About BBD
    A leading international provider of bespoke software solutions, BBD’s four decades of technical and domain expertise spans the education, financial services, insurance, gaming, telecommunications and public sectors. BBD employs over 1 200 highly skilled, motivated and experienced IT professionals, curating flexible teams from our hubs across South Africa, India, the Netherlands, Portugal and the UK. BBD is a 51% black-owned and level 1 B-BBEE partner, with a 135% B-BBEE recognition. For more, visit www.bbdsoftware.com or follow on Facebook, Instagram, TikTok or YouTube.

    • Read more articles by BBD on TechCentral
    • This promoted content was paid for by the party concerned
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    BBD BBD Software
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleHow MSB Micro Systems helps resellers deliver always-on enterprise APN
    Next Article Mitel launches Edge platform for mission-critical on-premises communications

    Related Posts

    Regulated systems need more automation, not less - BBD Software

    Regulated systems need more automation, not less

    27 August 2026
    What African and EU firms must know about data residency - BBD Software

    What African and EU firms must know about data residency

    26 August 2026
    Build or buy software? AI is rewriting the answer - BBD Software

    Build or buy software? AI is rewriting the answer

    12 August 2026
    Add A Comment

    Comments are closed.

    Company News
    Most enterprises don't have an identity strategy - they have a patchwork - Contactable

    Most enterprises don’t have an identity strategy – they have a patchwork

    7 September 2026
    Ozgur Danisman, Cloudflare’s director of solutions engineering

    AI guardrails: the fastest way to move fast

    7 September 2026
    How to build a security operations centre that actually works - Kaspersky

    How to build a security operations centre that actually works

    3 September 2026
    Opinion
    The fragile joint in the Capitec machine - Pambos Soteriades

    The R197-billion market the banks can’t reach

    25 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    Management consulting as we know it is over

    21 August 2026
    South African tech's compounding debt problem - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    DStv's biggest shake-up in 15 years lands on 17 September

    DStv’s biggest shake-up in 15 years lands on 17 September

    7 September 2026
    The man now carrying South Africa's auto industry fight - Mncane Mthunzi

    The man now carrying South Africa’s auto industry fight

    7 September 2026
    UN warns AI could disrupt democracy itself - Mohamed Azakir

    UN warns AI could disrupt democracy itself

    7 September 2026
    R1.5-billion to switch off the sun

    R1.5-billion to switch off the sun

    7 September 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}