It can seem a bit intimidating if you have never outsourced your software development before. You have every right to worry about trusting a business in a company that is located on another country, perhaps in another continent. Will they be able to understand your requirements and deliver the results you want? It is a big decision because the success of your business may depend greatly on this.
However, most businesses that have outsourced, both large corporations and the smaller ones, will give you positive feedback about outsourcing. This is certainly the way forward. There are countless benefits why this has become so popular in recent times. But it is still good to be careful as there are a few cons as well.
Let us now take a closer look at its advantages and disadvantages.
Pros of Software Development Outsourcing
Cost Efficiency
The #1 reason why many businesses outsource is to save costs. Outsourcing can lead to a significant reduction in operational expenses, obviously without compromising the quality of the software product. You don’t have to employ your own team, train the people, make bonus payments, and pay for their social security. Also, you don’t have to purchase expensive hardware, all of which can cost you a lot of money. The company where you outsource will do all of this.
The cost of living in some of the most popular IT outsourcing countries is much lower than in the western world, which is why they can offer the same services at a much lower price.
Focus On Core Competencies
It is very difficult for a business to manage all aspects of its product supply chain efficiently. Something will work out, while something else will fall apart. For example, a huge beverage company will have to regulate the manufacturing, carry out continuous research, make the supply chain work seamlessly, and meet all customer demands. Transportation & delivery can easily be outsourced so that they can focus on the more important tasks.
This is true about software outsourcing as well. Outsource certain tasks to the experts so you can focus on your core competencies. This will do business a world of good.
You Can Hire People With Relevant Skills And Experiences
When you hire an external vendor, you will have access to a team of talented techies who knows the best technologies and are experts in them. They have done this before and know how to make your project a success. When these outsourcing companies hire, they always look closely at the competencies of their candidates. They will also adequately train everyone before they are deployed to work on live jobs. The managers will also supervise the work so you can be sure that there will be proper care at every stage of the development.
Flexibility
A wrong decision can be a costly mistake. It can cost you a lot of money and set you back for a long time. Good outsourcing providers will consider everything and make accurate technical decisions. Plus, if your project must change suddenly or if it needs additional functionalities, then you can be sure that these experts will always be best placed to implement them. Your project doesn’t have to be started from scratch.
And, of course, the cost you incur will stop once the project is launched unless you go in for maintenance or support arrangements.
Quality, Reliability
The software development vendors take full ownership of both the quality and performance, which gives you peace of mind. The deadline and everything else will be met according to the agreement. They will fix if there are any issues at no extra cost to you.
Cons of Software Development Outsourcing
Communication
Many of these companies are located overseas in another time zone, which can be challenging. Meetings and calls can get postponed. The business may not also fully understand the project requirement because of linguistic and cultural differences.
Differences In Business Philosophy
Every business has its own philosophy. Tech teams are accustomed to certain management styles, which can seem weird to others. It may seem like you don’t have enough control if you do not understand their processes. This may give you the feeling that you don’t know where the work is heading. However, this can be fixed easily by establishing a structure and workflows at the beginning.
Data Theft Risk
You will have to share ideas and data with the vendor. There is a risk of theft, which is why it is essential to work with only the most reputed businesses. Also, make sure that you sign a nondisclosure agreement. This will give you better control.
Hidden Costs
Sometimes, there is a risk of hidden costs. For example, the less reputable companies are known for overestimation, billing meetings, phone calls, and even charging for additional consultations.
All in all, the advantages score over the disadvantages, which is why software outsourcing is booming. The global IT outsourcing market is projected to be valued at US$396 billion in 2022. Take a few precautions and your outsourcing experience is sure to be positive.
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