Nowadays companies are striving to accelerate their business and choose to outsource the project offshore to safe cost and time.
Companies not always have the capacity and human resource to fulfill large scale projects. This is when software development outsourcing comes handy, helping to accomplish projects in time and within the budget and without hiring extra personnel. Offshore software development advantages clearly outweigh any existing disadvantages.
Benefits of the software development outsourcing:
Cutting project costs. Workforce in most countries offering IT outsourcing is sufficiently lower than in the USA or Western Europe. For example, Ukraine offers an access to large IT resources for the salary approximately 10-20% of an American or European IT engineer. Education level in Computing Sciences is of word-class quality so you can access a pool of talented programmers for the specific project.
Time-efficient project accomplishment. Company might not have enough specialists with necessary skills to complete a particular project within the deadlines. Hiring more skilled personnel (time staff/contractors) and management is expensive and extra manpower may be unnecessary after the project is completed. In this situation it is very convenient to use IT outsourcing.
Necessary skills. An outsourcing company could provide its partners with specific skills it lacks but which are vital to accomplish separate project sections critical for the business process. For example, client needs some piece of software coded in a particular technology but doesn’t have qualified specialists in this domain. There is no point in searching and employing extra personnel which may be time-consuming. Hiring an outsourcing company may be the best solution.
Less Production down Time. With software development outsourcing development process can be extended to 24 hours a day; all the required shifts will be covered. This is a situation when time-difference is working for you and may be really beneficial.
Company’s Stuff Gets More Time. Company’s personnel can concentrate on high-level tasks including requirements elaboration, project management and design. This also provides a possibility for the company’s personnel professional development such as attending trainings, seminars, self-education which is also a good thing for your team.
Lower Operating Costs. There some more cost advantages of using offshore development resource: you don’t need to purchase and maintain necessary equipment for your new employees and also can save money on their training. The operational expense savings can be enormous and can really help small- and medium-sized companies stay competitive among the larger enterprises.
Pitfalls of software outsourcing:
Testing Difficulties. It turns out rather complicated to test outsourced project in comparison to the in-house one. Still testing is an inalienable part of the software development process and if a problem occurs you need to communicate your vendor. But the difficulty is that, unfortunately, he can’t see the machine on which the problem happened so that makes solving and fixing more time-consuming.
Face-to-face Meetings are Less Accessible. If an outsourcing vendor is distant it could be complicated and time-consuming to come and meet him very often. Time difference also may be a considerable obstacle in efficient communication. Still nowadays it’s not the major problem with a possibility of videoconferences, Skype calls and other means of telecommunication allowing to reach any place in the world.
Constant Management Necessary. Absolutely vital for an outsourced project to succeed is a highly competent and dedicated manager who will constantly communicate with the vendor and control the development process step by step. This person should have a clear understanding of the project requirements and standards and make sure that the vendor also does.
Lower Quality. While the workforce around the globe can be highly competent sometimes they may lack skills and education. So a special attention should be paid to choosing the finest employees. You may require detailed resumes of the specialists, samples of accomplished work, recommendations from the previous customers, company’s portfolio. The main issue is to get as much information as possible.
Cultural Differences. It might be challenging sometimes because of troubles in mutual understanding and business ethics differences. Try to learn as much as possible about the vendor’s country — culture, business traditions, legislation and choose the one suiting you best. For example, outsourcing to Ukraine might be a good choice while its culture is very close to European especially the Western parts. Bad Company Morale. Hiring an offshore vendor might affect company morale negatively. People might think that their jobs are threatened. Employees should be informed of this change and assured that their jobs aren’t at risk. You can encourage personnel by announcing that now they can concentrate on higher level work.
Offshore outsourcing advocates state that it saves costs due to affordable workforce, helps avoid capital expenditures and allows access a pool of talented programmers with miscellaneous skills vital for your specific project. It is considered to be a great way to do business more profitably, e.g. Abto Software offers affordable yet high-end services.
The critics will give their own arguments — including lower quality of the software developed, rare face-to-face meetings, cultural differences and poor political situation in many offshore vendors’ countries.
Anyway the decision is up to you. If you decide to utilize IT outsourcing, get as much information as possible about the vendor and its country, make a careful analysis of company’s portfolio, ask vendor’s customers for recommendations, demand resumes of the development team members. And good luck with choosing the finest outsourcing partner!