Outsourcing is already a common method among the top software companies as many outsourcing large portions of their business. Smaller developers are also doing the same as other companies across the globe are beginning to adopt.
It is estimated that the IT outsourcing sector in US is expected to reach $132.9 billion by 2020 and it is growing. What is the reason companies consider outsourcing as a part of their business strategy? Increased capacity, working on larger goals in business in a cost-effective manner, as well as getting access to skills that aren’t available internally.
There are a lot of potential risks and problems when outsourcing partnerships aren’t properly integrated, resulting in lower morale of employees, ineffective written code, a lack of deadlines, and ultimately the loss of your investment.
Let’s examine the advantages and drawbacks of outsourcing software development and then discuss why our services are among the top on the market for effectively using an outsourcing partnership.
The advantages of outsourcing Software Development
Cost-related Factors
While cost isn’t the main reason that drives companies to think about outsourcing software development, savings in costs are definitely a desired result. The cost of engineers is much smaller within Latin America, Eastern Europe or Asia than it is in Europe, Eastern Europe or the United States, the UK or Australia.
The right set of skills to be found
Due to the lack of skilled workers due to the shortage of talent in US, Western Europe, and Australia outsourcing allows businesses to fill the gaps in their teams without sacrificing quality by choosing developers who have lesser experience or skills. Additionally, it allows companies to make use of a variety of skills that they might not be able to or the need to employ full time.
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Time to save
Conducting interviews and finding candidates in negotiations over compensation, and then taking on a new employee can take the time of a lifetime, only for a few to quit after a year or so to find a new position. Partnering with an outsourcing company can allow you to transfer a significant portion of the recruiting process and enables tech executives to dedicate their time and effort to other high-value projects for the company.
The potential disadvantages of outsourcing
Communication
Outsourcing may cause problems in the event of a cultural discord with the partner company or the team that is developing has inadequate English capabilities. The time zone differences that occur when there is only a small overlap of workdays could also cause an inability to communicate in the event that expectations are not properly established. In-house project managers that are accountable of an outsourcing team may aid in that process and aligned partners have the experience of dealing with the difficulties of working in different time zones.
Morale of the company
A majority of outsourcing is not intended to replace employees in-house however, it is often used in conjunction to increase headcount within the company. However, some employees might think that outsourcing is an obstacle to their position within the company, which could result in a decline in productivity as well as a reluctance to incorporate an outsourcing partner in the team. Communication from the leadership and management is crucial to explain the function outsourcing can play and the impact it has on each team member.
Quality
Concerns regarding the quality of code are not unfounded. There are many development companies around the globe employ inexperienced developers who are not able to interact with clients or even pitch the idea to an “A team” before transferring the project in a short time to developers with less experience (a technique referred to “bait and switch”).