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14.12.2018 / 19:22

Pros and Cons of outsourcing software development

Outsourcing is considered to be a global trend today. Outsourcing is on the rise and IT-field is not an exception. About 45% businesses devolve software development to IT-companies and about 18% to freelancers. Why?

Advantages of outsourcing software development

In 2017 IT budgets of large organizations spent on outsourcing increased from 6% to 9%, while the percentage of medium-sized organizations increased from 4,7% to more than 6%. The most commonly outsourced services are software application development, maintenance, data centers and IT infrastructure. For example software apps development was outsourced by 64% of respondents in 2017. More than a half of companies were somewhat satisfied and about 10% were absolutely satisfied with the result. Outsourcing has become a Win-Win strategy in the most cases and we know why.

  • Cost savings
    With the help of IT professionals you will save your money and won't spend it for the needful equipment, special licenses, software, etc. Sometimes you can save up to 90% choosing outsourcing for your business. It is rational and efficient decision. You can learn how business save money with outsourcing to make sure.
  • Opportunity to focus on core business
    57% of companies said that outsourcing enables them to focus on business development. Opportunity to concentrate on paramount tasks and core competencies in business while technicians work on software development for you seems to be a great deal.
  • Flexibility
    Outsourcing solve capacity issues because then there is no need to employee people for the short period. You save resources and money because you don’t have to search, hire, train and house special people for the particular task. Outsourcers have a flexible schedule and can adapt to the customer’s processes.
  • Service quality
    In Best Software Development Companies developers are the core and you have an opportunity to work with the most relevant and skilled for your project. Devolving informational technologies to the professional software development team provides a quality project/software development.

Possible Risks

What risks can be lied in wait if we speak about outsourcing?

  • Thin software outsourcing knowledge
    One of the main drawbacks is a thin software outsourcing knowledge. So don’t rush and have a look on the questions you should discuss when hiring a software development company for your project.
  • Inability to control the process
    It’s been wrongly thought that it is difficult to control and manage allocated team remotely. Good practice is to conduct meetings with the development team, track development results in the VSC systems. Learn more information how you can efficiently interact with developers’ team.
  • Careless choice
    Remember that one of the most responsible steps in outsourcing is choosing a reliable company for needed services. Looking for a partner you should pay attention on its reputation, experience, skills and ability to deliver solutions of any complexity level. Check the reviews and ask a potential partner for references from other clients in your domain.
  • Insecurity
    It is very important to make security, not cost, a priority. Cooperating with unscrupulous IT-companies can lead to the information leak and menace to business. A competent outsourcing partner signs agreements such as NDA, WO, General Agreement to provide legal protection to both parties. Make sure you entrust your business to the reliable company.

Anyway, 78% of businesses have good relations with their outsourcing partners. Be careful when making a choice. Trust your projects to the reliable company.