Outsourcing Software Development – Why It Matters

Software outsourcing is the act by which companies entrust their functions to an external company developer or a team to offer services relating to software such as design, development, support, and maintenance. This can involve working of software that had been worked on by the company’s internal employees or currently are underway. This article will outline the need and importance of outsourcing for your business.

Why Outsource?

There are numerous reasons why the company may need services to outsource their software development needs which include:

Focus on business goals: When a company hires an outsourcing company, it can have direct undivided attention and all efforts towards achieving its strategic business objectives ensuring high productivity in the organization.

Cost saving: All cost of engagement which is a list of all expenses not related to hourly rate. For example, when the company is employing its developers, TCE adds their salary, retirement taxes and compensation. This way, if a company chooses to use outsourcing, most of these costs are not incurred.

Time-saving: Mostly outsource developers work around the clock at additional pay, this makes the Software development takes less time so that the company can get its product to market more quickly than competitors. Also, this can help to meet any strict deadlines.Need and Importance of Outsourcing

Reduced risk: Every activity of the business or a company has a specific risk, e.g., competition, government Markets, regulations, technological and financial conditions. Outsourcing providers manage much of this risk for the company, with specific industry knowledge, especially compliance issues. They are better when they are deciding on how to avoid risks.

Access to skilled resources: The company does not need to invest in recruiting and training valuable workforce resources for its business.

An outsourcer geographic location: This is an important aspect to consider while choosing for software outsourcing for a software development project. The difference in time zone can either negatively or positively affect the development process, even with essential technologies such as faster internet access, video conferencing to facilitate communication; it can hinder active communication flow between the company and its outsourcing partner hence adversely affecting the whole process of software project development. On the other hand, companies use offshore outsourcing to make use of this time difference and utilizing it to provide a 24-hour development cycle hence providing the organizations with an opportunity to reduce the development cycle of software development projects thus ensuring faster completion of the project.

The ideal solution to minimize the problem caused by time zone difference is to co-locate the outsourced partner to the same location as the in-house developers. This approach enables the team to have a one on one communication and work side-by-side. However, providing accommodation and other resources to the external development team will remain a challenge to most of the companies since obtaining the funds involved incurring extra cost. This will negatively affect the start of the development process.

Differences in location can also result in national and cultural differences. For instance, organizations in some countries like the United States have fewer hierarchical levels. This contributes to developers becoming unfamiliar with the practice of collaboration with someone who is higher in the organizational hierarchy.

Technical expertise: This is an important aspect that must be put into consideration, The information’s about the company must be gathered, their skill set, the expertise of their employees, exposure to latest technology, portfolio, experience in handling complex projects, the effectiveness of communication, approach towards business challenges, adherence to deadlines, and most importantly passion towards building a technological revolution as all these factors will ensure effective deliverance of the final product.

Understanding the company’s needs: The company must first know its needs every time before looking for an outsourcing partner. If it wants to choose the best, it has to understand what exactly it needs. As a business, it has to identify its business needs by evaluating the problems and analyzing possible solutions. By the nature of its project, the requirements, and feasible solutions, it should choose offshore or onshore service providers.

Outsource Software Development Today

In the current technological era and advancement, more services and functions can also be outsourced by a company this includes services like web development, database development, and management, hosting, Infrastructure this ensures, technical support, telecommunication. This makes outsourcing an important activity that can be done by a company as it enables the provision of services on a timely basis.

Difference Between Outsourcing And Offshoring

Outsourcing refers the act of delegating the routine or giving external business processes to an external organization to free up the resources, i.e., money, workforce and time for the main activities of the businesses.

Offshoring is a term used to refer to a type of outsourcing in which, the business activities and services are shifted or relocated in a different country where production cost is low to the advantage of a more economical price.

Should I Outsource?

There are many reasons why a company should outsource, and this article outlined the need and importance of outsourcing — especially when it comes to outsourcing software development. You should consider what your business’ goals are, and make sure that outsourcing would align with those goals prior to taking any action. Good luck!


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