Application Development Outsourcing Can Be Sometime Risky

By Author: Aaleyah Anderson
Total Articles: 3
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Due to the advancement in technology and economic development IT industry has opted for a trend of outsourcing. Presently, Application Development Outsourcing is booming all around the world. Over the past few years many organizations have successfully implemented the customer software outsourcing model. But it can be some time risky when the organizations invest huge amount of money and effort with the hope of getting accurate services. There are many outsourcing companies that are not been able to fulfill the desired requirement of the clients. Therefore, choosing an offshore partner can be challenging as well as time consuming.

Application Development market depends upon few trends like flexibility, time-to-market and business differentiation. Due to the switch in demand and market trends it has forced the service providers to change their marketing strategies. Offshore development can also be beneficial and that is the reason why most of the entrepreneurs opt for the service.

• Improvise the application performance.


• Risk Management.


• Flexibility.
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• Scalability.


• Application robustness.

CIO Manfred Immizer of Nokia Siemens said that the offshore management services include “maintenance, monitoring and enhancements for Nokia Siemens' systems where appropriate.”It reduces the budget when the applications are taken in bulk. He remarked "the cost reduction compared to the baseline we have today is very significant".

According to a research, few years back 5% to 10% outsourcing contracts had rigid security policy and control requirements. But now the percentage has risen to 30-40% which means that the outsourcers are now more liable than before. To avoid Application Development Outsourcing risk most of the enterprises are writing strict rules into the outsourcing statements of work.

It is not an easy task to select an offshore development company. It requires analysis and research so as to gain profit from that company. The task should be executed with utmost care. Customized software development needs special attention and it should be handled by highly skilled application developers. A well-equipped support centre is essential in an outsourcing firm so that they can meet the requirement of the clients.

Application Development was considered to be the most popular IT function. In the year 2010 it has been estimated that around 33% of organizations outsourced application development. Computer Economics believes that Application Development Outsourcing is losing its significance in the present economic environment. But it is expected that a time will come when companies will not be able to control themselves from investing in application development.

About the author:

Aaleyah Anderson is a content writer, who is sharing her knowledge regarding Application Development Outsourcing and Software Product Outsourcing.