The Many Advantages Of Outsourcing Software Development

By Author: Nadeem Jafar
Total Articles: 21
Comment this article

In the past, outsourcing was limited to non-critical areas of business. The most common processes that were outsourced to offshore providers included customer support and contact marketing. Some labor-intensive projects are outsourced to countries that offer cheap labor. With the expansion and development of information and communication technologies, many companies are outsourcing even critical projects such as software development.

The cost of hiring and maintaining in-house experts for remote software development has been skyrocketing, forcing companies related to the Information Technology sector to look at feasible options. Outsourcing software development is done primarily to save money for the company.

What are the Advantages of Outsourcing?

There are many advantages of outsourcing software development. Cutting costs is one of the biggest advantages. You need not pay salaries, perks, benefits and lose more money through paid annual vacations. As most service providers bill you on a per project basis, the savings can be quite sizeable. Getting to use the services ...
... of a committed team of IT professionals is another big advantage of outsourcing software development.

Outsourcing in this segment has become extremely popular because providers have been able to deliver high quality results with a great degree of success, consistently. Companies are now able to get the results they desire and more without having to invest heavily in the development phase.

Outsourcing software development also helps in filling the gaps of an organization. If you are unable to take up lucrative IT projects because you don’t have professionals with the right skills to handle the projects, then remote providers is the best option. This can help fill the void in your company and enhance the capabilities without hiring professionals on high salaries and perks.

Keep Current with the Galloping Technology

Technology is changing rapidly and it can be difficult for companies to keep pace with the latest developments. Software developers acquire the latest skills and the ongoing advances in technology as a critical part of their business. If you have an efficient provider as your outsourcing partner, you can bid for and deliver projects successfully when you are assured the support of a skilled team. The lead time to start a project is also reduced significantly as you are spared the hassle of recruiting new talent and training them.

Reduce HR Costs

Hiring new staff for a short-term project can prove to be very costly for a company, especially when there is no likelihood of any future projects coming up that requires their services. Outsourcing can help reduce HR costs as services can be hired for project-specific purpose. It is also a proven way of controlling project costs. With outsourcing, project costs are fixed up front. This helps companies stay within budget as there are no surprise elements in pricing. Factors such as product specifications, deliverables and other terms and conditions are generally agreed upon in advance in the contract.

A specialized and experienced software development service understands the special needs of a project better and makes use of the best project management principles. These are integrated into the processes they use to complete and deliver the project. Their skills can be added to your own in-house skills to improve the quality and ensure quicker completion of your project.



Manage Your In-House Resources Smartly

Outsourcing software development allows you to schedule your available resources more efficiently. In-house personnel can be assigned ongoing projects or urgent ones that pop up out of the blue at times. When current in-house resources are being used at their full capacity, finding time to handle a new project can be tough.

When a project is outsourced to an experienced, reputable and professional software developer, in-house work can be managed better. Your day-to-day in house problems will not affect the quality or time of completion of your project.

The success of a project can be seriously jeopardized by high attrition rate of technical staff. A long term in-house project runs the risk of being affected because of loss of key technical professionals. It can be a costly problem too for any organization. Outsourcing software development reduces the risk of the project being affected by the loss of critical personnel. The provider is wholly responsible for time-bound completion of the project.

The general perception that outsourcing is more expensive than developing the same project in-house is a misnomer. Comparing the per hour cost of outsourcing development can throw up wrong figures. It is important to compare the two options realistically after taking into consideration all the cost factors. The hourly rate of a software developer factors in all costs you would incur while doing the task in-house. In most cases this may be well below your internal costs. Moreover, an outsourced developer will take less time to complete the project because of their efficiency and expertise. This alone will compensate for the difference in cost of in-house as compared to outsourcing software development.

Nadeem Jafar is well known author associated with ESS India. He is writing article on his experience on Outsourcing Software Development India and Software Development Outsourcing related topics. To know more please explore: www.essindia.com