Advantages and Disadvantages of Outsourcing Software Development

Software-development-outsourcing

Last updated on April 16th, 2020 at 12:09 pm

Outsourcing software development is one of the most popular trends witnessed in the last few years, with a profound impact on the global market. Both small and large businesses are outsourcing their software development to offshore/nearshore companies. Outsourcing companies both create software products and provide services/maintenance along with it. The global ITO revenue in 2019 was 66.5 billion USD.

Products that don’t need constant supervision can easily be outsourced to vendors. You can choose your outsourcing vendor by factors such as project requirements, vendor company reviews, work culture, etc. There are obvious advantages to outsourcing software development, such as cost-saving, access to a skilled team, etc. But nothing is perfect. And even though outsourcing has it’s benefits, it also has its faults.  

If you want to avail best outsourcing experience Contact Us today.

Advantages and Disadvantages of Outsourcing Software Development

Let’s review both of them, starting with the advantages.

1. Money

This is one of the most important reasons most companies are outsourcing software development these days. A local, full-time professional is very likely to charge you more than the outsourced one. Factors that reduce project cost in outsourcing are:

  • Labor: The fees charged by outsourcing companies tend to be less than the one charged by the local companies. 
  • Training: Since you don’t have to provide training to the new employees, it saves a lot of money. No Knowledge Transfer (KT) or test systems are required. 
  • Operating Costs: The cost of operating ranges from very little to zero as you don’t have to provide machines, software licenses, offices, office equipment, or Internet connection. You save a lot of these expenses. 

2. Time

If you are completing a project in-house, you have to worry about completing the project in the best possible way in the least amount of time. With outsourcing companies, you save a lot of time through the following:

  • Lead Time: Since you do not need to train people before starting a project, it saves a lot of time. Software development can be started right away, rather than waiting for when the professionals are adequately trained and ready to start working. 
  • Round-the-clock working: Many developers work around the clock, which means that your project gets completed in the shortest amount of time with the least amount of problems. Twenty-four hours support also reduces system downtime.  
  • Hiring time: Since you don’t have to hire staff, you don’t waste time in interviewing and selecting candidates, setting contracts, inducting them, etc. You can just set your project guidelines, define goals, and your project will get started. 

3. Skilled Team

With outsourcing, you get the best skillset. It gives a chance of accessing talent across the world and fills the gaps that the resources in your company can’t overcome. In new fields such as blockchain and Artificial intelligence, you can outsource the work to niche developers that are already skilled at these technologies. For example, BairesDev. It’s a software development company that provides full-cycle custom software development. They are equipped with the top 1% of talent that helps them drive meaningful change.

4. Efficiency

Since the people handling your project are experts, you can rest assured that they will tackle your work efficiently. Matching premium talent to your requirements also reduces the risk associated with the whole thing. Since they have their own leadership model (Software delivery managers, team leads, Project manager, CTOs), outsourcing keeps the project transparent and delivers successful results.

5. Focus on core competencies 

Since you don’t have to handle development when you outsource, you can focus on your niche skills. 

There are some disadvantages to outsourcing software development too. The most notable ones include:

1. Losing Control

When you’re outsourcing your project to vendors, you lose control over how it should function. Sure, you send guidelines, but you can’t control day-to-day tasks. For all things associated with the project, i.e., project customization, QA, are dependent on the outsourcing vendor.

2. Losing Quality

Sometimes, the output provided by the outsourcing companies is not up to your expectations. You can do quality control and monitoring for developers in your company, but it becomes difficult to do that with an outsourcing company. To avoid a situation like this, check reviews and past experiences of the company before setting up a contract. You can also start with a small project and build up gradually to understand the work culture of the staff. 

3. Communication

Since chances are you won’t be meeting face-to-face with the outsourcing company, misunderstandings may occur. The developers may not fully understand work expectations, or they may understand them wrong. Important guidelines may get lost in translation. Sometimes, there may be a time gap between the two parties. Vendors may work in different time zones, and communication may be slow. You may have to wait for some time before getting a response.

4. Hidden costs

There might be hidden costs to a project. These depend on the scope of the project that you can’t determine at the beginning. 

Conclusion 

Outsourcing your work may be one of the best financial decisions you ever make. The benefits of the process are self-evident. They provide the stepping stone for a partnership that offers you quality work at a little cost.  

At the same time, you have to be careful while selecting your business partner. Carefully vet your vendor before signing that contract. You also have to be clear about your business requirements so that you don’t end up unsatisfied with the end product. There are a few things that may go wrong in outsourcing your work. There is a risk associated with it. But in the end, the probability of your risk paying off is quite good. 

Outsource your work to best service provider: Contact Us today

Cover Image Source: Aapna Infotech

Leave a comment

Your email address will not be published. Required fields are marked *

Popular Post

Recent Post

How Software Development is need of the hour for the Healthcare Industry

By TechCommuters / October 22, 2021

The use of computerized innovation in the medical services area has changed significantly all through the world. Consolidating software with healthcare services is so useful to the clinical area that it resembles joining two of the most impressive energies into one. As displayed during this frightful pandemic, ongoing enhancements in healthcare software can assist with […]

Your Mac Lags After the macOS Monterey Update? Here’s What to Do

By TechCommuters / October 22, 2021

If you have just upgraded your macOS Monterey 12 to find your Mac is also lagging, getting stuck, or running slow, you have come to the right place. Here we will discuss quick troubleshooting tips to get your Mac back on track. Before we get into details, let us try to understand the root of […]

RecoverXData Recovery Review

By TechCommuters / October 21, 2021

Data is essential for all; be it a home user or professional, all want to keep their data safe. However, due to unforeseen situations, primarily due to human error, we lose important data. This is when data recovery tools come to play. Using them, you can get deleted or missing files back. But with so […]

Fix – Windows 11 Bluetooth Not Working

By TechCommuters / October 18, 2021

Is Bluetooth on Windows 11 giving issues? You have come to the right place. In this post, we will discuss how to fix Windows 11 Bluetooth not working. Generally, the Bluetooth problems are caused due to some software issues, but they can also be related to hardware malfunctioning. Therefore, before we get into details, let […]

How to Reset Network Settings on Windows 11

By TechCommuters / October 16, 2021

Are you facing connectivity issues? Follow these instructions to reset network settings on your Windows 11 and fix the connectivity problems. The network settings on the PC manages internet connectivity. However, in some cases, due to outdated network adapters and incompatible configuration issues like slow connection and dropped connection, no wireless connectivity occurs. If you […]

Bitdefender Internet Security Review

By TechCommuters / October 15, 2021

As the cybersecurity needs of users are growing, Bitdefender has come up with comprehensive Internet security software that is designed to keep you safe 24/7. Bitdefender Internet Security is a one-stop solution for all your security needs. We’ve got a chance to test this powerful tool and to check its compatibility with other security solutions […]

How to Uninstall Cortana from Windows 11

By TechCommuters / October 13, 2021

Is Microsoft’s digital assistant bothering you? Do you want to uninstall it? You’ve come to the right place; here, we will explain removing Cortana on Windows 11. Although Microsoft doesn’t give a straightforward way to uninstall it, there are still ways. Why Uninstall Cortana? It is not like Microsoft’s cloud-based digital assistant; Cortana takes too […]

Seven Best-Hidden Spy Apps For Students

By TechCommuters / October 11, 2021

Technology is advancing at an alarming rate, with most people jumping onto the new trend without fully understanding what these advancements entail or the consequences. It is also a widely known fact that many people do not read the terms and conditions of the new apps. So, the following seven apps will help you keep […]

Top 5 Best Apps to Boost Your Academic Writing Skills

By TechCommuters / October 11, 2021

Most students find it hard to write a comprehensive academic essay within the given timeframe. It becomes quite challenging and equally stressful to complete the assigned task, especially when the deadline is near. However, there are certainapps for writing essaysthat will help you deliver top-quality assignments. Best Essay Writing Apps to Improve Writing Skills There […]

What is brand risk protection and why does it matter?

By TechCommuters / October 6, 2021

Today’s security professionals have become familiar with the idea that every organization has an attack surface that describes its global exposure to threats against internal and cloud applications, devices, users, and data.  The attack surface grows as greater connectivity, cloud applications and myriad new types of device are adopted as an organization expands its digital […]

How to Keep Yourself & Your Devices Safe Online

By TechCommuters / October 1, 2021

Worldwide, more and more people are doing what they can to protect themselves and their data. Considering we live in a world that is so connected, with everything from work to our social lives and entertainment happening online, protection is a must. Staying safe online isn’t as difficult as you think either; it just requires […]

How To Join a FaceTime Call From an Android or Windows Web

By TechCommuters / September 26, 2021

Finally, iOS 15 is now available to download, and it has brought many surprises along. The biggest iOS 15 surprise is that now Apple users can FaceTime with non-Apple users. Yep, you no longer need to use Zoom or Microsoft Teams to make video calls. Instead, Apple has allowed people to join a FaceTime call […]

How to Use VPN on Synology NAS

By TechCommuters / September 25, 2021

We all want to secure our remote access for daily needs & projects. But how to get it done is a big question. Using a VPN this problem can be easily solved as it creates an encrypted tunnel to secure network connection.  Acronym for Virtual Private Network (VPN) hides IP addresses allowing users to navigate […]

5 Best Lead Generation Software for 2021

By TechCommuters / September 22, 2021

Are you looking for the best lead generation software? Then don’t look for the tool that can boost your sales or customer base. In fact, search for the tool that can integrate your CRM software for better KPIs and analytics. Lead capture software can do a lot more than improving your sales or traffic. It […]

5 Best Label Designing and Printing Software in 2021

By TechCommuters / September 19, 2021

Be it product branding or marketing; labels play a significant role in selling a product. In fact, the label helps to distinguish your products from others.  Therefore, the designing and printing of your product label need to be perfect. And for this, we will talk about the best 5 label designing and printing software in […]