Notes for CEO: Cases When You Need to Outsource Software Developmentby QArea Team on November 27, 2012
Having the own dedicated development team is always easier than distributing software development. One important question arises: When you should outsource software development? As outsourcing is a pretty young term there are many unclear moments related to this service. For example, most of the people associate outsourcing with cheap and not quality labor relaying on the bad experience of collaboration with Asian (like Indian) companies. It is can be risky for your business. Answer the next questions when you try to decide outsource or not outsource software development.
Is software development an internal part of your business process?
You need to detect whether application that you need should be maintained an enhanced in the future along with non-software products. If software product is not a part of your core activity, probably it is not efficient to tackle this problem by yourself.
What are the main risks when you are going outsourcing?
Of course, there are plenty of risks arises when deals move offshore, no matter what your business is. The main risks are: financial, culture, security, quality and functionality of the product and etc. Nothing ventured, nothing gained. So, how to minimize the risks?
- Ability to sign Non-disclosure agreement;
- Location. Closer outsourcing vendor is located to you, the lower risks of cultural contradictions;
- Experience of the vendor and its reputation;
- Size of the company and availability of demanded services, etc.
Do you have enough experience to develop software product?
You should be confident in your abilities to create application better than in case of outsourcing this service. So if you have lack of experience in this domain or require some special and high standard product, we suggest you to ask for external help. The ideal combination of price and quality in this case is Central and Eastern Europe countries (Ukraine, Belorussia).
Is it more costly to outsource software development?
In case if software development by co-located team is cheaper than outsource specific project to other company you also should take into account next issues:
- quality of your experts in outsourcing companies is usually higher;
- you don’t need to buy hardware and software equipment, outsourcing companies have their own;
- you don’t need to spend money on further training of employees.
Generally, all the issues regarding development are not your headache anymore. Outsourcing company takes care about it.
Outsourcing software development became the same as outsourcing in any other industry when you sure that external agent will make it better. Try to analyze the efficiency you gain from outsourcing and make the right choice outsource or not outsource.
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