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A decade ago, software outsourcing was seen as an attractive option for enterprises that wanted to lower operational costs overall when the purpose of the organization was not primarily focused in the IT industry. Nowadays, as the demand for IT resources continues to increase exponentially, offshore software development may be the only acceptable course of action. Companies both big small such as multi-national companies, start-ups and even local businesses are looking into what the offshore development business model offers.
As we mentioned above, this may be the main concern to take into account when deciding to contract a service instead of building and working with one of your own. Besides the obvious reduction of costs at the facilities and for equipment, the salaries may greatly affect your budget.
Even when working with the same level of qualified professionals, there may be significant differences in the overall salaries paid overseas when looking at countries recognized for their software development centres.
Recruiting and staffing are getting harder with the increasing demand worldwide. Outsourcing removes this problem almost completely while providing you with the best professionals around the world, depending on your offshore software development of choice, of course.
Innovation and quality are main concerns of outsourcing companies. Depending on your requirements, you can get highly qualified professionals following the highest standards in software development. If you need to build a team of your own with the same level of quality, you would either have to contract very expensive resources (which may not be available at all), or you would need to invest in training that could take young professionals years to become as productive as a senior professional with several years of experience.
When your business is not IT, having to deal with your own IT department imposes a tremendous operative cost when handled as a completely separate area. Most of time, you come upon a cost-benefit trade-off at the moment of implementing a given feature into your business. If your IT department is not skilled enough in software technologies or if it does not have the required additional resources, your options to determine how to implement a new feature will be restricted by these limitations.
In this case, chances are that you end up with a suboptimal solution that could be tackled by your own IT department.
Risk management in software development is usually underestimated by most non-IT companies. When deciding to outsource a given component, the parties agree on what has to be done, and the impact and risk management is shared among them. Managing and mitigating the risks produced by the development can be handled better by the offshore company as it is part of its core business to do so.
One huge advantage of hiring an offshore software development company is that you do not need to create and manage a development team at all. Project start-up can takeoff more quickly.
Although this term refers mostly to scaling in hardware infrastructure, it is also an important factor introduced by offshore development. Your business may not require the same resources all the time. There might be a phase of your products and services that require a greater number of expert resources to work on, and then you could achieve a level of maturity that makes it unnecessary to continue with the same level of higher qualified professionals.
At this point, you may decide to shrink the team or switch roles and positions to a more operative level. This degree of management of IT resources could be tremendously complex when dealing directly with the hiring of personnel, instead of delegating all this to your offshore development centre.
Although most benefits you get from working with an offshore software development centre would certainly impact on the reduction of costs, by delving deeper into the benefits, one will realize that it is not only a matter of budget. Even with equal or greater costs, the expertise and specialization that you can have when you consider outsourcing software, allowing you to focus on your company’s main goals, are certainly key factors to consider.