Science and Technology

The Ultimate Guide To Software Development Outsourcing

Statista states that the outsourcing industry nearly doubled its worth from $45.6 B in 200 to 85.6 Billion dollars in the year 2018. It only shows the fact that businesses of all sizes are embracing the opportunity of outsourcing their work

With the onset of globalisation and economies being more intertwined than ever, finding a globally acclaimed talent is no longer a hassle. One can gain a competitive and economic advantage due to the outsourcing of software development.

Software Development Outsourcing

Outsourcing is transferring your task to another company or entity so that you can concentrate on your core competitive strengths. Outsourcing can be done to onshore, nearshore or offshore third party vendors. What this does is that one gets access to a global talent while reducing the cost of operation.

Why Outsource?

The main reason for outsourcing your software development is to reduce the cost of operations. Having an in-house team involves a lot of work, and the unit can be hard to maintain. For hiring a typical software development team, one must

  1. Screen, validate and interview potential candidates
  2. Impart Employee Training
  3. Bear additional expenses like taxes and perks

With the issues mentioned above, the main problem is that the cost of your operations will be high because you’ll have to deal with the labour laws and minimum wage in your country.

A software outsourcing company will be cheaper, as in most cases, they work for less than your current location.

Which IT Outsourcing Company to choose

Now you know that you are better off outsourcing, but now you have the hurdle of choosing between the three types of software outsourcing.

  • Onshore Outsourcing
  • Nearshore Outsourcing
  • Offshore Outsourcing

1. Onshore Outsourcing

It is outsourcing a job to a company located in the same country or region.

2. Nearshore Outsourcing

It means outsourcing to a nearby country which is preferably in the same time zone. For example, a company in America outsources their work to a company in Mexico.

3. Offshore Outsourcing

It means Outsourcing the work to a country that is on a different continent itself.

One can outsource the development to any of the categories as mentioned above. But keep in mind that Onshore and Nearshore outsourcing is generally much costlier than Offshore outsourcing. No matter where you decide to take your company’s work, you must make sure that the outsourcing firm understands your needs and is competent and capable enough to deliver a superior product.

Traits of good IT Outsourcing Companies

  • Experience
  • References
  • Testimonials
  • Competency
  • Communication

One must take the traits as mentioned above very seriously and as a rule of thumb do not work with the cheapest company that you find. Try and find a company that is innovative and comes up with new ideas all the time. Companies that nod yes to your every demand will do you no good in the long run. The superior product can only be achieved if there are clear communication and competency that matches that of your parent company. If things don’t work, there is always the option of going to other IT Outsourcing Companies.

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